<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s287e96a9-3679-4580-b0d9-3d85da96bfbf000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000002 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">    </span><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000000">20:06:21:13.  Continuation or conversion is mandatory -- Exceptions.</span><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont"> Continuation of coverage or issuance of a converted policy is mandatory, except as follows:</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbf000001"> </span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">    (1)  Termination of group coverage resulted from an individual's failure to make a required payment of premium or contribution when due; or</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbf000001"> </span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">    (2)  The terminating coverage is replaced not later than 31 days after termination by group coverage which is effective on the day following the termination of coverage and meets the following requirements:</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbf000001"> </span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">        (a)  The replacement coverage provides benefits identical to or benefits determined by the director to be substantially equivalent to or in excess of those provided by the terminating coverage; and</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbf000001"> </span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">        (b)  The premium for the replacement coverage is calculated in a manner consistent with the requirements of § </span><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">20:06:21:12.</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbf000001"> </span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">    </span><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont"> 22 SDR 97, effective </span><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">December 18, 1995.</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">    </span><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000002">58-17B-4</span></a><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">.</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">    </span><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-5.1"><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont-000002">58-17B-5.1</span></a><span class="s287e96a9-3679-4580-b0d9-3d85da96bfbfDefaultParagraphFont">.</span></p><p dir="ltr" class="s287e96a9-3679-4580-b0d9-3d85da96bfbfNormal"><span xml:space="preserve" class="s287e96a9-3679-4580-b0d9-3d85da96bfbf000001"> </span></p></div></body></html>