Rule 20:06:42:01 Eligible associations defined.
20:06:42:01. Eligible associations
defined. An association is a group of persons who have joined for some
common purpose or goal. An association is eligible for the issuance of group
health insurance if all of the following factors are met and filed for approval
by the director:
(1) There is a shared or common
purpose that is not generally applicable to the population at large;
(2) There is a constitution and
by-laws which indicate a legitimate purpose other than the purchase of
(3) The primary method of obtaining
new members is not through, or in conjunction with, the solicitation of
insurance. However, solicitation of insurance may be one of the methods of
obtaining new members.
When determining eligibility for the issuance of
group health insurance, the division may consider whether the association ever
existed independently of an insurance product.
Source: 26 SDR 44, effective October 6,
1999; 41 SDR 41, effective September 17, 2014.
General Authority: SDCL 58-18-62.
Law Implemented: SDCL 58-18-3, 58-18-6.
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