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State of South Dakota
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SEVENTY-SECOND
SESSION
LEGISLATIVE ASSEMBLY, 1997 |
| 400A0256 |
SENATE BILL
NO.
74
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| Introduced by: The Committee on Commerce at the request of the Department of Commerce and Regulation |
FOR AN ACT ENTITLED, An Act
to revise the requirements for disclosure for certain health
insurance coverages and to further limit the application of waiting periods for medicare
supplement insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 58-17A-7 be amended to read as follows:
58-17A-7. The director may promulgate rules pursuant to chapter 1-26 for captions or notice requirements determined to be in the public interest and designed to inform prospective insureds that particular insurance coverages are not medicare supplement coverages, for all health insurance policies sold to persons eligible for medicare other than medicare supplement policies, disability income policies
, single premium, nonrenewable policies, or other policies defined in
subdivision 58-17A-1(5)
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 58-17A-7 be amended to read as follows:
58-17A-7. The director may promulgate rules pursuant to chapter 1-26 for captions or notice requirements determined to be in the public interest and designed to inform prospective insureds that particular insurance coverages are not medicare supplement coverages, for all health insurance policies sold to persons eligible for medicare other than medicare supplement policies, disability income policies
The director may promulgate rules pursuant to chapter 1-26 to govern the full and fair
disclosure of information, marketing and conduct of agents in connection with the replacement
of health insurance policies, subscriber contracts and certificates by persons eligible for
medicare.
Section 2. That § 58-17A-3.1 be amended to read as follows:
58-17A-3.1. A policy or certificate of insurance providing medicare supplement benefits which is sold to a consumer to replace an existing, in-force medicare supplement policy may not contain any provision limiting payment of benefits due to preexisting conditions of the insured except, if there is any time period remaining relating to the exclusion of coverage for preexisting conditions as specified in the underlying policy, that remaining waiting period for coverage of preexisting conditions shall apply to the new policy unless the policy otherwise provides a lesser waiting period. The waiver applies to all time periods applicable to preexisting conditions, waiting periods, elimination periods, and probationary periods in the new medicare supplement.
Section 2. That § 58-17A-3.1 be amended to read as follows:
58-17A-3.1. A policy or certificate of insurance providing medicare supplement benefits which is sold to a consumer to replace an existing, in-force medicare supplement policy may not contain any provision limiting payment of benefits due to preexisting conditions of the insured except, if there is any time period remaining relating to the exclusion of coverage for preexisting conditions as specified in the underlying policy, that remaining waiting period for coverage of preexisting conditions shall apply to the new policy unless the policy otherwise provides a lesser waiting period. The waiver applies to all time periods applicable to preexisting conditions, waiting periods, elimination periods, and probationary periods in the new medicare supplement.
