South Dakota discount medical plan bonds.
$400 flat.
A South Dakota discount medical plan organization must keep a $20,000 minimum surety bond on file with the Division of Insurance under SDCL 58-17E-20. Ours is $400 flat for the $20,000 bond. A quick soft credit check may apply, never a hard inquiry; the bond is issued when you pay.
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How much does a South Dakota discount medical plan bond cost?
$400 at the $20,000 amount, the same for every applicant.
Three steps to registered.
Your DMPO registration is waiting on this bond. Here’s the entire process:
Apply once, online
Organization details, owner information, effective date. That’s the application — the only extra step is a one-time consent to a soft credit pull.
Approved
Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.
E-sign & file with the Division of Insurance
Pay online and receive the executed bond ready to file with your DMPO registration or renewal. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the DMPO bond actually guarantees
South Dakota regulates discount medical plan organizations under SDCL chapter 58-17E, administered by the Division of Insurance. A DMPO sells access to discounted health-care services for a fee, and the state requires a surety bond standing behind the organization’s compliance with the chapter.
Under SDCL 58-17E-20, each registered DMPO must maintain a surety bond in an amount not less than $20,000, in favor of the director and any person damaged by a violation of the chapter’s key provisions. The Division of Insurance may increase the amount case-by-case and will tell you the required figure after reviewing your registration.
A surety bond is one accepted form of security — under SDCL 58-17E-21, a DMPO may instead deposit cash or securities with a market value of at least $35,000. The bond is usually cheaper: you pay the $400 premium rather than tying up $35,000. If the surety pays a claim, you repay the surety.
You need this bond if you’re
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $20,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
E-sign & file with the Division of Insurance. Pay online and receive the executed bond ready to file with your DMPO registration or renewal. Wet-ink originals mailed whenever the state insists.
What sets the price
The premium is fixed at $400 at the $20,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other South Dakota bonds.
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Price and requirements checked on the carrier’s application, . Page updated .
DMPO registration, sorted today.
$400 flat, short application, bond issued when you pay. Free until issued.