S.D. Codified Laws § 58-16-6

The premium for a policy issued under § 58-16-2 may be paid entirely by the policyholder, or by funds paid entirely by the insured employees, or by funds contributed by both the policyholder and the insured employees. A policy on which no part of the premium is to be derived from funds contributed by the insured employees must insure all eligible employees, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.