S 245 Session 110 (1993-1994)
S 0245 General Bill, By A.S. Macaulay, Ford, Leatherman, Martin, McConnell,
Peeler, Thomas and M.B. Williams
A Bill to amend Section 38-77-280, as amended, Code of Laws of South Carolina,
1976, relating to collision, comprehensive, fire, theft, and combined
additional motor vehicle liability insurance coverage, so as to make it
optional for insurers to offer collision coverage and either comprehensive or
fire, theft, and combined additional coverage; to provide that all insurers
writing single interest collision coverage shall provide an applicant for this
insurance with a certain notice that must be signed by the applicant; and to
provide that all insurers shall submit rate filings within twelve months
following the effective date of this Act which must reflect the rate
decreases, if any, attributable to the passage of this Act.
01/20/93 Senate Introduced and read first time SJ-10
01/20/93 Senate Referred to Committee on Banking and Insurance SJ-10
03/09/93 Senate Committee report: Favorable with amendment
Banking and Insurance SJ-17
03/10/93 Senate Amended SJ-9
03/10/93 Senate Read second time SJ-10
03/10/93 Senate Ordered to third reading with notice of
amendments SJ-10
06/02/93 Senate Debate interrupted SJ-78
04/13/94 Senate Debate interrupted SJ-30
04/19/94 Senate Read third time and sent to House SJ-58
04/20/94 House Introduced and read first time HJ-11
04/20/94 House Referred to Committee on Labor, Commerce and
Industry HJ-11
Indicates Matter Stricken
Indicates New Matter
COMMITTEE AMENDMENT ADOPTED
March 10, 1993
S. 245
Introduced by SENATORS Macaulay, Peeler, McConnell, Martin,
Ford, Thomas, Williams and Leatherman
S. Printed 3/10/93--S.
Read the first time January 20, 1993.
A BILL
TO AMEND SECTION 38-77-280, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO
COLLISION, COMPREHENSIVE, FIRE, THEFT, AND COMBINED
ADDITIONAL MOTOR VEHICLE LIABILITY INSURANCE
COVERAGE, SO AS TO MAKE IT OPTIONAL FOR INSURERS
TO OFFER COLLISION COVERAGE AND EITHER
COMPREHENSIVE OR FIRE, THEFT, AND COMBINED
ADDITIONAL COVERAGE; TO PROVIDE THAT ALL INSURERS
WRITING SINGLE INTEREST COLLISION COVERAGE SHALL
PROVIDE AN APPLICANT FOR THIS INSURANCE WITH A
CERTAIN NOTICE THAT MUST BE SIGNED BY THE
APPLICANT; AND TO PROVIDE THAT ALL INSURERS SHALL
SUBMIT RATE FILINGS WITHIN TWELVE MONTHS
FOLLOWING THE EFFECTIVE DATE OF THIS ACT WHICH
MUST REFLECT THE RATE DECREASES, IF ANY,
ATTRIBUTABLE TO THE PASSAGE OF THIS ACT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-280 of the 1976 Code, as last amended
by Act 113 of 1991, is further amended to read:
"Section 38-77-280. (A) Except as provided in subsection
(B), all automobile insurers, including those insurance companies
writing private passenger physical damage coverages only,
shall may make collision coverage and either
comprehensive or fire, theft, and combined additional coverage
available to an insured or qualified applicant who requests the
coverage.
If collision coverage is offered or provided, it must
have a mandatory deductible of two hundred fifty dollars, but an
insured or qualified applicant, at his option, may select an additional
deductible in appropriate increments up to one thousand dollars.
If comprehensive coverage or fire, theft, and combined
additional coverages is offered or provided, it must have a
mandatory deductible of two hundred fifty dollars, but an insured, at
his option, may select an additional deductible in appropriate
increments up to one thousand dollars. This deductible does not apply
to auto safety glass. It is an unfair trade practice, as described in
Section 38-57-30 and 38-57-40, for an insurer or an agent to sell
collision insurance, comprehensive coverage, or fire, theft, and
combined additional coverages unless the insured is notified at the
time of application of the savings which may be realized if the
applicant or the insured selects a higher deductible. This notice is
required only at the time of the initial sale and must be in a form
approved by the Chief Insurance Commissioner. An insurer may offer
insureds lower deductibles at the insurer's option.
(B) Notwithstanding subsection (A) and Section 38-77-110 and
38-77-920, automobile insurers may refuse to write automobile
physical damage insurance coverage, including automobile
comprehensive physical damage, collision, fire, theft, and combined
additional coverage, for an applicant or existing policyholder, on
renewal, for a motor vehicle customarily operated by an individual,
either the named insured or another operator not excluded in
accordance with Section 38-77-340 and who resides in the same
household, where one or more of the conditions or factors prescribed
in Section 38-73-455 exist. In addition, automobile insurers may
refuse to write physical damage insurance coverage to an applicant or
existing policyholder, on renewal, who has collected benefits provided
under automobile insurance physical damage coverage during the
thirty six months immediately preceding the effective date of
coverage, for two or more total fire losses or two or more total theft
losses. Automobile insurers may refuse to write for private
passenger automobiles physical damage insurance coverage,
including automobile comprehensive physical damage, collision, fire,
theft, and combined additional coverage, for an applicant or existing
policyholder, on renewal, for a motor vehicle customarily operated by
an individual, either the named insured or another operator not
excluded in accordance with Section 38-77-340 and who resides in the
same household, which does not qualify for the safe driver discount
in Section 38-73-760e.
All insurers subject to the provisions of this section writing
single interest collision coverage shall provide an applicant for the
insurance at the time of his application a notice separate and apart
from any other form used in the application. The notice must be
signed by the applicant evidencing his acknowledgment of having read
the notice. The notice must contain the following language printed in
bold face type:
`NOTICE: THE INSURANCE COVERAGE YOU ARE HEREBY
PURCHASING IS ONLY SINGLE INTEREST COLLISION
COVERAGE. THE AMOUNT OF INSURANCE DECREASES
AS YOU PAY OFF THE AMOUNT OF YOUR INDEBTEDNESS.
YOU MAY NOT RECEIVE ANY INSURANCE PROCEEDS
OVER AND ABOVE THE AMOUNT OF THE OUTSTANDING
BALANCE ON YOUR LOAN.'
(C) Notwithstanding Section 38-77-110, automobile physical
damage coverage in an automobile insurance policy may be canceled
at any time during the policy period by reason of the factors or
conditions described in Section 38-73-455(A) or Section 38-77-280(B) which existed before the commencement of the policy
period and which were not disclosed to the insurer at the
commencement of the policy period.
(D) No policy of insurance which provides automobile
physical damage coverage may be ceded to the facility.
(E) Insurers of automobile insurance may charge a rate for
physical damage insurance coverages different than
from those provided for in Section 38-73-457 if the rates are
filed and approved by the Chief Insurance Commissioner. Any
applicant or existing policyholder, to be charged this different rate,
must be denied the coverage pursuant to subsection (B) at the rate
provided in Section 38-73-457.
(F) A carrier may not cede collision coverage, comprehensive
coverage, or fire, theft, and combined additional coverages with a
deductible of less than two hundred fifty dollars. An insured or
qualified applicant may select an additional deductible in appropriate
increments up to one thousand dollars. However, the mandatory
deductible does not apply to safety glass.
(G) In determining the premium rates to be charged on
automobile insurance, it is unlawful to consider race, color, creed,
religion, national origin, ancestry, location of residence, occupation,
or economic status."
SECTION 2. All insurers shall submit rate filings within twelve
months following the effective date of this act, which filings must
reflect the rate decreases, if any, attributable to the passage of this act.
SECTION 3. This act takes effect October 1, 1993.
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