Bill 2262

                    Current Status

Bill Number:               2262
Ratification Number:       298
Act Number                 284
Introducing Body:          House
Subject:                   Relating provisions in accident and
                           health or hospitalization insurance
                           policies

(A284, R298, H2262)

AN ACT TO AMEND SECTION 38-35-140 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REQUIRED PROVISIONS IN ACCIDENT AND HEALTH OR HOSPITALIZATION INSURANCE POLICIES THAT GIVE NOTICE TO INSURED TO EXAMINE POLICY, OPTION TO RETURN IT FOR MISREPRESENTATION AND REQUIRE INSURER TO RETURN PREMIUM, SO AS TO PERMIT THE INSURED TO RETURN SUCH POLICY FOR ANY REASON INSTEAD OF CERTAIN SPECIFIED MISREPRESENTATIONS AND IF POLICY IS SOLICITED BY DIRECT RESPONSE INSURER, THE INSURED SHALL, IN ACCORDANCE WITH NOTICE ON POLICY, HAVE THIRTY DAYS TO RETURN SUCH POLICY TO RECEIVE FULL RETURN OF PREMIUM, AND TO FIX THE DATE WHEN AN INSURED SHALL BE DEEMED TO HAVE RETURNED A POLICY SOLD ON A DIRECT RESPONSE BASIS.

Be it enacted by the General Assembly of the State of South Carolina:

Notice on policy required

Section 1. Section 38-35-140 of the 1976 Code is amended to read:

"Section 38-35-140. Every individual or family accident and health or hospitalization policy, certificate, contract or plan, except trip or travel ticket policies, issued for delivery in this State by any insurance company, nonprofit hospital service plan or medical service corporation shall have printed thereon or attached thereto a notice to the insured that ten days are allowed, from the date of the receipt of the policy, to examine its provisions and that the insured may for any reason, surrender such policy to the insurer. In addition, if the policy was solicited by a direct response insurer, rather than through a licensed insurance agent, the policy, certificate, contract or plan shall have printed thereon or attached thereto a notice to the insured that thirty days are allowed from the date of the receipt of the policy to examine its provisions and that the insured may for any reason surrender such policy to the insurer. Any premium advanced by the insured, upon appropriate surrender as provided herein, shall be immediately returned in full by the insurer to the insured."

Date fixed when policy returned

Section 2. For purposes of Section 1 of this act, the insured shall be deemed to have returned a policy sold on a direct response basis as of the date shown on the postmark or the date the insured notifies the insurer or an agent of the insurer, in writing or in person, that the insured does not want the policy, whichever is the earlier.

Time effective

Section 3. This act shall take effect upon the approval by the Governor.