Detailed Answer
If an insurance company tells you it never received the notice that an attorney now represents the insured or claimant, act quickly and carefully. In South Dakota, timely and clear notice of representation affects communication, claim deadlines, and—if the claim becomes a lawsuit—service and discovery. The steps below explain what to do, why each step matters, and where to get help.
1. Confirm your records right away
- Find the original sending method and documentation (certified mail receipt, courier tracking number, email delivery/read receipt, fax confirmation, or carrier signature).
- If you used a firm letterhead or retainer agreement, locate the signed copy showing the date you accepted the engagement.
- Note the claim number, the insurer’s adjuster or contact name, and the date(s) you attempted to deliver the letter.
2. Resend the notice with strong proof of delivery
- Send a new Notice of Representation that includes: insured/claimant name, policy number, claim number, date of loss, the attorney’s contact information, and a clear statement that the insurer must direct all future communications to counsel.
- Use at least two delivery methods: (a) certified mail with return receipt (or USPS tracking), and (b) overnight courier with signature confirmation. Also send a copy by email (see step 3).
- Keep and preserve all tracking, return receipts, delivery confirmations, and copies of the documents you sent.
3. Send an email and request written acknowledgment
- Email the insurer’s claims address and the adjuster if you have a direct email. Ask for written confirmation that the insurer received the notice and that the insurer will communicate with counsel only.
- Request a reply by a short deadline (e.g., 5 business days) and state that you will rely on the delivery confirmations if no reply is received.
- Save email headers and delivery/read receipts. Print and save the insurer’s automatic replies and any human response.
4. Follow up by phone and document the call
- Call the adjuster or the claims department. Note the date, time, person spoken to, and a summary of what was said.
- After the call, send a short email summarizing the conversation and asking the insurer to confirm or correct your summary in writing. This creates a written record.
5. Ask for written confirmation that the insurer will treat counsel as the party of record
- Ask the insurer to confirm in writing that it will direct future written communications, settlement discussions, and requests for documents to the attorney.
- If the insurer refuses to provide written confirmation, document that refusal and preserve copies of all communications.
6. Preserve deadlines and protect the client’s rights
- Do not assume an insurer’s denial of receipt erases any deadlines. Check applicable deadlines for claims, proof-of-loss, or statutes of limitation. If litigation is possible, act promptly to avoid missing filing deadlines.
- If a missed deadline could harm the claim, consider sending a separate, clear reminder of imminent deadlines along with proof of representation so the insurer cannot later claim surprise.
7. If the insurer still denies receipt or acts unreasonably, escalate
- File a consumer complaint with the South Dakota Division of Insurance if the company delays or ignores your proof-of-representation and that behavior prejudices your client: South Dakota Division of Insurance.
- Document bad-faith conduct. If an insurer’s unreasonable denial causes harm (delay, denied benefits, or exposure to a missed deadline), discuss potential remedies with counsel. Remedies could include administrative complaints, litigation, or claims for breach of contract or bad-faith handling of claims depending on the circumstances.
8. If litigation begins, use court procedures to protect your client
- In litigation, you can use service and discovery rules to show when notices and communications occurred. Courts can resolve disputes over whether the insurer had actual notice of representation and may sanction parties for obstructive behavior.
- Keep your client’s file organized and prepare a clear exhibit of every attempt to notify the insurer: dates, copies sent, delivery confirmations, emails, phone logs, and replies.
For more information on South Dakota insurance laws and requirements, review South Dakota’s insurance code (Title 58) at the South Dakota Legislature website: https://sdlegislature.gov/Statutes/Title.aspx?type=Statute&title=58. For consumer complaints and guidance, visit the Division of Insurance: https://dlr.sd.gov/insurance/.
Helpful Hints
- Always use multiple delivery methods when sending notices that affect rights or deadlines.
- Label your subject lines clearly in email (e.g., “Notice of Representation — [Claim #]”) so they are easy for adjusters to route and for you to document.
- Keep a single, dated cover letter with each packet you send. Reference the claim number and date of loss on every page.
- Ask insurers for the names and emails of the persons who handle communications and save those details in your file.
- If the insurer claims it never received a signed authorization, be prepared to provide a copy of any client-signed retainer or authorization that shows the attorney-client relationship.
- Act early. Most disputes over notice become harder to resolve if you wait until a deadline passes or the insurer has already taken an adverse position.
- If you are unsure what to do or the matter is urgent, consult a South Dakota-licensed attorney right away to preserve your rights.
Disclaimer: This article is for general informational purposes only and does not create an attorney-client relationship. It is not legal advice. For legal advice about a particular situation in South Dakota, consult a licensed attorney.