H 4776 Session 112 (1997-1998)
H 4776 General Bill, By Easterday and Bowers
A BILL TO AMEND ARTICLE 5 OF CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE STATE'S AUTOMOBILE INSURANCE LAW AND THE SOUTH
CAROLINA REINSURANCE FACILITY, DESIGNATED PRODUCERS, AND FACILITY RECOUPMENT
CHARGES, BY ADDING SECTION 38-77-627 SO AS TO PROVIDE FOR DISCLOSURE OF
ECONOMIC IMPACT BY AN INSURER AS A RESULT OF A CLAIM BEING FILED BY AN
INSURED, ALLOW THE FORMAL WITHDRAWAL OF A CLAIM BY THE INSURED FOLLOWING
RECEIPT OF THE ECONOMIC IMPACT DISCLOSURE, PROVIDE FOR APPROVAL OF FORMS AND
THE PROMULGATION OF REGULATIONS BY THE DIRECTOR OF THE DEPARTMENT OF
INSURANCE, PROVIDE FOR WAIVER BY THE INSURED OF HIS RIGHTS AND PRIVILEGES
UNDER THIS SECTION, AND PROVIDE FOR AN ADMINISTRATIVE FINE TO BE ASSESSED
AGAINST AN INSURER WHICH VIOLATES THIS SECTION.
03/10/98 House Introduced and read first time HJ-8
03/10/98 House Referred to Committee on Labor, Commerce and
Industry HJ-8
03/17/98 House Member(s) added as co-sponsor(s): Rep(s) Bowers HJ-11
A BILL
TO AMEND ARTICLE 5 OF CHAPTER 77, TITLE 38, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
STATE'S AUTOMOBILE INSURANCE LAW AND THE SOUTH
CAROLINA REINSURANCE FACILITY, DESIGNATED
PRODUCERS, AND FACILITY RECOUPMENT CHARGES, BY
ADDING SECTION 38-77-627 SO AS TO PROVIDE FOR
DISCLOSURE OF ECONOMIC IMPACT BY AN INSURER AS
THE RESULT OF A CLAIM BEING FILED BY AN INSURED,
ALLOW THE FORMAL WITHDRAWAL OF A CLAIM BY THE
INSURED FOLLOWING RECEIPT OF THE ECONOMIC
IMPACT DISCLOSURE, PROVIDE FOR APPROVAL OF FORMS
AND THE PROMULGATION OF REGULATIONS BY THE
DIRECTOR OF THE DEPARTMENT OF INSURANCE, PROVIDE
FOR WAIVER BY THE INSURED OF HIS RIGHTS AND
PRIVILEGES UNDER THIS SECTION, AND PROVIDE FOR AN
ADMINISTRATIVE FINE TO BE ASSESSED AGAINST AN
INSURER WHICH VIOLATES THIS SECTION.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 5 of Chapter 77, Title 38 of the 1976 Code is
amended by adding:
"Section 38-77-627. (A) Notwithstanding any other
provision of this article, upon a claim being submitted by an insured
under his policy to the insurer, the insurer, within ten working days
of receipt of the claim, shall notify the insured in writing and make
full disclosure to him of the total economic impact and effect of that
claim upon the insured's rates and premiums under the insured's
policy, including a detailed listing of surcharges, recoupment
charges, and all other applicable charges or fees accruing as a result
of that claim. The notification must indicate the length of time
during which any increase in premiums or rates, or the addition of
surcharges, recoupment charges, and other charges or fees, shall
remain in effect for the insured because of the claim submitted by
him to the insurer. Within ten days of receipt by the insured of the
economic impact disclosure statement from the insurer, as required
by this section, the insured may elect to withdraw the claim. The
withdrawal must be made on a withdrawal-of-claim form attached to
the economic impact disclosure statement sent by the insurer to the
insured pursuant to this section. If the insured withdraws the claim,
no increase in premiums or rates may be made for that insured, or any
surcharges, recoupment charges, or other charges be charged to him,
as a result of that claim.
(B) The Director of the Department of Insurance shall approve all
forms, statements, and notices authorized by this section and shall
promulgate regulations for the necessary and proper enforcement of
this section.
(C) Upon submitting a claim under his policy to the insurer, the
insured may waive his rights and privileges under this section. The
waiver must be effected in writing, dated, signed by the insured, and
witnessed by two individuals. The purpose for waiver under this
subsection is to effectuate a settlement of the claim at a time sooner
than the first deadline set forth in subsection (A), and it shall be the
duty of the insurer to settle with the insured in such manner upon
obtaining the insured's waiver pursuant to this subsection (C).
(D) An insurer which violates any provision of this section shall
pay an administrative fine to the Department of Insurance in the
amount of one thousand dollars, one-half of which must be remitted
by the department to the insured. The Director of the Department of
Insurance shall determine whether a violation has occurred."
SECTION 2. This act takes effect upon approval by the Governor.
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