Current Status Introducing Body:
HouseBill Number: 3458Primary Sponsor: RudnickCommittee Number: 26Type of Legislation: GBSubject: Insurers, proof of lossResiding Body: HouseCurrent Committee: Labor, Commerce and IndustryDate Tabled: May 07, 1991Computer Document Number: CYY/18110.SDIntroduced Date: Feb 07, 1991Last History Body: HouseLast History Date: May 07, 1991Last History Type: Tabled in CommitteeScope of Legislation: StatewideAll Sponsors: Rudnick McBrideType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3458 House May 07, 1991 Tabled in Committee 26 3458 House Feb 07, 1991 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-105 SO AS TO REQUIRE INSURERS TO PAY CLAIMS WITHIN FIFTEEN DAYS OF THE RECEIPT OF THE PROOF OF LOSS, TO PROVIDE CERTAIN EXCEPTIONS TO THIS GENERAL RULE, AND TO PROVIDE THAT INSURERS NOT COMPLYING WITH THE ABOVE PROVISIONS ALSO SHALL PAY THE INSURED INTEREST ON THE BENEFITS DUE AT THE RATE OF EIGHTEEN PERCENT PER ANNUM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-71-105. (A) All benefits payable under an accident and health insurance policy other than benefits for loss of time are payable immediately upon receipt of due written proof of the loss. Should the insurer fail to pay the benefits under its policy, other than benefits for loss of time, upon receipt of written proof of loss, the insurer has fifteen working days to mail the insured or subscriber a letter or notice which states the reasons the insurer has for failing to pay the claim, either in whole or in part, and which also gives the insured or subscriber a written itemization of any documents or other information needed to process the claim or any portions of the claim which are not being paid. When all of the listed documents or other information needed to process the claim are received, the insurer has fifteen working days to process and either pay the claim or deny it, in whole or in part, giving the insured the reasons the insurer has for denying the claim or any portion of the claim.
(B) Subject to proof of loss, all accrued benefits payable under an accident and health insurance policy for loss of time must be paid not later than at the expiration of each period of thirty days during the continuance of the period for which the insurer is liable and any balance remaining unpaid at the termination of the period must be paid immediately upon receipt of the proof.
(C) Each insurer licensed to write accident and health insurance in this State shall pay interest to the insured equal to eighteen percent per annum on the proceeds or benefits due under the terms of the policy for failure to comply with the requirements of subsection (A) or (B)."
SECTION 2. This act takes effect upon approval by the Governor.