South Dakota underinsured motorist coverage exclusion found unenforceable

Streff v. State Farm Mutual Auto. Ins. Co., 2017 S.D. 83, was decided by the Supreme Court of South Dakota on December 13, 2017, affecting coverage in private passenger automobile policies for underinsured motorist coverage.  The Court held that the government vehicle exclusion with respect to underinsured motorist coverage in private passenger auto policies unenforceable, and that it violates South Dakota public policy.  Insurers are compelled by this decision to immediately cease the enforcement of the government vehicle exception if contained in the definition of underinsured motor vehicle, and are well-advised to promptly amend their auto insurance policies to comply with this decision.

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This blog should not be considered as legal or other advice.  It is solely to put you on inquiry notice of this change in South Dakota requirements imposed on companies in the business of Private Passenger Auto Insurance in the State of South Dakota.  You can contact Jeff Nash at 440.759.0817 if you wish to engage the assistance of The Nash Group.  Engagements may only be formed pursuant to a written Engagement Agreement.