The South Dakota Division of Insurance has placed Northern Plains Insurance Company located in Watertown into liquidation due to insolvency. The order of liquidation has been approved by the circuit court. Northern Plains Insurance is a South Dakota-based personal auto insurance company which specializes in offering high-risk coverage.
State Insurance Director Merle Scheiber says the order of liquidation allows the division to provide protection to the affected policy-holders, including the payment of any valid claims.
The South Dakota Insurance Guaranty Association fund, established by SDCL Chapter 58-29A, provides a safety net to claimants. The fund is designed to pay claims in the event of insurance company liquidation.
"We are confident all existing valid claims will be paid," said Scheiber. "The liquidator is notifying all policy holders, claimants and other interested parties by mail to outline the procedure to file claims and get information on the liquidation status."
Related documents are available at www.northernplainsins.com. Affected policy-holders should contact their insurance agent for assistance in finding other coverage. Anyone with questions is encouraged to call the Division of Insurance at (605) 773-3563.