Current Status Introducing Body:
HouseBill Number: 3323Primary Sponsor: BoanCommittee Number: 26Type of Legislation: GBSubject: Group accident and health insurance policiesResiding Body: HouseCurrent Committee: Labor, Commerce and IndustryCompanion Bill Number: 522Computer Document Number: CYY/18059.SDIntroduced Date: Jan 24, 1991Last History Body: HouseLast History Date: Jan 24, 1991Last History Type: Introduced, read first time, referred to CommitteeScope of Legislation: StatewideAll Sponsors: Boan McElveenType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3323 House Jan 24, 1991 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND SECTION 38-71-730, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REQUIREMENTS FOR GROUP ACCIDENT, GROUP HEALTH, AND GROUP ACCIDENT AND HEALTH INSURANCE POLICIES, SO AS TO REQUIRE THAT THESE POLICIES PROPOSED TO BE USED FOR ANY GROUP OF FROM TWO TO TWENTY-FOUR PERSONS MAY NOT BE CANCELED OR NONRENEWED EXCEPT FOR NONPAYMENT OF PREMIUMS, FRAUD, OR MATERIAL MISREPRESENTATION IN THE APPLICATION, FAILURE TO MAINTAIN PARTICIPATION REQUIREMENTS, OR BREACH OF OTHER CONTRACT PROVISIONS UNLESS ALL POLICIES ISSUED ON THE SAME FORM ARE CANCELED OR NONRENEWED AT THE SAME TIME.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-71-730 of the 1976 Code, as last amended by Act 362 of 1990, is further amended by adding:
"(7) A policy of group health, group accident, or group accident and health insurance proposed to be used for any group of from two to twenty-four persons delivered or issued for delivery in this State may not be canceled or nonrenewed except for:
(a) nonpayment of premiums,
(b) fraud or material misrepresentation in the application by the policyholder,
(c) failure to maintain participation requirements, or
(d) the breach of any other contractual provisions of the policy, unless all policies issued on the same form are canceled or nonrenewed at the same time. If the fraud or material misrepresentation is made by a person with respect to any person's prior health condition, the insurer shall have the right also to deny coverage to that person or to impose as a condition of continued coverage the exclusion of the condition misrepresented."
SECTION 2. This act takes effect upon approval by the Governor.