Section 23-79-135 - Prompt payment of certain claims required

In any case in which an insured under any hospital, medical, or surgical policy or plan, or any accident policy, becomes entitled to benefits thereunder in an amount of three hundred dollars ($300) or less and the company, association, or organization, except governmental or nonprofit organizations, issuing the policy or plan denies liability or fails to pay benefits within a reasonable time after demand is made therefor by the insured or member, then the company, association, or organization shall be liable to the insured for the benefits, and, in addition thereto, a penalty in an amount equal to benefits to which the insured is found to be entitled.Acts 1965, No. 419, § 1; A.S.A. 1947, § 66-3243.