South Carolina General Assembly
109th Session, 1991-1992

Bill 3458


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               House
Bill Number:                    3458
Primary Sponsor:                Rudnick
Committee Number:               26
Type of Legislation:            GB
Subject:                        Insurers, proof of loss
Residing Body:                  House
Current Committee:              Labor, Commerce and Industry
Date Tabled:                    May 07, 1991
Computer Document Number:       CYY/18110.SD
Introduced Date:                Feb 07, 1991
Last History Body:              House
Last History Date:              May 07, 1991
Last History Type:              Tabled in Committee
Scope of Legislation:           Statewide
All Sponsors:                   Rudnick
                                McBride
Type of Legislation:            General Bill



History


 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 Committee

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

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.

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