Senate Bill 367 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. The bill defines virtual credit card payment as an electronic funds transfer involving a single-use series of numbers that expire upon processing and does not include payments made with a physical credit card.

Additionally, the bill stipulates that if an insurer transmits a payment to a health care provider in compliance with federal electronic funds transmission standards, they cannot charge a fee for this transmission unless the provider has consented to it. The requirements outlined in the bill cannot be waived, and any contractual provisions that contradict these requirements are deemed void and unenforceable. The provisions of this bill will apply to contracts that are entered into, renewed, or modified on or after the effective date of the legislation.