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:
(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.
26 SDR 44, effective October 6, 1999.
Authority: SDCL 58-18-62.
Implemented: SDCL 58-18-3, 58-18-6.
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