Committee Report

April 6, 2023

H. 3255

Introduced by Reps. Jefferson, Henegan, Anderson and Sandifer

 

S. Printed 04/06/23--H.

Read the first time January 10, 2023

 

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The committee on House Labor, Commerce and Industry

To who was referred a Bill (H. 3255) to amend the South Carolina Code of Laws by adding Section 38-63-110 so as to prohibit issuers of individual life insurance policies from discriminating against, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

 

WILLIAM SANDIFER for Committee.

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

This bill prohibits individual life insurance policies, group life insurance policies, disability income insurance policies, and long-term care insurance policies issued in the state from declining or limiting coverage to living organ donors. The bill further specifies that these policies may not preclude an insured from donating all or part of an organ as a condition for continuation of the policy and provides definitions for each applicable policy.

 

The bill authorizes DOI to take action to enforce the requirements of the bill as they relate to each applicable policy. DOI indicates that the enforcement of the provisions established by the bill will be managed within existing resources and will have no impact.

 

State Revenue

Based on information from DOI, these requirements will have no material impact on premiums for insurance providers of life insurance policies, group life insurance policies, disability income insurance policies, and long-term care insurance policies. Therefore, this bill will have no impact on insurance premiums tax revenue.

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

to amend the South Carolina Code of Laws by adding Section 38-63-110 so as to PROHIBIT ISSUERS OF INDIVIDUAL LIFE INSURANCE POLICIES FROM DISCRIMINATING AGAINST LIVING ORGAN DONORS; by adding Section 38-65-130 so as to PROHIBIT ISSUERS OF GROUP LIFE INSURANCE POLICIES FROM DISCRIMINATING AGAINST LIVING ORGAN DONORS; by adding Section 38-71-105 so as to PROHIBIT ISSUERS OF DISABILITY INCOME INSURANCE POLICIES FROM DISCRIMINATING AGAINST LIVING ORGAN DONORS; and by adding Section 38-72-110 so as to PROHIBIT ISSUERS OF LONG-TERM CARE INSURANCE POLICIES FROM DISCRIMINATING AGAINST LIVING ORGAN DONORS.

 

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

 

SECTION 1.  This act may be cited as the "Living Donor Protection Act".

 

SECTION 2.  Article 1, Chapter 63, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-63-110. (A) Notwithstanding another provision of law, an individual life insurance policy issued in this State, may not:

       (1) decline or limit coverage of a person under any life insurance policy solely due to the status of such person as a living organ donor;

       (2) preclude an insured from donating all or part of an organ as a condition of continuing to receive a life insurance policy; or

       (3) discriminate in the offering, issuance, cancellation, amount of such coverage, price, or any other condition of a life insurance policy for a person, based solely and without any additional actuarial risks upon the status of such person as a living organ donor.

    (B) The Department of Insurance may take actions to enforce subsection (A) as authorized under this title.

    (C) For purposes of this section:

       (1) "Life insurance policy" means a contract under which an entity promises to pay a designated beneficiary a sum of money upon the death of the insured.

       (2) "Living organ donor" means an individual who has donated all or part of his organ and is not deceased.

 

SECTION 3.  Article 1, Chapter 65, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-65-130. (A) Notwithstanding another provision of law, a group life insurance policy issued in this State, may not:

       (1) decline or limit coverage of a person under any life insurance policy solely due to the status of such person as a living organ donor;

       (2) preclude an insured from donating all or part of an organ as a condition of continuing to receive a life insurance policy; or

       (3) discriminate in the offering, issuance, cancellation, amount of such coverage, price, or any other condition of a life insurance policy for a person, based solely and without any additional actuarial risks upon the status of such person as a living organ donor.

    (B) The Department of Insurance may take actions to enforce subsection (A) as authorized under this title.

    (C) For purposes of this section:

       (1) "Life insurance policy" means a contract under which an entity promises to pay a designated beneficiary a sum of money upon the death of the insured.

       (2) "Living organ donor" means an individual who has donated all or part of an organ and is not deceased.

 

SECTION 4.  Article 1, Chapter 71, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-71-105. (A) Notwithstanding another provision of law, a disability income insurance policy issued in this State, may not:

       (1) decline or limit coverage of a person under any disability income insurance policy solely due to the status of such person as a living organ donor;

       (2) preclude an insured from donating all or part of an organ as a condition of continuing to receive a disability income insurance policy; or

       (3) discriminate in the offering, issuance, cancellation, amount of such coverage, price, or any other condition of a disability income insurance policy for a person, based solely and without any additional actuarial risks upon the status of such person as a living organ donor.

    (B) The Department of Insurance may take actions to enforce subsection (A) as authorized under this title.

    (C) For purposes of this section:

       (1) "Disability income insurance policy" means a contract under which an entity promises to pay an insured a sum of money in the event that an illness or injury resulting in a disability prevents the insured from working.

       (2) "Living organ donor" means an individual who has donated all or part of an organ and is not deceased.

 

SECTION 5.  Chapter 72, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-72-110. (A) Notwithstanding another provision of law, a long-term care insurance policy issued in this State, may not:

       (1) decline or limit coverage of a person under any long-term care insurance policy solely due to the status of such person as a living organ donor;

       (2) preclude an insured from donating all or part of an organ as a condition of continuing to receive a long-term care insurance policy; or

       (3) discriminate in the offering, issuance, cancellation, amount of such coverage, price, or any other condition of a long-term care insurance policy for a person, based solely and without any additional actuarial risks upon the status of such person as a living organ donor.

    (B) The Department of Insurance may take actions to enforce subsection (A) as authorized under this title.

    (C) For purposes of this section:

       (1) "Long-term care insurance policy" means a contract for which the only insurance protection provided under the contract is coverage of qualified long-term care services.

       (2) "Living organ donor" means an individual who has donated all or part of an organ and is not deceased.

 

SECTION 6.  This act takes effect upon approval by the Governor.

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