SDCL § 58-18B-12: Ceding arrangements resulting in less than fifty percent of obligation or risk retained by carrier prohibited.

Unless otherwise authorized by the director, no small employer carrier may enter into one or more ceding arrangements with respect to health benefit plans delivered or issued for delivery to small employers in the state if the arrangements would result in less than fifty percent of the insurance obligation or risk for such health benefit plans being retained by the ceding carrier.