South Dakota DOI Migrating to State Based Systems (SBS)

In this IssueSDDOI Migrating to State Based Systems (SBS)2025 NAIC Committee List2025 Legislative Session Recap2024 Annual Report PublicationsInsurance Bulletins IssuedSDDOI Welcomed to IIPRCAdministrative Rules Update2024 Market Share ReportsDLR LMIC Data & Analysis2025 NAIC Federal Legislative and Regulatory Priorities2025 NCCI Workers Compensation Advisory Loss Cost & Assigned Risk Rates Informal Hearing124 S. Euclid, 2nd Floor | Pierre, SD 57501Phone: 605.773.3563 | Fax: 605.773.5369insurance@state.sd.us Larry Deiter, DirectorDivision of InsuranceDivision Migrating to State Based Systems (SBS)Division of Insurance Director Larry Deiter is pleased to announce South Dakota is migrating to SBS as their business solutions software system. The Division is the 36th NAIC member to adopt SBS. As referenced in the news release issued by the National Association of Insurance Commissioners (NAIC) on April 18: SBS empowers state insurance departments to seamlessly process license applications, renewals, inquiries, complaints, enforcement actions, and more—delivering results with minimal effort while ensuring compliance with national uniformity initiatives. The integration between SBS and the National Insurance Producer Registry (NIPR) is a cornerstone for streamlining mission-critical regulatory tasks.South Dakota Insurance Director Larry Deiter shared the positive change of SBS, saying, “SBS helps us protect South Dakota consumers more efficiently. It’s easy to use and makes our regulatory work simpler, while also saving money for the businesses and license holders we work with. We’re excited to start using SBS in South Dakota this summer.”With a broad array of services—including producer licensing, company licensing, continuing education tracking, consumer services, enforcement, fraud reporting, exam tracking, and revenue management—SBS stands as a comprehensive solution that adapts to the diverse needs of insurance regulators. The press release may be viewed in its entirety here. The Division in partnership with SBS will offer system information and training in person at several locations in South Dakota for licensees as well as an online option. Information on the meeting dates and locations will be announced when scheduled. Licensees are encouraged to make sure all contact information on file with the Division is up to date to ensure all messages about this system change are received. Producers and business entities can access and update their contact information through the Sircon/Vertafore for Individuals and Agencies or National Insurance Producer Registry (NIPR). Companies can review and update their company contact information through the “Company Address Service” portal link available on the Division’s website. Pearson VUE testing will be unavailable from July 10-15, 2025, as the transition to SBS. is completed.Additional information on SBS can be accessed here.

2025 Legislative Session RecapSouth Dakota's legislature adjourned on March 31, 2025, concluding the 100th Legislative Session. More than 570 bills, resolutions, and commemorations were filed during the scheduled 38-day session. Two vetoes were issued, and both were sustained.The South Dakota Department of Labor and Regulation requested the introduction of 10 bills, including two specifically addressing state insurance laws. Senate Bill (SB) 29 - An Act to amend provisions regarding the Division of Insurance and the former Division of Securities operating fund. This legislation combined the two operating funds for the Division of Insurance and the Division of Securities into one account for administrative efficiency. The Division of Securities was merged into the Division of Insurance by executive order in 2017.Senate Bill 30 - An Act to remove outdated provisions within the insurance code. SB 30 removed outdated references like “diskette,” “telegraph,” and “telegram;” updated “sponsor” to “provider,” the correct term for a person or organization offering continuing education for insurance producers; and repealed a statute referring to a program that ended in 2015. Other bills of interest affecting insurance regulation that successfully passed in 2025 include:Each bill referenced in this article has an effective date of July 1, 2025.Interested parties can review the actions taken by the South Dakota Legislature via the Legislative Research Council website. 2025 NAIC Committee ListThe South Dakota Division of Insurance serves on 30 National Association of Insurance Commission (NAIC) committees, task forces and work groups.Director Larry Deiter serves as Chair for the Surplus Lines Task Force and the Producer Licensing Task Force. View the 2025 NAIC Committee List.2024 Annual Reports Available Department of Labor and Regulation 2024 Annual Report - The Department of Labor and Regulation has released its 2024 Annual Report. This report recaps the wide variety of operations, regulatory oversight and programs administered by the department. View the department's annual report as well as other department publications.Interstate Insurance Product Regulation Commission (IIPRC) 2024 Annual Report - Highlighting the eighteenth year of successful operations for the Insurance Compact. South Dakota is the newest member, joining in 2024. NIPR 2024 Annual Report - Reporting 138.5 million transactions in 2024 and a database including over 8.9 million producer records, the National Insurance Producer Registry (NIPR) released its 2024 annual report. Division of Insurance Director Larry Deiter serves as NIPR Board President. View the NIPR 2024 Annual Report.• SB 93 – An Act to prohibit payment or rebate of insurance deductibles by contractors providing motor vehicle repair services. • SB 135 – An Act to exempt a motor vehicle insurer from a certain title fee. • SB 154 – An Act to prohibit pharmaceutical manufacturers from interfering in contracts between 340B entities and pharmacies and to provide a penalty therefor.

Administrative RulesAdministrative rule changes to Chapter 20:06:13 Appendix D were adopted after final approval was received on May 6, 2025, from the Legislative Rules Review Committee. The effect of this rule updates the Division's Medicare Supplement rules to incorporate the 2025 Medicare Supplement coverage amounts set by the federal government. View the approved rules text. The effective date for these rules is June 5, 2025. A public hearing was held at 10 A.M. on May 19, 2025, on proposed rule changes to date certain references throughout Chapter 20:06 and to update continuing education rules related to Senate Bill 30 passed during the 2025 Legislative Session. View the public hearing notice and proposed rules text. View recent Administrative Rule changes for the Division of Insurance. Division of Insurance Bulletins IssuedThe Division of Insurance relays information on policy and provides guidance to licensees through bulletins. As of April 2025, two bulletins have been issued:Bulletin 25-01 - Enhanced Direct Enrollment Entity Compliance Issued in March 2025, this bulletin outlines compliance for Enhanced Direct Enrollment Entities (EDEs) in the health insurance market, including licensing and appointment requirements. Bulletin 25-02 - 2026 Product Filing Deadlines Issued in April 2025, this bulletin provides filing deadlines and requirements applicable to all On and Off-Exchange Individual and Small Group ACA-compliant health insurance plans. Any issuer who intends to market or renew ACA-compliant products after January 1, 2026, must comply with established filing deadlines for all rates, forms, access plans, and binder filings. Bulletin 25-03 - Pharmacy Benefit Manager (PBM) Compliance with Integrated Discount Medical Plan Organizations (DMPOs) Issued in May 2025, this bulletin clarifies the application of SDCL Ch. 58-29E to PBM and DMPO prescription drug claim transactions when a PBM utilizes a DMPO directly or indirectly as part of its pharmacy benefit management for a third-party payor, like a health benefit plan.View bulletins issued by the Division. Division of Insurance Welcomed to Interstate Insurance Product Regulation Commission (IIPRC)South Dakota was welcomed as the 48th member of the IIPRC on July 1, 2024. Director Deiter joined the IIPRC roundtable for the first time as a participating jurisdiction during the NAIC Summer National Meeting held in Chicago in August 2024. South Dakota's involvement was authorized with the passage of House Bill 1091 during the 2024 South Dakota Legislative Session. The insurance compact establishes a central filing point for certain insurance products, allowing for enhanced speed and efficiency in regulatory review for possible product approval and offering.South Dakota's IIPRC participation includes annuity and life insurance product filings. View additional information on IIPRC. Division of Insurance Director Larry Deiter (front, far right) and SDDOI Management team attending IIPRC round table discussion in Chicago. Pictured with Director Deiter: (front row from left) Deputy Director Jill Kruger and Assistant Director Johanna "Joie" Nickelson. (Back row from left): Assistant Director Tony Dorschner, Chief Legal Counsel Frank Marnell, and Assistant Director Travis Jordan. Picture by IIPRC.

2024 Market Share Reports Available The Division of Insurance has made available online South Dakota market share information for 2024.The market share reports provide state-specific data as compiled from company filings received by NAIC, broken down by line of business subcategories in the areas of Life & Annuity, Health, and Property. Reports from 2015 to 2024 can be accessed on the Division's website, depending on report availability. Access SDDOI Market Share reports. Associated News:In April 2025, NAIC released the Report on Profitability by Line by State in 2023. As announced, this report estimates and allocates profitability in property and casualty insurance by state/territory and line of insurance.South Dakota Labor Market Information Center (LMIC)The Department of Labor and Regulation (DLR) offers access to labor market information in South Dakota. It includes data and analysis on employment levels, unemployment rates, wages and earnings, available labor estimates, employment projections, staffing patterns, career planning information and much more. View information available from LMIC. Are you interested in receiving regular labor announcements from DLR, including LMIC information? Subscribe to the monthly e-Labor Bulletin.NAIC Announces 2025 Federal Legislative and Regulatory PrioritiesIn March 2025, NAIC released its federal legislative and regulatory priorities for 2025. The priorities include:• Preserving and Respecting States’ Primary Role as Insurance Regulators by Eliminating the Federal Insurance Office• Ensuring Natural Catastrophe Resilience • Promoting and Preserving State Flexibility to Manage their Health Insurance Markets • Providing Consistent Funding for Crucial Programs • Producing Guidance on Key Issues View additional information. 2025 NCCI Workers' Compensation Advisory Loss Costs & Assigned Risk Rates Informal Hearing An informal hearing was conducted on Tuesday, March 11, 2025, to discuss the proposed 2025 NCCI Workers’ Compensation Voluntary Advisory Loss Costs and Assigned Risk Rates filing. The proposal reflected an overall average decrease of 3.9% in the advisory loss costs and an overall rate level decrease of 8.8% in the assigned risk market. The filing was approved April 2025 with an effective date of July 1, 2025.