Rule 20:06:13:22.05 Discontinuance of availability.
20:06:13:22.05. Discontinuance of availability. An issuer
shall continue to make available for purchase any policy form or certificate
form issued after the effective date of this rule that has been approved by the
director, unless the issuer notifies the director of its discontinuance in
accordance with this section. A policy form or certificate form is not
considered to be available for purchase unless the issuer has actively offered
it for sale in the previous 12 months.
An issuer may discontinue the
availability of a policy form or certificate form if the issuer provides notice
of its decision to do so to the director in writing at least 30 days prior to
discontinuance. After receipt of the notice by the director, the issuer may no
longer offer for sale the policy form or certificate form in this state.
An issuer that discontinues the
availability of a policy form or certificate form pursuant to the notice
procedure in this section may not file for approval a new policy form or
certificate form of the same type for the same standard Medicare supplement
benefit plan as the discontinued form for five years after the issuer provides
notice to the director of the discontinuance. The period of discontinuance may
be reduced by the director at the director's discretion.
The sale or other transfer of Medicare
supplement business to another issuer is considered a
discontinuance for the purposes of this section.
A change in the rating structure or
methodology is considered a discontinuance under the first paragraph of this
section unless the issuer provides an actuarial memorandum describing the
manner in which the revised rating methodology and resultant rates differ from
the existing rating methodology and existing rates; and the issuer does not
subsequently put into effect a change of rates or rating factors that would
cause a change in the percentage differential between the discontinued and
subsequent rates as described in the actuarial memorandum. The director may
approve a change to the differential which is in the public interest.
18 SDR 225, effective July 17, 1992.
Authority: SDCL 58-4-1, 58-17A-2, 58-17A-5.
Implemented: SDCL 58-17A-2, 58-17A-5.
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