Bill 493

                    Current Status

Bill Number:               493
Ratification Number:       368
Act Number                 337
Introducing Body:          Senate
Subject:                   Forms to be filed with insurance
                           commissioner

(A337, R368, S493)

AN ACT TO AMEND SECTION 37-4-203, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FILING AND APPROVAL OF CREDIT INSURANCE RATES AND FORMS UNDER THE CONSUMER PROTECTION CODE AND 38-36-410, AS AMENDED, RELATING TO THE APPROVAL AND DISAPPROVAL OF INSURANCE FORMS FOR ACCIDENT AND HEALTH POLICIES BY THE INSURANCE COMMISSIONER, SO AS TO PROVIDE IN BOTH CASES THAT SUCH FORMS REMAIN ON FILE FOR NINETY RATHER THAN THIRTY DAYS BEFORE BECOMING EFFECTIVE UNLESS EARLIER ACTION IS TAKEN BY THE REVIEWING AUTHORITY.

Be it enacted by the General Assembly of the State of South Carolina:

Forms to be filed with insurance commissioner

Section 1. Subsections (1) and (2) of Section 37-4-203 of the 1976 Code are amended to read:

"(1) A creditor may not use a form or a schedule of premium rates or charges, the filing of which is required by this section, if the Insurance Commissioner has disapproved the form or schedule and has notified the insurer of his disapproval. A creditor may not use a form or schedule unless

(a) The form or schedule has been on file with the Insurance Commissioner for ninety days, or has earlier been approved by him; and

(b) The insurer has complied with this section with respect to the insurance.

(2) except as provided in subsection (3), all policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements and riders relating to consumer credit insurance, other than life insurance, delivered or issued for delivery in this State, and the schedule of premium rates or charges pertaining thereto, shall be filed by the insurer with the Insurance Commissioner. Within ninety days after the filing of any form or schedule, he shall disapprove it if the premium rates or charges are unreasonable in relation to the benefits provided under the form, or if the form contains provisions which are unjust, unfair, inequitable or deceptive, or encourage misrepresentation of the coverage, or are contrary to any provision of the Insurance Code or of any rule or regulation promulgated thereunder."

Time for approval by commissioner

Section 2. Section 38-35-410 of the 1976 Code as last amended by Act 630 of 1976 is further amended to read:

"Section 38-35-410. No policy or certificate of accident, health or accident and health insurance shall be issued or delivered in this State, nor shall any application, endorsement or rider which becomes a part of any such policy be used until a copy of the form thereof has been filed with and approved by the Commissioner; provided, however, that if no action has been taken to approve or disapprove a policy or certificate, application, endorsement or rider after such documents have been filed for ninety days, they may be issued and delivered until or unless subsequently disapproved by the Commissioner. The Commissioner shall, as soon as is practicable, notify in writing the insurer which has filed any such form of his approval or disapproval. In the event of disapproval the notice shall contain the reasons therefor, and the insurer shall be entitled to a public hearing thereon. At any time after having given written approval thereof the commissioner may, after a public hearing of which at least twenty days' written notice has been given, withdraw approval if he finds that such forms do not meet the requirements of law, contain any provisions which are deceptive, ambiguous, misleading or unfairly discriminatory or are being solicited by means of advertising, communication or dissemination of information which is deceptive or misleading. In the case of accident policies, health policies or combined accident and health policies or certificates for individual or family protection, the Commissioner may disapprove or withdraw approval of filed forms of policies or certificates if he determines the benefits provided in such policies or certificates are unreasonable in relation to the premiums charged. Such withdrawal of approval must be effected by written notice to the insurer, and the insurer shall be entitled to a public hearing thereon. The action of the Commissioner in this regard shall be subject to review by any court of competent jurisdiction, but nothing in this chapter shall be construed to give jurisdiction to any court not already having jurisdiction. The provisions of this section shall not apply to group insurance nor to those policies issued in connection with loans made under the Small Loan Act of 1966."

Time effective

Section 3. This act shall take effect ninety days following approval by the Governor.