58-20-28. Requirements to obtain self-insurance certificate.
207 words·~1 min read·
/sd/title-58/chapter-58-20/58-20-28·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.