# S.D. Codified Laws § 58-17-2.1: Health insurance on a franchise plan

> South Dakota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-2.1

## Section

- **Citation:** S.D. Codified Laws § 58-17-2.1
- **Heading:** Health insurance on a franchise plan
- **Jurisdiction:** South Dakota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SD Code / Title 58 / Chapter 17 / Section 58-17-2.1

## Text

Health insurance on a franchise plan is hereby declared to be that form of health insurance issued to:

(1) Three or more employees of any corporation, copartnership, or individual employer or any governmental corporation, agency, or department thereof; or

(2) Ten or more members of any trade, occupational, or professional association, or of a labor union, or of any other association having had an active existence for at least two years where such association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance; where such persons, with or without their dependents, are issued the same form of an individual policy varying only as to amounts and kinds of coverage applied for by such persons, under an arrangement whereby the premiums on such policies may be paid to the insurer periodically by the employer, with or without payroll deductions, or by the association for its members, or by some designated person acting on behalf of such employer or association or by the insured directly to the insurer, if permitted by the insurer. The term, employees, as used in this section may be deemed to include the officers, managers, and employees and retired employees of the employer and the individual proprietor or partnership.

Health insurance may be marketed on a franchise basis to members or employees of an employer, labor union, or association. Except as provided for by § 58-18B-2 , health insurance marketed on a franchise basis may have the individual's premiums paid by the employer, labor union, or association. Marketing a policy on a franchise basis does not exempt any policy from any applicable requirement under this title except as provided in § 58-33-13 .

Source: SL 1966, ch 111, ch 25, § 30 as added by SL 1968, ch 137; SL 2000, ch 241, §§ 1, 2.

## Nearby sections

- [S.D. Codified Laws § 58-17-1 Requirements for all health insurance policies delivered in state](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-1.md)
- [S.D. Codified Laws § 58-17-1.1 Grandfathered plans required to cover low-dose mammography--Extent of coverage](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-1.1.md)
- [S.D. Codified Laws § 58-17-1.2 Policies to provide coverage for diabetes supplies, equipment and education--Exceptions--Conditions and limitations](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-1.2.md)
- [S.D. Codified Laws § 58-17-1.3 Diabetes coverage not required of certain plans and policies](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-1.3.md)
- [S.D. Codified Laws § 58-17-1.4 Policies required to cover occult breast cancer screening](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-1.4.md)
- [S.D. Codified Laws § 58-17-2 Persons covered by policy](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-2.md)
- [S.D. Codified Laws § 58-17-2.1 Health insurance on a franchise plan](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-2.1.md)
- [S.D. Codified Laws § 58-17-2.2 Conversion privileges of insured's spouse upon divorce](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-2.2.md)
- [S.D. Codified Laws § 58-17-2.3 Dependent coverage termination--Age--Full-time students](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-2.3.md)
- [S.D. Codified Laws § 58-17-3 Time of commencement and termination to be set out in policy](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-3.md)
- [S.D. Codified Laws § 58-17-4 Consideration for policy to be stated](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-4.md)
- [S.D. Codified Laws § 58-17-4.1 Filing and approval of individual policy premium rates](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-4.1.md)
- [S.D. Codified Laws § 58-17-4.2 Premium rates required to be reasonable--Rules to establish minimum standards promulgated by director](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-4.2.md)
- [S.D. Codified Laws § 58-17-5 Identification of forms, riders and endorsements--Form number, location](https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-5.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_T58_C17_S58-17-2.1. Check the current official text before relying on it. Not legal advice.