{"data":{"id":"us-sd/sdcl-58-12-34","jurisdiction":"us-sd","citation":"SDCL § 58-12-34","heading":"Acts constituting unfair claims practices.","body":"Any of the following acts by an insurer, if committed in violation of § 58-12-33, is an unfair claims practice:\n(1) Knowingly misrepresents to a claimant or an insured a relevant fact or policy provision relating to coverages at issue;\n(2) Fails to acknowledge with reasonable promptness pertinent communications with respect to claims arising under its policies;\n(3) Fails to adopt and implement reasonable standards to promptly complete claim investigations and settlement of claims arising under its policies;\n(4) Fails to make a good faith attempt to effectuate prompt, fair, and equitable settlement of claims submitted in which liability coverage, and causation of claims have become reasonably clear;\n(5) Compels an insured or beneficiary to institute a suit to recover an amount due under its policies by offering substantially less than the amount ultimately recovered in a suit brought by the insured or beneficiary;\n(6) Refuses to pay claims without conducting a reasonable claim investigation;\n(7) Fails to affirm or deny coverage of claims within a reasonable time after having completed a claim investigation related to the claim;\n(8) Attempts to settle a claim for less than the amount that a reasonable person would believe the insured or beneficiary is entitled by reference to written or printed advertising material accompanying or made part of an application;\n(9) Attempts to settle a claim on the basis of an application that was materially altered without notice to, or knowledge or consent of, the insured;\n(10) Makes a claim payment to an insured or beneficiary without indicating the coverage under which each payment is being made;\n(11) Unreasonably delays a claim investigation or payment of a claim by requiring both a formal proof of loss form and subsequent verification that would result in duplication of information and verification appearing in the formal proof of loss form;\n(12) Fails, in the case of a claim denial or offer of compromise settlement, to promptly provide a reasonable and accurate explanation of the basis for such action; or\n(13) Fails to provide forms necessary to present a claim within fifteen days of a request with reasonable explanations regarding their use.","path":["TITLE 58. INSURANCE","CHAPTER 58-12. INSURANCE CLAIMS AND BENEFITS"],"source_url":"https://sdlegislature.gov/Statutes/58-12-34","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"93a9690790f66f4f118b10fb70d3f4db524a86cfa893aeda0122bd1f250d246d","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-58-12-33","next":"us-sd/sdcl-58-12-35"},"notice":"GroundRules: Original legal text. Not legal advice."}