South Dakota § 58-11-44 - Application for insurance or annuity--Statements by insured deemed representations--Omissions, concealment, and incorrect statements preventing recovery.

§ 58-11-44. Application for insurance or annuity--Statements by insured deemed representations--Omissions, concealment, and incorrect statements preventing recovery.

All statements and descriptions in any application for an insurance policy, certificate, or annuity contract, by or on behalf of the insured or annuitant, shall be deemed to be representations and not warranties. No misrepresentation, omission, concealment of fact, or incorrect statement prevents a recovery under the policy or contract unless:

(1)    Fraudulent or an intentional misrepresentation of a material fact; or

(2)    Material either to the acceptance of the risk, or to the hazard assumed by the insurer; or

(3)    The insurer in good faith would either not have issued the policy or contract, or would not have issued it at the same premium rate, or would not have issued a policy or contract in as large an amount, or would not have provided coverage with respect to the hazard resulting in the loss, if the true facts had been made known to the insurer as required either by the application for the policy or contract or otherwise.

With respect to any health insurance policy or certificate, subdivisions (2) and (3) of this section only apply to excepted benefits.

No applicant, insured, or annuitant may be asked to warranty or certify whether or not the applicant, insured, or annuitant is insurable.

Source: SL 1966, ch 111, ch 22, § 12; SL 2011, ch 214, § 1.