South Carolina General Assembly
116th Session, 2005-2006

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Indicates Matter Stricken
Indicates New Matter

S. 171

STATUS INFORMATION

General Bill
Sponsors: Senator Elliott
Document Path: l:\council\bills\gjk\20040sd05.doc

Introduced in the Senate on January 11, 2005
Currently residing in the Senate Committee on Banking and Insurance

Summary: Insurers to disclose all deductibles in policies and to explain changes or increases

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
  12/15/2004  Senate  Prefiled
  12/15/2004  Senate  Referred to Committee on Banking and Insurance
   1/11/2005  Senate  Introduced and read first time SJ-163
   1/11/2005  Senate  Referred to Committee on Banking and Insurance SJ-163

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/15/2004

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-75-415 SO AS TO REQUIRE INSURERS TO DISCLOSE IN WRITING THE NATURE AND SCOPE OF ALL DEDUCTIBLES CONTAINED IN INSURANCE POLICIES SOLD IN THIS STATE, TO OBTAIN THE SIGNATURE OF THE INSURED ON THE WRITTEN EXPLANATION OF THE DEDUCTIBLE AND TO REQUIRE WRITTEN EXPLANATIONS AND SIGNATURES OF INSURED ON ALL CHANGES OR INCREASES IN DEDUCTIBLES AND PERCENTAGE DEDUCTIBLES TRIGGERED BY TROPICAL STORMS, OR HURRICANES, OR OTHER NATURAL DISASTERS.

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

SECTION    1.    Article 5, Chapter 75, Title 38 of the 1976 Code is amended by adding:

"Section 38-75-415.    (A)    Notwithstanding any other provision of law, all insurers offering property and casualty policies in this State must disclose in writing the scope and nature of all deductibles and obtain the signature of the insured on all deductible explanations, including all changes or increases in deductibles and all percentage deductibles triggered by tropical storms or hurricanes. All deductibles, changes or increases in deductibles, or percentage deductibles triggered by tropical storms, or hurricanes, or other natural disasters which do not comply with the provisions of this section are void.

(B)    Signatures of insured required by this section may be obtained by requiring that the insured initial the written explanation of the deductible on a space provided at the end of the explanation. The written explanation of the deductible must contain language stating that the insured has read and understands the explanation and that any portions not understood have been fully explained by the insurance agent or broker offering the policy for sale."

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

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