South Carolina General Assembly
111th Session, 1995-1996

Bill 4267


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       4267
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19950530
Primary Sponsor:                   Cato 
All Sponsors:                      Cato and A. Young 
Drafted Document Number:           PFM\7542BDW.95
Residing Body:                     Senate
Current Committee:                 Banking and Insurance Committee
                                   02 SBI
Subject:                           Workers' compensation insurance
                                   policy



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19960213  Introduced, read first time,             02 SBI
                  referred to Committee
House   19960209  Read third time, sent to Senate
House   19960208  Read second time, unanimous consent
                  for third reading on the next
                  Legislative day
House   19960207  Committee report: Favorable              26 HLCI
House   19950530  Introduced, read first time,             26 HLCI
                  referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

February 7, 1996

H. 4267

Introduced by REPS. Cato and A. Young

S. Printed 2/7/96--H.

Read the first time May 30, 1995.

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (H. 4267), to amend the Code of Laws of South Carolina, 1976, by adding Section 38-73-515 so as to provide that the insurers issuing a workers' compensation insurance policy shall offer, etc., respectfully

REPORT:

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

HARRY F. CATO, for Committee.

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-73-515 SO AS TO PROVIDE THAT INSURERS ISSUING A WORKERS' COMPENSATION INSURANCE POLICY SHALL OFFER, AS A PART OF THE POLICY OR AS AN OPTIONAL ENDORSEMENT TO THE POLICY, DEDUCTIBLES OPTIONAL TO THE POLICYHOLDER FOR BENEFITS PAYABLE UNDER TITLE 42, WORKERS' COMPENSATION, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS.

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

SECTION 1. The 1976 Code is amended by adding:

"Section 38-73-515. (A) Each insurer issuing a policy of workers' compensation insurance shall offer, as a part of the policy or as an optional endorsement to the policy, deductibles optional to the policyholder for benefits payable under Title 42. Deductible amounts offered must be disclosed fully to the prospective policyholder in writing in the amount of one hundred dollars, two hundred dollars, three hundred dollars, four hundred dollars, five hundred dollars, or increments of five hundred dollars up to a maximum of two thousand five hundred dollars for each compensable claim. The policyholder exercising the deductible option shall choose only one deductible amount.

(B) If the policyholder exercises the option and chooses a deductible, the insured employer is liable for the amount of the deductible for benefits paid for each compensable claim of work injury suffered by an employee. The insurer shall pay all or part of the deductible amount, whichever is applicable to a compensable claim, to the person or provider entitled to the benefits conferred by this chapter and then seek reimbursement from the insured employer for the applicable deductible amount. The payment or nonpayment of deductible amounts by the insured employer to the insurer must be treated under the policy insuring the liability for workers' compensation in the same manner as payment or nonpayment of premiums.

(C) Optional deductibles must be offered in each policy insuring liability for workers' compensation which is issued, delivered, issued for delivery, or renewed after June 30, 1996, unless an insured employer and insurer agree to renegotiate a workers' compensation insurance policy in effect on July 1, 1996, so as to include a provision allowing for a deductible.

(D) Premium reduction for deductibles must be determined before the application of any experience modification, premium surcharge, or premium discounts. To the extent that an employer's experience rating or safety record is based on benefits paid, money paid by the insured employer under a deductible as provided in this section must not be included as benefits paid so as to harm the experience rating of the employer.

(E) This section does not apply to employers who are approved to self-insure against liability for workers' compensation or group self-insurance funds for workers' compensation established pursuant to the laws of this State."

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

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