S*0884(Rat #0528, Act #0521)  General Bill, By Hayes, Lander, Leventis and 
Wilson
 A Bill to amend Section 38-65-70, Code of Laws of South Carolina, 1976,
 relating to group life insurance and coverage of families of employees and
 members, so as to delete the provision that the amounts of insurance may not
 exceed, with respect to a spouse or child, ten thousand dollars.-amended title

   11/08/93  Senate Prefiled
   11/08/93  Senate Referred to Committee on Banking and Insurance
   01/11/94  Senate Introduced and read first time SJ-29
   01/11/94  Senate Referred to Committee on Banking and Insurance SJ-29
   03/30/94  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-17
   03/31/94  Senate Amended SJ-315
   03/31/94  Senate Read second time SJ-315
   04/05/94  Senate Read third time and sent to House SJ-11
   04/06/94  House  Introduced and read first time HJ-33
   04/06/94  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-33
   05/04/94  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-11
   05/25/94  House  Read second time HJ-10
   05/26/94  House  Read third time and enrolled HJ-38
   06/02/94         Ratified R 528
   09/13/94         Signed By Governor
   09/13/94         Effective date 09/13/94
   10/03/94         Copies available

AN ACT TO AMEND SECTION 38-65-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GROUP LIFE INSURANCE AND COVERAGE OF FAMILIES OF EMPLOYEES AND MEMBERS, SO AS TO DELETE THE PROVISION THAT THE AMOUNTS OF INSURANCE MAY NOT EXCEED, WITH RESPECT TO A SPOUSE OR CHILD, TEN THOUSAND DOLLARS.

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

Amounts of insurance; provisions deleted

SECTION 1. Section 38-65-70 of the 1976 Code is amended to read:

"Section 38-65-70. Any policy issued pursuant to Section 38-65-40 may be extended to insure the employees or members against loss due to the death of their spouses and any child under the age of nineteen or who is a dependent and a full-time student under twenty-five years of age and also may be extended to any child who is both (i) incapable of self-sustaining employment by reason of mental retardation or physical handicap and (ii) chiefly dependent upon the employee for support and maintenance, subject to the following requirements:

(1) The premium for the insurance must be paid by the policyholder from the policyholder's funds or from funds contributed by the insured persons, or from both.

(2) Upon termination of the insurance with respect to the members of the family of any employee or member by reason of the employee's or member's termination of employment, termination of membership in the class or classes eligible for coverage under the policy, or death, the spouse or child is entitled to have issued by the insurer, without evidence of insurability, an individual policy of life insurance without disability or other supplementary benefits as long as application for the individual policy is made and the first premium paid to the insurer within thirty-one days after the termination, subject to the requirements of subitems (a), (b), and (c) of Section 38-65-210(8). If the group policy terminates or is amended so as to terminate the insurance of any class of employees or members and the employee or member is entitled to have issued an individual policy under Section 38-65-210(9), the spouse also is entitled to have issued by the insurer an individual policy, subject to the conditions and limitations provided above in this item (2). If the spouse dies within the period during which he would have been entitled to have an individual policy issued in accordance with this provision, the amount of life insurance which he would have been entitled to have issued under the individual policy is payable as a claim under the group policy, whether or not application for the individual policy or the payment of the first premium therefor has been made. Notwithstanding Section 38-65-210(7), only one certificate need be issued for delivery to an insured person if a statement concerning a dependent's coverage is included in the certificate.

(3) The amounts of insurance must be based upon some plan precluding individual selection either by the employees or members or by the policyholder, employer, or union."

Time effective

SECTION 2. This act takes effect upon approval of the Governor.

Approved the 13th day of September, 1994.