Current Status Bill Number:4405 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960109 Primary Sponsor:Fulmer All Sponsors:Fulmer Drafted Document Number:10463jm.96 Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Motor vehicle insurance, retiring designated insurer
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19960109 Introduced, read first time, 26 HLCI
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 38-77-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS UNDER THE STATE'S AUTOMOBILE INSURANCE LAW, SO AS TO ADD A DEFINITION FOR "RETIRING DESIGNATED INSURER"; AND TO AMEND SECTION 38-77-110, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE, THE REQUIREMENT THAT INSURERS MUST INSURE, AND EXCEPTIONS, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT RETIRING DESIGNATED INSURERS MAY CANCEL OR REFUSE TO RENEW ONLY CEDED REINSURANCE FACILITY POLICIES WRITTEN THROUGH DESIGNATED AGENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-30 of the 1976 Code, as last amended by Section 802 of Act 181 of 1993, is further amended by adding:
"(11.1) `Retiring designated insurer' means a South Carolina Reinsurance Facility designated insurer which, for whatever reason, has given or been given notice under the terms of that insurer's contract with the facility, or otherwise, that the insurer will no longer be a facility designated insurer."
SECTION 2. Section 38-77-110(A) of the 1976 Code, as last amended by Section 803 of Act 181 of 1993, is further amended to read:
"(A) Automobile insurers other than insurers designated and approved as specialized insurers by the director or his designee, and retiring designated insurers as defined in Section 38-77-30(11.1) and only for those policies ceded to the Reinsurance Facility and written through designated agents, may not refuse to write or renew automobile insurance policies for individual private passenger automobiles or small commercial risks. These policies written by specialized insurers may not be canceled except for reasons which had they existed or been known when the policy was written would have rendered the risk not an insurable risk. Retiring designated insurers may cancel or refuse to renew only those automobile insurance policies written through designated agents. Every automobile insurance risk constitutes an insurable risk unless the operator's permit of the named insured has been revoked or suspended and is at the time of application for insurance so revoked or suspended. However, no insurer is required to write or renew automobile insurance on any risk if there exists a valid and enforceable outstanding judgment secured by an insurer, an agent, or licensed premium service company on account of automobile insurance premiums which the applicant or insured or any principal operator who is a member of the named insured's household has failed or refused to pay unless the applicant or insured pays in advance the entire premium for the full term of the policy sought to be issued or renewed or the annual premium, whichever is the lesser. An insurer is not precluded from effecting cancellation of an automobile insurance policy, either upon its own initiative or at the instance of an agent or licensed premium service company, because of the failure of any named insured or principal operator to pay when due any automobile insurance premium or any installment payment. However, notice of cancellation for nonpayment of premium notifies the person to whom the notice is addressed that the notice is void and ineffective if payment of the full amount of the premium or premium indebtedness, whichever is the greater, is made to the insurer, agent, or licensed premium service company named in the notice by the otherwise effective date of cancellation. This notice of cancellation is not considered ineffective for being conditional, ambiguous, or indefinite."
SECTION 3. This act takes effect upon approval by the Governor.