S 0783 General Bill, By H.U. Fielding
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 38-71-312 so as to require insurers to base individual health and accident
 policy premium rates on actuarially credible experience.

   03/19/91  Senate Introduced and read first time SJ-6
   03/19/91  Senate Referred to Committee on Banking and Insurance

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-312 SO AS TO REQUIRE INSURERS TO BASE INDIVIDUAL HEALTH AND ACCIDENT POLICY PREMIUM RATES ON ACTUARIALLY CREDIBLE EXPERIENCE.

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

SECTION 1. The 1976 Code is amended by adding:

"Section 38-71-312. (A) A filing for a rate increase pursuant to Section 38-71-310(B) or Section 38-71-310(E) must be supported by credible actuarial experience. For purposes of this section, one million dollars in annual earned premium on a policy form in this State constitutes credible actuarial experience. If an insurer does not have one million dollars in annual earned premium on a policy form which has been available in this State for two or more years as of the date of the filing, then the experience on the policy form must be combined with the experience on all other policy forms which have been available in this State for two or more years and which have less than one million dollars in annual earned premium. If the combined experience does not result in at least one million dollars in annual earned premium, or if the policy form has not been available in this State for more than two years, the insurer may, at its option:

(1) base its rate filing on experience on the policy form during the most recent period over which one million dollars on the policy form was earned; or

(2) base its rate filing on annual experience on the policy form in all states if the combined premium totals more than one million dollars.

(B) This section does not apply to medicare supplement policies."

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