SDCL § 58-12-33: Flagrant or frequent violations--Notice and opportunity to correct inadvertent violations.

Any act by an insurer, if committed in violation of this section, is an unfair claims practice if:

(1) It is committed flagrantly and in conscious disregard of the provisions of §§ 58-12-31 to 58-12-37, inclusive, or any rule promulgated pursuant to §§ 58-12-31 to 58-12-37, inclusive; or

(2) It is committed with such frequency to indicate a general business practice to engage in that type of conduct.

For any act defined in § 58-12-34, the director shall provide notice and an opportunity to correct the violation pursuant to § 58-33-68 if the act was inadvertent. Any act that is committed flagrantly or in conscious disregard of the provisions of §§ 58-12-31 to 58-12-37, inclusive, are not subject to the procedures required under § 58-33-68.