H*3534(Rat #0403, Act #0376 of 1988)  General Bill, By J.D. Bradley, Boan and 
J.W. McLeod

Similar(S 1040)
 A Bill to amend Section 38-77-30, Code of Laws of South Carolina, 1976,
 relating to definitions for purposes of automobile insurance, so as to define
 "individual private passenger automobile" for these purposes, and to provide
 that specialized insurers may not cede risks to and does not recoup losses of
 the Reinsurance Facility and may be excused from the merit rating plan and the
 classification and territorial plans upon approval of the
 Commissioner.-amended title

   01/14/88  House  Introduced and read first time HJ-405
   01/14/88  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-405
   01/27/88  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-679
   02/04/88  House  Debate adjourned HJ-972
   02/09/88  House  Read second time HJ-997
   02/10/88  House  Read third time and sent to Senate HJ-1040
   02/11/88  Senate Introduced and read first time
   02/11/88  Senate Referred to Committee on Banking and Insurance
   02/23/88  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-13
   02/24/88  Senate Amended SJ-56
   02/24/88  Senate Read second time SJ-57
   02/25/88  Senate  Read third time SJ-25
   02/25/88  Senate Returned SJ-25
   03/01/88  House  Concurred in Senate amendment and enrolled HJ-1546
   03/08/88         Ratified R 403
   03/14/88         Signed By Governor
   03/14/88         Effective date 03/14/88
   03/14/88         Act No. 376
   03/22/88         Copies available

AN ACT TO AMEND SECTION 38-77-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF AUTOMOBILE INSURANCE, SO AS TO DEFINE "INDIVIDUAL PRIVATE PASSENGER AUTOMOBILE" FOR THESE PURPOSES, AND TO PROVIDE THAT SPECIALIZED INSURERS MAY NOT CEDE RISKS TO AND DOES NOT RECOUP LOSSES OF THE REINSURANCE FACILITY AND MAY BE EXCUSED FROM THE MERIT RATING PLAN AND THE CLASSIFICATION AND TERRITORIAL PLANS UPON APPROVAL OF THE COMMISSIONER.

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

Definition of individual private passenger automobile

SECTION 1. Section 38-77-30 of the 1976 Code is amended by adding the following item:

"(5.5) (a) 'Individual private passenger automobile' means the following types of motor vehicles owned by or leased under a long-term contract by an individual or individuals:

( i) motor vehicles of the private passenger type or station wagon type;

( ii) panel trucks, delivery sedans, vehicles with a pickup body, vans, or similar motor vehicles designed for use on streets and highways and so licensed; and

(iii) motor homes, so long as the motor vehicles described in (ii) and (iii) are not used in the occupation, profession, or business of the insured other than farming and ranching.

(b) A motor vehicle is not considered 'owned by or leased under a long-term contract by an individual or individuals' if the motor vehicle is owned by a partnership or corporation, unless the motor vehicle is owned by a farm family copartnership or a farm family corporation and is garaged principally on a farm or ranch.

(c) A motor vehicle is not considered 'used in the occupation, profession, or business of the insured', because it is used in the course of driving to and from work.

(d) Individual private passenger automobile does not include:

( i) motor vehicles that are used for public or livery conveyance or rented to others without a driver;

( ii) fire department vehicles, police vehicles, ambulances, and rescue squad vehicles which are publicly owned;

(iii) motorcycles, motor-driven cycles, motor scooters, and mopeds;

( iv) dune buggies, all terrain vehicles, go carts, and snowmobiles;

( v) golf carts; and

( vi) small commercial risks."

Provisions affecting specialized insurers

SECTION 2. Item 12 of Section 38-77-30 of the 1976 Code is amended to read:

"(12) 'Specialized insurer' means an insurer which specializes in certain types of business such as, but without limitation on the generality, commercial automobile business, and which may be relieved, with the approval of the Commissioner, of the obligation to write types of business inconsistent with this specialty, such as private passenger automobile business. However, no insurer may be approved as a specialized insurer or continue to be so approved unless it accepts all insurable risks falling within the types of business to which it confines its writings without distinctions among applicants or policyholders as to policy forms, terms, rates or services other than as the distinctions are reflected in the approved rating plan for the classification of risks. No insurer may be approved as a specialized insurer because it specializes in or purports to specialize in select or preferred risks. A specialized insurer may not cede risks to the Reinsurance Facility and thus does not recoup losses of the Facility. Specialized insurers may be excused from using the merit rating plan and the uniform classification and territorial plans upon approval by the Commissioner."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.