South Dakota legislators have voted to keep the state’s countersignature law for insurance policies, which requires all policies to be signed by a resident agent.
The move is viewed as a setback for insurers and consumers by the National Association of Independent Insurers. “Requiring all insurance policies to be physically signed by an agent living in the state simply has no place in this day of electronic commerce,” asserted Laura Kotelman, NAII associate counsel.
“Requiring such signatures adds to the cost of insurance, impedes the flow of business and gives consumers fewer choices without benefiting them in any way.”
Consumers who seek coverage for their South Dakota property from an agent outside the state must have the policy signed by an agent living in South Dakota.
Present law requires insurance companies to pay the lesser of five percent of the premium or 25 percent of the commission to countersigning agents. Some agents reportedly plan to push to have the “lesser of” language deleted.
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