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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-195 SO AS TO REQUIRE A HEALTH AND ACCIDENT AND DENTAL INSURANCE POLICY TO ACKNOWLEDGE AND HONOR THE ASSIGNMENT OF BENEFITS BY AN INSURED, TO REQUIRE AN ASSIGNMENT OF BENEFITS UNDER CERTAIN CIRCUMSTANCES, AND TO PROVIDE PENALTIES FOR VIOLATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 71, Title 38 of the 1976 Code is amended by adding:
"Section 38-71-195. (A) A policy of health and accident and dental insurance issued in this State must include a provision for the assignment of benefits to a provider of medical or dental services by an insured.
(B) An insuror as provided in subsection (A) shall recognize and honor all assignments.
(C) A provider of health and accident and dental insurance may require a new or prospective patient to give an assignment of benefits before medical or dental services are provided to the insured.
(D) An health and accident and dental insuror violating the provisions of this section must be fined an amount not to exceed one thousand dollars for each violation by the director of the Department of Insurance."
SECTION 2. This act takes effect upon approval by the Governor.
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