Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

Page Finder Index
| Printed Page 2220, Feb. 22 | Printed Page 2240, Feb. 22 |
Printed Page 2230 . . . . . Tuesday, February 22, 1994
H. 4386--OBJECTIONS

The following Bill was taken up.

H. 4386 -- Rep. J. Bailey: A BILL TO AMEND CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 13 SO AS TO ENACT PROVISIONS GOVERNING NONECONOMIC LOSS.

Reps. JENNINGS, DELLENEY, HARRELSON, WHITE, COBB-HUNTER, ELLIOTT, THOMAS and ANDERSON objected to the Bill.

H. 4399--OBJECTIONS

The following Bill was taken up.

H. 4399 -- Reps. J. Bailey and Corning: A BILL TO AMEND SECTION 38-77-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS MAKE COLLISION AND COMPREHENSIVE COVERAGE AVAILABLE TO ANY INSURED, SO AS TO PROVIDE THAT AN INSURER IS NOT REQUIRED TO WRITE PRIVATE PASSENGER PHYSICAL COVERAGE FOR SPECIFIED TYPES OF VEHICLES, TO PROVIDE THAT A CERTAIN NOTICE MUST BE PROVIDED TO APPLICANTS PURCHASING SINGLE INTEREST COLLISION COVERAGE, TO PROVIDE THAT 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, TO PROVIDE AN INSURER OR ITS AGENT SHALL PROVIDE WRITTEN NOTICE TO AN INSURED OF THE REASON HE WAS NOT WRITTEN AT THE BASE RATE, AND TO PROVIDE THAT THE CHIEF INSURANCE COMMISSIONER ANNUALLY SHALL COMPILE A COMPARATIVE STATISTICAL ANALYSIS OF PERSONS FOR WHOM PHYSICAL DAMAGE COVERAGES ARE WRITTEN AND OF PERSONS FOR WHOM PHYSICAL DAMAGE COVERAGES ARE DENIED.

The Committee on Labor, Commerce and Industry proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\BBM\10898SD.94).

Printed Page 2231 . . . . . Tuesday, February 22, 1994
Amend the bill, as and if amended, by striking Section 38-77-280, as contained in SECTION 1, and inserting:

/"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 make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage.

Collision coverage 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.

Comprehensive coverage or fire, theft, and combined additional coverages 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 Sections 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 director or his designee. An insurer may offer insureds lower deductibles at the insurer's option.

(B) Notwithstanding subsection (A) and Sections 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

Printed Page 2232 . . . . . Tuesday, February 22, 1994
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 38-73-760(e).

Notwithstanding the provisions of this section, and any other provision of law, an insurer is not required to write private passenger physical damage coverage for the following types of vehicles:

(1) classic cars, meaning an automobile whose monetary value exceeds the original purchase price which has appreciated in value by maintaining the original parts;

(2) antique cars, meaning an automobile over twenty-five years of age;

(3) any automobile with any modification to the chassis or wheel base;

(4) any automobile with a wheel base of ninety-five inches or less, including utility vehicles;

(5) any automobile with a fair market value exceeding fifty thousand dollars;

(6) any automobile within the `sports group' or `sports premium group'. For the purposes of this provision `sports group' means a two-passenger body type automobile with a net weight to horsepower ratio between 20:1 and 30:1. `Sports premium group' means a two-passenger body type automobile with a net weight to horsepower ratio between 20:1 or less.
(C) 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.' This notice must be provided on a form approved by the Chief Insurance Commissioner.
(C) (D) 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

Printed Page 2233 . . . . . Tuesday, February 22, 1994
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) (E) No policy of insurance which provides automobile physical damage coverage only may be ceded to the facility.
(E) (F) 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 with the department and approved by the director or his designee. 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) (G) 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.

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.

(H) An insurer or agent shall provide written notice to the insured of the reason or reasons the insured was not written at the base rate."/

Amend title to conform.

Rep. J. BAILEY explained the amendment.

Reps. SCOTT, INABINETT, BREELAND, J. BROWN, NEAL, HARWELL, ANDERSON, HINES and WILLIAMS objected to the Bill.

H. 4458--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 4458 -- Reps. Boan, Hodges, Clyborne and Kirsh: A BILL TO AMEND SECTION 1-30-65, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION, SO AS TO INCLUDE THE SOUTH CAROLINA REAL ESTATE COMMISSION WITHIN THE LIST OF PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS INCORPORATED IN AND ADMINISTERED AS PART OF THE DEPARTMENT AND TO CORRECT CERTAIN REFERENCES TO OTHER PROFESSIONAL AND OCCUPATIONAL LICENSING

Printed Page 2234 . . . . . Tuesday, February 22, 1994
BOARDS UNDER THE DEPARTMENT; TO AMEND SECTIONS 40-57-20, AS AMENDED, 40-57-50, 40-57-80, 40-57-90, AS AMENDED, 40-57-100, AS AMENDED, 40-57-110, AS AMENDED, 40-57-115, 40-57-120, 40-57-140, AS AMENDED, 40-57-155, 40-57-160, AS AMENDED, 40-57-170, AS AMENDED, 40-57-180, 40-57-190, 40-57-200, 40-57-210, AND 40-57-220, AS AMENDED, RELATING TO REAL ESTATE BROKERS, COUNSELLORS, SALESMEN, APPRAISERS, AUCTIONEERS, AND PROPERTY MANAGERS, AND SECTIONS 40-60-20, AS AMENDED, 40-60-50, AS AMENDED, 40-60-60, AS AMENDED, 40-60-100, AS AMENDED, 40-60-120, AS AMENDED, 40-60-160, AS AMENDED, AND 40-60-170, AS AMENDED, RELATING TO THE SOUTH CAROLINA REAL ESTATE APPRAISER REGISTRATION, LICENSE, AND CERTIFICATION ACT, SO AS TO, AMONG OTHER THINGS, ABOLISH THE OFFICE OF REAL ESTATE COMMISSIONER AND DEVOLVE THE POWERS, DUTIES, AND RESPONSIBILITIES OF THAT OFFICE UPON THE REAL ESTATE COMMISSION OR ITS CHAIRMAN OR UPON THE REAL ESTATE APPRAISERS BOARD OR THE BOARD'S CHAIRMAN, DELETE REFERENCES TO THE COMMISSIONER, DELETE CERTAIN OTHER LANGUAGE AND PROVISIONS, PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION SHALL APPOINT ANY EMPLOYEES AS MAY BE NECESSARY TO CARRY OUT THE WORK OF THE COMMISSION, CHANGE THE PROVISIONS OF LAW DEALING WITH APPEALS FROM THE DECISION OF THE COMMISSION IN REFUSING, SUSPENDING, OR REVOKING ANY LICENSE OR IN ISSUING REPRIMANDS UNDER CHAPTER 57, TITLE 40, AND DELETE THE REQUIREMENT THAT THE REAL ESTATE COMMISSION SUPPLY STAFF SUPPORT FOR THE REAL ESTATE APPRAISERS BOARD; AND TO AMEND SECTION 40-73-15, RELATING TO PROFESSIONS AND OCCUPATIONS ADMINISTERED BY THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION, SO AS TO CLARIFY REFERENCES TO CERTAIN OF THESE PROFESSIONS AND OCCUPATIONS, INCLUDING REAL ESTATE BROKERS, COUNSELLORS, SALESMEN, APPRAISERS, AUCTIONEERS, AND PROPERTY MANAGERS.

The Committee on Labor, Commerce and Industry proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\BBM\10908JM.94), which was adopted.

Printed Page 2235 . . . . . Tuesday, February 22, 1994
Amend the bill, as and if amended, by striking Section 40-57-140(D), as contained in SECTION 10, beginning on page 9, and inserting:

/(D) A nonresident is not required to maintain a place of business in this State if he maintains an active place of business in the state of domicile. Every nonresident applicant shall file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court in a judicial circuit of the state in which a cause of action may arise or in which the plaintiff may reside, by the service of a process or pleading, authorized by the laws of this State, on the commissioner chairman of the commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, the consent stipulating and agreeing that the service of the process or pleading must be taken and held in all courts to be as valid and binding as if service had been made upon the applicant in the State of South Carolina. If the process or pleadings mentioned in this chapter are served upon the commissioner chairman of the commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, it must be by duplicate copies, one of which must be filed in the office of the commission and the other immediately forwarded by the commissioner commission by registered or certified mail to the applicant against whom the process or pleadings are directed, at the last known address of the applicant as shown by the records of the commission./

Amend further, by striking Section 40-57-190, as contained in SECTION 15, on page 15, and inserting:

/"Section 40-57-190.The Commissioner commission and or any duly authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation him to hold a hearing on any particular case shall have power to administer oaths and to issue subpoenas for the attendance of witnesses and the production of books, records, accounts, and papers."/

Amend further, by striking Section 40-60-20, as contained in SECTION 19, beginning on page 17, and inserting:

/"Section 40-60-20.As used in this chapter, unless the context requires otherwise:

(1) `Analysis' means a study of real estate or real property other than one estimating value.

(2) `Appraisal' or `real estate appraisal' means an analysis, opinion, or conclusion as to the value of identified real estate or specified interests in real estate, including a feasibility study, marketability study, or other study or analysis that involves the rendering of an analysis, opinion, or

Printed Page 2236 . . . . . Tuesday, February 22, 1994
conclusion of value performed for a fee or other consideration, including valuation or evaluation performed for a person who advises, consults, or prepares.

(3) `Appraisal Foundation' means the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois.

(4) `Appraisal report' means any communication, written or oral, of an appraisal. The testimony of an appraiser dealing with the appraiser's analyses, conclusions, or opinions concerning identified real property is deemed to be an oral appraisal report.

(5) `Appraisal subcommittee' means the designees of the heads of the federal financial institutions regulatory agencies established by the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. Section 3301, et seq.), as amended.

(6) `Appraiser' means a person who is a state registered real estate appraiser, a state licensed real estate appraiser, a state certified real estate appraiser, or an appraiser apprentice.

(7) `Appraiser Apprentice' means a person who holds a valid permit as an appraiser apprentice issued under the provisions of this chapter.

(8) `Board' means the South Carolina Real Estate Appraisers Board established pursuant to the provisions of this chapter.

(9) `Commission' means the South Carolina Real Estate Commission.

(10) `Commissioner' means the South Carolina Real Estate Commissioner.

(11) `Evaluation assignment' means an engagement for which an appraiser is employed or retained to give an analysis, opinion, or conclusion that relates to the nature, quality, or utility of identified real estate or identified real property.

(12)(10)`Federally-related transaction' means any real estate-related financial transaction which:

(a) a federal financial institution regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and

(b) requires the services of an appraiser.

(13)(11)`Independent appraisal assignment' means an engagement for which an appraiser is employed or retained to act, or would be perceived by third parties or the public as acting, as a disinterested third party in rendering an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility of identified real estate or identified real property.

(14)(12)`Person' means individuals, corporations, partnerships, or associations, foreign and domestic.

Printed Page 2237 . . . . . Tuesday, February 22, 1994
(15)(13)`Real estate' means an identified parcel of land, including improvements, if any.

(16)(14)`Real estate appraisal activity' means the act or process of valuation of real estate or real property and preparing an appraisal report.

(17)(15)`Real property' means one or more defined interests, benefits, and rights inherent in the ownership of real estate.

(18)(16)`Specialized services' means services other than independent appraisal assignments which are performed by an appraiser. Specialized 1
services may include marketing, financing, and feasibility studies, valuations, analyses, opinions, and conclusions given in connection with activities such as real estate brokerage, mortgage banking, real estate counseling, and real estate tax counseling.

(19)(17)`Standards of professional appraisal practice' means the uniform standards of professional appraisal practice as adopted by the Appraisal Standards Board of the Appraisal Foundation and adopted by the board.

(20)(18)`State' includes any state, district, territory, possession, or province of the United States or Canada.

(21)(19)`State certified real estate appraiser' means a person who holds a valid certificate as either a state certified residential real estate appraiser or a state certified general real estate appraiser issued under the provisions of this chapter.

(22)(20)`State certified general real estate appraiser' means a person who holds a valid certificate as a state certified general real estate appraiser issued under the provisions of this chapter.

(23)(21)`State certified residential real estate appraiser' means a person who holds a valid certificate as a state certified residential real estate appraiser issued under the provisions of this chapter.

(24)(22)`State licensed real estate appraiser' means a person who holds a valid license as a state licensed real estate appraiser issued under the provisions of this chapter.

(25)(23)`State registered real estate appraiser' means a person who holds a valid registration as a state registered real estate appraiser issued under the provisions of this chapter.

(26)(24)`Valuation' means an estimate of the value of real estate or real property.

(27)(25)`Valuation assignment' means an engagement for which an appraiser is employed or retained to give an analysis, opinion, or conclusion that estimates the value of an identified parcel of real estate or identified real property at a particular point in time.

Printed Page 2238 . . . . . Tuesday, February 22, 1994
(28)(26)`Timberland' means forest land that is producing, or is capable of producing, timber as a crop.

(29)(27)`Market analysis' means a study of real estate market conditions for a specific type of property."/

Amend further, page 23, by striking Section 40-60-100(A), as contained in SECTION 22, and inserting:

/(A) Every applicant for permitting, registration, licensure, or certification under this chapter who is not a resident of South Carolina shall submit, with the application for permitting, registration, licensure, or certification, an irrevocable consent that service of process upon the applicant may be made by delivery of the process to the commissioner chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, if, in an action against the applicant in a court of South Carolina arising out of the applicant's activities as an appraiser, the plaintiff, in the exercise of due diligence, may not effect personal service upon the applicant./

Amend further, page 25, by striking Section 40-60-160(C), as contained in SECTION 24, and inserting:

/(C) In the conduct of an investigation or proceeding under this chapter, the chairman of the board, the commissioner, or any duly authorized assistant or deputy appointed by the commissioner, or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, may issue subpoenas to compel production of those writings, documents, or material on behalf of the board. After the service of a notice of hearing, the chairman of the board, commissioner, or any duly authorized assistant or deputy appointed by the commissioner may issue subpoenas to compel production of those writings, documents, or material, either on behalf of the board or at the request of a respondent. The commissioner, chairman of the board, the board, any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation, or the respondent may apply to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 for an order requiring compliance. Failure to comply with an order is punishable as for contempt of court./

Amend further, by striking Section 40-60-170(C), as contained in SECTION 25, beginning on page 26, and inserting:

/(C) If an appraiser or applicant fails to appear at any hearing after reasonable notice, the board may proceed to hear the evidence against the appraiser or applicant and take action as if the appraiser or applicant had been present. A notice of hearing or final decision of the board in a disciplinary proceeding must be served upon the appraiser or applicant by

Printed Page 2239 . . . . . Tuesday, February 22, 1994
personal service or by certified mail, return receipt requested, to the last known address of record with the board. If the material is returned marked `unclaimed' or `refused' or is undeliverable and if the appraiser or applicant may not be located after diligent effort, the commissioner chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation is considered to be the agent for the appraiser or applicant for the purposes of this section, and service upon the commissioner chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation is considered service upon the appraiser or applicant./

Amend further, page 27, by striking Section 40-60-170(D), as contained in SECTION 25, and inserting:

/(D) A decision by the board to revoke or suspend a registration, license, or certification or to restrict, limit, or otherwise discipline a registration, license, or certification holder must be by majority vote of the total membership of the board. A disciplinary action is subject to review by an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 upon petition filed by the registration, license, or certification holder within thirty days from the date of delivery of the board's decision to the registration, license, or certification holder. A copy of the petition must be served upon the commissioner chairman of the board or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing and Regulation./

Amend title to conform.

Rep. McLEOD explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3051--DEBATE ADJOURNED

Rep. HODGES moved to adjourn debate upon the following Bill until Thursday, February 24, which was adopted.

H. 3051 -- Rep. Cromer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 22-3-15 SO AS TO AUTHORIZE MAGISTRATES TO ISSUE AND ENFORCE TEMPORARY RESTRAINING ORDERS OF NOT MORE THAN SIXTY DAYS.

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