58-17E-20. Surety bond.
166 words·~1 min read·
/sd/title-58/chapter-58-17/58-17e-20·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Each registered discount medical plan organization shall maintain in force a surety bond in its own name in an amount not less than twenty thousand dollars and shall be in favor of any person and the director of the Division of Insurance for the benefit of any person who is damaged by any violation of §§ 58-17E-9 , 58-17E-39 , 58-17E-41 , and 58-17E-45 , inclusive, including any violation by the supplier or by any other person that markets, promotes, advertises, or otherwise distributes a discount card on behalf of the supplier.
The bond shall cover any violation occurring during the time period during which the bond is in effect. The bond shall be issued by an insurance company licensed to do business in this state. A copy of the bond or a statement identifying the depository, trustee, and account number of the surety account, and thereafter proof of annual renewal of the bond or maintenance of the surety account, shall be filed with the director.