58-39-1      Incorporators, number required--Purpose of incorporation.
58-39-2      Articles of incorporation and amendments--Approval by director--Filing with secretary of state.
58-39-3      Members and directors.
58-39-4      Board of directors--Minimum number--Qualifications--Selection--Term of office.
58-39-5      License to issue contracts required--Violation as misdemeanor.
58-39-6      Application for license--Form and contents--Documents accompanying.
58-39-7      Issuance of license--Matters considered by director.
58-39-8      Contracts with subscribers--Rates charged for services--Approval by director.
58-39-9      Care provided by noncontracting dentist--Contracting dentist unavailable.
58-39-10      Practice of dentistry not authorized by chapter.
58-39-11      Expenses of acquisition and administration--Control by director.
58-39-12      Permitted investments.
58-39-13      Foreign corporation--Transaction of business in state.
58-39-14      Annual statement of financial condition--Filing--Verification--Form and contents.
58-39-15      Investigation and examination by director--Cost borne by corporation .
58-39-16      Exemption from other insurance laws, exceptions--Fees and taxation as insurers.
58-39-16.1      Assignment of benefits provisions applicable.
58-39-17      Citation of chapter.

58-39-1. Incorporators, number required--Purpose of incorporation.

Five or more natural persons of full age and of either sex, all of whom are residents of this state and citizens of the United States, may form, under the provisions of the law of this state relating to benevolent corporations, so far as those provisions are applicable and are not inconsistent with the provisions of this chapter a nonprofit dental service corporation for the purpose of establishing and operating a nonprofit dental service plan whereby dental service may be provided at the expense of said corporation by duly licensed dentists to such of the public as become subscribers to said corporation under a contract which entitles each subscriber to dental care. Such corporation shall be governed by this chapter and shall be subject to regulation and supervision by the director as hereinafter provided.

Source: SL 1966, ch 111, ch 30, § 2.

58-39-2. Articles of incorporation and amendments--Approval by director--Filing with secretary of state.

The articles of incorporation of every dental service corporation, and amendments thereto, shall be submitted to the director, whose approval thereof shall be endorsed thereon before the same are filed with the secretary of state.

Source: SL 1966, ch 111, ch 30, § 3.

58-39-3. Members and directors.

A dental service corporation shall consist of a board of directors and of such members, grouped in such classes, as the bylaws of the corporation shall provide.

Source: SL 1966, ch 111, ch 30, § 4.

58-39-4. Board of directors--Minimum number--Qualifications--Selection--Term of office.

The business of a dental service corporation shall be managed by a board of directors of at least five persons possessing the same general qualifications as the incorporators and selected, and the number fixed, in the manner set out by the bylaws for three-year terms. At least a majority of the directors of said corporation must be at all times dentists who have contracted, or may contract with such corporation to render to its subscribers dental service.

Source: SL 1966, ch 111, ch 30, § 4.

58-39-5. License to issue contracts required--Violation as misdemeanor.

A corporation subject to the provisions of this chapter may issue contracts only when the director has by formal license authorized it to do so. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 30, § 6; SL 1978, ch 359, § 2.

58-39-6. Application for license--Form and contents--Documents accompanying.

Application for the license required by § 58-39-5 shall be made on forms to be approved by the director, containing such information as he shall deem necessary. Each application for such license shall be accompanied by copies of the following documents:

(1)    Certified copy of its charter or certificate of incorporation;

(2)    Bylaws;

(3)    Proposed contracts between the corporation and participating dentists showing the terms under which dental service is to be furnished to subscribers;

(4)    Contracts to be issued to subscribers showing the benefits to which they are entitled;

(5)    A table of the rates to be charged to the subscribers;

(6)    Financial statement of the corporation, including the amounts of contribution paid or agreed to be paid to the corporation for working capital and the name of each contributor and the terms of each contribution.

Source: SL 1966, ch 111, ch 30, § 6.

58-39-7. Issuance of license--Matters considered by director.

The director shall issue license upon being satisfied on the following points:

(1)    That the applicant is established as a bona fide nonprofit dental service corporation;

(2)    That the contracts between the applicant and the participating dentists obligate each dentist to render service to which each subscriber may be entitled under the terms and conditions of the contract issued to the subscriber;

(3)    That the rates to be charged and the benefits to be provided are fair and reasonable;

(4)    That the amounts provided as working capital of the corporation are repayable only out of earned income paid and payable for operating expenses, dentist expenses, and such reserve as the director may deem adequate; and

(5)    That the amount of money actually available for working capital be sufficient to carry all operating expenses for a reasonable period of time from the date of the issuance of the certificate.

Source: SL 1966, ch 111, ch 30, § 6.

58-39-8. Contracts with subscribers--Rates charged for services--Approval by director.

Any dental service corporation organized under the provisions of this chapter may enter into contracts with subscribers to furnish dental service through dentists. The rates charged by any such corporation to the subscriber for dental service and the contracts by said corporation with the subscribers for dental service shall at all times be subject to the approval of the director. The contracts by any such corporation with the subscribers for dental service shall be entered into only with dentists regularly licensed to practice their profession by the State of South Dakota. All contracts issued by such corporation to the subscribers shall constitute direct obligations of the corporation and of the dentists with whom such corporation has contracted for dental service.

Source: SL 1966, ch 111, ch 30, § 5.

58-39-9. Care provided by noncontracting dentist--Contracting dentist unavailable.

If at any time that the subscriber or certificate holder is entitled to dental service no dentist is available or in case of emergency or expediency, the dental service corporation shall provide such care by dentists who have not contracted with such corporation to such extent as the subscriber or certificate holder is entitled to under his certificate, and at the same rate and for the same fees as is provided for care by noncontracting dentists, but not to exceed the limitation provided for in the certificate. If there is no contracting dentist acceptable to the subscriber, said corporation shall pay the subscriber for care provided by a dentist of the subscriber's own choosing who has not contracted with the corporation to the extent and in such amounts as are provided by the contract for dental care.

Source: SL 1966, ch 111, ch 30, § 5.

58-39-10. Practice of dentistry not authorized by chapter.

Nothing in this chapter shall authorize any person, association, or corporation to engage, in any manner, in the practice of dentistry.

Source: SL 1966, ch 111, ch 30, § 5.

58-39-11. Expenses of acquisition and administration--Control by director.

All acquisition and administrative expenses in connection with such dental service corporation shall at all times be subject to control by the director.

Source: SL 1966, ch 111, ch 30, § 9.

58-39-12. Permitted investments.

The funds of any corporation subject to the provisions of this chapter shall be invested only in securities permitted by the laws of this state for the investment of assets of life insurance companies.

Source: SL 1966, ch 111, ch 30, § 10.

58-39-13. Foreign corporation--Transaction of business in state.

A nonprofit dental service corporation organized under the laws of another state or any territory may, with the approval of the director, and under the rules as may be promulgated, consistent with the provisions of this chapter, transact and carry on its business in this state, provided it shall first file with the director:

(1)    A duly certified copy of its charter or articles of incorporation;

(2)    A verified statement of the condition of its affairs for the next preceding calendar year;

(3)    A duly certified and authenticated appointment in writing of the director as its true and lawful agent in and for this state, upon whom all lawful process in any action or proceeding against the company may be served with the same effect as if a domestic company served in this state, such appointment to stipulate that any lawful process against such company served on such agent shall be of the same legal force and validity as if served on the company, and that the authority shall continue in force as long as any liability remains outstanding against such company in this state. Such service may be made on the director in the manner provided by statute for service of process, or may be made by filing a copy of such process in the office of the director. Whenever any such process is served upon the director, he shall forthwith forward a copy thereof by mail, postpaid, directed to the secretary of the company; or in case of companies in foreign countries to the resident manager thereof, in this country, and to its general agent in this state; and

(4)    Evidence satisfactory to the director that such corporation has existing contracts for the rendering of dental service to the subscribers with at least twenty dentists licensed to practice their profession in the State of South Dakota, approved for participation by the director.

Any such foreign corporation shall be subject to the laws of this state pertaining to reciprocal relations imposed upon foreign insurance companies transacting or doing business in this state.

Source: SL 1966, ch 111, ch 30, § 11; SL 1986, ch 22, § 41.

58-39-14. Annual statement of financial condition--Filing--Verification--Form and contents.

Every dental service corporation shall regularly on or before the first day of March file in the office of the director a statement verified by at least two of the principal officers of said corporation showing its condition on the preceding thirty-first day of December, which shall be in such form and shall contain such matters as the director shall prescribe.

Source: SL 1966, ch 111, ch 30, § 7.

58-39-15. Investigation and examination by director--Cost borne by corporation.

The director may investigate and examine the books and records of any dental service corporation, and may summon and examine under oath its officers, representatives, insurance producers, employees, or other persons in relation to the affairs, transactions, and conditions of the corporation.

The director shall conduct an examination of each corporation at least every five years pursuant to chapter 58-3, and the cost of the regular or other special examinations shall be borne by the corporation.

Source: SL 1966, ch 111, ch 30, § 8; SL 1994, ch 389, § 2; SL 2001, ch 286, § 222.

58-39-16. Exemption from other insurance laws, exceptions--Fees and taxation as insurers.

Any dental service corporation is exempt from all provisions of the insurance laws of this state other than this chapter. However, the corporation is subject to the provisions of this title on matters of hearings, appeals, mergers, dissolutions, licensure of insurance producers, and procedures on such matters. The corporation is also subject to fees and taxation as insurers covered by this title, and to chapter 58-33.

Source: SL 1966, ch 111, ch 30, § 2; SL 1991, ch 408, § 2; SL 2001, ch 286, § 223.

58-39-16.1. Assignment of benefits provisions applicable.

Notwithstanding the provisions of § 58-39-16, the provisions of §§ 58-17-163 to 58-17-166, inclusive, apply to any dental service corporation organized under this chapter.

Source: SL 2017, ch 213, § 5.

58-39-17. Citation of chapter.

This chapter may be cited as the Dental Service Corporation Law.

Source: SL 1966, ch 111, ch 30, § 1.