The South Dakota Division of Insurance published a bulletin providing information on requirements for marketing crop hail insurance in the state. Crop hail insurance includes crop hail coverage, companion hail, and supplemental crop products not subsidized or reinsured by the Federal Crop Insurance Corporation.
The filing deadline for new or revised crop hair and supplemental crop product rate, form, and revisions for use in a calendar year must be submitted to the Division each year by February 15. If the 15th falls on the weekend or a holiday, the deadline is the next business day.
Companies may file form and rate filings in one filing or separately. If a form has already been approved in a previous year, it is not necessary to refile unless changes have been made.
If the National Crop Insurance Services (NCIS) has filed revised loss costs, insurers are required to file updated rates in accordance with NCIS biennial filing procedures.
Insurers that don't use NCIS Final Average Loss Cost (FALC) must support their filed rates with actuarially sound data. The filings must include the company's most recent five-year pure loss experience and expenses, an actuarial memorandum explaining the rates, and a copy of the proposed rates.
Insurers may offer a maximum five percent cash discount for premium payments received or postmarked by August 15, or for full payments made with applications written after that date. Applications must include a clear notice allowing the purchaser to waive this discount if they choose not to pay by the cut-off date.
Discounts not permitted include any discounts based on total limits of liability, total premium volume, Multiple Peril Crop Insurance (MPCI) packaging, claims-free history, or tie-ins with other lines of insurance, such as auto or farmowners policies.
The bulletin can be found here.