<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-33-102 - Due diligence investigation required of insurance producer before offering health benefit plan. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2076737Normal { 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.s2076737SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2076737CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2076737Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; 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font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2076737Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-102"><span class="s2076737SENU">58-33-102</span></a><span xml:space="preserve" class="s2076737SENU">. </span><span class="s2076737CL">Due diligence investigation required of insurance producer before offering health benefit plan.</span></p><p dir="ltr" class="s2076737Normal-000000"><span class="s2076737DefaultParagraphFont">An insurance producer, prior to engaging in or assisting any person to engage in offering a health benefit plan to an employer or person located in this state, shall carry out appropriate due diligence to establish that the health benefit plan is not unauthorized health insurance, including those measures reasonably appropriate to establish:</span></p><p dir="ltr" class="s2076737Normal-000001"><span class="s2076737DefaultParagraphFont">(1)    For any insurance coverage that is represented as issued relating to the health benefit plan:</span></p><p dir="ltr" class="s2076737Normal-000002"><span class="s2076737DefaultParagraphFont">(a)    The insurer issued the policy;</span></p><p dir="ltr" class="s2076737Normal-000002"><span class="s2076737DefaultParagraphFont">(b)    The coverage is as represented;</span></p><p dir="ltr" class="s2076737Normal-000002"><span class="s2076737DefaultParagraphFont">(c)    The insurer is an admitted insurer in this state; and</span></p><p dir="ltr" class="s2076737Normal-000002"><span class="s2076737DefaultParagraphFont">(d)    The policy has been filed with, and approved by, the division or is exempt from filing requirements;</span></p><p dir="ltr" class="s2076737Normal-000001"><span class="s2076737DefaultParagraphFont">(2)    For any health benefit plan that is represented as established or maintained pursuant to a collective bargaining agreement, the health benefit plan is established or maintained under or pursuant to a collective bargaining agreement under the criteria provided under 29 CFR 2510.3-40 as of January 1, 2007;</span></p><p dir="ltr" class="s2076737Normal-000001"><span class="s2076737DefaultParagraphFont">(3)    For any health benefit plan that is represented as established or maintained by an employee leasing arrangement or professional employer organization, the health benefit plan is fully insured; or</span></p><p dir="ltr" class="s2076737Normal-000001"><span class="s2076737DefaultParagraphFont">(4)    For any health benefit plan that is represented as established by a single employer, the health benefit plan is covering solely employees and their dependents, and the employer controls and directs the work of the employee.</span></p><p dir="ltr" class="s2076737Normal"><span xml:space="preserve" class="s2076737000003"> </span></p><p dir="ltr" class="s2076737Normal"><span class="s2076737SCL">Source:</span><span xml:space="preserve" class="s2076737SCL-000004"> SL 2007, ch 292, § 10.</span></p></div></body></html>