56-7-2503 - Accident and sickness Denial of coverage for mental illness for lack of surgical facilities prohibited.

56-7-2503. Accident and sickness Denial of coverage for mental illness for lack of surgical facilities prohibited.

Any law to the contrary notwithstanding, no policy of accident and sickness insurance may be entered into or renewed on or after July 1, 1974, if the policy by way of exclusion, definition, or otherwise denies coverage to an insured undergoing care and treatment in a facility for the care and treatment of mentally ill or mentally retarded persons, based upon the fact that the facility does not have organized facilities for operative surgery, if, in fact, the facility in question has, at the time a claim arises, a bona fide arrangement, by contract or otherwise, with an accredited hospital to perform the surgical procedures as may be required by the facility for mentally ill or mentally retarded persons.

[Acts 1974, ch. 625, § 1; T.C.A., § 56-1168; Acts 1992, ch. 984, § 3; T.C.A., § 56-7-1004.]