# S.D. Admin. R. 20:06:57:08: ARSD 20:06:57:08. Reserves and stop-loss coverage

> South Dakota · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S08

## Section

- **Citation:** S.D. Admin. R. 20:06:57:08
- **Heading:** ARSD 20:06:57:08. Reserves and stop-loss coverage
- **Jurisdiction:** South Dakota
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Administrative Rules of South Dakota / Title 20 / Article 20:06 INSURANCE / Chapter 20:06:57 Self-funded multiple employer trusts / ARSD 20:06:57:08

## Text

(1) A multiple employer trust shall have at all times aggregate excess stop-loss coverage providing the multiple employer trust with coverage for risks in this state with an attachment point which is not greater than:
(a) 120 percent of actuarially projected losses on a calendar-year basis; or
(b) Five percent of annual expected claims for purposes of this section and shall provide for adjustments in the amount of that percentage as may be necessary to carry out the purposes of this section as determined by sound actuarial principles;
(2) A multiple employer trust shall establish and maintain appropriate loss and loss adjustment reserves determined by sound actuarial principles;
(3) A multiple employer trust shall set premiums to fund at least 100 percent of the multiple employer trust's actuarially projected losses plus all other costs of the multiple employer trust;
(4) All coverage obtained pursuant to this section shall contain a provision allowing for at least 90 days' notice to the director upon cancellation or nonrenewal of the contract;
(5) No contract or policy of per occurrence or aggregate excess insurance may be recognized in considering the ability of an applicant to fulfill its financial obligations under this section, unless such contract or policy is issued by a company that is:
(a) Licensed to transact business in this state; or
(b) Authorized to do business in this state as a reinsurer in one of the permitted methods regarding credit for reinsurance as provided in SDCL chapter 58-14.

## Nearby sections

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- [S.D. Admin. R. 20:06:57:08 ARSD 20:06:57:08. Reserves and stop-loss coverage](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S08.md)
- [S.D. Admin. R. 20:06:57:08.01 ARSD 20:06:57:08.01. Multiple employer trust minimum loss ratio](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S08_01.md)
- [S.D. Admin. R. 20:06:57:08.02 ARSD 20:06:57:08.02. Multiple employer trust dividends](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S08_02.md)
- [S.D. Admin. R. 20:06:57:09 ARSD 20:06:57:09. Annual report](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S09.md)
- [S.D. Admin. R. 20:06:57:10 ARSD 20:06:57:10. Contracts by multiple employer trusts](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S10.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C57_S08. Check the current official text before relying on it. Not legal advice.