SDCL § 58-18B-38: Prohibited activities of small employer carriers or insurance producers.

No small employer carrier or insurance producer may, directly or indirectly, engage in the following activities:

(1) Encouraging or directing small employers to refrain from filing an application for coverage with the small employer carrier because of the health status, claims experience, industry, occupation, or geographic location of the small employer; or

(2) Encouraging or directing small employers to seek coverage from another carrier because of the health status, claims experience, industry, occupation, or geographic location of the small employer.