South Dakota Department of Insurance

Office address: 124 South Euclid Avenue, 2nd Floor Pierre, SD 57501  
Website: dlr.sd.gov/insurance 
Year established: 1966 
Employees: 40+ 
Key people: Larry Deiter (director); Jill Kruger (deputy director of insurance); Tony Dorschner, Travis Jordan, and Johanna Nickelson (assistant directors); Jeff Smith (senior L&H analyst) 
Operating budget: $4.9 million (FY 2025) 

The South Dakota Department of Insurance (officially the South Dakota Department of Labor and Regulation Division of Insurance) regulates coverage to keep it fair and accessible. It handles complaints, licensing, and health claim reviews through independent reviewers. 

History of South Dakota Department of Insurance 

Formally known as the “South Dakota Division of Insurance”, the agency was created in 1966 through state law. It began as a way to enforce insurance standards and give consumers a place to turn to when coverage or pricing concerns arose. 

Throughout its history, the division responded to major shifts in health care, federal law, and market trends. Important highlights include: 

• 1973: clarified health and accident insurance under SDCL 58-17-10 
• 1981: issued premium tax guidance for reporting by insurers 
• 1989: addressed COLA issues in long-term care coverage 
• 1992: improved Medicare Supplement transparency through clear outline requirements 
• 1999: introduced oversight rules on managed care networks 
• 2002: aligned insurer rules with USA Patriot Act compliance 
• 2006: added flood insurance training for insurance producers 
• 2010: blocked Medigap reentry after plan drops for five years 
• 2016: updated privacy notices and market conduct requirements 
• 2020: allowed temporary licenses and flex plans during the pandemic 
• 2022: replaced outdated annuity rules with best interest standard 
• 2024: joined the Interstate Insurance Product Regulation Commission for filings 

In recent years, the South Dakota Department of Insurance has focused on consumer access and policy protections. It also reinforced direct enrollment compliance across federal health platforms in 2025. 

South Dakota Department of Insurance mandate 

The agency operates under the authority of Title 58 of the South Dakota Codified Laws and ARSD 20:06. Its legal mandate is to regulate the state’s insurance market while protecting consumers and promoting financial stability.  

Several specialized units help fulfill this oversight role: 

1. financial and licensing 
2. life and health 
3. property and casualty 
4. compliance and investigation 

The South Dakota Department of Insurance is led by Director Larry D. Deiter, who was appointed in 2015 by the Secretary of Labor and Regulation. Deiter also serves in the NIPR and the NAIC, which he was elected for during the NAIC election held in 2024 for the 2025 term. 

Key responsibilities  

The South Dakota Department of Insurance covers everything from helping consumers understand coverage to reviewing denied health claims through independent review organizations. Other duties are listed below: 

• consumer guidance: offers learning materials on insurance topics and coverage choices 
• complaint assistance: helps resolve issues with companies or producers 
• license verification: provides access to licensed producers and insurers 
• company data access: gives details on financial ratings, filings, and complaints 
• product filing review: evaluates forms and rates under ARSD 20:06 rules 
• external medical review: manages IRO processes for denied health claims 
• fraud referral: coordinates with the AG’s office to address insurer fraud 
• assessments: collects fees for fraud prevention, injury funds, and examinations 
• financial audits: conducts regular company audits and solvency exams 

It also publishes bulletins, newsletters, market share reports, and filing resources for both the public and the insurance industry. 

However, the South Dakota Department of Insurance does have limits. It cannot:  

• provide legal advice 
• settle legal disputes 
• decide on medical need 

The department also cannot intervene in federal or self-funded plans, which include Medicare or Marketplace decisions. 

Recent initiatives and regulatory focus 

In 2025, the South Dakota Department of Insurance became the 36th state to adopt the NAIC’s State Based Systems platform. The system improves how the department manages licensing, enforcement, and consumer services. 

The agency also recently supported key legislation during the state’s 100th Legislative Session. Two agency-backed bills were passed:  

1. Senate Bill 29: merged the Division of Insurance and Securities operating funds for administrative efficiency 
2. Senate Bill 30: removed outdated terms and clarified continuing education language in the insurance code 

Additional insurance-related laws included changes to deductible rebates, title fees, and pharmacy contract protections, all taking effect July 1, 2025. 

Consumer protection and outreach 

The South Dakota Department of Insurance offers several programs that help protect and inform insurance consumers. These efforts aim to simplify access and resolve common coverage concerns: 

• external review program: free appeal process for denied health claims 
• license inquiry service: verifies insurance agents and companies 
• insurance fraud reporting: refers suspected fraud to enforcement partners 
• consumer publications and guides: explains coverage and market choices clearly 

The department encourages residents to use these tools before buying or disputing coverage. Each resource is available on the agency’s official website.