ARSD 20:06:22:27.02. Tobacco usage reporting

If an enrollee is found to have reported false or incorrect information about the enrollee's tobacco use, the issuer may retroactively apply the appropriate tobacco use rating factor to the enrollee's premium as if the correct information had been accurately reported from the beginning of the plan year. An issuer must not rescind the coverage on this basis. Tobacco use is not a material fact for which an issuer may rescind coverage if there is a misrepresentation.