<html> <head> <title>Rule 20:06:18:22 Prohibited compensation arrangements.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:18:22"> <META NAME="Description" Content="Administrative Rules 20:06:18:22 Prohibited compensation arrangements."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 14 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman","serif";} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>20:06:18:22.&nbsp;&nbsp;Prohibited compensation arrangements.</span></b> Each health insurance issuer must provide equal compensation to an insurance producer for the sale of a similar health benefit plan sold inside and outside of an Exchange. No health insurance issuer may, directly or indirectly, enter into any contract, agreement, or arrangement with an insurance producer which provides for or results in the reduction and compensation paid to an insurance producer for the sale of a health benefit plan because the insured qualifies for coverage pursuant to SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17-85">58-17-85.</A> A health insurance issuer may pay a commission that does not vary based upon health status. A health insurance issuer may reimburse a producer for an insured who qualifies for coverage pursuant to SDCL 58-17-85 on a basis that varies the commission or that is based only upon the premium of a lesser rated risk only if the aggregate compensation the producer receives is not less than the compensation the health insurance issuer would pay for a similarly situated individual who qualifies for a lower rate. This section will apply to any policies or certificates issued after December 31, 2013.</span></font></p> <p class=MsoNormal style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p> <p class=MsoNormal style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>Source:</span></b> 39 SDR 203, effective June 10, 2013.</span></font></p> <p class=MsoNormal style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>General Authority:</span></b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17-87">58-17-87(8)</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-18-79">58-18-79</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-18B-36">58-18B-36(10)</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-30-195">58-30-195(10).</A></span></font></p> <p class=MsoNormal style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><span style='font-weight:bold'>Law Implemented:</span></b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-17-87">58-17-87(8)</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-18-80">58-18-80</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-30-175">58-30-175.</A></span></font></p> <p class=MsoNormal style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p> </div> </body> </html>