Rule 20:06:29:02 Replacement of policy.
20:06:29:02. Replacement of policy. This section applies
to the cancellation date of any replaced policy, other than a life or health
policy. If the replacing policy is already effective on the date an insured or
an insured's representative makes a request for cancellation of the replaced
policy, the cancellation date of the replaced policy shall coincide with the
effective date of the replacing policy if the insured or an insured's
representative provides to the replaced insurer one of the following:
(1) A copy of the
declaration of the replacing policy or a binder issued under the authority of
the replacing insurer; or
(2) The replaced policy or
a properly completed lost policy release form.
However, if a document in subdivision
(1) or (2) is not provided to the replaced insurer, the cancellation date of
the replaced policy shall coincide with the date of request for cancellation of
the replaced policy.
A personal policy is considered to be
a replacing policy for coverage purchased by a lending institution for its
interest in the property of the borrower.
The insurer who is honoring a request
for cancellation made pursuant to this section is not liable for coverage under
the policy after the effective date of the cancellation regardless of the date
the cancellation was requested.
A replaced insurer who, pursuant to
the policy, made one or more Public Utilities Commission form filings, a
similar filing in another state, or an Interstate Commerce Commission filing is
not required to comply with this section unless the replacing insurer provides
a hold harmless agreement for the period of time during which the filing
requires the replaced carrier to continue with the risk.
22 SDR 52, effective October 25, 1995; 24 SDR 86, effective December 31, 1997;
25 SDR 76, effective November 26, 1998.
Authority: SDCL 58-11-63(1)(4)(7).
Implemented: SDCL 58-11-63(1)(4)(7), 58-33-35, 58-33-83.
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