H*4865(Rat #0435, Act #0378 of 1996)  General Bill, By Law, Bailey, H. Brown, 
Cato, Dantzler, D. Williams, S.S. Wofford and Young-Brickell

Similar(S 1305)
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 38-73-1095 so as to provide that a private insurer licensed to underwrite
 "essential property insurance" may file and use certain rates for the
 coverages detailed in Section 38-75-310(1) and the process for filing and
 having the rates approved; and by adding Section 38-75-386 so as to provide
 that liability or a cause of action may not arise against certain persons for
 certain statements made to or information provided to an insurer to facilitate
 the underwriting of certain essential property insurance or to facilitate
 competition for the underwriting of certain essential property insurance; to
 amend Section 38-75-310, as amended, relating to property, casualty, and title
 insurance definitions, so as to define "seacoast area"; and to amend Sections
 38-73-910 and 38-73-920, both as amended, relating to the notice of hearing
 that must be provided before granting certain insurance premium rate
 increases, so as to provide that private insurers licensed to underwrite
 essential property insurance may file and use certain rates within the coastal
 area of the State.-amended title

   04/02/96  House  Introduced and read first time HJ-5
   04/02/96  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-5
   04/17/96  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-5
   04/23/96  House  Amended HJ-54
   04/23/96  House  Read second time HJ-54
   04/24/96  House  Read third time and sent to Senate HJ-13
   04/24/96  Senate Introduced and read first time SJ-45
   04/24/96  Senate Referred to Committee on Banking and Insurance SJ-45
   05/07/96  Senate Recalled from Committee on Banking and Insurance SJ-6
   05/09/96  Senate Amended SJ-96
   05/09/96  Senate Read second time SJ-96
   05/09/96  Senate Unanimous consent for third reading on next
                     legislative day SJ-96
   05/10/96  Senate Read third time and returned to House with
                     amendments SJ-1
   05/15/96  House  Concurred in Senate amendment and enrolled HJ-49
   05/23/96         Ratified R 435
   05/29/96         Signed By Governor
   05/29/96         Effective date 05/29/96
   06/14/96         Copies available
   06/14/96         Act No. 378

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-73-1095 SO AS TO PROVIDE THAT A PRIVATE INSURER LICENSED TO UNDERWRITE "ESSENTIAL PROPERTY INSURANCE" MAY FILE AND USE CERTAIN RATES FOR THE COVERAGES DETAILED IN SECTION 38-75-310(1) AND THE PROCESS FOR FILING AND HAVING THE RATES APPROVED; BY ADDING SECTION 38-75-386 SO AS TO PROVIDE THAT LIABILITY OR A CAUSE OF ACTION MAY NOT ARISE AGAINST CERTAIN PERSONS FOR CERTAIN STATEMENTS MADE TO OR INFORMATION PROVIDED TO AN INSURER TO FACILITATE THE UNDERWRITING OF CERTAIN ESSENTIAL PROPERTY INSURANCE OR TO FACILITATE COMPETITION FOR THE UNDERWRITING OF CERTAIN ESSENTIAL PROPERTY INSURANCE; TO AMEND SECTION 38-75-310, AS AMENDED, RELATING TO PROPERTY, CASUALTY, AND TITLE INSURANCE DEFINITIONS, SO AS TO DEFINE "SEACOAST AREA"; AND TO AMEND SECTIONS 38-73-910 AND 38-73-920, BOTH AS AMENDED, RELATING TO THE NOTICE OF HEARING THAT MUST BE PROVIDED BEFORE GRANTING CERTAIN INSURANCE PREMIUM RATE INCREASES, SO AS TO PROVIDE THAT PRIVATE INSURERS LICENSED TO UNDERWRITE ESSENTIAL PROPERTY INSURANCE MAY FILE AND USE CERTAIN RATES WITHIN THE COASTAL AREA OF THE STATE.

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

Essential property insurance

SECTION 1. The 1976 Code is amended by adding:

"Section 38-73-1095. (A) Any private insurer licensed to underwrite `essential property insurance' as defined by Section 38-75-310(1), notwithstanding any limitations included within this title, may file and use any rates for the coverages detailed within Section 38-75-310(1) which result in insurance premium rates of ninety percent, or less, of the insurance premium rates then approved for the South Carolina Wind and Hail Underwriting Association for use within the coastal area of South Carolina as defined by Section 38-75-310(5). Filings for these insurance premium rates must be made upon forms prescribed by the director or his designee and must apply only to essential property insurance premium rates for the coastal area. Within thirty days after the filing of the rates, the director or his designee must notify the insurer or rating organization filing the rates of his approval or his disapproval of those rates. If the rates are disapproved, then the director or his designee must notify the insurer or the rating organization of the specific reason for disapproval. The director or his designee may extend for up to an additional thirty days the period within which he must approve or disapprove the rates. Any rates received, which are neither approved nor disapproved by the director, must be deemed approved at the expiration of the thirty-day period or, if that period has been extended, at the expiration of the extended period. However, no insurer or rating organization may use rates considered approved under the provisions of this section unless and until the insurer or rating organization has filed a written notice of its intent to use the rates. The notice must be filed with the director or his designee at least ten days before the insurer's or rating organization's use of the deemed rates.

(B) In considering any rate filing for insurance premium rates for essential property insurance in the coastal area or in the seacoast area, the director or his designee, in addition to other factors considered under this title, may consider past and prospective expenses and recoveries associated with catastrophe reinsurance and past and prospective loss experience including windstorm catastrophe models and simulations.

(C) Rating plans for essential property insurance in the coastal area or in the seacoast area, may include discounts and credits or surcharges and debits calculated upon the following rating factors:

(1) use of storm shutters;

(2) use of roof tie downs;

(3) construction standards;

(4) building codes;

(5) distance from water;

(6) elevation;

(7) flood insurance;

(8) policy deductibles;

(9) other applicable factors requested by the insurer or rating organization or selected by order of the director involving the risk or hazard.

(D) This section does not preclude any insurer from using consent-to-rate pursuant to Section 38-73-1060 for any essential property insurance risk in the coastal area or the seacoast area of this State."

Essential property insurance; liability

SECTION 2. The 1976 Code is amended by adding:

"Section 38-75-386. No liability on the part of, and no cause of action of any nature may arise against, the director, the Department of Insurance or its staff, the association, any member insurer, the association's agents or employees, its Board of Directors, or the legal representatives of any of the above persons, for any act or omission made in good faith or for any statement made to, or for information provided to, any insurer regarding rates; premiums; classifications; cancellations, determinations, or nonrenewals of coverage; underwriting; inspections; or claims experience history made to facilitate the underwriting of essential property insurance for risks in the coastal area by private insurers or to facilitate competition for the underwriting of essential property insurance for risks in the coastal area among private insurers."

Definition

SECTION 3. Section 38-75-310 of the 1976 Code, as last amended by Act 504 of 1994, is further amended by adding:

"(7) `Seacoast area' means all areas within Horry, Georgetown, Berkeley, Charleston, Dorchester, Colleton, Beaufort, and Jasper Counties."

Essential property insurance

SECTION 4. Section 38-73-910 of the 1976 Code, as last amended by Act 300 of 1996, is further amended by adding at the end:

"However, a private insurer licensed to underwrite essential property insurance as defined by Section 38-75-310(1), notwithstanding any limitations included within this title, may file and use, pursuant to the provisions of Section 38-73-1095, any rates which result in insurance premium rates of ninety percent, or less, of the insurance premium rates then approved for the South Carolina Wind and Hail Underwriting Association for use within the coastal area of South Carolina as defined by Section 38-75-310(5)."

Insurance premium rates

SECTION 5. Section 38-73-920 of the 1976 Code, as last amended by Act 181 of 1993, is further amended by adding at the end:

"However, a private insurer licensed to underwrite essential property insurance as defined by Section 38-75-310(1), notwithstanding any limitations included within this title, may file and use, pursuant to the provisions of Section 38-73-1095, any rates which result in insurance premium rates of ninety percent, or less, of the insurance premium rates then approved for the South Carolina Wind and Hail Underwriting Association which result in an insurance premium increase for any policyholder situated within a coastal area of South Carolina as defined by Section 38-75-310(5) not more than once in any six-month period."

Time effective

SECTION 6. This act takes effect upon approval by the Governor.

Approved the 29th day of May, 1996.