Assembly Bill 351 aims to regulate the use of virtual credit card payments in health insurance policies, specifically those classified as disability insurance policies. The bill prohibits insurers from mandating that health care providers accept payments via virtual credit card. It also requires insurers to inform providers about any fees associated with different payment methods and to provide clear instructions for selecting alternatives to virtual credit card payments before the first transaction occurs. Additionally, if an insurer transmits a payment in compliance with federal electronic funds transmission standards, they cannot charge a fee for this transmission unless the provider has consented to it.

The bill establishes a definition for virtual credit card payments and outlines the responsibilities of insurers regarding payment methods. It explicitly states that any contract provisions that contradict these requirements are void and unenforceable, ensuring that the stipulations cannot be waived. The initial applicability of these regulations will take effect for contracts that are entered into, renewed, or modified on the effective date of the bill.