Bill 3305

                    Current Status

Bill Number:               3305
Ratification Number:       451
Act Number                 416
Introducing Body:          House
Subject:                   Payment of claims

(A416, R451, H3305)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-63-80 SO AS TO PROVIDE THAT INTEREST AT THE LEGAL RATE MUST BE PAID BY A LIFE INSURER ON A LUMP SUM DEATH BENEFIT IF THE INSURER FAILS TO PAY THE BENEFIT WITHIN THIRTY DAYS OF THE CLAIMANT SUBMITTING PROOF OF DEATH AND ANY NECESSARY CLAIM PAPERS NEEDED TO PAY THE CLAIM.

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

Payment of claims

SECTION 1. Article 1. Chapter 63, Title 38 of the 1976 Code is amended by adding:

"Section 38-63-80. When an individual life insurance policy provides for payment of its proceeds in a lump sum upon the death of the insured and the insurer fails to pay the proceeds within thirty days of submission of proof of death and all necessary claim papers needed in order to pay the claim properly, the payment must include interest at the legal rate from the date of death of the insured until the date the claim is paid."

Time effective

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