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Generative AI Liability Insurance in South Dakota

South Dakota’s 2026 invasion-of-privacy amendment reaches realistic fabricated depictions falsely showing an identifiable person’s appearance, conduct, or voice. Its election law separately prohibits a knowingly undisclosed deepfake disseminated with intent to injure a candidate within 90 days of an election, subject to listed exceptions such as satire or parody. 1,2

What Is Generative AI Liability?

Generative AI liability can help pay covered defense costs and losses when someone claims your AI use caused harm, including infringement or data disclosure. If you use or sell AI outputs, check how the policy fits your role and existing liability coverage. Read the national Generative AI liability guide.

What to Watch for in South Dakota

  • South Dakota defines fabricated material by identifiable-person deception

    The definition covers visual material that appears authentic to an ordinary person and is adapted, generated, or modified to falsely depict an identifiable person’s appearance, conduct, or voice. The amended invasion-of-privacy offense has its own conduct and mental-state elements; review whether the output is sexual or intimate before applying this statute. 1

  • Election timing and intent narrow the deepfake offense

    South Dakota prohibits dissemination, or an agreement to disseminate, within 90 days of an election when the person intends to injure a candidate, knows or reasonably should know the item is a deepfake, and omits the statutory disclosure. A generic label workflow should therefore be checked against the required disclosure and timing window. 2

  • South Dakota lists parody and news exceptions

    The election restriction does not apply to satire or parody, and it provides conditions for bona fide newscasts and related news coverage. Campaign tools should route political content for review instead of applying an undifferentiated label rule across all generated media. 2

Who Regulates Insurance in South Dakota

South Dakota Division of Insurance

The South Dakota Division of Insurance regulates insurance companies and producers and publishes tools to verify producer and company licenses. It accepts complaints about insurers, HMOs, producers, adjusters, and other licensed or registered insurance entities. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 2.5% of premium; commercial property adds 0.175% fire tax, inland marine 0.075%; no stamping fee South Dakota adds 2.5% surplus-lines tax; its current chart lists an additional fire tax of 0.175% for commercial property and 0.075% for commercial inland marine, none for commercial liability, and no stamping fee. The Division directs surplus-lines brokers to report and remit through SLIP+ within 30 days; ask your broker to confirm which policy-specific disclosures apply. 6,7

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in South Dakota

  1. Can the system create or distribute realistic synthetic sexual images of identifiable people?
  2. Do political-media workflows detect South Dakota’s 90-day period, candidate-directed intent, and disclosure requirement?
  3. Are exceptions and reporting or news uses documented in product review and policy underwriting?

Generative AI Liability in South Dakota: FAQ

Does South Dakota’s election deepfake rule apply year-round? 2

The cited offense is limited to dissemination within 90 days of an election and includes intent, knowledge, and missing-disclosure elements. 2

Must a synthetic image use a real photograph? 1

No. The definition includes material that is adapted, generated, or modified to falsely depict an identifiable individual. 1

Generative AI Liability in Other States

Other Coverage in South Dakota

Sources

  1. South Dakota Codified Laws § 22-21-4.1. South Dakota Legislature; Definition of digitally fabricated material and identifiable person; 2026 SL ch. 104, § 2. Accessed 2026-09-29.
  2. South Dakota Codified Laws ch. 12-26, §§ 12-26-32 to 12-26-37. South Dakota Legislature; Deepfake definition, election offense, exceptions, and required disclosure; 2025 SL ch. 68. Accessed 2026-09-29.
  3. south-dakota insurance regulator. State insurance regulator; Division home sets out public consumer, producer, complaint, licensure and company resources. Accessed 2026-09-28.
  4. South Dakota Division of Insurance. State insurance regulator; Public state portal links to verify producer or company licensure; lookup route is part of the official division page. Accessed 2026-09-28.
  5. Filing a Complaint and Your Rights. State insurance regulator; Complaint eligibility covers licensed/registered insurer, HMO, producer, adjuster, and other insurance entities. Accessed 2026-09-28.
  6. South Dakota Tax Rates for Surplus Lines Clearinghouse Coverage Codes. South Dakota Division of Insurance; PDF revised May 2025, p. 1: 2.5% base tax, coverage-specific fire percentages, stamping fee/assessment none; line tables distinguish liability, property, and inland marine. Accessed 2026-09-28.
  7. Surplus Lines Forms and Information. South Dakota Division of Insurance; Single-state tax reporting and remittance through SLIP+ within 30 days; current page reviewed. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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