The costs for special education and related services, as defined in rules promulgated by the South Dakota Board of Education Standards pursuant to chapter 1-26, may be covered and available from accident and health insurers, nonprofit medical and surgical plans, health maintenance organizations, fraternal benefit societies, or federally reimbursed program sources. If a school district chooses to access these funds through the use of parent's insurance proceeds, the following provisions apply:
(1) Expenses for special education and related services may not be borne by the parent;
(2) The filing of claims may not delay the education of a child;
(3) The school district is responsible for payment of a deductible amount and for any advance payment required until the time a claim is paid;
(4) Parental consent shall be obtained to file an insurance claim;
(5) The school district shall inform parents of any potential financial losses that they could incur; and
(6) If parents would incur a financial loss, the use of parent's insurance proceeds must be voluntary.
For purposes of this section only, financial losses include a decrease in available lifetime coverage or any other benefit under an insurance policy, an increase in premiums under an insurance policy, or an out-of-pocket expense such as the payment of a deductible amount incurred in filing a claim.