{"data":{"id":"us-sd/sdcl-58-20-28","jurisdiction":"us-sd","citation":"SDCL § 58-20-28","heading":"Requirements to obtain self-insurance certificate.","body":"To obtain and maintain its certificate an association shall:\n(1) Have sufficient assets, net worth, and liquidity to promptly meet all obligations of the association's members under §§ 58-20-25 to 58-20-40, inclusive, and their workers' compensation liability. In determining whether an association is in sound financial condition, consideration shall be given to the combined net worth of the member companies; the combined long-term and short-term debt to equity ratios of the member companies; other financial data requested by the department or submitted by the group; and the combined workers' compensation experience of the group for the last three years;\n(2) Furnish to the department security in the form of a bond, cash, certificate of deposit, government securities, irrevocable letter of credit, irrevocable trust, in any combination, in an amount equal to the greater of:\n(a) Two hundred fifty thousand dollars; or\n(b) Twenty-five percent of the association's preceding year's gross annual assessments to its members;\n(3) Obtain specific and aggregate excess insurance by an insurance company licensed to conduct business in South Dakota; and\n(4) Maintain an indemnity agreement jointly and severally binding the association and each member of the association to meet the workers' compensation liability of each member.","path":["TITLE 58. INSURANCE","CHAPTER 58-20. WORKERS' COMPENSATION INSURANCE"],"source_url":"https://sdlegislature.gov/Statutes/58-20-28","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"92f753fbfc131055a72eb84b55fbb36fbedda4a60e491fcab0bd72efe660a8ed","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-58-20-27","next":"us-sd/sdcl-58-20-29"},"notice":"GroundRules: Original legal text. Not legal advice."}