Current Status Introducing Body:Senate Bill Number:525 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Accident and health insurance coverage Residing Body:Senate Current Committee:Banking and Insurance Companion Bill Number:3327 Computer Document Number:525 Introduced Date:Jan 22, 1991 Last History Body:Senate Last History Date:Jan 22, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Saleeby Land McConnell Mullinax Pope Type of Legislation:General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 525 Senate Jan 22, 1991 Introduced, read first time, 02 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND SECTION 38-71-730, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REQUIREMENTS FOR GROUP ACCIDENT, GROUP HEALTH, AND GROUP ACCIDENT AND HEALTH INSURANCE POLICIES, SO AS TO REDUCE THE SIZE OF THE GROUPS FOR WHICH INDIVIDUAL EVIDENCE OF INSURABILITY MAY NOT BE REQUIRED FROM TWENTY-FIVE PERSONS TO TWO PERSONS, AND TO REQUIRE AN INSURER TO GIVE CREDIT FOR THE SATISFACTION OF A PREEXISTING CONDITION PERIOD IF A COVERED PERSON MOVES FROM ONE INSURED GROUP TO ANOTHER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-71-730(3) of the 1976 Code is amended to read:
"(3) For groups of twenty-five or more persons no evidence of individual insurability may be required at the time the person first becomes eligible for insurance or within thirty-one days thereafter except for any insurance supplemental to the basic coverage for which evidence of individual insurability may be required. With respect to trusteed groups the phrase 'groups of twenty-five' must be applied on a participating unit basis for the purpose of requiring individual evidence of insurability. For all groups no evidence of individual insurability may be required at the time the person first becomes eligible for insurance or within thirty-one days thereafter. Nothing in this section precludes the obtaining of medical information with respect to the members of the group for use in determining the insurability of the group, but the information may not be used to exclude an individual from coverage."
SECTION 2. Section 38-71-730(4) of the 1976 Code is amended to read:
"(4) The policies may contain a provision limiting coverage for preexisting conditions. The preexisting conditions must be covered no later than twelve months without medical care, treatment, or supplies ending after the effective date of the coverage or twelve months after the effective date of the coverage, whichever occurs first. Preexisting conditions are defined as `those conditions for which medical advice or treatment was received or recommended no more than twelve months prior to before the effective date of a person's coverage.' Whenever a covered person moves from one insured group to another, the insurer of the group to which the covered person moves shall give credit for the satisfaction of the preexisting condition period or portion thereof already served under the prior plan if the coverage is selected when the person first becomes eligible and the coverage is continuous. Service under a probationary period required by the employer is not considered to interrupt continuous service."
SECTION 3. This act takes effect upon approval by the Governor, except that the provisions of Section 38-71-730(3), as amended by Section 1 of this act, apply to any policy first issued after the effective date of this act and upon the renewal date of any policy in effect on the effective date of this act.