H*2606 Session 107 (1987-1988)
H*2606(Rat #0086, Act #0054 of 1987) General Bill, By
House Labor, Commerce and Industry
Similar(H 2504)
A Bill to amend Section 34-29-160, as amended, Code of Laws of South Carolina,
1976, relating to insurance required of borrowers under the Consumer Finance
Law, so as to provide that minimum charges of two dollars may be made in
connection with the required insurance and that no refund under two dollars
must be made in connection with the cancellation of the insurance.
03/04/87 House Introduced, read first time, placed on calendar
without reference HJ-850
03/10/87 House Debate adjourned HJ-928
03/11/87 House Objection by Rep. Toal, Kirsh, Washington &
Klapman HJ-970
03/24/87 House Objection withdrawn by Rep. Klapman, Toal & Kirsh
HJ-1413
03/24/87 House Objection by Rep. Blanding & Faber HJ-1413
03/25/87 House Objection withdrawn by Rep. Washington HJ-1437
03/25/87 House Read second time HJ-1437
03/31/87 House Read third time and sent to Senate HJ-1485
04/01/87 Senate Introduced and read first time SJ-1108
04/01/87 Senate Referred to Committee on Banking and Insurance SJ-110
04/02/87 Senate Recalled from Committee on Banking and Insurance
SJ-1159
04/07/87 Senate Read second time SJ-1182
04/07/87 Senate Ordered to third reading with notice of
amendments SJ-1182
04/08/87 Senate Read third time and enrolled SJ-1208
04/23/87 Ratified R 86
04/28/87 Signed By Governor
04/28/87 Effective date 04/28/87
04/28/87 Act No. 54
05/04/87 Copies available
(A54, R86, H2606)
AN ACT TO AMEND SECTION 34-29-160, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO INSURANCE REQUIRED OF BORROWERS UNDER THE CONSUMER FINANCE LAW,
SO AS TO PROVIDE THAT MINIMUM CHARGES OF TWO DOLLARS MAY BE MADE IN CONNECTION
WITH THE REQUIRED INSURANCE AND THAT NO REFUND UNDER TWO DOLLARS MUST BE MADE IN
CONNECTION WITH THE CANCELLATION OF THE INSURANCE.
Be it enacted by the General Assembly of the State of South Carolina:
Minimum refunds revised
SECTION 1. The third paragraph of Section 34-29-160 of the 1976 Code, as
amended by Act 444 of 1986, is further amended to read:
"Life insurance must be in an amount not to exceed the approximate amount
of the loan and for a term not exceeding the approximate term of the loan
contract. Accident and health insurance and unemployment insurance, or both,
must provide periodic benefits which may not exceed an amount which approximately
equals the amount of each periodic installment payment to be made under the loan
contract. However, when a loan is discharged or a new policy or policies of
insurance are issued, the life, property, or accident and health insurance or all
three on the prior obligation must be canceled and the unearned portion of the
insurance premium or premiums, or identifiable charge, must be refunded to the
borrower. However, the method of refunding the premiums on the policies must be
pursuant to the Rule of 78 or the Sum of the Digits Method, except that no refund
under two dollars must be made; the insurance company shall calculate its
reserves on the policies in the same manner or, in the case of credit life
insurance, in accordance with a mortality table and interest assumption used for
ordinary life policies. Notwithstanding this requirement, if the property
insurance policy or policies cover the insurable interest of the borrower as well
as the lender, the policy or policies may be continued in force at the request
of the borrower."
Minimum charges revised
SECTION 2. The eighth paragraph of Section 34-29-160 of the 1976 Code is
amended to read:
"Any accident and health or property insurance sold in conjunction with
this chapter must be written on forms and at rates approved by the South Carolina
Insurance Commission, provided that a minimum charge of two dollars may be made,
pursuant to reasonable regulations adopted by it and having as their purpose the
establishment and maintenance of premium rates which are reasonably commensurate
with the coverage afforded and which are adequate, not excessive, and not
unfairly discriminatory giving due consideration to past or prospective loss
experience within or without this State, to dividends, savings, or unabsorbed
premium deposits allowed or returned by insurers to borrowers, to reasonable
expense allowances necessary to achieve proper risk distribution and spread, and
to all other relevant factors within or without this State. These regulations
may include reasonable classification systems or programs based upon identifiable
and measurable variations in the hazards or expense requirements and may include
statistical plans, systems, or programs, which the insurers may be required to
adopt, for the purpose of providing that statistical information and data as may
be necessary or reasonably appropriate to the determination of premium rates or
rate levels. The premium rates and rate levels must be calculated to produce and
maintain a ratio of losses incurred, or reasonably expected to be incurred, to
premiums earned, or reasonably expected to be earned, of not less than fifty
percent, and rates producing a lesser loss ratio are considered excessive."
Time effective
SECTION 3. This act takes effect upon approval by the Governor. |