South Dakota Codified Laws
Chapter 04A - Insurance Fraud
Section 58-4A-7 - Civil penalties--Disposition of penalties collected--Civil action in lieu of criminal prosecution.

58-4A-7. Civil penalties--Disposition of penalties collected--Civil action in lieu of criminal prosecution.
If the insurance fraud prevention unit or its designees initiate civil action against any person and that person is found by a court of competent jurisdiction to have committed a fraudulent insurance act as set forth in §58-4A-2, that person is subject to a civil penalty not to exceed five thousand dollars for the first violation, ten thousand dollars for the second violation, and fifteen thousand dollars for each subsequent violation. Civil penalties paid under this section shall be deposited in the insurance fraud prevention unit fund. An action under this section may be in lieu of criminal prosecution under the laws of this state.

Source: SL 1999, ch 241, §7; SL 2013, ch 245, §4.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 58 - Insurance

Chapter 04A - Insurance Fraud

Section 58-4A-1 - Definition of terms.

Section 58-4A-2 - Fraudulent insurance acts--Certain violations as misdemeanor--Certain violations as felony.

Section 58-4A-3 - Powers of insurance fraud prevention unit.

Section 58-4A-4 - Insurance fraud prevention unit--Purpose--Composition.

Section 58-4A-5 - Criminal and civil prosecutions--Unit attorney appointed assistant attorney general--Costs of prosecution.

Section 58-4A-6 - Unit investigators--Qualifications--Powers--Costs of investigation.

Section 58-4A-7 - Civil penalties--Disposition of penalties collected--Civil action in lieu of criminal prosecution.

Section 58-4A-8 - Operational costs of unit.

Section 58-4A-9 - Expenses recoverable--Disposition of recovered costs--Compensation to person in interest.

Section 58-4A-10 - Consent agreement not prohibited.

Section 58-4A-11 - Unit governed by chapter.

Section 58-4A-12 - Records and files confidential--Investigator not subject to subpoena in civil matter--Exceptions.

Section 58-4A-13 - Immunity for persons furnishing information in good faith--Costs assessed against person acting not in good faith--Other privileges and immunities not abrogated.

Section 58-4A-14 - Insurance fraud prevention unit fund--Assessment of insurers--Conditions--Failure to pay as grounds for administrative action.

Section 58-4A-15 - Limitations of chapter.

Section 58-4A-16 - Annual report to Legislature--Contents.

Section 58-4A-17 - Insurer to reevaluate rates for possible reduction in light of impact of fraud prevention.