S.D. Admin. R. 20:06:39:10
Each carrier must provide reasonable compensation to an insurance producer for the sale of a basic or standard health benefit plan or those plans the carrier has chosen to offer on a guaranteed issue basis in lieu of the basic and standard plans. No carrier may, directly or indirectly, enter into any contract, agreement, or arrangement with an insurance producer which provides for or results in the compensation paid to an insurance producer for the sale of a health benefit plan to be reduced because the insured qualified for coverage pursuant to SDCL 58-17-85. A carrier may pay a commission percentage that does not vary based upon health status. A carrier may reimburse producers for insureds qualified pursuant to SDCL 58-17-85 on a basis that varies the commission percentage or that is based only upon the premium of a lesser rated risk provided that the aggregate compensation received by the producer is not less than would have been paid by the carrier for a similarly situated individual who qualified for a lower rate. No compensation is required if the insurance producer is compensated by the carrier on a noncommission basis for selling its products other than basic or standard plans.
S.D. Admin. R. 20:06:39:10
General Authority: SDCL 58-17-87(8).
Law Implemented: SDCL 58-17-87(8).