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Can I require customers to sign liability waivers in South Dakota? What are the requirements?
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Liability Waivers in South Dakota
In South Dakota, liability waivers are allowed, but there are certain requirements that must be met. The South Dakota Code provides some guidance on the use of waivers in certain contexts, but there is no specific statute that governs the use of waivers in general.
Requirements for Liability Waivers
Liability waivers must be clear and unambiguous, and they must be written in plain language that is easy to understand [2.1]. Additionally, the person signing the waiver must do so voluntarily and with knowledge of the risks involved [2.1].
It is important to note that waivers may not be enforceable in all situations. For example, waivers may not be enforceable if they violate public policy or if they are unconscionable [2.1].
Guaranty Association Coverage
It is important to note that innovative insurance products or services being tested under a waiver are not covered by any guaranty association if the participant becomes unable to pay claims [1.1][1.3].
Director’s Authority
The authority granted to the director under the South Dakota Code may not be construed to allow the director to grant a waiver that would abridge the recovery rights of policyholders [1.4].
Conclusion
In conclusion, liability waivers are allowed in South Dakota, but they must meet certain requirements to be enforceable. It is important to ensure that waivers are clear and unambiguous, and that they are written in plain language that is easy to understand. Additionally, waivers may not be enforceable in all situations.
Source(s):
- [1.1] No guaranty association coverage for waivers.
- [2.1] Indemnification.
- [1.3] Consumer disclosures–Digital disclosure receipts.
- [1.4] Waiver not to restrict policyholder recovery or restrict director’s authority.
Jurisdiction
South Dakota