62-5-5. Self-insurance by employer--Annual proof of solvency and financial ability--Application fee--Deposit of fees--Certificate of exemption.
If an employer coming under the provisions of this title annually furnishes satisfactory proof to the Department of Labor and Regulation of the employer's solvency and financial ability to pay the compensation required by this title, the employer is relieved from the provisions of §62-5-1. Each employer shall submit an application fee not to exceed two thousand five hundred dollars to the Department of Labor and Regulation at the time proof of solvency is submitted. The Department of Labor and Regulation shall set, by rules promulgated pursuant to chapter 1-26, the amount of the application fee.
All fees paid to the department pursuant to this section shall be deposited with the state treasurer and shall be credited to the Department of Labor and Regulation special revenue fund which is hereby created. The money deposited shall be dedicated and continuously appropriated to the department for purposes of conducting an actuarial review of the applicant's financial condition and automating the administration of the workers' compensation law.
Upon receiving satisfactory proof of financial solvency and surety for performance required by §62-5-10, the department shall issue a certificate of exemption relieving the employer of the obligation to purchase worker's compensation insurance provided in §§62-5-2 and 62-5-3. The department may revoke this certificate if the employer fails to comply with the provisions of titles 58 and 62, or with any rules promulgated by the Department of Labor and Regulation.
Source: SDC 1939, §64.0106(4); SL 1941, ch 371; SL 1986, ch 428; SL 1990, ch 417; SL 1994, ch 93, §2; SL 1996, ch 306, §3; SL 2011, ch 1 (Ex. Ord. 11-1), §33, eff. Apr. 12, 2011; SL 2018, ch 285, §1.
Structure South Dakota Codified Laws
Title 62 - Workers' Compensation
Chapter 05 - Insurance And Security For Payments
Section 62-5-1 - Methods of securing payment of compensation.
Section 62-5-2 - Obtaining workers' compensation insurance.
Section 62-5-6 - Exemption of political subdivisions from security provisions.
Section 62-5-7 - Failure to secure payment as election not to operate under title.
Section 62-5-8 - Commission for placing insurance limited.
Section 62-5-9 - Issuance of policy to employer--Certification to department.
Section 62-5-10 - Surety for performance required for self-insurers--Irrevocable trust.
Section 62-5-11 - Requirements for acceptance of irrevocable letter of credit--Definitions.
Section 62-5-12 - Deposit of surety bonds, letters of credit, etc.
Section 62-5-13 - Deposit of certificate of deposit or government securities.
Section 62-5-14 - Deposit and withdrawal of cash.
Section 62-5-15 - Perfected security interest in deposit--Release of security interest.
Section 62-5-16 - Claims administration contracts.
Section 62-5-18 - Reduction of premium where employer selects a policy with a deductible.
Section 62-5-19 - Deductible does not affect reporting requirements.
Section 62-5-20 - Insurer to pay entire loss--Employer to reimburse deductible amount.
Section 62-5-21 - Provision of medical services and health care.