It is unlawful for an insurer to make payment or settlement of benefits arising under life, endowment, accident, health, or hospitalization policies written by the insurer in merchandise, services rendered or agreed to be rendered, or to issue a policy which provides for settlement in merchandise or services rendered or to be rendered.
An insurer violating this section pays a penalty of ten times the amount of the policy, certificate, or other evidence of insurance to be collected in a suit by the policyholder or his legal representatives or beneficiary. An officer, agent, or servant of an insurer who violates this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than three years, or both.
HISTORY: Former 1976 Code Section 38-9-330 [1947 (45) 322; 1952 Code Section 37-168; 1958 (50) 1554; 1962 Code Section 37-168] recodified as Section 38-59-50 by 1987 Act No. 155, Section 1; 1988 Act No. 374, Section 31; 1993 Act No. 184, Section 220.
Structure South Carolina Code of Laws
Section 38-59-10. Proof of loss forms required to be furnished.
Section 38-59-20. Improper claim practices.
Section 38-59-25. Coverage decisions not constituting practice of medicine.
Section 38-59-30. Notice and hearing by director or designee; penalties.
Section 38-59-40. Liability for attorneys' fees where insurer has refused to pay claim.
Section 38-59-50. Payment or settlement of benefits in merchandise or services prohibited.
Section 38-59-200. Citation of article.
Section 38-59-210. Definitions.
Section 38-59-220. Requesting fee schedule from insurer; confidentiality.
Section 38-59-240. Interest on payments later than applicable period; exceptions.
Section 38-59-250. Initiation of overpayment recovery efforts.
Section 38-59-260. Application of requirements of article.
Section 38-59-270. Enforcement; cease and desist orders; penalty; private right of action.