Current Status Introducing Body:Senate Bill Number:522 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Accident and health insurance coverage Residing Body:Senate Current Committee:Banking and Insurance Companion Bill Number:3323 Computer Document Number:522 Introduced Date:Jan 22, 1991 Last History Body:Senate Last History Date:Jan 22, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Saleeby Land McConnell Mullinax Pope Type of Legislation:General Bill
Bill Body Date Action Description CMN
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522 Senate Jan 22, 1991 Introduced, read first time, 02
referred to Committee
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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.