South Dakota Codified Laws 58-38-8. Issuance of license–Matters considered by director
The director shall issue a license upon being satisfied on the following points:
(1) That the applicant is established as a bona fide nonprofit medical and surgical service corporation;
Terms Used In South Dakota Codified Laws 58-38-8
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- physicians and surgeons: as used in this chapter shall include all those persons who are licensed pursuant to chapters 36-4, 36-4A, and 36-9A. See South Dakota Codified Laws 58-38-2
(2) That the contracts between the applicant and the participating physicians and surgeons obligate each physician and surgeon to render service to which each subscriber may be entitled under the contract issued to the subscribers;
(3) That the rates to be charged and benefits to be provided are fair and reasonable;
(4) That amounts provided as working capital of the corporation are repayable only out of earned income over and above operating expenses, physicians and surgeons expenses, and such reserve as the director may deem adequate; and
(5) That the amount of money actually available for working capital be sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the date of the issuance of the certificate.
Source: SL 1966, ch 111, ch 21, § 6.