PIERRE — The state Senate gave final legislative approval Wednesday to a major change in South Dakota law regarding insurance payments to people who have suffered damages.

They would be better protected financially under the change, which was opposed by insurance companies.

Senators voted 20-15 for the legislation, SB 169, whose prime sponsor is Sen. Nancy Turbak Berry, D-Watertown.

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Senate Republican leader Dave Knudson of Sioux Falls tried to kill the bill but fell short on a 15-20 vote. Turbak Berry and Knudson are attorneys.

The legislation would adopt the “made whole” standard for South Dakota, which essentially means the insured person must be fully compensated before the person’s insurance company can receive any part of the payment being made by the other party who wrongfully caused the injury or damage.

Where this comes into play, for example, is when a person is hurt as a result of someone else’s action and the injured person’s insurance company pays for part of the person’s medical costs and other expenses.

Turbak Berry explained that the purpose of the change is to prevent the insured person’s insurance company from cutting in line ahead of the injured person to get compensated for the money the insurance company had already laid out.

Specifically, SB 169 says: “No insurer under this chapter is entitled to participate in any recovery from any tortfeasor on account of bodily injury or death or damage to property unless and until its insured has first been made whole. The provisions of this Act do not apply to any workers’ compensation recovery.”

The last sentence was added at the suggestion of Rep. Roger Hunt, R-Brandon, by the House of Representatives. The Senate vote Wednesday was whether to agree with that amendment.

The legislation originally failed 17-18 in the Senate on Feb. 22. But the bill got a second life the next day when it was brought back for reconsideration.

Through a switch in position by Sen. Julie Bartling, D-Burke, to a supporter, and the absence of Sen. Dennis Schmidt, R-Rapid City, who had been a supporter, the bill on reconsideration ended in a 17-17 tie vote.

That allowed Lt. Gov. Dennis Daugaard to break the tie. He voted in favor of the bill’s passage. The House of Representatives then voted 39-28 in favor with the Hunt amendment Monday.

Among the lobbyists working for the bill’s passage were former state Attorney General Roger Tellinghuisen of Spearfish and former state Rep. Mike DeMersseman, head of a prominent Rapid City law firm. The legislation was strongly opposed by insurance lobbyists.

Three of the Legislature’s caucus leaders — Senate Democrat Scott Heidepriem of Watertown, House Republican Bob Faehn of Watertown and House Democrat Bernie Hunhoff of Yankton — were among her co-sponsors on the bill.

The question now is whether Gov. Mike Rounds will sign SB 169 into law, let it become law without his signature, or veto it. He’s supporting Daugaard, but whether that means anything on this matter is unknown.

Turbak Berry doesn’t have the votes in either chamber for the two-thirds majorities necessary to override a veto.

She does however have an invitation for an airplane ride with the governor today to see flood conditions in northeast South Dakota, which could provide an opportunity for her to discuss the issue with him.