58-20-28. Requirements to obtain self-insurance certificate.
To obtain and maintain its certificate an association shall:
(1)Have sufficient assets, net worth, and liquidity to promptly meet all obligations of the association's members under §§58-20-25 to 58-20-40, inclusive, and their workers' compensation liability. In determining whether an association is in sound financial condition, consideration shall be given to the combined net worth of the member companies; the combined long-term and short-term debt to equity ratios of the member companies; other financial data requested by the department or submitted by the group; and the combined workers' compensation experience of the group for the last three years;
(2)Furnish to the department security in the form of a bond, cash, certificate of deposit, government securities, irrevocable letter of credit, irrevocable trust, in any combination, in an amount equal to the greater of:
(a)Two hundred fifty thousand dollars; or
(b)Twenty-five percent of the association's preceding year's gross annual assessments to its members;
(3)Obtain specific and aggregate excess insurance by an insurance company licensed to conduct business in South Dakota; and
(4)Maintain an indemnity agreement jointly and severally binding the association and each member of the association to meet the workers' compensation liability of each member.
Source: SL 1995, ch 282, §4.
Structure South Dakota Codified Laws
Chapter 20 - Workers' Compensation Insurance
Section 58-20-1 - Definition of terms.
Section 58-20-2 - Policies subject to chapter.
Section 58-20-3.1 - Premiums based on certain wages prohibited.
Section 58-20-4 - Separate coverage of workers' compensation liabilities.
Section 58-20-10 - Notice to either employer or insurer--Required policy provision.
Section 58-20-11 - Provision relieving insurer from payment on insolvency of insured prohibited.
Section 58-20-13 - Form of insurance to be approved before issuance--Ruling subject to appeal.
Section 58-20-14 - Cancellation of policy--Notice of intention to cancel--Service on employer.
Section 58-20-16 - Reinsurance reserve--Amount required.
Section 58-20-20 - Annual statement--Inclusion of experience schedule.
Section 58-20-22 - Premium reductions and premium increases for certain insurers.
Section 58-20-23 - Liability for indemnity compensation or medical loss defined.
Section 58-20-24 - Policy to provide medical services and health care.
Section 58-20-25 - Terms as used in §§ 58-20-25 to 58-20-40.
Section 58-20-26 - Electric utilities authorized to form self-insurance associations.
Section 58-20-27 - Application for self-insurance association--Form.
Section 58-20-28 - Requirements to obtain self-insurance certificate.
Section 58-20-29 - Granting self-insurance application--Revocation.
Section 58-20-30 - Examination of self-insurance association's activities and records.
Section 58-20-31 - Promulgation of rules governing self-insurance associations.
Section 58-20-32 - Voluntary termination of participation in self-insurance association.
Section 58-20-33 - Involuntary termination of membership in self-insurance association.
Section 58-20-35 - Annual report of affairs of self-insurance associations.
Section 58-20-36 - Dissolution of self-insurance association to be approved by department.
Section 58-20-37 - Deficiency of self-insurance associations made up by members.
Section 58-20-38 - Revocation of self-insurance association's certificate.
Section 58-20-39 - Self-insurance association not an insurance company.
Section 58-20-40 - Proceedings or investigations by department.