On March 29, 2018, the South Dakota Division of Insurance issued Bulletin 18-01 which implements a significant change to the Department’s treatment of Defense Within Limits provisions for professional liability products.
The Division adds Lawyers Professional Liability to the list of the types of policies in which Defense Within Limits is permitted without the $1 million minimum limit per occurrence requirement. Additionally, the Bulletins allows that other lines of insurance may be permitted without the minimum requirement at the discretion of the Director; however a $1 million option must also be offered. Finally, Fidelity and/or Surety Bonds, which had previously been on both lists, have been removed from the list of the types of policies that required $1 million per occurrence in order to be approved and remain on the list of the types of policies without the requirement.
For any questions regarding Bulletin 18-01, or for assistance in compliance matters pertaining to Defense Within Limits, please contact Westmont Associates, Inc.
Contact Westmont Associates, Inc.
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us.