S.D. Admin. R. 20:06:10:08.03
No advertisement or solicitation of short term major medical insurance may be used in this state unless the following disclosure statement is prominently displayed in that advertisement or solicitation: "This short term major medical policy is nonrenewable/renewable."
No short term major medical policy may be sold in this state unless the following separate disclosure in bold 14 point type is signed and acknowledged by the applicant: "This short term major medical policy is nonrenewable/renewable. The duration of this policy is number of months. This policy has exclusions such as preexisting conditions and does not provide all coverage as provided for by the Patient Protection and Affordable Care Act."
If the application is taken by an agent, the agent is responsible for forwarding this signed disclosure to the insurer. For direct marketed solicitations, the insurer must provide this disclosure with the application. No insurer may issue a short term major medical policy unless a signed disclosure complaint with this section is received. If the transaction involves a replacement, the agent or, if forwarded by the agent to the insurer, the insurer must keep documentation in accordance with SDCL 58-1-26 that subdivision 20:06:10:08.02 has been complied with.
S.D. Admin. R. 20:06:10:08.03
General Authority: SDCL 58-33A-7(14).
Law Implemented: SDCL 58-33A-2, 58-33A-8, 58-33A-10.