South Carolina Life Insurance (SC)
To help financially protect consumers and insurers, the state of South Carolina has several laws and regulations in place.
Life Insurance Laws Protecting Consumers IN South Carolina (SC)
The life insurance industry in the state of South Carolina is regulated by Section 37 of the South Carolina Code. Under these codes, both policy requirements and claims procedures are overseen, offering protections to insurance consumers of the state.
All South Carolina life insurers must allow a 10-day “free Look” provision with all policies. This allows all new policyholders a minimum of ten days to review their policy and decide to terminate the policy for any reason. Consumers are also guaranteed a full refund of all premiums paid without penalty.
Life insurance claims must be settled within thirty days of receiving the proper proof of death. Any failure to do so on the part of the insurer will result in interest paid on the benefit proceeds, beginning on the date of death and ending on the settlement date.
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South Carolina Life Insurance Regulations Protecting Insurers (SC)
In order to protect life insurance companies in South Carolina, any fraudulent findings or misstatements found on a life insurance policy or application for coverage within the first two years of the policy’s life are subject to policy termination. All premiums do not need to be refunded and no claims will be honored.
Within the first two years of a policy, suicide is not considered a coverable reason for death. Therefore, suicide may be exempt from claim, but all paid premiums shall be refunded.
All information that a life insurance company has about you does not have to be shared with you. The reason is that all information obtained by the insurance company is considered proprietary.
Financial projections made by an insurer, also known as “Insurance illustrations”, are legal and regulated in South Carolina.
Additional South Carolina Life Insurance Regulations (SC)
Viatical settlements are an agreement made between a third party and an insured individual. The third party purchases a life insurance policy from the insured and makes all payments. In return, the third party becomes the uncontestable beneficiary of the policy. These types of arrangements are legal in South Carolina, but are not regulated by the state.
If your life insurance company is licensed in South Carolina and your premiums are current, your policy will be financially backed by the South Carolina Life, Accident & Health Insurance Guaranty Association in the unfortunate circumstance that your insurer becomes bankrupt.
Restrictions do apply, however, with the maximum compensation allowed by the Guaranty Association. $300,000 is the limit for a lost death benefit, no matter the number of policies and/or their combined value.
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