H*3674 Session 107 (1987-1988)
H*3674(Rat #0429, Act #0399 of 1988) General Bill, By J.D. Bradley, Boan and
J.W. McLeod
Similar(S 1135)
A Bill to amend Section 33-55-210, Code of Laws of South Carolina, 1976, and
Sections 38-73-457, 38-77-112, and 38-77-280, all as amended, relating to the
civil liability of a licensed health care provider, the requirement of every
automobile insurer and rating organization to file annually a base rate with
the Chief Insurance Commissioner, no automobile insurer is required to write
coverage for automobile insurance for any applicant or existing policyholder
who does not possess a valid South Carolina driver's license, the authority of
automobile insurers to refuse to write automobile physical damage insurance
coverage for any applicant or existing policyholder where one or more of the
conditions or factors prescribed in Section 38-73-455 exist, so as to make
technical internal corrections to references; Section 38-7-180, relating to
the filing with the Chief Insurance Commissioner requesting a change in rates
solely to reflect changes in tax liabilities, so as to authorize an insurance
company which insures only churches and its property from taxes levied on
insurance companies under various provisions and to delete references to the
authority of the Commission to adjust the premium rates chargeable on certain
policies; Section 38-77-10, as amended, relating to the declaration of purpose
for the reform of automobile insurance and insurance practices, so as to
delete the requirement that the Insurance Commission approve a territorial
classification plan promulgated by the Chief Insurance Commissioner and to
make corrections regarding references; Section 38-77-30, as amended, relating
to definitions used regarding automobile insurance, so as to make a technical
correction; Section 38-77-270, as amended, relating to liability insurance to
provide minimum liability and uninsured motorist coverage, so as to delete all
references to this coverage and other references regarding coverage in excess
of certain Code provisions and reword the provision dealing with licensed art
care and treatment; Section 38-75-210, relating to premiums declared to be
unearned which are held by the insurer in respect that part of the policy term
subsequent to the anniversary date of the then current policy year, so as to
correct a clerical error; and to repeal Section 38-5-180, relating to the
exemption of an insuror of churches from certain taxes levied on insurance
companies.-amended title
02/02/88 House Introduced and read first time HJ-848
02/02/88 House Referred to Committee on Labor, Commerce and
Industry HJ-849
02/17/88 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-1217
02/23/88 House Amended HJ-1399
02/23/88 House Read second time HJ-1400
02/24/88 House Read third time and sent to Senate HJ-1431
02/25/88 Senate Introduced, read first time, placed on calendar
without reference SJ-15
03/01/88 Senate Read second time SJ-28
03/02/88 Senate Read third time and enrolled SJ-30
03/15/88 Ratified R 429
03/21/88 Signed By Governor
03/21/88 Effective date 03/21/88
03/21/88 Act No. 399
03/29/88 Copies available
(A399, R429, H3674)
AN ACT TO AMEND SECTION 33-55-210, CODE OF LAWS OF SOUTH CAROLINA, 1976, AND
SECTIONS 38-73-457, 38-77-112, AND 38-77-280, ALL AS AMENDED, RELATING TO THE
CIVIL LIABILITY OF A LICENSED HEALTH CARE PROVIDER, THE REQUIREMENT OF EVERY
AUTOMOBILE INSURER AND RATING ORGANIZATION TO FILE ANNUALLY A BASE RATE WITH THE
CHIEF INSURANCE COMMISSIONER, NO AUTOMOBILE INSURER BEING REQUIRED TO WRITE
COVERAGE FOR AUTOMOBILE INSURANCE FOR ANY APPLICANT OR EXISTING POLICYHOLDER WHO
DOES NOT POSSESS A VALID SOUTH CAROLINA DRIVER'S LICENSE, THE AUTHORITY OF AUTO
W BILE INSURERS TO REFUSE TO WRITE AUTOMOBILE PHYSICAL DAMAGE INSURANCE COVERAGE
FOR ANY APPLICANT OR EXISTING POLICYHOLDER WHERE ONE-OR MORE OF THE CONDITIONS
OR FACTORS PRESCRIBED IN SECTION 38-73-455 EXIST, SO AS TO MAKE TECHNICAL
INTERNAL CORRECTIONS TO REFERENCES; SECTION 38-7-180, RELATING TO THE FILING WITH
THE CHIEF INSURANCE COMMISSIONER REQUESTING A CHANGE IN RATES SOLELY TO REFLECT
CHANGES IN TAX LIABILITIES, SO AS TO AUTHORIZE AN INSURANCE COMPANY WHICH INSURES
ONLY CHURCHES AND ITS PROPERTY FROM TAXES LEVIED ON INSURANCE COMPANIES UNDER
VARIOUS PROVISIONS AND TO DELETE REFERENCES TO THE AUTHORITY OF THE COMMISSION
TO ADJUST THE PREMIUM RATES CHARGEABLE ON CERTAIN POLICIES; SECTION 38-77-10, AS
AMENDED, RELATING TO THE DECLARATION OF PURPOSE FOR THE REFORM OF AUTOMOBILE
INSURANCE AND INSURANCE PRACTICES, SO AS TO DELETE THE REQUIREMENT THAT THE
INSURANCE COMMISSION APPROVE A TERRITORIAL CLASSIFICATION PLAN PROMULGATED BY THE
CHIEF INSURANCE COMMISSIONER AND TO MARE CORRECTIONS REGARDING REFERENCES;
SECTION 38-77-30, AS AMENDED, RELATING TO DEFINITIONS USED RECORDING AUTOMOBILE
INSURANCE, SO AS TO MAKE A TECHNICAL CORRECTION; SECTION 38-77-270, AS AMENDED,
RELATING TO LIABILITY INSURANCE TO PROVIDE MINIMUM LIABILITY AND UNINSURED
MOTORIST COVERAGE, SO AS TO DELETE ALL REFERENCES TO THIS COVERAGE AND OTHER
REFERENCES REGARDING COVERAGE IN EXCESS OF CERTAIN CODE PROVISIONS AND RECORD THE
PROVISION DEALING WITH LICENSED ART CARE AND TREATMENT; SECTION 38-75-210,
RELATING TO PREMIUMS DECLARED TO BE UNEARNED WHICH ARE HELD BY THE INSURER IN
RESPECT TO THAT PART OF THE POLICY TERM SUBSEQUENT TO THE ANNIVERSARY DATE OF THE
THEN CURRENT POLICY YEAR, SO AS TO CORRECT A CLERICAL ERROR; AND TO REPEAL
SECTION 38-5-180 RELATING TO THE EXEMPTION OF AN INSURER OF CHURCHES FROM CERTAIN
TAXES LEVIED ON INSURANCE COMPANIES.
Be it enacted by the General Assembly of the State of South Carolina:
Liability for civil damages
SECTION 1. The second paragraph of Section 33-55-210 of the 1976 Code, as added
by Act 149 of 1987, is amended to read-
"No licensed health care provider, as defined in Section 38-79-410, who
renders medical services voluntarily and without compensation, expectation, or
promise of it, to any person at any hospital, clinic, public school, nonprofit
organization, or any agency of the State or one of its political subdivisions
where no charges are made by the licensed health care provider for any medical
services rendered at the facility is liable for any civil damage or any act or
omission resulting from the rendering of services unless the act or omissi result
of the licensed health care provider's gross negligence or wilful misconduct. The
agreement to provide voluntary noncompensated service must be made before the
rendering of the service by the licensed health care provider."
Company exempt from taxes
SECTION 2. Section 38-7-180 of the 1976 Code is amended to read:
"Section 38-7-180. An insurance company exempt from federal income tax
pursuant to Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, and
which insures only churches and their property, is exempt from taxes levied on
insurance companies in Sections 38-7-20, 38-7-30, and 38-7-40. To provide
exemption from federal income tax under Section 501(c)(3) or (4) of the Internal
Revenue Code of 1986, the company shall provide to the Commissioner a certificate
issued by the Internal Revenue Service demonstrating the company's tax-exempt
status. The company shall further provide evidence satisfactory to the
Commissioner that it only insures churches and their property."
Insurers to file
SECTION 3. The first paragraph of Section 38-73-457 of the 1976 Code, as last
amended by Act 166 of 1987, is further amended to read:
"Notwithstanding Sections 38-73-920 and 38-73-1210, every automobile
insurer and rating organization shall, prior to October 1, 1987, file with the
Commissioner a base rate, which is defined as a rate by coverage calculated
solely upon the experience generated by the risk for each class and territory
retained by the insurer in its voluntary book of business and which must not
include experience generated by risks ceded or assumed from the Reinsurance
facility established under Section 38-73-1030. An objective standards rate by
coverage must also be filed which is twenty-five percent above the base rate
previously described for each class and territory. The base rate must be
calculated by removing from the rate or premium charge, then in effect for the
automobile insurer, that portion of the rate or premium charge attributable to
the net gain or loss of the insurer as a result of participation in the operating
results of the Facility as required by Section 38-77-760. In determining the base
rate and objective standards rate, by coverage, the Commissioner, in order that
no extra premium revenue is generated by this section, shall require that the
insurer's average rate, by coverage, on October 1, 1987, (computed as a weighted
average of the base rate and objective standards rate, by coverage, as determined
by the Commissioner), not exceed the insurer's average rate, by coverage, prior
to October 1, 1987, as determined by the Commissioner. The provisions of the
Administrative Procedures Act apply to any court appeal of a base rate or
objective standards rate brought thereunder. The base rate or objective standards
rate approved by the Commissioner may be put into effect under bond in a similar
manner that a public utility may put a proposed rate increase into effect under
bond as provided by law. No insurer may file a base rate for any class or
territory which is higher than the rate or premium charge, exclusive of that
portion required by Section 38-77-460, approved by the Commissioner for use on
October 1, 1987. As a result of this section, no insured may receive an increase
in rates for other than an increase in coverage or due to the provisions of
Section 38-77-280, 38-77-610, or 38-73-455, unless the insurer files additional
rates in accordance with this title."
Risk and classification plans
SECTION 4. Section 38-77-10(1) of the 1976 Code as last amended by Act 166 of
1987, Is further amended to read:
"(1) To provide that every automobile insurance risk which is insurable on
the basis of the criteria established in this chapter is entitled to automobile
insurance from the automobile insurer of the applicant's choice on the basis of
the same rates, policy forms, claims service, and other services provided by the
insurer to all other applicants or insureds falling within the classification of
risk and territory under the applicable risk and territorial classification plan
promulgated by the Commissioner so long as all these applicants or insureds have
satisfied the same objective standards as established in Sections 38-77-280 and
38-73-455; "
Definition
SECTION 5. Sections 38-77-30(13) and ( 14) of the 1976 Code, as last amended by
Act 166 of 1987, are further amended to read:
"(13) 'Uninsured motor vehicle' means a motor vehicle as to which:
(a) there is not bodily injury liability insurance and property damage liability
insurance both at least in the amounts specified in Section 38-77- 140, or
(b) there is nominally that insurance, but the insurer writing the same
successfully denies coverage thereunder, or
(c) there was that insurance, but the insurer who wrote the same is declared
insolvent, or is in delinquency proceedings, suspension, or receivership, or is
proven unable fully to respond to a judgment, and
(d) there is no bond or deposit of cash or securities in lieu of the bodily
injury and property damage liability insurance.
A motor vehicle is considered uninsured if the owner or operator is unknown.
However, recovery under the uninsured motorist provision is subject to the
conditions set forth in this chapter.
Any motor vehicle owned by the State or any of its political subdivisions is
considered an uninsured motor vehicle when the vehicle is operated by a person
without proper authorization.
(14) 'Underinsured motor vehicle' means a motor vehicle as to which there is
bodily injury liability insurance or a bond applicable to the time of the
accident in an amount of at least that specified in Section 38-77- 140 and the
amount of the insurance or bond:
(a) is less than the limit for underinsured motorist coverage under the
insured's policy; or
(b) has been reduced by payments to persons, other than an insured, injured in
the accident to an amount less than the limit for underinsured motorist
coverage under the insured's policy."
Insurance required to be written
SECTION 6. Section 38-77-112 of the 1976 Code, as last amended by Act 166 of
1987, is further amended to read:
"Section 38-77- 112. Notwithstanding Sections 38-77- 110, 38-77-920, and
38-77-280, no automobile insurer is required to write coverage for automobile
insurance as defined in Section 38-77-30 for any applicant or existing
policyholder who does not at the time of application or renewal possess a valid
South Carolina motor vehicle driver's license. This section does not apply to an
individual who is handicapped and who owns a vehicle in this State but who does
not have a valid driver's license. If an automobile is principally garaged and
operated in this State, the owner of the vehicle must be offered coverage thereon
regardless of whether or not he possesses a valid South Carolina driver's license
if he designates to the insurer who the principal operator of the vehicle will
be and this person has a valid South Carolina driver's license or otherwise meets
the requirements of this section. This requirement does not apply to personnel
of the Armed Forces of the United States on active duty and officially stationed
in this State who possess a valid motor vehicle driver's license issued by
another state or territory of the United States or the District of Columbia. This
requirement is waived ninety days for individuals who move into South Carolina
with the intent of making South Carolina their place of residence if they possess
a valid driver's license issued by another state or territory of the United
States or the District of Columbia."
Christian Science care and treatment
SECTION 7. Section 38-77-270 of the 1976 Code, as last amended by Act 166 of
1987, is further amended to read:
"Section 38-77-270. Nothing in this title prohibits an insurer from
providing Christian Science or any licensed healing art care and treatment- Any
Christian Science or any licensed healing art care and treatment constitutes
economic loss."
Insurers may refuse to write insurance
SECTION 8. Section 38-77-280(B) and (C) of 1976 Code, as last amended by Act 166
of 1987 are further amended to read:
"(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 any applicant or existing
policyholder, on renewal, for a motor vehicle customarily operated by an
individual, either the named insured or any other operator not excluded in
accordance with Sections 38-77-340 and 56-10-60 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 any applicant or existing policyholder, on renewal,
who has collected benefits provided under any 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.
(C) 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 described in Section 38-73-455(A)
which existed prior to the commencement of the policy period and which were not
disclosed to the insurer at the commencement of the policy period."
Repealed
SECTION 9. Section 38-5-180 of the 1976 Code is repealed.
Premiums considered unearned - conditions
SECTION 10. Section 38-75-210(2) of the 1976 Code is amended to read:
"(2) Every such policy, and the manual of rules and rates of every insurer
issuing such policies in this State, shall provide that all premiums held by the
insurer in respect to that part of the policy term subsequent to the anniversary
date of the then current policy year are considered unearned and must be refunded
in full if the policy is cancelled, without respect to whether cancellation is
effected by the insured or insurer. In . the event of cancellation during the
first year of the policy term, refund of premium for that portion Or the policy
term must be on a pro rata basis if cancellation is effected by the insurer or
on the short rate basis if cancellation is effected by the insured. In the event
of cancellation during the second year of the policy term, refund of that portion
of the unearned premium attributable to the second year must be on a pro rata
basis if cancellation is effected by the insurer or on the short rate basis if
cancellation is effected by the insured, subject, however, to the provision that
the portion of the unearned premium attributable to the third year is considered
entirely unearned and must be returned in full regardless of the party
responsible for cancellation. In the event of cancellation during the third year
of the policy term, refund of that portion of the unearned premium attributable
to the third year must be on a pro rata basis if cancellation is effected by the
insured."
Time effective
SECTION 11. This act takes effect upon approval by the Governor. |