What to do if your insurer refuses to update you or threatens to close your claim

Short answer: Act fast, document everything, demand a written status and timeline, escalate inside the company, and file a complaint with the South Dakota Division of Insurance if the insurer will not cooperate. If the company improperly denies or abandons your claim, you may have contract and other legal remedies—contact an attorney to evaluate options.

Detailed answer — your step‑by‑step plan under South Dakota law

Insurance companies that do business in South Dakota must follow state law and the rules the state sets for claim handling. The Division of Insurance regulates insurers and enforces consumer protections. If your insurer refuses to update you or says it will close your file, follow these steps right away:

1. Review your policy and claim materials.

   Find your policy number, the claims file number, the loss date, and any deadlines or conditions (for example, notice requirements or time limits to bring suit). The policy controls many rights and duties, so knowing what it says helps you frame questions and spot improper conduct.

2. Document every contact.

   Keep a written log of phone calls (date, time, person, summary), and save all emails, texts, letters, photos, estimates, and receipts. This record makes it easier to prove delays or bad conduct later.

3. Request a written status and timeline from the insurer.

   Send a short, polite written request (email or certified letter) that identifies the claim number and asks for: (a) current claim status, (b) issues preventing payment, and (c) an expected time frame to resolve the claim. Ask the insurer to confirm whether it intends to close the claim and why.

4. Escalate within the company.

   If the adjuster is unresponsive or threatens to close the claim without explanation, ask for a supervisor or the claims manager. Ask for contact information for the insurer’s consumer complaints unit and for any internal deadlines they will follow.

5. Use the South Dakota Division of Insurance.

   If internal escalation fails, file a complaint with the South Dakota Division of Insurance (the state consumer protection regulator). The Division can investigate claim‑handling practices and often helps get insurers to provide explanations or reopen files. Start here: South Dakota Division of Insurance — Consumer Complaints.

6. Consider formal dispute procedures in your policy.

   Many policies include appraisal, mediation, or arbitration procedures. If the insurer threatens to close a claim but a coverage dispute exists, these procedures may force a prompt independent review. Check your policy for applicable provisions.

7. Preserve evidence and meet deadlines.

   Preserve damaged property, repair estimates, medical records, and bills. If the insurer’s threat to close could trigger a policy deadline (for example, final notice before denial), act promptly so you don’t lose rights under the contract.

8. Get legal help if needed.

   If the company wrongfully denies, abandons, or delays payment without a reasonable basis, you may have a breach‑of‑contract claim and possibly other remedies. Talk to a South Dakota attorney experienced with insurance claims to review your file and advise next steps.

Legal background (how South Dakota regulates insurers)

Insurers operating in South Dakota must follow state insurance laws and the rules enforced by the South Dakota Division of Insurance. These laws are codified in Title 58 of the South Dakota Codified Laws. Title 58 contains statutes that govern insurance licensing, market conduct, and consumer protections. You can review the insurance statutes here: South Dakota Codified Laws — Title 58 (Insurance).

The Division of Insurance handles consumer complaints, investigates unfair claim practices, and can require corrective actions. For practical help and to file a complaint, use the Division’s consumer pages: https://dlr.sd.gov/insurance/consumer/complaints.aspx.

When to consider suing or hiring a lawyer

Consider getting an attorney if any of these apply:

• The insurer refuses to explain why it will close your claim.
• The insurer delays payment without a reasonable investigation or explanation.
• The insurer closes a claim while you still have outstanding damages or medical care under your policy.
• You suspect the insurer acted in bad faith—intentionally misrepresenting facts, failing to investigate, or delaying to force you to accept less than you deserve.

An attorney can review whether breach of contract or bad‑faith claims exist and can handle communications, a demand letter, appraisal, arbitration, or a lawsuit if needed.

Helpful Hints

• Always get important communications in writing. If you phone the insurer, follow up with an email summarizing the call.
• Keep a chronological file (paper or electronic) labeled with the claim number and update it after every contact.
• If the insurer says it will close the claim for lack of response, respond in writing and keep postal or email receipts.
• Send a concise written demand for status and an expected timeline—include copies of key documents and request a prompt written reply.
• File a complaint with the South Dakota Division of Insurance if the company remains unhelpful: dlr.sd.gov — Insurance consumer complaints.
• Ask whether your policy contains appraisal, mediation, or arbitration clauses—these can produce faster resolutions than a lawsuit.
• Talk to an attorney before signing any release or settlement the insurer pressures you to accept.
• Keep backup copies of everything offsite (cloud or another device) in case files are misplaced.

Disclaimer: This article provides general information about South Dakota insurance claim handling. It does not provide legal advice and does not create an attorney‑client relationship. For advice tailored to your situation, contact a licensed South Dakota attorney or the South Dakota Division of Insurance.