SD| Bulletin 26-01 sets out South Dakota’s requirements for marketing crop hail, companion hail, and non‑FCIC‑subsidized supplemental crop products, replacing all prior crop hail bulletins and prescribing how forms, rates, and discounts must be filed and used.
- Discount rules: Cash discounts up to 5% are permitted if filed, limited to payments received or postmarked by August 15 (or paid in full with later new applications), with specific notice and waiver requirements and strict anti‑rebating limits on agents, while other discounts such as total limit, volume, MPCI package, claims‑free, or cross‑line tie‑ins are expressly prohibited, and non‑compliance may subject insurers or producers to administrative penalties.
- Filing requirements: All new or revised crop hail and supplemental product forms and rates intended for a calendar year must be filed in SERFF by February 15, with detailed procedures for NCIS, modified NCIS, and independent forms, and for rate filings both based on and not based on NCIS Final Average Loss Costs, including 5‑year experience, multipliers, and actuarial support.
- Companion/Production Plan and documentation: Companion hail and Production Plan products may only supplement underlying MPCI (not stand‑alone), Production Plan factors must be at least 100% of NCIS factors absent supported deviation, and cover letters/memos must address rounding, identical‑rate relationships, NCIS adoption, caps/discounts/surcharges, and any dividend plans (which cannot be quoted or paid upfront and must comply with South Dakota law).