South Dakota Uninsured and Underinsured Motorists Forms

In response to the decision of the South Dakota Supreme Court in Streff v. State Farm Mutual Auto Insurance Co., ISO has implemented revisions to certain of its forms regarding uninsured and underinsured motorists.

Decided on December 13, 2017, Streff v. State Farm Mut. Auto. Ins. Co., 2017 S.D. 83, held that the government vehicle exclusion in auto policies violates South Dakota public policy and is unenforceable. Based on this decision ISO has been forced to revise its personal auto forms providing uninsured and underinsured motorists coverage. The South Dakota Department of Labor and Regulation-Division of Insurance has adopted these form changes.

ISO has introduced two new forms: Uninsured Motorist Coverage – South Dakota and Special Personal Auto Policy Uninsured Motorists Coverage – South Dakota. These forms replace the previously used Underinsured Motorists Coverage and Special Personal Auto Policy Underinsured Motorists Coverage, which have been withdrawn from use. In the new forms, ISO has removed the government vehicle exception contained in the definition of Uninsured motor vehicle and underinsured motor vehicle. Furthermore, ISO has revised the Amendment of Policy Provisions by removing Section VI. Underinsured Motorists Coverage Endorsement.

The revised ISO forms for the Personal Auto Policy have been approved and apply to all policies written on or after October 1, 2018. No specific effective date was established for the Special Personal Auto Policy and each insurer that elects to use the ISO revisions must determine its own effective date. In light of these revisions, Westmont recommends that all insurers writing Uninsured Motorists and Underinsured Motorists coverage in South Dakota review their policies to insure they are compliant with South Dakota’s new requirements.

For any questions regarding South Dakota’s position on government vehicle exclusions, or for assistance in compliance matters pertaining to Uninsured or Underinsured Motorists coverage, please 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 at (856)216-0220.