CHAPTER 249

(SB 43)

Delivery receipt for medicare supplement policies, procedure modified.

         ENTITLED, An Act to  conform medicare supplement plans to general delivery receipt requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 58-17A-8.1 be amended to read as follows:

     58-17A-8.1.   An issuer shall issue policies in this state for which an examination period is required in accordance with one of the following methods:

             (1)      If the policy is delivered by an insurance producer, a receipt shall be signed by the policyowner acknowledging delivery of the policy. The receipt shall include the policy number and the date of the delivery;

             (2)      If the policy is delivered by mail, it shall be sent by registered or certified mail, return receipt requested, or a certificate of mailing shall be obtained showing the date the policy was mailed to the policyowner. For policy issuances verified by a certificate of mailing, it is presumed that the policy is received by the policyowner ten days from the date of mailing.

     The receipts and the certificates of mailing described in this section shall be retained by the issuer or insurance producer for three five years. If a producer obtains the delivery receipt, the producer shall forward the signed delivery receipt to the insurer.

     Signed February 11, 2003.

_______________