(A) A policy or certificate of accident, health, or accident and health insurance may not be issued or delivered in this State, nor may any application, endorsement, or rider which becomes a part of the policy be used, until a copy of its form has been filed with and approved by the director or his designee, except as exempted by the director or his designee as permitted by Section 38-61-20. The director or his designee may disapprove the form if the form:
(1) does not meet the requirements of law;
(2) contains provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory; or
(3) is solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading.
The director or his designee shall notify in writing, as soon as is practicable, the insurer that has filed the form of his approval or disapproval. If the form is disapproved, the notice must contain the reasons for disapproval, and the insurer is entitled to a public hearing on that decision. If action is not taken to approve or disapprove a policy or certificate, application, endorsement, or rider after the document has been filed for thirty days, it is deemed to be approved.
The director or his designee, in his discretion, may extend for up to an additional sixty days the period for approval or disapproval of the form. An organization may not use a form deemed approved pursuant to the default provision of this section until the organization has filed with the director or his designee a written notice of its intent to use the form. The notice must be filed in the office of the director at least ten days before the organization uses the form.
(B) No premium rates applicable to accident policies, health policies, or combined accident and health policies or certificates for individual or family protection may be used unless they have been filed with the department and approved by the director or his designee. The director or his designee may disapprove premium rates if he determines that the benefits provided in the policies or certificates are unreasonable in relation to the premiums charged. The director or his designee shall notify in writing the insurer, as soon as is practicable, which has filed the premium rates of his approval or disapproval with the department. In the event of disapproval, the notice must contain the reasons for disapproval, and the insurer is entitled to appeal the decision or determination of disapproval before the Administrative Law Court as provided by law. If no action has been taken to approve or disapprove the premium rates after they have been filed for ninety days, they are deemed to be approved.
(C) At any time the director or his designee, after a public hearing of which at least thirty days' written notice has been given, may withdraw approval of forms or rates previously approved under subsections (A) and (B) if he determines that the forms or rates no longer meet the standards for approval specified in subsections (A) and (B).
(D) The provisions of this section do not apply to policies issued in connection with loans made under the Small Loan Act of 1966.
(E) For major medical expense coverage individual accident and health insurance policies, as defined by regulation of the department, the benefits are deemed reasonable in relation to the premium charged if the insurer has filed a loss ratio guarantee with the department. This guaranteed loss ratio must be equivalent to, or greater than, the most recent loss ratios detailed within the National Association of Insurance Commissioners' "Guidelines for Filing of Rates for Individual Health Insurance Forms". This loss ratio guarantee must be in writing and must contain at least the following:
(1) A recitation of the anticipated (target) loss ratio standards contained in the original actuarial memorandum filed with the policy form when it was originally approved.
(2) A guarantee that the actual South Carolina loss ratios for the calendar year in which the new rates take effect, and for each year thereafter until new rates are filed will meet or exceed the loss ratio standards referred to in item (1).
(3) A guarantee that the actual South Carolina loss ratio results for the year at issue will be independently audited at the insurer's expense. This audit must be done in the second quarter of the next year and the audited results must be reported to the department not later than the date for filing the applicable Accident and Health Policy Experience Exhibit.
(4) A guarantee that affected South Carolina policyholders will be issued a proportional refund (based on premium paid) of the amount necessary to bring the actual aggregate loss ratio up to the anticipated loss ratio standards referred to in item (1). The refund must be made to all South Carolina policyholders insured under the applicable policy form as of the last day of the year at issue if the refund would equal five dollars or more. The refund must include statutory interest from the end of the year at issue until the date of payment. Payments must be made during the third quarter of the next year.
(5) As used herein, the term "loss ratio" means the ratio of incurred losses to earned premium by number of years of policy duration, for all combined durations.
(6) The reference in item (1) of this subsection to the "anticipated (target) loss ratio standards contained in the original actuarial memorandum filed with the policy form when it was originally approved" may not be considered or construed as evidence of legislative intent that the use of, or adherence to, such "anticipated (target) loss ratio standards" is approved or disapproved in any application for a rate increase for any policy form approved prior to the effective date of these amendments to Section 38-71-310.
(F) Nothing in this chapter precludes the issuance of an individual accident, health, or accident and health insurance policy that includes an optional life insurance rider. However, the optional life insurance rider must be filed with and approved by the director or his designee pursuant to Section 38-61-20 and comply with all applicable sections of Chapter 63 and, in addition, in the case of a life insurance rider with accelerated long term care benefits, Chapter 72 of this title.
HISTORY: Former 1976 Code Section 38-35-410 [1947 (45) 322; 1952 Code Section 37-471; 1962 Code Section 37-471; 1972 (57) 2593; 1976 Act No. 630; 1980 Act No. 337, Section 2] recodified as Section 38-71-310 by 1987 Act No. 155, Section 1; 1988 Act No. 316, Section 2; 1989 Act No. 24, Section 1; 1989 Act No. 90, Section 1; 1993 Act No. 181, Section 753; 1998 Act No. 411, Section 6; 2001 Act No. 82, Section 23, eff July 20, 2001.
Structure South Carolina Code of Laws
Chapter 71 - Accident And Health Insurance
Section 38-71-10. Coverages which may be written by licensed accident and health insurers.
Section 38-71-30. Whole contract, including application, must appear in policy; oral applications.
Section 38-71-40. Effect of false statement in application.
Section 38-71-46. Diabetes Mellitus coverage in health insurance policies; diabetes education.
Section 38-71-50. Alteration of application.
Section 38-71-60. Certain acts do not constitute a waiver by insurer.
Section 38-71-70. Certain policies may conform to laws of other states.
Section 38-71-80. Construction of policy issued in violation of chapter.
Section 38-71-90. Penalty for violation of chapter.
Section 38-71-100. Policies exempt from chapter.
Section 38-71-125. Mastectomies; hospitalization requirements; early release provisions.
Section 38-71-140. Coverage of newborn children.
Section 38-71-143. Health plans must provide same coverage for children placed for adoption.
Section 38-71-160. When policy sold on direct response basis considered to be returned.
Section 38-71-170. Required provision in policies for conversion privileges for former spouses.
Section 38-71-190. Subrogation of insurer to insured's rights against third party.
Section 38-71-210. Health insurance policies to include chiropractic services.
Section 38-71-215. Dermatology referrals.
Section 38-71-238. Abortion coverage prohibitions; exceptions.
Section 38-71-240. Coverage required for cleft lip and palate; certain policies exempt.
Section 38-71-242. Specified disease insurance policies; payment of claims and benefits.
Section 38-71-243. Continuation of care; definitions; applicability; requirements.
Section 38-71-245. Prohibited grounds for denial of enrollment to child of health plan participant.
Section 38-71-246. Continuation of care; provider contract requirements.
Section 38-71-247. Continuation of care; plain language description requirement.
Section 38-71-255. Health insurer may not impose different requirements on state agency.
Section 38-71-260. Duties of health insurer of child to custodial parent.
Section 38-71-275. Insurance coverage for certain drugs not to be excluded from policy definitions.
Section 38-71-280. Autism spectrum disorder; coverage; eligibility for benefits.
Section 38-71-290. Mental health coverage; definitions; treatment requirements; exceptions
Section 38-71-315. Decrease of premium charges.
Section 38-71-320. Policies issued for delivery in another state.
Section 38-71-330. Form of policies.
Section 38-71-340. Required provisions.
Section 38-71-355. Dependent child; medically necessary leave of absence.
Section 38-71-360. Continuation of coverage for nonhandicapped dependent children.
Section 38-71-370. Optional provisions.
Section 38-71-410. Omission or modification of required or optional provisions.
Section 38-71-420. Placement of required and optional provisions in policy.
Section 38-71-430. Additional provisions may not make policy less favorable.
Section 38-71-510. Declaration of purpose.
Section 38-71-520. Definitions.
Section 38-71-540. Regulations establishing minimum standards for benefits.
Section 38-71-550. Outline of coverage required.
Section 38-71-560. Effect of use of simplified application form.
Section 38-71-610. Notice of premiums due required.
Section 38-71-620. Advance notice required for increase in premium.
Section 38-71-630. Acceptance of premium for period beyond expiration date of policy.
Section 38-71-640. Person with insurable interest may take out policy on insured.
Section 38-71-650. Right to transfer to policy of equal or lesser benefits with same insurer.
Section 38-71-670. Definitions.
Section 38-71-680. Application of Section 38-71-850(D).
Section 38-71-710. Definitions.
Section 38-71-735. Required provisions.
Section 38-71-740. Restrictions on mass-marketed insurance.
Section 38-71-770. Mandatory continuation privileges.
Section 38-71-785. Dependent child; medically necessary leave of absence.
Section 38-71-790. Payment of benefits.
Section 38-71-800. Hospital and medical expenses.
Section 38-71-810. Readjustment of rates or refunds or dividends.
Section 38-71-840. Definitions.
Section 38-71-910. Legislative intent.
Section 38-71-920. Definitions.
Section 38-71-930. Application of this subarticle.
Section 38-71-970. Insurer rating and renewal records; filing of certification; confidentiality.
Section 38-71-980. Suspension of premium rate restrictions upon request of certain insurers.
Section 38-71-990. Effective date of this subarticle.
Section 38-71-1010. "Blanket accident and health insurance" defined.
Section 38-71-1020. Requirements as to policies.
Section 38-71-1030. Individual applications and certificates not required.
Section 38-71-1040. Payment of benefits.
Section 38-71-1050. Legal liability of policyholders not affected.
Section 38-71-1110. "Franchise accident and health insurance" defined.
Section 38-71-1310. Short title.
Section 38-71-1320. Purpose and intent.
Section 38-71-1330. Definitions.
Section 38-71-1340. Application of article; group size for health group cooperative.
Section 38-71-1350. Premium rates; requirements.
Section 38-71-1355. Health group cooperative; powers and duties.
Section 38-71-1370. Applicability of certain code sections; late enrollees.
Section 38-71-1400. Election to become reinsuring insurer.
Section 38-71-1410. South Carolina Small Employer Insurer Reinsurance Program.
Section 38-71-1420. Advisory committee.
Section 38-71-1430. Annual public report.
Section 38-71-1440. Requirements upon small employer insurers.
Section 38-71-1445. Report on effectiveness of health group cooperatives.
Section 38-71-1450. Promulgation of regulations.
Section 38-71-1510. Short title.
Section 38-71-1520. Definitions.
Section 38-71-1540. Practice of discouraging use of 911 telephone system prohibited.
Section 38-71-1545. Exclusion of certain insurance policies.
Section 38-71-1550. Severability.
Section 38-71-1710. Short title.
Section 38-71-1720. Definitions.
Section 38-71-1750. Disclosures required of network plans.
Section 38-71-1760. Promulgation of regulations.
Section 38-71-1810. Pharmacy audit rights.
Section 38-71-1820. Appeals process; dismissal; copy of audit findings.
Section 38-71-1830. Recoupment.
Section 38-71-1840. Exemptions.
Section 38-71-1910. Short title.
Section 38-71-1920. Definitions.
Section 38-71-1930. Application of this article.
Section 38-71-1940. Notice of right to request a review; notice of adverse determination.
Section 38-71-1950. Requests for external review.
Section 38-71-1960. Exhaustion of internal appeal process.
Section 38-71-1970. Requests for external review.
Section 38-71-1980. Expedited external review.
Section 38-71-1990. External review decisions final; exceptions.
Section 38-71-2000. Approval of independent review organizations.
Section 38-71-2010. Standards for approval of independent review organizations.
Section 38-71-2020. Liability of independent review organizations and personnel.
Section 38-71-2030. External review; written records; reports.
Section 38-71-2040. Health carrier to pay for external review.
Section 38-71-2050. Health carrier to inform covered persons of rights related to external review.
Section 38-71-2060. Regulations.
Section 38-71-2110 to 38-71-2150. Repealed.
Section 38-71-2200. Definitions.
Section 38-71-2210. License requirement for pharmacy benefits managers.
Section 38-71-2230. Pharmacy benefits manager prohibited from taking certain actions.
Section 38-71-2240. Placement of drug on Maximum Allowable Cost List.