South Dakota Code § 58-41-26

Exemption from insurance laws--Exceptions--Taxation
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Any health maintenance organization is exempt from all provisions of the insurance laws of this state other than this chapter. However, the corporation is subject to the
provisions of this title on matters and procedures of mergers and licensure of insurance producers. The corporation is also subject to fees and taxation as insurers under §
58-2-29
and chapter
10-44
. The corporation is also subject to §§
58-17-53
and
58-17-54
if entering into a contract after July 1, 1990, with the State of South Dakota, counties, school districts, municipalities, and any other unit of state government using public funds. The state, however, may not collect premium taxes for insurance written on individuals residing outside this state or property located outside this state if no comparable tax is paid by the direct writing health maintenance organization to any appropriate taxing authority. Health maintenance organizations are also subject to the following chapters:
58-1
,
58-2
,
58-3
, 58-4,
58-5
,
58-5
A,
58-6
,
58-7
,
58-1
1,
58-1
2,
58-1
4,
58-1
7,
58-1
7A,
58-1
7F,
58-1
7G,
58-1
7H,
58-1
7I,
58-1
8,
58-1
8A,
58-1
8B,
58-1
8C,
58-2
6,
58-2
7,
58-2
9B on the same basis as insurers,
58-3
0,
58-3
3A; and
58-43
. Nothing in chapters
58-5
or
58-6
may be construed to prohibit a nonprofit health maintenance organization from transacting business under this title based upon its nonprofit status.
To the extent that a health maintenance organization is compliant with the provisions of chapters
58-17F
to
58-17I
, inclusive, for purposes of network adequacy, quality assessment and improvements, utilization review and benefit determinations, and grievance procedure, the health maintenance organization is compliant with the provisions of this chapter.

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