§ 58-20-28 — Requirements to obtain self

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.

Legislative History

SL 1995, ch 282, § 4.