Current Status Introducing Body:Senate Bill Number:1151 Primary Sponsor:Russell Committee Number:02 Type of Legislation:GB Subject:Motor vehicle insurance, glass replacement Residing Body:Senate Current Committee:Banking and Insurance Companion Bill Number:4146 Computer Document Number:BBM/9651.JM Introduced Date:Jan 15, 1992 Last History Body:Senate Last History Date:Jan 15, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Russell Type of Legislation:General Bill
Bill Body Date Action Description CMN
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1151 Senate Jan 15, 1992 Introduced, read first time, 02
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-287 SO AS TO PROHIBIT AN INSURER, INCLUDING ANY AGENT OR ADJUSTER FOR SUCH INSURER, WHICH ISSUES OR RENEWS IN THIS STATE ANY POLICY OF INSURANCE COVERING, IN WHOLE OR IN PART, ONE OR MORE MOTOR VEHICLES FROM REQUIRING ANY INSURED UNDER THE POLICY TO USE A PARTICULAR COMPANY OR LOCATION FOR THE PROVIDING OF MOTOR VEHICLE GLASS REPLACEMENT OR REPAIR SERVICES OR PRODUCTS INSURED IN WHOLE OR IN PART BY THE POLICY, TO PROVIDE FOR CERTAIN PROCEDURES WHICH MAY BE FOLLOWED AND FOR CERTAIN OTHER PROHIBITED ACTS, TO REQUIRE THE STATE INSURANCE COMMISSION, THROUGH THE DEPARTMENT OF INSURANCE, TO ADMINISTER AND ENFORCE THIS SECTION AND PROMULGATE REGULATIONS, TO PROVIDE FOR A CRIMINAL FINE, AND TO PROVIDE A PROCEDURE FOR THE IMPOSITION OF AN ADMINISTRATIVE FINE BY THE DEPARTMENT OF CONSUMER AFFAIRS UNDER CERTAIN CONDITIONS OR REVOCATION OF BUSINESS LICENSE, OR BOTH.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 77, Title 38 of the 1976 Code is amended by adding:
"Section 38-77-287. (A) No insurer, including any agent or adjuster for such insurer, which issues or renews in this State any policy of insurance covering, in whole or in part, one or more motor vehicles shall require any insured under the policy to use a particular company or location for the providing of motor vehicle glass replacement or repair services or products insured in whole or in part by the policy.
(B) No such insurer, including any agent or adjuster for such insurer, shall engage in any act or practice of intimidation, coercion, threat, incentive, or inducement for or against the insured under such policy to use such company or location described in subsection (A).
(C) Nothing contained in this section prohibits any such insurer, including any agent or adjuster for such insurer, from providing to such insured a list which includes the names of qualified glass companies or locations, where all of the listed companies or locations are reasonably close and convenient to the insured and where none of the listed companies or locations is affiliated with another in any way, with which arrangements may have been made with respect to motor vehicle glass prices or services. However, such insurer, including any agent or adjuster for such insurer, shall not require the use of the listed motor vehicle glass companies or locations. If such list is provided, there must be both oral and written disclosure by such insurer, agent, or adjuster, made both at the time of purchase of the policy and at the time of any claim reimbursable or payable in whole or in part under the policy, to the insured that any nonlisted motor vehicle glass company or location may be used by the insured at the insured's sole option and that the insurer will, if obligated to do so under the policy, fully and promptly pay for or reimburse the cost of the glass replacement, repair services, or products, or all of them as the case may be, less only any applicable deductible amount payable according to the terms of the policy by the insured, at not less than the prevailing market price in the area for similarly-situated motor vehicle glass companies or locations providing comparable service without taking into consideration any special price or service arrangements offered by the listed motor vehicle glass companies or locations.
(D) For the purposes of this section, `qualified glass company or location' means such a business (1) having a fixed physical location or premises for the transacting of business, (2) meeting the statutory requirements for acting as a self-insurer or, if not a self-insurer, having workers' compensation insurance in accordance with the statutory requirements of this State, (3) possessing a valid business license, (4) carrying general liability insurance and garage insurance, and (5) having in his employ one or more certified automotive and motor vehicle glass installers.
(E) The State Insurance Commission, through the Department of Insurance, shall administer and enforce the provisions of this section and, to this end, shall promulgate necessary and appropriate regulations.
(F) Any person who knowingly and wilfully violates the provisions of this section is, upon conviction, subject to a criminal fine of up to one hundred thousand dollars.
(G) Any person who gains evidence that a glass company or location has installed or replaced glass in a motor vehicle or rendered or provided motor vehicle glass replacement or repair services or products not in accordance with automotive manufacturers' installation standards in a dangerous or improper manner, or found to have used automotive replacement glass considered as factory second-quality-used and/or not meeting domestic or foreign automotive manufacturers specifications without first notifying the consumer orally before the work is performed and, then upon completion of the work, in writing, may present such evidence to the Department of Consumer Affairs, which, upon a hearing to consider the evidence, may impose an administrative fine of up to five thousand dollars upon the person or entity found to have engaged in dangerous or improper activity as described in this subsection or take steps to have the person's or entity's business license revoked by the issuing authority, or both such fine and steps toward revocation."
SECTION 2. This act takes effect upon approval by the Governor and applies to motor vehicle insurance policies issued or renewed on and after the effective date of this act.