2019 South Dakota Codified Laws
Title 58 - Insurance
Chapter 17E - Discount Medical Plans
§ 58-17E-41 Signature on contract required prior to receipt of consideration--Disclosure of information--Exception.

58-17E-41. Signature on contract required prior to receipt of consideration--Disclosure of information--Exception. No person subject to registration pursuant to § 58-17E-9 may receive personal information, money, or other consideration for enrollment in a plan or program until the consumer has signed a contract or agreement with the person and no later than at the time the contract is signed, provides, at a minimum, the following information, disclosed in a clear and conspicuous manner:

(1) The name, true address, telephone number, and website address of the registered person who is responsible for customer service;

(2) A detailed description of the plan or program, including the goods and services covered and all exemptions and discounts that apply to each category thereof;

(3) All costs associated with the plan or program, including any sign-up fee and any recurring costs;

(4) An internet website that is updated regularly or a paper copy where the consumer can access the names and addresses of all current participating providers in the consumer's area;

(5) A statement of the consumer's right to return the plan or program within thirty days of its delivery to the person or agent through whom it was purchased and to have all costs of the plan or program, excluding a nominal process fee refunded if, after examination of the plan or program, the purchaser is not satisfied with it for any reason;

(6) A statement of the consumer's right to terminate the plan or program at any time by providing written notice or other notice, the form to be used for the termination notice, and the address where the notice is to be sent if different than the address provided in subdivision (1); and

(7) Notice that the consumer is not obligated to make any further payments under the plan or program, nor is the consumer entitled to any benefits under the plan or program for any period of time after the last month for which payment has been made;

(8) That the plan is not insurance;

(9) That the range of discounts for medical or ancillary services provided under the plan will vary depending on the type of provider and medical or ancillary service received;

(10) That the plan does not make payments to providers for the medical or ancillary services received under the discount medical plan;

(11) That the plan member is obligated to pay for all medical or ancillary services, but will receive discount from those providers that have contracted with the discount medical plan organization.

The requirement that the contract or agreement be signed prior to any money or consideration being obtained does not apply to a transaction in which payment by the consumer is made by credit card or by means of a telephonic transaction so long as the disclosures required by this section are provided to the consumer by way of postal mail, facsimile, or electronic mail within ten business days of the consumer's enrollment.

Source: SL 2005, ch 269, § 3; SDCL, § 58-17C-106; SL 2006, ch 257, § 45.