South Dakota Resources

In 1998, the NHWA, predecessor to the current NHSCA,  worked closely with then  Insurance Director Darla Lyon and her staff to pass the service contract definition model statute.  This action of working cooperatively with a leading insurance commissioner set a standard for other states to follow. SB 118 was passed with the full support of the South Dakota legislature and is now codified at Chapter 1, 58-1-3.

For a direct link to the South Dakota law, CLICK HERE

CHAPTER 1 DEFINITIONS AND GENERAL PROVISIONS

58-1-3.  Application of title as to particular types of insurers. No provision of this title applies with respect to:

(1)      Fraternal benefit societies, except as stated in chapter 58-37A;

(2)      Bail bondsmen, other than corporate sureties and their agents, except as stated in chapter 58-22;

(3)      Motor vehicle service contracts which are contracts or agreements to perform or indemnify for a specific duration the repair, replacement, or maintenance of motor vehicles for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service. Consideration for a motor vehicle service contract shall be stated separately from the price of the motor vehicle;

(4)      Service agreements or extended warranty plans for which the primary purpose is to provide service, repair, or replacement on consumer goods or products including appliances, merchandise, or equipment, or mechanical/electrical systems in single or multiple-family dwellings. Incidental indemnity payments under such plans where service, repair, or replacement is not feasible or economical does not void this exemption;

(5)      Any person, trust, or other entity proven to be under the exclusive regulatory authority of the federal government or another state agency;

(6)      Any agreement to provide liability protection entered into pursuant to chapter 1-24 is exempt from the regulatory requirements of Title 58, except to forms of insurance coverage provided by an insurer otherwise subject to the insurance laws of this state.

(7)      Any church plan, as defined in section 414(e) of the Internal Revenue Code of 1986, as amended through December 31, 1999, and section (3)(33)(C)(i) of the Employee Retirement Income Security Act of 1974 (29 USC 1002(33)(C)(i)); or any church benefits board, as described in section 414(e)(3)(A) of the Internal Revenue Code of 1986, as amended through December 31, 1999, and section (3)(33)(C)(i) of the Employee Retirement Income Security Act of 1974 (29 USC 1002(33)(C)(i))

None at this time

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