ENTITLED An Act to revise certain provisions regarding third party insurance plan administrators.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That a NEW SECTION be added:
58-29D-22.1. Annual financial statement--Contents of application--Required audit.
Any annual financial statement or report required under 58-29D-22 must be audited. The applicant is presumed to be solvent if the applicant has a positive net worth.
If the applicant has been in existence for less than two fiscal years, the applicant shall include in the application all financial statements or reports, certified by an officer of the applicant and prepared in accordance with generally accepted accounting principles, for any completed fiscal year and for any month during the current fiscal year for which the financial statements or reports have been completed. If information provided pursuant to this section is prepared on a consolidated or combined basis, the applicant shall include a columnar consolidating or combining worksheet with the report or renewal and shall include in the worksheet the following:
(1) Amounts shown on the consolidated audited financial report or renewal;
(2) Amounts for each entity stated separately; and
(3) Explanations of consolidating and eliminating entries.
Section 2. That 58-29D-27 be AMENDED:
58-29D-27. Servicer of certain employee benefit plans--Exempt from licensure--Requirements.
A person is not required to hold a license as an administrator in this state if the person exclusively provides services to one or more bona fide employee benefit plans, each of which is established by an employer or an employee organization, or both, and for which the insurance laws of this state are preempted pursuant to the Employee Retirement Income Security Act of 1974. Any person not required to hold a license shall register with the director annually, verifying the person's status if the person directly or indirectly underwrites, collects charges or premiums from, or adjusts or settles claims of residents of this state in connection with a self-funded plan other than a governmental or church plan offering life, annuity, or health coverage.
An Act to revise certain provisions regarding third party insurance plan administrators.
I certify that the attached Act originated in the:
Secretary of the Senate
President of the Senate
Attest:
Secretary of the Senate
Speaker of the House
Attest:
Chief Clerk
Senate Bill No. 11 File No. ____ Chapter No. ______
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Received at this Executive Office this _____ day of _____________,
2020 at ____________M.
By for the Governor
The attached Act is hereby approved this ________ day of ______________, A.D., 2020
ss. Office of the Secretary of State
Filed ____________, 2020 at _________ o'clock __M.
Secretary of State
By Asst. Secretary of State
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