South Carolina General Assembly
108th Session, 1989-1990

Bill 3265

                    Current Status

Bill Number:               3265
Ratification Number:       38
Act Number                 24
Introducing Body:          House
Subject:                   Relating to approval of accident, health,
                           or accident and health insurance
                           policies
View additional legislative information at the LPITS web site.

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

(A24, R38, H3265)

AN ACT TO AMEND SECTION 38-71-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPROVAL OF ACCIDENT, HEALTH, OR ACCIDENT AND HEALTH INSURANCE POLICIES ISSUED OR DELIVERED IN THIS STATE, SO AS TO REVISE THE MANNER IN WHICH POLICIES AND PREMIUM RATES FOR CERTAIN ACCIDENT AND HEALTH INSURANCE POLICIES ARE APPROVED.

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

Approval of policies and premium rates

SECTION 1. Section 38-71-310 of the 1976 Code, as amended by Act 316 of 1988, is further amended to read:

"Section 38-71-310. (A) No policy or certificate of accident, health, or accident and health insurance may be issued or delivered in this State, nor may any application, endorsement, or rider which becomes a part of the policy be used, until a copy of its form has been filed with and approved by the Commissioner except as exempted by regulation as permitted by Section 38-61-20. The Commissioner may disapprove the form if the form (1) does not meet the requirements of law, (2) contains any provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory, or (3) is going to be solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading. The Commissioner shall notify in writing, as soon as is practicable, the insurer which has filed the form of his approval or disapproval. In the event of disapproval, the notice must contain the reasons for disapproval, and the insurer is entitled to a public hearing thereon. If no action has been taken to approve or disapprove a policy or certificate, application, endorsement, or rider after the documents have been filed for ninety days, they are deemed to be approved.

(B) No premium rates applicable to accident policies, health policies, or combined accident and health policies or certificates for individual or family protection may be used unless they have been filed with and approved by the Commissioner. The Commissioner may disapprove premium rates if he determines that the benefits provided in the policies or certificates are unreasonable in relation to the premiums charged. The Commissioner shall notify in writing the insurer, as soon as is practicable, which has filed the premium rates of his approval or disapproval. In the event of disapproval, the notice must contain the reasons for disapproval, and the insurer is entitled to a public hearing on the disapproval. If no action has been taken to approve or disapprove the premium rates after they have been filed for ninety days, they are deemed to be approved.

(C) At any time the Commissioner may, after a public hearing of which at least thirty days' written notice has been given, withdraw approval of forms and rates previously approved under subsections (A) and (B), if he determines that the forms and rates no longer meet the standards for approval specified in subsections (A) and (B).

(D) The provisions of this section do not apply to policies issued in connection with loans made under the Small Loan Act of 1966."

Time effective

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