News from the Surplus Lines Industry and InsCipher
Update
South Dakota: Update - Broker Fee Guidance
Shared by Compliance
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Following additional clarification from the South Dakota Department of Insurance, we have removed the prior fee restriction related to broker fees effective January 1, 2026, and forward.
The Department has confirmed that any fee charged to the consumer must:
- Appear on the policy Declarations Page
- Be approved by the carrier
- Be included in the premium and subject to applicable premium tax
South Dakota Codified Laws § 58-11-1 provides:
“Premium is the consideration for insurance, by whatever name called. Any assessment, or any membership, policy, survey, inspection, service, or similar fee or other charge made by an insurer or insured in consideration for an insurance contract is deemed part of the premium.”