<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.s2731d4f6-93a7-4be6-b151-5637246a38c6Normal { 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.s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000001 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2731d4f6-93a7-4be6-b151-5637246a38c6000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    </span><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000000">20:06:21:33.  Standards for marketing -- Associations.</span><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont"> If an association, as defined in SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-2"><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000001">58-17B-2</span></a><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">(4)(c), endorses or sells long-term care insurance, the primary responsibility of the association regarding the obligations set forth in this section is to educate its members concerning long-term care issues in general so that its members can make informed decisions. Associations shall provide objective information regarding long-term care insurance policies or certificates endorsed or sold by it to ensure that members of the association receive a balanced and complete explanation of the features in the policies or certificates that are being endorsed or sold. The obligations are as follows:</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (1)  The insurer shall file with the division the following material:</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">        (a)  The policy and certificate;</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">        (b)  A corresponding outline of coverage; and</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">        (c)  All advertisements requested by the insurance division.</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (2)  The association shall disclose the following in any long-term care insurance solicitation:</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">        (a)  The specific nature and amount of the compensation arrangements, including all fees, commissions, administrative fees, and other forms of financial support, that the association receives from endorsement or sale of the policy or certificate to its members; and</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">        (b)  A brief description of the process under which such policies and the insurer issuing such policies were selected;</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (3)  If the association and the insurer have interlocking directorates or trustee arrangements, the association shall disclose that fact to its members;</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (4)  The board of directors of an association selling or endorsing long-term care insurance policies or certificates shall review and approve the insurance policies as well as the compensation arrangements made with the insurer;</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (5)  At the time of the association's decision to endorse, the association shall engage the services of a person with expertise in long-term care insurance who is not affiliated with the insurer to conduct an examination of the policies, including benefits, features, and rates, and shall update the examination thereafter if material change occurs;</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (6)  The association shall actively monitor the marketing efforts of the insurer and its agents;</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    (7)  The association shall review and approve all marketing materials or other insurance communications used to promote sales or sent to members regarding the policies or certificates.</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    A group long-term care insurance policy or certificate may not be issued to an association unless the insurer files with the division the information required in this section. The insurer may not issue a long-term care policy or certificate to an association or continue to market such a policy or certificate unless the insurer certifies annually that the association has complied with the requirements in this section.</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    Failure to comply with the filing and certification requirements of this section constitutes an unfair trade practice within the meaning of SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33-38"><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000001">58-33-38</span></a><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">.</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    </span><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont"> 22 SDR 97, effective </span><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">December 18, 1995.</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    </span><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000001">58-17B-4</span></a><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">.</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">    </span><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-2"><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont-000001">58-17B-2</span></a><span class="s2731d4f6-93a7-4be6-b151-5637246a38c6DefaultParagraphFont">(4)(c).</span></p><p dir="ltr" class="s2731d4f6-93a7-4be6-b151-5637246a38c6Normal"><span xml:space="preserve" class="s2731d4f6-93a7-4be6-b151-5637246a38c6000002"> </span></p></div></body></html>