Codified Laws

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     58-17-67.   "Professional association" defined. For purposes of §§ 58-17-66 to 58-17-87, inclusive, the term, professional association, means any association that meets all of the following criteria:
             (1)      Serves a single profession that requires a significant amount of education, training, or experience or a license or certificate from a state authority to practice the profession;
             (2)      Has been actively in existence for five years;
             (3)      Has a constitution and by-laws or other analogous governing documents;
             (4)      Has been formed and maintained in good faith for purposes other than obtaining insurance;
             (5)      Is not owned or controlled by a carrier or affiliated with a carrier;
             (6)      Does not condition membership in the association on health status of claims experience;
             (7)      Has at least one thousand members if it is a national association; five hundred members if it is a state association; or two hundred members if it is a local association;
             (8)      All members and dependents of members are eligible for coverage regardless of health status or claims experience;
             (9)      Is governed by a board of directors and sponsors annual meetings of its members; and
             (10)      Does not allow producers to market association memberships, accept applications for memberships, or sign up members.

Source: SL 1996, ch 286, § 2.

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