Bill 3960

                    Current Status

Bill Number:                       3960
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19970410
Primary Sponsor:                   Cato 
All Sponsors:                      Cato 
Drafted Document Number:           dka\4311jm.97
Residing Body:                     House
Current Committee:                 Labor, Commerce and Industry
                                   Committee 26 HLCI
Subject:                           Insurance premium finance
                                   companies, installment plans;
                                   insurer not to require person to use
                                   certain company

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________
House   19970410  Introduced, read first time,             26 HLCI
                  referred to Committee

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-5-200 SO AS TO PROVIDE THAT AN INSURER, ITS AGENT, OR AN INSURANCE BROKER DOING BUSINESS IN THIS STATE MAY NOT REQUIRE A PERSON TO USE A PARTICULAR INSURANCE PREMIUM FINANCE COMPANY OR OTHER INSTALLMENT PLAN FOR WHICH A FINANCE CHARGE OR OTHER FEE IN CONNECTION WITH AN INSTALLMENT PAYMENT HAS BEEN OR WILL BE IMPOSED, AND PROVIDE FOR RELATED MATTERS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The 1976 Code is amended by adding:

"Section 38-5-200. (A) An insurer, its agent, or an insurance broker doing business in this State may not require a person to use a particular insurance premium finance company or other installment plan for which a finance charge or other fee in connection with an installment payment has been or will be imposed.

(B) An insurer, its agent, or an insurance broker doing business in this State may not refuse to issue a policy of insurance solely because the premiums for the policy have been advanced by a premium finance company licensed in this State.

(C) An insurer or its agent doing business in this State shall not reduce commissions or intimidate or retaliate against a producer, agent, broker, or insured who uses premium financing by denying the producer, agent, broker, or insured the same rights accorded producers, agents, brokers, or insureds who pay premiums in a different manner."

SECTION 2. This act takes effect upon approval by the Governor.