No advertisement or solicitation of short term major medical insurance may be used in this state unless the following disclosure statement is prominently displayed in that advertisement or solicitation: "This short term major medical policy is [nonrenewable/renewable]."

No short term major medical policy may be sold in this state unless the following separate disclosure in bold 14 point type is signed and acknowledged by the applicant:

"This short term major medical policy is [nonrenewable/renewable]. This policy provides coverage for [number of days or months that is less than 12 months]. A renewal or extension of this policy or additional policies must have a combined duration of no more than 36 months in total. This policy has exclusions such as preexisting conditions and does not provide all coverage required by the Patient Protection and Affordable Care Act."

If the application is taken by an agent, the agent is responsible for forwarding this signed disclosure to the insurer. For direct marketed solicitations, the insurer must provide this disclosure with the application. No insurer may issue a short term major medical policy unless a signed disclosure, as required by this section, is received. If the transaction involves a replacement, the agent or, if forwarded by the agent to the insurer, the insurer shall, in accordance with SDCL 58-1-26 keep documentation indicating compliance with § 20:06:10:08.02.

Source: 33 SDR 107, effective December 26, 2006; 38 SDR 116, effective January 10, 2012; 40 SDR 102, effective December 3, 2013; 47 SDR 68, effective December 7, 2020.

General Authority: SDCL 58-33A-7(14).

Law Implemented: SDCL 58-33A-8 , 58-33A-10.

Prior versions effective: 2013-12-03.