<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 58-33-103 - Due diligence investigation required of insurance producer before submitting stop loss policy application for health benefit plan. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2076738Normal { 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.s2076738SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2076738CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2076738Normal-000000 { text-indent: 0.50in; 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.s2076738DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2076738Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2076738000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2076738SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2076738SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2076738Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-103"><span class="s2076738SENU">58-33-103</span></a><span xml:space="preserve" class="s2076738SENU">. </span><span class="s2076738CL">Due diligence investigation required of insurance producer before submitting stop loss policy application for health benefit plan.</span></p><p dir="ltr" class="s2076738Normal-000000"><span class="s2076738DefaultParagraphFont">An insurance producer, prior to submitting an application for a stop loss policy to an insurer for a health benefit plan offered to employees, employee dependents, or a person located in this state, shall carry out appropriate due diligence to establish that the health benefit plan is not unauthorized health insurance, including measures reasonably appropriate to establish:</span></p><p dir="ltr" class="s2076738Normal-000001"><span class="s2076738DefaultParagraphFont">(1)    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="s2076738Normal-000001"><span class="s2076738DefaultParagraphFont">(2)    The health benefit plan that is not offered by an employee leasing arrangement or professional employer organization to client employers; or</span></p><p dir="ltr" class="s2076738Normal-000001"><span class="s2076738DefaultParagraphFont">(3)    For any health benefit plan that is represented as established by a single employer, that the health benefit plan is covering solely employees, and dependents of employees, of the employer and the employer controls and directs the work of the employee.</span></p><p dir="ltr" class="s2076738Normal"><span xml:space="preserve" class="s2076738000002"> </span></p><p dir="ltr" class="s2076738Normal"><span class="s2076738SCL">Source:</span><span xml:space="preserve" class="s2076738SCL-000003"> SL 2007, ch 292, § 11.</span></p></div></body></html>