No insurer may engage in the transacting of insurance in this state by issuing a stop loss policy unless, prior to issuing a contract for the stop loss policy, the insurer discloses clearly and conspicuously to the employer, in writing the following:

(1) The employer is not covered for claims below the stop loss attachment point;

Terms Used In South Dakota Codified Laws 58-33-107

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Contract: A legal written agreement that becomes binding when signed.
  • State: when used in context signifying a jurisdiction other than the State of South Dakota, a state, the District of Columbia, a territory, commonwealth, or possession of the United States of America, or a province of the Dominion of Canada. See South Dakota Codified Laws 58-1-2

(2) A description of the attachment point, including the specific and aggregate attachment points; and

(3) The insurer provides no other coverage of the employer’s retention.

Source: SL 2007, ch 292, § 15.