§ 58-17-67 — Professional association defined.

For purposes of §§ 58-17-66 to 58-17-87 , inclusive, the term, professional association, means any association that meets all of the following criteria: (1) Serves a single profession that requires a significant amount of education, training, or experience or a license or certificate from a state authority to practice the profession; (2) Has been actively in existence for five years; (3) Has a constitution and by - laws or other analogous governing documents; (4) Has been formed and maintained in good faith for purposes other than obtaining insurance; (5) Is not owned or controlled by a carrier or affiliated with a carrier; (6) Does not condition membership in the association on health status of claims experience; (7) Has at least one thousand members if it is a national association; five hundred members if it is a state association; or two hundred members if it is a local association; (8) All members and dependents of members are eligible for coverage regardless of health status or claims experience; (9) Is governed by a board of directors and sponsors annual meetings of its members; and (10) Does not allow producers to market association memberships, accept applications for memberships, or sign up members.

Legislative History

SL 1996, ch 286, § 2.