State Codes and Statutes
Statutes > South-dakota > Title-58 > Chapter-18 > Statute-58-18-8858-18-88. Authorization of self-funded multiple employer trust--Conditions. A self-funded multiple employer trust, as defined in section 3 of the federal Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002, paragraph 40, may be authorized by the director if the multiple employer trust meets all of the following conditions:
(1) The multiple employer trust is administered by an authorized insurer or a licensed third-party administrator;
(2) The multiple employer trust meets all of the requirements of § 58-18B-59;
(3) The multiple employer trust is established by a homogenous trade, industry, or professional association of employers that has a constitution or bylaws, is organized under the laws of South Dakota and has been maintained in good faith for purposes other than providing insurance for at least ten continuous years;
(4) The association sponsoring the multiple employer trust is engaged in substantial activity for its members other than sponsorship of an employer welfare benefit plan;
(5) The association sponsoring the multiple employer trust is a nonprofit entity organized under applicable South Dakota law;
(6) The multiple employer trust, upon authorization by the director, participates in the South Dakota Life and Health Insurance Guaranty Association pursuant to chapter 58-29C and is a member pursuant to subdivision 58-29C-48(12);
(7) The multiple employer trust:
(a) Meets the capital and surplus requirements of § 58-6-23;
(b) Meets the risk based capital requirements of § 58-4-48;
(c) Is subject to the hazardous financial condition requirements of §§ 58-4-39 to 58-4-42, inclusive;
(d) Invests its assets pursuant to the requirements of chapters 58-26 and 58-27;
(e) Is subject to chapter 58-3 on the same basis as insurers;
(f) Is subject to the insurers supervision, rehabilitation, and liquidation provisions of chapter 58-29B.
Source: SL 2005, ch 272, § 2.
