• PIERRE, S.D. (AP) -- A South Dakota legislative panel on Friday approved a package aimed at giving people better protection against unfair practices by insurance companies.
• The proposals were drafted at Gov. Dennis Daugaard's request after reports that an insurance company had harmed some customers who held policies for long-term care. A state review found current laws fall short of providing adequate protection against unfair handling of claims by insurance companies.
• The House Judiciary Committee voted unanimously to send the measures to the full House for further debate.
• One measure defines unfair practices and allows the state Insurance Division to order insurance companies to stop such practices. The division also could fine a company up to $1,000 for each violation, to a total of $100,000. For flagrant violations, a company could be fined up to $25,000 for each violation, to a total of $250,000.
• State Insurance Director Merle Scheiber said the measure would protect consumers from situations in which insurance companies unfairly handle, investigate, settle or deny claims.
• "Contrary to the belief of most South Dakota consumers, these laws do not exist today," Scheiber.
• The measure is based on a model developed by the National Association of Insurance Commissioners and adopted by 46 states and territories, Scheiber said.
• Larry Deiter, head of enforcement for the state Insurance Division, said the agency can resolve problems under current law, but the proposals will help solve problems more efficiently to protect insurance customers.
• A second bill approved by the committee would allow the Insurance Division to disclose more information about actions it has taken against insurance companies. Another would allow the division to impose penalties without an insurance company's agreement. The measures would not change a current provision that allows companies to request administrative hearings before penalties are imposed and

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