Current Status Introducing Body:House Bill Number:4379 Primary Sponsor:Scott Committee Number:26 Type of Legislation:GB Subject:Homeowner's insurance policy, mortgage loan Residing Body:House Current Committee:Labor, Commerce and Industry Computer Document Number:BBM/10779JM.94 Introduced Date:19940111 Last History Body:House Last History Date:19940111 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Scott Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
4379 House 19940111 Introduced, read first time, 26
referred to Committee
4379 House 19931215 Prefiled, referred to 26
Committee
View additional legislative information at the LPITS web site.
TO PROHIBIT AN INSURER FROM CANCELING A HOMEOWNER'S INSURANCE POLICY AFTER A MORTGAGE LOAN HAS BEEN APPROVED, WITH RESPECT TO THE PROPERTY THAT IS THE SUBJECT OF SUCH MORTGAGE LOAN, FOR A CERTAIN PERIOD, PROHIBIT AN INSURER FROM CANCELING ANY EXISTING HOMEOWNER'S INSURANCE POLICY ON PROPERTY ALREADY OWNED BY THE PERSON WHO HAS APPLIED FOR THE MORTGAGE LOAN WITH RESPECT TO NEWLY-ACQUIRED PROPERTY, PROVIDE FOR PENALTIES, AND PROVIDE THAT NOTHING IN THIS ACT MAY BE CONSTRUED TO LIMIT OR SUPERSEDE THE RIGHT OF THE PROPERTY OWNER OR MORTGAGE LOAN APPLICANT TO BRING A CIVIL ACTION FOR DAMAGES AGAINST THE INSURER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Notwithstanding any other provision of law, no insurer authorized to do business in this State may cancel a homeowner's insurance policy after a mortgage loan has been approved, with respect to the property that is the subject of such mortgage loan, for a period of one year commencing from the date of the issuance of the policy; nor may such an insurer cancel any existing homeowner's insurance policy on property already owned by the person who has applied for the mortgage loan under this section with respect to newly-acquired property.
The license to do business in this State of an insurer who violates the provisions of this section must be suspended for a period of six months. The penalty provided for in this paragraph is in addition to, and not in lieu of, any other penalty provided by law for such action of the insurer, and nothing contained in this paragraph may be construed to limit or supersede the right of the property owner or mortgage loan applicant to bring a civil action for damages against the insurer.
SECTION 2. This act takes effect upon approval by the Governor.