Separate classes of individual business--Reasons--Number.

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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.

Source: SL 1996, ch 286, §6.


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