SDCL § 58-17-71: Separate classes of individual business--Reasons--Number.

A carrier may establish a separate class of individual business only to reflect substantial differences in expected claims experience or administrative costs related to the following reasons:

(1) The carrier used more than one type of system for the marketing and sale of health benefit plans to individuals; or

(2) The carrier has acquired a class of business from another carrier.

A carrier may establish up to three separate classes of individual business under this section.