S 1083 General Bill, By M.T. Rose
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 38-77-370 so as to provide a procedure for an insured to contest allegations
 of fault in a motor vehicle accident where his automobile insurance company
 intends to impose a surcharge based on such alleged fault, and to prohibit an
 automobile insurance company from using the fact that its insured paid an
 out-of-state motor vehicle traffic ticket, wherein no trial or other
 adjudicatory proceeding attended by the insured was held, as evidence of fault
 as a basis for imposing a surcharge on the insured.

   11/04/91  Senate Prefiled
   11/04/91  Senate Referred to Committee on Banking and Insurance
   01/14/92  Senate Introduced and read first time SJ-24
   01/14/92  Senate Referred to Committee on Banking and Insurance SJ-2

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-370 SO AS TO PROVIDE A PROCEDURE FOR AN INSURED TO CONTEST ALLEGATIONS OF FAULT IN A MOTOR VEHICLE ACCIDENT WHERE HIS AUTOMOBILE INSURANCE COMPANY INTENDS TO IMPOSE A SURCHARGE BASED ON SUCH ALLEGED FAULT, AND TO PROHIBIT AN AUTOMOBILE INSURANCE COMPANY FROM USING THE FACT THAT ITS INSURED PAID AN OUT-OF-STATE MOTOR VEHICLE TRAFFIC TICKET, WHEREIN NO TRIAL OR OTHER ADJUDICATORY PROCEEDING ATTENDED BY THE INSURED WAS HELD, AS EVIDENCE OF FAULT AS A BASIS FOR IMPOSING A SURCHARGE ON THE INSURED.

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

SECTION 1. The 1976 Code is amended by adding:

"Section 38-77-370. (A) An automobile insurer doing business in this State must provide an insured prior written notice of at least forty-five days of its intention to impose a surcharge on the insured's policy premium because of the insured's alleged fault in a motor vehicle accident, along with identification of the specific reasons why the insurer believes the insured to be at fault, including written notice of the insured's right to contest the insurer's planned surcharge and its reasons for believing the insured to be at fault. The notice must state the name and address of the Chief Insurance Commissioner and the commissioner's office telephone number and must further state that the insured has fifteen days from the receipt of the insurer's notice to initiate such contest.

The insured, under the circumstances described in this subsection, is vested with the right to make such contest, within the prescribed period of fifteen days, before the Chief Insurance Commissioner or a member of his staff designated by the commissioner. The insured may initiate the contest by letter to the commissioner, or by telephoning the commissioner's office, asking for the contest within fifteen days. Thereafter, the commissioner shall send the insurer and the insured written notice setting forth the date, time, and place for contesting the planned surcharge and the insurer's reasons for believing the insured to be at fault. In no case may the insured be required to appear outside the county of his residence for the purpose of making the contest. The commissioner shall not require the insured to appear in person to make the contest if the insured demonstrates that having to do so would work an undue hardship upon him or upon a member of his family. In such a case, the commissioner shall allow the insured to make the contest in writing or by telephone. An adjudication in favor of the insured by the commissioner or his designee is a complete bar to imposing the surcharge, and no such surcharge may be imposed or collected by any insurer pending an adjudication in such a contest.

(B) No automobile insurer doing business in this State may use the fact that its insured paid an out-of-state motor vehicle traffic ticket, wherein no trial or other adjudicatory proceeding attended by the insured was held, as evidence of the fault of its insured in a motor vehicle accident, as a basis for imposing a surcharge on the insured's policy premium."

SECTION 2. This act takes effect upon approval by the Governor.