58-17-67Professional association defined.

For purposes of §§ 58-17-66 to 58-17-87, inclusive, the term, professional association, means any association that meets all of the following criteria:

(1)    Serves a single profession that requires a significant amount of education, training, or experience or a license or certificate from a state authority to practice the profession;

(2)    Has been actively in existence for five years;

(3)    Has a constitution and by-laws or other analogous governing documents;

(4)    Has been formed and maintained in good faith for purposes other than obtaining insurance;

(5)    Is not owned or controlled by a carrier or affiliated with a carrier;

(6)    Does not condition membership in the association on health status of claims experience;

(7)    Has at least one thousand members if it is a national association; five hundred members if it is a state association; or two hundred members if it is a local association;

(8)    All members and dependents of members are eligible for coverage regardless of health status or claims experience;

(9)    Is governed by a board of directors and sponsors annual meetings of its members; and

(10)    Does not allow producers to market association memberships, accept applications for memberships, or sign up members.

Source: SL 1996, ch 286, § 2.