Current Status Introducing Body:Senate Bill Number:526 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:3326 Computer Document Number:526 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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526 Senate Jan 22, 1991 Introduced, read first time, 02
referred to Committee
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TO AMEND SECTION 38-71-760, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STANDARDS FOR GROUP ACCIDENT AND HEALTH INSURANCE COVERAGE, DISCONTINUANCE, AND REPLACEMENT, SO AS TO ESTABLISH WHEN A REPLACEMENT CARRIER BECOMES A SUCCEEDING CARRIER; AND TO AMEND SECTION 38-71-770, AS AMENDED, RELATING TO MANDATORY CONTINUATION AND CONVERSION PRIVILEGES FOR ACCIDENT AND HEALTH INSURANCE POLICIES, SO AS TO ESTABLISH THE STANDARD BY WHICH A GROUP POLICY BECOMES A SUCCESSOR POLICY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-71-760(k) of the 1976 Code is amended to read:
"(k) The carrier responsible for liability in those instances in which one carrier's contract replaces a plan of similar benefits of another must be indicated. A replacement carrier is considered to be a succeeding carrier within the meaning of this section if the effective date of the coverage provided by it is sixty-two days or less after the date of termination of coverage of the prior carrier."
SECTION 2. The first paragraph of Section 38-71-770 of the 1976 Code, as last amended by Act 127 of 1989, is further amended to read:
"A group policy issued for delivery or renewed in this State which provides hospital, surgical, or major medical expense insurance, or any combination of these coverages, on an expense incurred basis must provide that an employee or member who has been continuously insured continuously under the group policy for at least six months whose insurance under the group policy has been terminated for any reason other than nonpayment of the required contribution is entitled to continue coverage under the group policy for the fractional policy month remaining at termination plus six additional policy months. A group policy is considered to be a successor policy within the meaning of this section if the effective date of the coverage provided by it is sixty-two days or less after the date of termination of coverage of the prior carrier. The employee or member is not entitled to have his coverage continued if the employee or member was entitled under federal law to continuation of his coverage for a period of greater duration than provided herein by this section. Continuation of coverage is subject to the group policy or a successor policy remaining in force and the employee paying the entire group premium, including any portion usually paid by the former employer, before the date each month that the group policy month begins. Policies which provide benefits for other than hospital, surgical, major medical, or which provide benefits for specific diseases or the accidental injuries only are not affected by this section."
SECTION 3. This act takes effect ninety days after approval by the Governor.