58-17-40 Renewal of policy at option of insurer.
Renewal of policy at option of insurer.
Health insurance policies, other than
accident insurance only policies, in which the insurer reserves the right to refuse renewal on an
individual basis, shall provide in substance in a provision thereof or in an endorsement thereon or
rider attached thereto that subject to the right to terminate the policy upon nonpayment of premium
when due, such right to refuse renewal may not be exercised so as to take effect before the renewal
date occurring on, or after and nearest, each policy anniversary, or in the case of lapse and
reinstatement, at the renewal date occurring on, or after and nearest, each anniversary of the last
reinstatement, and that any refusal of renewal shall be without prejudice to any claim originating
while the policy is in force. The clause making reference to lapse and reinstatement may be omitted
at the insurer's option.
Source: SL 1966, ch 111, ch 25, § 23.