H 4102 Session 110 (1993-1994)
H 4102 General Bill, By I.K. Rudnick, D.W. Beatty, G. Brown and J. Hines
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
38-71-105 so as to require insurers to pay claims within fifteen days of the
receipt of the proof of loss, to provide certain exceptions to this general
rule, and to provide that insurers not complying with the above provisions
also shall pay the insured interest on the benefits due at the rate of
eighteen percent per annum.
04/14/93 House Introduced and read first time HJ-66
04/14/93 House Referred to Committee on Labor, Commerce and
Industry HJ-66
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING SECTION 38-71-105 SO AS TO REQUIRE INSURERS
TO PAY CLAIMS WITHIN FIFTEEN DAYS OF THE RECEIPT OF
THE PROOF OF LOSS, TO PROVIDE CERTAIN EXCEPTIONS TO
THIS GENERAL RULE, AND TO PROVIDE THAT INSURERS NOT
COMPLYING WITH THE ABOVE PROVISIONS ALSO SHALL
PAY THE INSURED INTEREST ON THE BENEFITS DUE AT THE
RATE OF EIGHTEEN PERCENT PER ANNUM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-71-105. (A) All benefits payable under an
accident and health insurance policy other than benefits for loss of time
are payable immediately upon receipt of due written proof of the loss.
Should the insurer fail to pay the benefits under its policy, other than
benefits for loss of time, upon receipt of written proof of loss, the insurer
has fifteen working days to mail the insured or subscriber a letter or
notice which states the reasons the insurer has for failing to pay the
claim, either in whole or in part, and which also gives the insured or
subscriber a written itemization of any documents or other information
needed to process the claim or any portions of the claim which are not
being paid. When all of the listed documents or other information
needed to process the claim are received, the insurer has fifteen working
days to process and either pay the claim or deny it, in whole or in part,
giving the insured the reasons the insurer has for denying the claim or
any portion of the claim.
(B) Subject to proof of loss, all accrued benefits payable under an
accident and health insurance policy for loss of time must be paid not
later than at the expiration of each period of thirty days during the
continuance of the period for which the insurer is liable and any balance
remaining unpaid at the termination of the period must be paid
immediately upon receipt of the proof.
(C) Each insurer licensed to write accident and health insurance in
this State shall pay interest to the insured equal to eighteen percent per
annum on the proceeds or benefits due under the terms of the policy for
failure to comply with the requirements of subsection (A) or (B)."
SECTION 2. This act takes effect upon approval by the Governor.
-----XX----- |