Current Status Introducing Body:Senate Bill Number:1290 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Motor vehicle insurance policy, servicing carriers Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:1290 Introduced Date:19940323 Last History Body:Senate Last History Date:19940323 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Saleeby Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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1290 Senate 19940323 Introduced, read first time, 02
referred to Committee
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TO AMEND ARTICLE 3, CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-121 SO AS TO PROVIDE THAT FORMER SERVICING CARRIERS FOR THE SOUTH CAROLINA REINSURANCE FACILITY MAY NONRENEW AUTOMOBILE INSURANCE POLICIES IF A NEW, SUCCEEDING SERVICING CARRIER OFFERS A VALID REPLACEMENT POLICY WITH SIMILAR COVERAGES, AND TO AMEND SECTION 38-77-350 OF THE 1976 CODE, RELATING TO THE EXCLUSION FROM AUTOMOBILE INSURANCE COVERAGE, SO AS TO PROVIDE THAT AN AUTOMOBILE INSURANCE POLICY ISSUED BY A NEW SERVICING CARRIER FOR THE SOUTH CAROLINA REINSURANCE FACILITY TO REPLACE A SIMILAR POLICY ISSUED BY A FORMER SERVICING CARRIER FOR THE SOUTH CAROLINA REINSURANCE FACILITY IS A VALID REPLACEMENT POLICY THAT DOES NOT REQUIRE NEW OFFERS OF COVERAGE.
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 38-77-121. Notwithstanding any other provision of law, a servicing carrier for the South Carolina Reinsurance Facility, upon ceasing to act as a servicing carrier, may nonrenew any policy of automobile insurance issued by it as a servicing carrier through designated producers assigned to it if, upon expiration of the policy being nonrenewed, the insurer appointed as the new servicing carrier to succeed it offers to issue a replacement policy containing the same mandated coverage limits as the policy being replaced."
SECTION 2. Section 38-77-350 of the 1976 Code is amended to read:
"Section 38-77-350. (A) Not later than September 1, 1989, the Chief Insurance Commissioner shall approve a form which automobile insurers shall use in offering optional coverages required to be offered pursuant to law to applicants for automobile insurance policies. This form must be used by insurers for all new applicants after December 1, 1989. The form, at a minimum, must provide for each optional coverage required to be offered:
(1) a brief and concise explanation of the coverage, ;
(2) a list of available limits and the range of premiums for the limits, ;
(3) a space for the insured to mark whether the insured chooses to accept or reject the coverage and a space for the insured to select the limits of coverage he desires, ;
(4) a space for the insured to sign the form which acknowledges that he has been offered the optional coverages, ; and
(5) the mailing address and telephone number of the Insurance Department which the applicant may contact if the applicant has any questions that the insurance agent is unable to answer.
(B) If this form is properly completed and executed by the named insured it is conclusively presumed that there was an informed, knowing selection of coverage and neither the insurance company nor any insurance agent has any liability to the named insured or any other insured under the policy for the insured's failure to purchase any optional coverage or higher limits.
(C) An automobile insurer is not required to make a new offer of coverage on any automobile insurance policy which renews, extends, changes, supersedes, or replaces an existing policy. However, the first renewal notices for existing policies after December 1, 1989, must include the form provided in subsection (A). A policy of automobile insurance offered or issued by a new servicing carrier for the South Carolina Reinsurance Facility to replace a policy previously issued by a former servicing carrier and containing the same mandated coverage limits as the former policy constitutes a valid replacement policy that does not require the new servicing carrier to make a new offer of coverage or to obtain a new application from the insured.
(D) Compliance with this section satisfies the insurer and agent's duty to explain and offer optional coverages and higher limits and no person, including, but not limited to, an insurer and insurance agent is liable in an action for damages on account of the selection or rejection made by the named insured.
(E) If the insured fails or refuses to return an executed offer form within thirty days to the insurer, the insurer shall add on uninsured motorist and underinsured motorist coverages with the same policy limits as the insured's liability limits."
SECTION 3. This act takes effect upon approval by the Governor.