South Dakota Legislation Protects Living Organ Donors in Insurance

South Dakota has enacted groundbreaking legislation that prohibits insurers from discriminating against individuals who are living organ donors. This legal shift, backed by House Bill 1101 and signed into law on March 9, 2026, dictates that life, disability, and long-term care insurance policies cannot deny coverage to donors unless an additional actuarial risk is substantiated. Furthermore, it ensures that policyholders who choose to become donors in the future face no adverse conditions relating to their existing policies.

The statute's provisions are explicit, banning discrimination in any aspect of policy offerings. This includes application processes, policy issuance, cancellation, coverage limits, and pricing, provided the donor status is unsupported by actuarial risk. The legislative framework is comprehensive, covering every phase of the insurer-policyholder relationship to ensure fair treatment.

Legislative Highlights

Central to the law are provisions that prevent insurers from using donor status as a reason to deny or limit policy coverage. Insurers cannot mandate non-donor status for policy continuation, nor can they discriminate in other policy terms without actuarial evidence. However, the ability to underwrite based on verifiable actuarial risks remains intact, as long as those risks are properly justified beyond donor status.

A 'living organ donor' is defined as anyone who has donated part of an organ while still living. This legislation is applicable solely to life, disability, and long-term care policies within South Dakota and is now part of the chapter 58-1 legal code. Insurers operating in these sectors must align their underwriting practices with the new compliance requirements, ensuring donor status alone is not deemed a disqualifier.

The bill garnered widespread bipartisan support, passing the Senate unanimously with a 33-0 vote and the House with a decisive 64-1 vote. This legislative success underscores a robust commitment to equitable insurance practices and the acknowledgment of the altruistic and life-saving contributions of living organ donors.