A media release  from Governor Daugaard's office announced the conclusion of a three year investigation of Ability Insurance Company. The company, which sells long term care insurance policies, is being fined $325,000. 

The South Dakota Division  of Insurance (DOI) conducted the examination and negotiated the settlement. The money will be paid to the State of South Dakota.

According to the official statement it is the largest fine for what is called a "South Dakota initiated market conduct examination" in state history.

Numerous violations of South Dakota law and regulations by Ability were found.  According to South Dakota law the report will remain confidential for 30  days, but the Director of the Division of Insurance will open the report to the public Aug. 8 and  post it on the DOI website.

Merle Scheiber, Director of the Division of Insurance, made the following statement"

“The culmination of  this market conduct exam is good for the consumers of South Dakota. Claims were paid and re-adjudicated during the  examination process and the company has instituted substantive changes that will  be monitored going forward. Although this process was confidential during  the examination, the Division of Insurance has been continually protecting South  Dakota consumers throughout this period. This agreement should remind all long- term care companies that we expect them to play by the  rules.”

Claims which had previously been denied by Ability Insurance Company have been reprocessed.