H 3246 Session 110 (1993-1994)
H 3246 General Bill, By H. Brown, Allison, Bailey, B.O. Baker, Cato,
C.D. Chamblee, R.S. Corning, Fair, R.C. Fulmer, Gamble, H.M. Hallman,
J.L. Harris, P.B. Harris, D.N. Holt, H.G. Hutson, M.F. Jaskwhich, Keegan,
Kelley, Klauber, Koon, Law, C.V. Marchbanks, Meacham, Phillips, Rhoad, Riser,
Robinson, Sharpe, J.S. Shissias, J.J. Snow, Spearman, Stille, E.C. Stoddard,
C.H. Stone, Stuart, C.L. Sturkie, Townsend, Trotter, C.C. Wells, J.B. Wilder,
D. Williams, Witherspoon, S.S. Wofford and Young-Brickell
Similar(S 244)
A Bill to amend Title 38, Code of Laws of South Carolina, 1976, relating to
insurance, by adding Chapter 78 so as to enact the "Consumer Freedom of Choice
in Motor Vehicle Insurance Act"; to amend the 1976 Code by adding Section
38-73-1075 so as to prohibit an insurer from increasing the premium on an
automobile liability insurance policy solely as a result of a claim for an
automobile accident filed by an insured if the insured was not at fault nor
contributorily negligent; to amend Section 38-77-30, as amended, relating to
the definition of "automobile insurance", so as to provide for the inclusion
of the personal protection policy as defined in Section 38-78-30(C); to amend
Section 38-77-110, as amended, relating to the automobile insurance law, the
requirement on insurers to insure, and exceptions, so as to expand the
exceptions with respect to added personal protection coverage as defined in
Section 38-78-30(B); to amend the 1976 Code by adding Section 38-77-355 so as
to provide that, in a claim or action for personal injury or wrongful death
arising out of the ownership, operation, use or maintenance of a motor
vehicle, the court shall admit into evidence the total amount paid to the
claimant from collateral sources and shall instruct the jury to deduct from
its verdict the value of all benefits received by the claimant from collateral
sources; to amend Section 38-77-280, as amended, relating to collision and
comprehensive insurance coverage, so as to
01/21/93 House Introduced and read first time HJ-9
01/21/93 House Referred to Committee on Labor, Commerce and
Industry HJ-15
04/21/93 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-4
04/28/93 House Objection by Rep. Harrelson, Anderson,
Cobb-Hunter, Inabinett, Simrill, HJ-47
04/28/93 House Objection by Rep. Hines, Kennedy, Keyserling,
Breeland, Whipper, Scott, HJ-47
04/28/93 House Objection by Rep. Meacham, Vaughn, Neal, A.
Young, J. Brown, Byrd, HJ-47
04/28/93 House Objection by Rep. J. Bailey, Richardson, D.
Wilder & R. Smith HJ-47
06/03/93 House Objection withdrawn by Rep. Inabinett HJ-91
01/20/94 House Committed to Committee on Judiciary HJ-34
01/27/94 House Recalled from Committee on Judiciary HJ-23
Indicates Matter Stricken
Indicates New Matter
RECALLED
January 27, 1994
H. 3246
Introduced by REPS. H. Brown, Trotter, Allison, Hutson, Stuart, Fair,
Meacham, Chamblee, Koon, Kelley, G. Bailey, Hallman, A. Young,
Fulmer, Keegan, Law, Townsend, Sturkie, Jaskwhich, Rhoad, Holt,
Corning, Sharpe, Wofford, Stone, Wells, Shissias, Marchbanks,
Williams, Riser, Stille, Gamble, J. Wilder, Cato, Witherspoon, Klauber,
P. Harris, Stoddard, Spearman, Snow, Baker, Phillips, J. Harris and
Robinson
S. Printed 2/22/94--H.
Read the first time January 21, 1993.
A BILL
TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO INSURANCE, BY ADDING CHAPTER 78 SO
AS TO ENACT THE "CONSUMER FREEDOM OF CHOICE IN
MOTOR VEHICLE INSURANCE ACT"; TO AMEND THE
1976 CODE BY ADDING SECTION 38-73-1075 SO AS TO
PROHIBIT AN INSURER FROM INCREASING THE PREMIUM ON
AN AUTOMOBILE LIABILITY INSURANCE POLICY SOLELY AS
A RESULT OF A CLAIM FOR AN AUTOMOBILE ACCIDENT
FILED BY AN INSURED IF THE INSURED WAS NOT AT FAULT
NOR CONTRIBUTORILY NEGLIGENT; TO AMEND SECTION
38-77-30, AS AMENDED, RELATING TO THE DEFINITION OF
"AUTOMOBILE INSURANCE", SO AS TO PROVIDE
FOR THE INCLUSION OF THE PERSONAL PROTECTION POLICY
AS DEFINED IN SECTION 38-78-30(C); TO AMEND SECTION
38-77-110, AS AMENDED, RELATING TO THE AUTOMOBILE
INSURANCE LAW, THE REQUIREMENT ON INSURERS TO
INSURE, AND EXCEPTIONS, SO AS TO EXPAND THE
EXCEPTIONS WITH RESPECT TO ADDED PERSONAL
PROTECTION COVERAGE AS DEFINED IN SECTION 38-78-30(B);
TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-355 SO
AS TO PROVIDE THAT, IN A CLAIM OR ACTION FOR
PERSONAL INJURY OR WRONGFUL DEATH ARISING OUT OF
THE OWNERSHIP, OPERATION, USE, OR MAINTENANCE OF A
MOTOR VEHICLE, THE COURT SHALL ADMIT INTO EVIDENCE
THE TOTAL AMOUNT PAID TO THE CLAIMANT FROM
COLLATERAL SOURCES AND SHALL INSTRUCT THE JURY TO
DEDUCT FROM ITS VERDICT THE VALUE OF ALL BENEFITS
RECEIVED BY THE CLAIMANT FROM COLLATERAL SOURCES;
TO AMEND SECTION 38-77-280, AS AMENDED, RELATING TO
COLLISION AND COMPREHENSIVE INSURANCE COVERAGE,
SO AS TO DELETE THE PROVISIONS OF THAT SECTION AND
PROVIDE THAT AFTER A CERTAIN DATE AUTOMOBILE
INSURERS MAY REFUSE TO WRITE OR RENEW PRIVATE
PASSENGER AUTOMOBILE PHYSICAL DAMAGE INSURANCE
COVERAGE, INCLUDING COMPREHENSIVE PHYSICAL
DAMAGE, COLLISION, FIRE, THEFT, AND COMBINED
ADDITIONAL COVERAGE FOR AN APPLICANT OR EXISTING
POLICYHOLDER AND THAT NO PRIVATE PASSENGER
AUTOMOBILE PHYSICAL DAMAGE INSURANCE COVERAGE
MAY BE CEDED TO THE REINSURANCE FACILITY; TO AMEND
SECTION 38-77-30, AS AMENDED, RELATING TO AUTOMOBILE
INSURANCE AND THE DEFINITION OF "DAMAGES",
SO AS TO PROVIDE THAT THE TERM INCLUDES ACTUAL
DAMAGES ONLY; TO AMEND SECTION 38-77-140, RELATING
TO AUTOMOBILE INSURANCE AND BODILY INJURY AND
PROPERTY DAMAGE LIMITS, SO AS TO QUALIFY
"DAMAGES" AS "ACTUAL DAMAGES"
AND REQUIRE AN INSURER TO OFFER AN INSURED A RIDER
OR ENDORSEMENT FOR AN ADDITIONAL PREMIUM TO
COVER LIABILITY FOR PUNITIVE DAMAGES; TO AMEND
SECTION 38-77-150, RELATING TO AUTOMOBILE INSURANCE,
THE UNINSURED MOTORIST PROVISION, AND DEFENSE OF
AN ACTION BY THE INSURER, SO AS TO, AMONG OTHER
THINGS, DELETE CERTAIN LANGUAGE, REQUIRE INSURERS
TO OFFER HIGHER LIMITS OF UNINSURED MOTORIST
COVERAGE, AND PROVIDE THAT BENEFITS PAID PURSUANT
TO THIS SECTION ARE SUBJECT TO SUBROGATION AND
ASSIGNMENT; TO AMEND SECTION 38-77-160, AS AMENDED,
RELATING TO ADDITIONAL UNINSURED MOTORIST
COVERAGE AND UNDERINSURED MOTORIST COVERAGE, SO
AS TO, AMONG OTHER THINGS, DELETE CERTAIN
LANGUAGE, PROVIDE THAT IF AN INSURED IS ENTITLED TO
UNINSURED MOTORIST OR UNDERINSURED MOTORIST
COVERAGE UNDER MORE THAN ONE POLICY, THE MAXIMUM
AMOUNT THE INSURED MAY RECOVER MAY NOT EXCEED
THE HIGHEST LIMIT OF SUCH COVERAGE PROVIDED FOR
ANY ONE VEHICLE UNDER ANY ONE POLICY, AND PROVIDE
THAT UNDERINSURED MOTORIST BENEFITS PAID PURSUANT
TO THIS SECTION ARE SUBJECT TO SUBROGATION AND
ASSIGNMENT; TO AMEND SECTION 56-9-350, RELATING TO
SECURITY FOLLOWING MOTOR VEHICLE ACCIDENTS,
VERIFICATION OF INSURANCE COVERAGE FORM TO BE
ISSUED FOLLOWING CERTAIN ACCIDENTS, EFFECT OF
FAILURE TO RETURN THE FORM, AND UNINVESTIGATED
ACCIDENTS, SO AS TO DELETE CERTAIN LANGUAGE AND
PROVIDE THAT THE OPERATOR OR OWNER OF A MOTOR
VEHICLE INVOLVED IN AN ACCIDENT RESULTING IN
PROPERTY DAMAGE OF FOUR HUNDRED DOLLARS OR MORE
OR IN BODILY INJURY OR DEATH WITHIN FIFTEEN DAYS
AFTER THE ACCIDENT SHALL FORWARD A WRITTEN REPORT
OF THE ACCIDENT ON A PRESCRIBED FORM; TO AMEND
SECTION 56-10-10, RELATING TO VEHICLE FINANCIAL
SECURITY AND OTHER MATTERS AND SECURITY REQUIRED
ON REGISTERED VEHICLES, SO AS TO DELETE CERTAIN
LANGUAGE AND REQUIRE THAT SECURITY BE MAINTAINED
ON EVERY MOTOR VEHICLE REQUIRED TO BE REGISTERED
IN SOUTH CAROLINA WHERE THE OWNERS OR OTHER
OPERATORS NOT EXCLUDED IN ACCORDANCE WITH
SECTION 38-77-340 RESIDE IN THE SAME HOUSEHOLD AND
ARE INSUREDS UNDER THE SAME POLICY, IF ONE OF THE
OWNERS OR OTHER OPERATORS DOES NOT QUALIFY FOR
THE SAFE DRIVER DISCOUNT IN SECTION 38-73-760; TO
AMEND SECTION 56-10-220, RELATING TO THE REQUIREMENT
THAT A VEHICLE SOUGHT TO BE REGISTERED BE INSURED,
SO AS TO DEFINE PERSONS APPLYING FOR REGISTRATION AS
PERSONS REQUIRED TO PROVIDE SECURITY ON A MOTOR
VEHICLE AS PROVIDED IN SECTION 56-10-10; TO AMEND
SECTION 56-10-240, RELATING TO THE REQUIREMENT THAT,
UPON THE LOSS OF INSURANCE, THE INSURED OBTAIN NEW
INSURANCE OR SURRENDER VEHICLE REGISTRATION AND
PLATES, WRITTEN NOTICE BY THE INSURER, SUSPENSION OF
REGISTRATION AND PLATES, APPEAL OF SUSPENSION,
ENFORCEMENT, AND PENALTIES, SO AS TO DELETE CERTAIN
LANGUAGE, FURTHER DESCRIBE AND QUALIFY A MOTOR
VEHICLE WHICH IS OR BECOMES AN UNINSURED MOTOR
VEHICLE, AND DEFINE THE RESIDENT FOR WHOM THE LAPS
OR TERMINATION OCCURS AFTER THREE MONTHS AS ONE
WHO DOES NOT QUALIFY FOR THE SAFE DRIVER DISCOUNT
UNDER SECTION 38-73-760; TO AMEND CHAPTER 10 OF TITLE
56, RELATING TO MOTOR VEHICLE REGISTRATION, AND
FINANCIAL SECURITY, BY ADDING AN ARTICLE 5 SO AS TO
ENACT PROVISIONS FOR THE REGISTRATION AND LICENSING
OF UNINSURED MOTOR VEHICLES; TO AMEND SECTION
38-77-110, AS AMENDED, RELATING TO AUTOMOBILE
INSURANCE, THE REQUIREMENT UPON INSURERS TO INSURE,
AND EXCEPTIONS, SO AS TO PROVIDE THAT INSURERS
OTHER THAN THOSE DESIGNATED AND APPROVED AS
SPECIALIZED INSURERS BY THE CHIEF INSURANCE
COMMISSIONER MAY NOT REFUSE TO WRITE OR RENEW
AUTOMOBILE INSURANCE POLICIES FOR INDIVIDUAL
PRIVATE PASSENGER AUTOMOBILES, IF THE RISK QUALIFIES
FOR THE SAFE DRIVER DISCOUNT IN SECTION 38-73-760, OR
SMALL COMMERCIAL RISKS, PROVIDE THAT NO INSURER IS
REQUIRED TO WRITE OR RENEW PRIVATE PASSENGER
AUTOMOBILE INSURANCE IF THE RISK DOES NOT QUALIFY
FOR THE SAFE DRIVER DISCOUNT, DELETE CERTAIN
LANGUAGE, PROVIDE THAT NO INSURER MAY REFUSE TO
WRITE OR RENEW A POLICY, COVERAGE, OR ENDORSEMENT
OF AUTOMOBILE INSURANCE BECAUSE OF THE RACE,
COLOR, CREED, NATIONAL ORIGIN, ANCESTRY, OR INCOME
OF ANYONE WHO SEEKS TO BECOME INSURED, AND
PROVIDE THAT AN APPLICANT DENIED COVERAGE MUST BE
PROVIDED IN WRITING BY THE DENYING INSURER THE
REASON OR REASONS FOR WHICH THE APPLICANT HAS BEEN
REFUSED INSURANCE BY THAT INSURER, AT THE TIME OF
THE DENIAL; TO AMEND CHAPTER 77 OF TITLE 38, RELATING
TO AUTOMOBILE INSURANCE, BY ADDING AN ARTICLE 13 SO
AS TO PROVIDE FOR A JOINT UNDERWRITING ASSOCIATION
AND PROVIDE, AMONG OTHER THINGS, FOR THE ABOLITION
OF THE REINSURANCE FACILITY UPON A CERTAIN DATE,
THAT THE ADMINISTRATION OF THE PHASE OUT OF THE
FACILITY IS TRANSFERRED TO THE ASSOCIATION, AND
THAT, AS OF A CERTAIN DATE, THE FACILITY RECOUPMENT
CHARGE MUST NOT BE INCLUDED IN THE RATE OR PREMIUM
CHARGED BY THE INSURERS OF PRIVATE PASSENGER
AUTOMOBILE INSURANCE TO DRIVERS WHO QUALIFY FOR
THE SAFE DRIVER DISCOUNT; TO AMEND SECTION 38-73-455,
AS AMENDED, RELATING TO AUTOMOBILE INSURANCE
RATES, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN
LANGUAGE, REQUIRE AN AUTOMOBILE INSURER TO OFFER
FOUR, RATHER THAN TWO, DIFFERENT RATES FOR
AUTOMOBILE INSURANCE, AND PROVIDE THAT, NO LATER
THAN NINETY DAYS AFTER THE PASSAGE OF THIS ACT,
INSURERS OF AUTOMOBILE INSURANCE MUST FILE WITH
THE CHIEF INSURANCE COMMISSIONER RATES FOR
PERSONAL PROTECTION POLICIES AS DEFINED BY SECTION
38-78-30 AND REVISED RATES FOR ALL OTHER PRIVATE
PASSENGER AUTOMOBILE INSURANCE POLICIES WRITTEN
BY THEM; TO AMEND SECTION 38-73-760, AS AMENDED,
RELATING TO THE STATE RATING AND STATISTICAL
DIVISION AND UNIFORM STATISTICAL PLANS, SO AS TO
PROVIDE THAT NO SURCHARGE MAY BE ASSESSED FOR THE
FIRST CONVICTION OF SPEEDING LESS THAN TWENTY MILES
PER HOUR IF THE PERSON CONVICTED HAS MAINTAINED
THE SAFE DRIVER DISCOUNT FOR THE PREVIOUS THREE
YEARS, AND PROVIDE THAT NO SURCHARGE MAY BE
ASSESSED FOR CERTAIN CONVICTIONS OCCURRING ON OR
AFTER JANUARY 1, 1995; TO AMEND SECTION 56-10-270,
RELATING TO THE OPERATION OF AN UNINSURED VEHICLE
AND PENALTIES, SO AS TO, AMONG OTHER THINGS,
INCREASE THE PENALTIES, INCLUDING PROVISIONS FOR THE
PERFORMANCE OF PUBLIC SERVICE HOURS; TO AMEND THE
1976 CODE BY ADDING SECTION 38-77-116 SO AS TO PROVIDE
THAT, UPON ISSUANCE OF A NEW PRIVATE PASSENGER
AUTOMOBILE INSURANCE POLICY, THE INSURANCE
COMPANY OR AGENT MUST REVIEW WITH THE NEW
APPLICANT A LIST OF DRIVING OFFENSES AND THE RELATED
FINE AND PUNISHMENT, AMONG OTHER THINGS; TO
PROVIDE THAT, AFTER SEPTEMBER 30, 1994, THE GOVERNING
BOARD OF THE JOINT UNDERWRITING ASSOCIATION SHALL
CONTRACT WITH ONE OR MORE INSURERS OR BUSINESS
ENTITIES TO SERVE AS THE DESIGNATED CARRIER AND
SHALL ESTABLISH A PROCEDURE FOR THE SELECTION OF
THE DESIGNATED CARRIER, AND PROVIDE THAT
COMMISSIONS PAID TO AGENTS FOR POLICIES CEDED TO OR
PLACED IN THE ASSOCIATION SHALL BE SET BY THE
ASSOCIATION'S BOARD OF DIRECTORS; TO AMEND THE 1976
CODE BY ADDING SECTIONS 38-77-175 AND 56-7-12 SO AS TO
PROVIDE, AMONG OTHER THINGS, THAT WHEN THE
OPERATOR OR OWNER OF A MOTOR VEHICLE IS ISSUED A
TRAFFIC TICKET FOR A MOVING VIOLATION BY A LAW
ENFORCEMENT OFFICER, HE MUST BE FURNISHED A
WRITTEN REQUEST FORM TO COMPLETE TO VERIFY
LIABILITY INSURANCE COVERAGE AND THAT THE FORM
MUST BE AS PRESCRIBED BY REGULATION OF THE
DEPARTMENT OF HIGHWAYS AND PUBLIC
TRANSPORTATION; TO REPEAL ARTICLE 5 OF CHAPTER 77 OF
TITLE 38, RELATING TO THE REINSURANCE FACILITY AND
DESIGNATED PRODUCERS, SECTION 38-73-1420, RELATING TO
THE REQUIREMENT UPON THE BOARD OF GOVERNORS OF
THE REINSURANCE FACILITY TO FILE AND EXPENSE
COMPONENT AND USE OF THE COMPONENT AFTER
APPROVAL, SECTION 38-73-1425, RELATING TO THE FINAL
RATE OR PREMIUM CHARGE FOR PRIVATE PASSENGER
AUTOMOBILE INSURANCE RISK CEDED TO THE
REINSURANCE FACILITY, SECTION 38-77-285, RELATING TO
THE REQUIREMENT THAT ALL AUTOMOBILE INSURANCE
COVERAGES WRITTEN BY AN INSURER FOR AN INSURED'S
AUTOMOBILE MUST BE WRITTEN IN THE SAME POLICY,
WITH EXCEPTIONS AND QUALIFICATIONS, SECTION 38-77-920,
RELATING TO THE PROVISION THAT INSURERS AND AGENTS
MAY NOT REFUSE THE ACCEPTANCE OF AUTOMOBILE
INSURANCE, PROPERTY RIGHTS OF CERTAIN AGENTS, AND
RESTRICTION OF MAILINGS TO CERTAIN AREAS, SECTION
38-77-940, RELATING TO AUTOMOBILE INSURANCE,
AVOIDING CERTAIN CLASSES OR TYPES OF RISKS,
EXCEPTIONS, AND CANCELING AN AGENT'S
REPRESENTATION, SECTION 38-77-950, RELATING TO
UNREASONABLE OR EXCESSIVE USE OF THE REINSURANCE
FACILITY BY AN INSURER AND NOTICE TO A POLICYHOLDER
THAT HIS POLICY IS IN THE FACILITY, AND SECTION
38-77-960, RELATING TO AUTOMOBILE INSURANCE AGENT'S
BUSINESS; TO AMEND SECTION 38-77-111, RELATING TO THE
COVERAGES OF AN AUTOMOBILE INSURANCE POLICY
WHICH MAY BE CEDED TO THE REINSURANCE FACILITY, SO
AS TO SUBSTITUTE THE JOINT UNDERWRITING ASSOCIATION
FOR THE REINSURANCE FACILITY AND PROVIDE THAT AN
INSURER MAY NOT CEDE COVERAGES UNDER A POLICY
THAT IT IS NOT MANDATED BY LAW TO WRITE EXCEPT FOR
TORT LIABILITY AND PERSONAL PROTECTION COVERAGES
AND UNINSURED MOTORIST COVERAGE FOR THOSE RISKS
THAT DO NOT QUALIFY FOR THE SAFE DRIVER DISCOUNT;
AND TO PROVIDE FOR A SEVERABILITY CLAUSE, INCLUDING,
AMONG OTHER THINGS, A PROVISION THAT IF SECTION
38-78-110 IS FOUND TO BE UNCONSTITUTIONAL OR INVALID,
PERSONAL PROTECTION INSURERS HAVE NO OBLIGATION
TO PAY PERSONAL PROTECTION BENEFITS WITH RESPECT TO
ACCIDENTS OCCURRING ON OR AFTER THE DATE OF THE
FINDING OF SUCH UNCONSTITUTIONALITY OR INVALIDITY
AND, IN ADDITION, ARE SUBROGATED TO ALL OF THE
RIGHTS OF PERSONAL PROTECTION INSUREDS FOR ALL
PREVIOUS SUCH BENEFITS PAID.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 38 of the 1976 Code is amended by adding:
"CHAPTER 78
Consumer Freedom of Choice in
Motor Vehicle Insurance
Section 38-78-10. This chapter may be cited as the `Consumer
Freedom of Choice in Motor Vehicle Insurance Act'.
Section 38-78-20. (A) Under existing law, the ability of a person
to recover losses incurred as a result of a motor vehicle accident is
limited by factors over which the accident victim has no control. The
recovery is dependent on the conduct of the other driver, the amount of
liability insurance carried by the other driver, and the financial resources
of the other driver. Two individuals who have received identical injuries
may recover markedly different amounts. Under existing law, many
individuals receive little or no compensation for their losses.
(B) This chapter gives motorists the right to choose the kinds of
personal protection available in case of an automobile accident and the
amount of financial protection they deem appropriate and affordable.
Instead of being forced to buy traditional fault liability insurance to
protect strangers, motorists will have the opportunity to buy a new
personal protection policy to protect themselves and their family
members regardless of fault in the event of a motor vehicle accident.
Motorists will also have the right to reject the provisions of this chapter,
and thus retain all rights to sue and be sued for both economic and
noneconomic loss based on fault, under the existing fault liability
insurance system.
(C) The interaction between traditional fault liability insurance and
the personal protection policy is as follows:
(1) Tort vs. no-fault:
Motorists who choose the traditional fault liability insurance and
who are involved in an accident with any other motorist essentially will
retain the system existing now where they have the opportunity to claim
and sue based on fault for both economic and noneconomic damages.
They will also remain subject to being sued for such liability to others
based on fault.
(2) No fault vs. Tort:
Motorists who choose the new personal protection policy system
and who are involved in an accident with a motorist who has chosen
traditional fault liability insurance will be promptly compensated for
their own economic losses regardless of fault. A personal protection
insured can claim against and sue the other at fault motorist for
economic damages if the damages exceed their personal protection
limits and for noneconomic damages if their injury exceeds the verbal
threshold. A no-fault driver will also remain subject to being sued for
liability to others if the no-fault driver is at fault. This is why no-fault
coverage also includes traditional tort liability coverage in at least the
minimum limits.
(3) No fault vs. no-fault:
Two motorists who each choose the personal protection policy and
who are involved in an accident with each other will be promptly
compensated under their own policies for their own economic losses
regardless of fault. In this situation, the two motorists who have chosen
the personal protection policy do not have the right to claim and sue for
noneconomic damages based on fault unless the damages exceed a
verbal threshold. If either motorist suffers a loss in excess of his or her
policy's benefit levels, that person retains the right to claim and sue for
uncompensated economic loss based on fault.
(4) Tort vs. uninsured:
If a motorist who has chosen fault liability insurance is involved in
an accident with an uninsured motorist, the policyholder can be
compensated for losses under the uninsured motorist provisions of his
or her own policy based on fault and has the right to claim against and
sue the uninsured motorist for full damages based on fault. The
uninsured motorist forfeits any right to claim for property damage up to
ten thousand dollars and for noneconomic loss against the motorist who
has chosen fault liability insurance except where the motorist choosing
fault liability insurance was driving under the influence of alcohol or
illegal drugs or committed intentional misconduct and was at fault in the
accident. An uninsured motorist may claim against the motorist who has
chosen fault liability insurance for economic losses based on fault.
(5) No-fault vs. uninsured:
If a motorist who has chosen the personal protection policy is
involved in an accident with an uninsured motorist, the policyholder will
be promptly compensated for economic losses under his or her personal
protection policy regardless of fault and has the right to claim against
and sue the uninsured motorist for noneconomic damages based on fault
if the injury exceeds the verbal threshold. The uninsured motorist
forfeits any right to claim for the first ten thousand dollars of property
damage and for noneconomic loss against the motorist who has chosen
the personal protection policy, except where such motorist was driving
under the influence of alcohol or illegal drugs or committed intentional
misconduct and was at fault in the accident. An uninsured motorist may
claim against the motorist who has chosen the personal protection policy
for economic losses based on fault.
(D) The initial rate to be charged by each automobile insurer for the
basic personal protection policy required by this act and for policies with
personal protection and/or uninsured motorist coverage in excess of the
basic limits shall be at least fifteen percent lower than the approved rate
for the same limits by class and territory for each automobile insurance
risk in effect on September 30, 1993. The rate for the basic personal
protection policy cannot be increased for automobile insurance policies
issued or renewed with effective dates between January 1, 1994, through
December 31, 1994.
(E) A motorist who purchases the personal protection policy will
have five thousand dollars of property damage liability insurance as part
of his mandatory coverage.
(F) To the extent the terms of Section 38-78-20 may differ from the
terms of Section 38-78-30, the terms of Section 38-78-30 govern.
Section 38-78-30. As used in this chapter, unless the context
otherwise requires:
(A) `Accidental bodily injury' means bodily injury, sickness, or
disease, or death resulting therefrom, arising out of the ownership,
operation, or use of a motor vehicle, or while occupying such vehicle,
which is accidental as to the person insured.
(B) `Added personal protection' means an optional policy, plan, or
coverage for personal protection which each insurer issuing motor
vehicle liability insurance in this State shall make available in the limits
set by Section 38-77-110(B)(5).
(C) `Basic personal protection' means a policy, plan, or coverage for
personal protection which provides benefits for net loss resulting from
accidental bodily injury resulting from a motor vehicle accident and
liability coverage in at least the amounts prescribed by Section
38-77-140. Basic personal protection benefits consist of the following,
with an aggregate limit of fifteen thousand dollars per person arising out
of one motor vehicle accident:
(1) medical expenses;
(2) loss of income from work, up to two hundred dollars per
week;
(3) replacement services loss, up to one hundred dollars per week;
(4) death benefits of five thousand dollars if the death of the
injured person occurs within one year after the date of a motor vehicle
accident and was a direct result of the accident.
Each basic personal protection insurer is permitted to incorporate in
added personal protection benefits coverage such terms, conditions, and
exclusions as may be consistent with the premiums charged.
Motorcycles may not be covered by a personal protection policy.
(D) `Cause of action for injury' means a claim for accidental bodily
injury for economic or noneconomic loss, or both, caused by the
negligent conduct or intentional misconduct of another person, and
includes a claim by any person other than a person suffering accidental
bodily injury based on such injury, including, but not limited to, loss of
consortium, companionship, or any derivative claim.
(E) `Commissioner' means the Chief Insurance Commissioner.
(F) `Dependent' means all persons related to another person by
blood, marriage, adoption, or otherwise who reside in the same
household at the time of the accidental bodily injury and receive
financial services or support for him or her.
(G) `Economic loss' means actual pecuniary loss and actual monetary
expenses incurred by or on behalf of an injured person as the result of
an accidental bodily injury consisting only of medical expense, work
loss, replacement services loss, and death benefits.
(H) `Governmental unit' means the United States government, the
government of the State of South Carolina, and any agency, authority,
board, department, division, commission, institution, bureau, or like
governmental entity of either such government, or any local government
in this State, and such units thereof, including, but not limited to,
counties, cities, towns, and other regional governments.
(I) `Injured person' means a person who sustains accidental bodily
injury when eligible for benefits under a policy providing personal
protection. The term also includes, where appropriate, the personal
representative of an estate.
(J) `Intentional misconduct' means conduct whereby harm is
intentionally caused or attempted to be caused by one who acts or fails
to act for the purpose of causing harm or with knowledge that harm is
substantially certain to follow when such conduct caused or substantially
contributed to the harm claimed for. A person does not intentionally
cause or attempt to cause harm (1) merely because his or her act or
failure to act is done with the realization that it creates a grave risk of
causing harm or (2) if the act or omission causing bodily harm is for the
purpose of averting bodily harm to oneself or another person.
(K) `Loss of income from work' means eighty percent loss of gross
income from the work the injured person would have continued to
perform if he or she had not been injured, reduced by any income from
substitute work actually performed by him or her or by income he or she
would have earned in available appropriate substitute work he or she
was capable of performing but unreasonably failed to undertake. In
order to be eligible for these benefits, the injured person must have been
in an occupational status, earning or producing income, immediately
prior to the accident. Loss of income from work does not include any
loss after the death of the injured person, and payment for the period of
disability shall not exceed two years from the date of the accident.
Loss of income from work may be excluded from an insured's policy,
at the policyholder's request, with an appropriate reduction in the
premium.
(L) `Medical expenses' means usual and customary amounts incurred
by an injured person for necessary medical, surgical, radiological,
dental, chiropractic, ambulance, hospital, medical rehabilitation and
professional nursing services, eyeglasses, hearing aids, and prosthetic
devices. Medical expense may include nonmedical remedial treatment
rendered in accordance with a recognized religious method of healing.
The words `incurred by' include medical expenses incurred on behalf of
an injured person by a parent or guardian if the injured person is a minor
or incompetent, or by a surviving spouse if the injured person is
deceased. Personal protection insurers may review medical expenses to
assure that the expenses are reasonable and necessary according to
generally accepted standards of medical practice. Under basic personal
protection and added personal protection, medical expenses are promptly
payable to the injured person for covered expenses incurred within two
years after the date of the accident. `Medical expenses' do not include:
(1) that portion of a charge for a room in a hospital, clinic, or
convalescent or nursing home, or any other institution engaged in
providing nursing care and related services, in excess of a reasonable
and customary charge for semi-private accommodations, unless
medically required; or
(2) treatments, services, products, or procedures that are
experimental in nature, or for research, or not primarily designed to
serve a medical purpose, or which are not commonly and customarily
recognized throughout the medical profession and within the United
States as appropriate treatment of the accidental bodily injury, or which
are not performed by a professional licensed by the professional's
licensing board pursuant to Title 40.
(M) `Medical rehabilitation' means rehabilitation services which are
reasonable and necessary to reduce the disability and help to restore the
pre-accident level of physical functioning of the injured person.
(N) `Motor vehicle' is defined by Section 38-77-30(7).
(O) `Noneconomic loss' means any loss other than economic loss and
includes, but is not necessarily limited to, pain, suffering, inconvenience,
physical impairment, mental anguish, emotional pain and suffering,
hedonic damages, and loss of any of the following: earning capacity,
consortium, society, companionship, comfort, protection, marital care,
parental care, filial care, attention, advice, counsel, training, guidance,
or education. Noneconomic loss does not include economic loss caused
by pain and suffering or by physical impairment.
(P) `Occupying' means to be in or upon a motor vehicle or engaged
in the immediate act of entering into or alighting from the motor vehicle.
(Q) `Operation or use' means operation or use of a motor vehicle as
a motor vehicle, including, incident to its operation or use as a vehicle,
occupying it. Operation or use of a motor vehicle does not cover
conduct within the course of a business of manufacturing, selling, or
maintaining a motor vehicle, including repairing, servicing, washing,
loading, or unloading, nor does it include such conduct not within the
course of such a business, unless such conduct occurs while occupying
a motor vehicle.
(R) `Owner' means the person or persons, other than a lienholder or
secured party, who owns or has title to a motor vehicle or is entitled to
the use and possession of a motor vehicle subject to a security interest
held by another person. Owner does not include (i) a lessee under a
lease not intended as security, or (ii) the United States of America or any
agency thereof, except with respect to motor vehicles for which it has
elected to provide insurance.
(S) `Person' includes an organization, public or private.
(T) `Personal protection' means a policy, plan, or coverage which
provides basic or added personal protection benefits for loss resulting
from accidental bodily injury, regardless of fault.
(U) `Personal protection insured' means:
(1) a person identified by name as an insured in a contract
providing personal protection benefits;
(2) while residing in the same household with a named insured,
the following persons:
(a) a spouse or other relative of a named insured; or
(b) a minor in the custody of a named insured. A person
resides in the same household if he or she usually makes his or her home
in the same family unit, even though he or she temporarily lives
elsewhere;
(3) a person with respect to accidents within this State who
sustains accidental bodily injury while occupying or when struck as a
pedestrian by a motor vehicle insured for personal protection, unless the
person has rejected the coverage under Section 38-78-120.
(V) `Personal protection insurer' means an automobile insurer
providing personal protection benefits.
(W) `Replacement services loss' means expenses reasonably incurred
in obtaining ordinary and necessary services from others, not members
of the injured person's household, in lieu of those the injured person
would have performed for the benefit of the household. Replacement
services loss does not include any loss incurred after the death of an
injured person, and the disability period shall not exceed two years from
the date of the accident.
(X) `Resident relative' means a person related to the owner of a
motor vehicle by blood, marriage, adoption, or otherwise and residing
in the same household. A person resides in the same household if he or
she usually makes his or her home in the same family unit, even though
temporarily living elsewhere.
(Y) `Serious injury' means an accidental bodily injury which results
in death, serious and permanent loss of an important bodily function,
permanent and serious bodily injury determined objectively within
reasonable medical probability, or serious and permanent disfigurement.
(Z) `Uncompensated economic loss' means that portion of economic
loss arising out of an accidental bodily injury of an injured person which
exceeds the benefits provided by a personal protection insurer under a
policy providing such benefits (except for loss incurred by a deductible
under such a policy) and collateral sources.
(aa) `Uninsured motorist' means the owner or operator of a motor
vehicle uninsured for either basic personal protection or liability
insurance at the limits prescribed by this State's financial responsibility
laws or who otherwise fails to comply with the financial responsibility
laws of this State.
(bb) `Uninsured motor vehicle' means a motor vehicle required to be
registered as to which (i) there is no bodily injury liability insurance and
property damage liability insurance, (ii) no bond has been given or cash
or securities delivered in lieu thereof, (iii) the owner has not qualified as
a self-insurer, and (iv) there is no basic or added personal protection
insurance as defined in Section 38-78-30.
(cc) `Reasonable and necessary' means usual and customary charges
for necessary medical treatment.
(dd) `Permanent' means an injury whose effects cannot be eliminated
by further time for recovery or by further treatment and care, including
surgery.
(ee) `Prevailing party' means the insured deemed to be the `prevailing
party' for purposes of this section if the award is at least the amount
requested in writing of the insurer not less than ten days prior to the trial.
The insurer shall be deemed to be the prevailing party if the award is no
more than the amount offered by the insurer in writing not less than ten
days prior to the trial. There shall be `no prevailing party' if the award
is more than offered by the insurer, but less than requested by the
insured.
(ff) `Reasonable proof' means itemized medical bills or other medical
records necessary to determine specific patient information, dates of
treatment, a specific diagnosis, the specific services rendered and the
specific charges for each of the services rendered. If an insurer requests
information in addition to the proof submitted, they must specifically
identify the additional information needed and why it is needed.
(gg) `Serious' means only an injury which has a substantial bearing
on the injured person's ability to resume substantially all of his normal
activities and lifestyle.
Section 38-78-40. Each motor vehicle required to be registered in this
State shall be insured for basic personal protection as defined by Section
38-78-30(C) and security for payment of tort liabilities as required by
Section 38-77-140, unless the owner of the motor vehicle exercises his
or her right of rejection under Section 38-78-120 or complies with
Section 56-10-520 relating to the right to drive without insurance. This
insurance may be provided by a contract of insurance or by qualifying
as a self-insurer in compliance with Section 56-9-60.
An insurance policy written by a personal protection insurer under
this chapter to provide basic personal protection is deemed to include all
coverages required by this chapter, including the minimum tort liability
coverage. Coverage under basic personal protection meets the
requirements of this State's financial responsibility laws.
Section 38-78-50. Every personal protection insured must be
offered uninsured motorist coverage as required by Section 38-77-150.
Additional uninsured motorist coverage and underinsured motorist
coverage must be offered to the insured as required by Section
38-77-160. All other provisions, rights, and obligations in Sections
38-77-150 and 38-77-160 apply to the personal protection insured and
the insurer. A personal protection insured may not recover under the
uninsured motorist provision of the personal protection policy if the
personal protection insured was at fault in the accident. Noneconomic
damages may only be recovered under this provision if the threshold as
defined in Section 38-78-110 is reached.
Section 38-78-55. Regardless of the number of motor vehicles
involved, policies issued, persons covered, claims made, or premiums
paid, the liability limits for multiple coverages under one or more
automobile insurance policies must not be combined or added together
to determine the maximum limit of coverage available to an injured
person. Unless the insurance policy or contract clearly provides
otherwise, the policy or contract may provide that if two or more
policies, plans, or coverages apply equally to the same accident, the
highest limit of liability applicable is the maximum amount available to
an injured person under any one of the policies, plans, or coverages.
Section 38-78-60. (A) A personal protection insurer shall pay to a
personal protection insured benefits for accidental bodily injury
sustained within the United States, its territories, or possessions or
Canada.
(B) A personal protection policy issued in this State contains
coverage such that it satisfies the liability insurance requirements of the
financial responsibility laws of any other state or Canadian province in
which the insured motor vehicle is operated.
Section 38-78-70. (A) A personal protection insurer has no
obligation to provide benefits to or on behalf of an injured person who
at the time of the accident:
(1) was involved in a motor vehicle accident while committing a
felony or while voluntarily occupying a motor vehicle that he or she
knew to be stolen. If the person dies as a result of his or her own
intentional misconduct, his or her survivors are not entitled to personal
protection for loss arising from the decedent's injury or death;
(2) was driving under the influence of alcohol or illegal drugs;
(3) was occupying an uninsured motor vehicle owned by the
person;
(4) was guilty of intentional misconduct. If the person dies as a
result of his or her own intentional misconduct, his or her survivors are
not entitled to personal protection for loss arising from the decedent's
injury or death;
(5) has rejected the limitation on his or her right to sue under
Section 38-78-120;
(6) was an uninsured motorist;
(7) was operating or occupying a motor vehicle with three or
fewer load bearing wheels;
(8) was operating an insured vehicle without the express or
implied consent of the owner; or
(9) was injured while occupying a motor vehicle owned by, or
furnished or available for the regular use of, the injured person, or the
injured person's resident spouse or relative, if such motor vehicle is not
described in the policy under which a claim is made, or is not a newly
acquired or replacement motor vehicle covered under the terms of the
policy.
(B) A personal protection insurer may include in personal protection
coverage any person under subsection (A) if the insurer states its intent
to do so clearly on the policy.
Section 38-78-80. At the option of the personal protection insurer,
personal protection benefits are payable to any of the following persons:
(1) the injured person;
(2) the parent or guardian of the injured person, if the injured person
is a minor or incompetent;
(3) a survivor, executor, or administrator of the injured person; or
(4) any other person or organization rendering the services for which
payment is due.
Section 38-78-90. (A) Subject to Section 38-78-80, a person who
is entitled to receive personal protection benefits may claim the benefits
in the following order up to the limits of personal protection in the listed
category:
(1) personal protection covering the motor vehicle involved in the
accident, if the person injured was an occupant of or was struck by the
motor vehicle. If the personal protection insurer providing such
insurance disclaims coverage, the injured person shall be entitled to
benefits under any contract of personal protection insurance under which
he is a personal protection insured and the insurer making such
payments shall be entitled to contest the disclaimer and seek full
reimbursement from the insurer disclaiming coverage;
(2) the personal protection under which the injured person is or
was an insured.
(B) If two or more insurers at the same priority level are obligated to
pay personal injury benefits, the insurer against whom the claim is first
made shall pay the claim and may thereafter, recover pro rata
contributions from any other insurer at the same priority level for the
cost of the payments and for processing the claim. Disputes among
insurers may be resolved only by inter-company arbitration or
inter-company agreement. For purposes of this section, an unoccupied
parked motor vehicle is not a motor vehicle involved in an accident
unless it is parked in such a way as to cause an unreasonable risk of
injury.
Section 38-78-100. (A) A personal protection insurer is obligated to
indemnify an injured person, except that benefits payable for the same
accidental bodily injury under state-mandated disability coverage or
workers' compensation or similar occupational compensation act shall
be subtracted from the personal protection benefits payable to the
injured person.
(B) A basic personal protection insurer must offer a deductible to the
named insured of a personal protection policy in the amounts of two
hundred fifty dollars, five hundred dollars, and one thousand dollars to
apply with respect to a claim by the named insured or a person residing
in the same household with the named insured. If the named insured
accepts such offer, the rate must be reduced for such coverage in an
amount filed by the insurer and approved by the commissioner. The
named insured is not required to accept the offer and may choose
personal protection coverage without a deductible other than for
property damage caused by an uninsured motorist.
Section 38-78-110. (A) Any person who registers, operates,
maintains, or uses a motor vehicle on the public roadways of this State
and their resident relatives shall, as a condition of such registration,
operation, maintenance, or use of such motor vehicle and use of the
public roadways shall be conclusively presumed to have accepted the
limitations on his tort rights and liabilities in this chapter unless he has
filed a rejection under Section 38-78-120.
(B) Tort liability with respect to accidents occurring in this State and
arising out of the ownership, maintenance, or use of a motor vehicle is
abolished with respect to any person entitled to benefits pursuant to
Section 38-78-30(C) except to the extent such person has sustained an
injury as defined in subsection (C) of this section or except to the extent
such person has sustained actual economic loss in excess of the limits of
any applicable personal protection policy. Provided, no person may
recover noneconomic loss for personal injury except as provided in
subsection (C).
(C) In any action of tort brought against the owner, registrant,
operator, or occupant of a motor vehicle with respect to which security
has been provided as required in this chapter, or against any person or
organization legally responsible for his acts or omissions, a plaintiff may
recover damages in tort for pain, suffering, mental anguish, and
inconvenience because of bodily injury, sickness, or disease arising out
of the ownership, maintenance, operation, or use of such motor vehicle
only in the event that the injury reaches one of the following thresholds:
(1) the injury or disease consists in whole or in part of permanent
and serious disfigurement;
(2) permanent and serious bodily injury, determined objectively,
within reasonable medical probability;
(3) permanent and serious loss of an important bodily function;
or
(4) death.
(D) In any action where the defendant contends that the plaintiff's
injury does not meet the standards set forth in section (C), either party
may seek summary judgment on that issue. If a motion is made, the
court may determine at least thirty days before the date set for trial
whether there is a material issue of fact as to whether the injury meets
the standards of section (C) or if not, render summary judgment in
accordance with the undisputed facts. If the facts regarding the nature
of the injury are undisputed, the question as to whether or not the facts
render the injury as meeting the standards of section (C) is a question of
law to be decided by the court. In any action to be tried before a jury
where the defendant contends the plaintiff's injury is not a serious and
permanent injury but the defendant concedes or the court determines that
there is a material issue of fact as to whether the plaintiff's injury meets
the standards of section (C) then, upon motion of the defendant, that
issue shall be separately tried and no other evidence as to plaintiff's
noneconomic loss shall be received until that issue has been resolved.
After resolution of that issue, the amount of the plaintiff's noneconomic
loss may be tried before the same jury or a different jury, as the court
may in its discretion decide.
Section 38-78-120. (A) Any person may refuse to consent to the
limitations on his tort rights and liabilities. To ensure preservation of
the right to choose to reject any limitations on tort rights and liability
contained in this chapter, any person may execute a form approved by
the commissioner for rejecting such limitations. Within sixty days after
the enactment of this chapter, a temporary committee composed of the
commissioner, the Consumer Advocate, two representatives of the South
Carolina Bar, (one specializing in the defense of claims and one
specializing in the prosecution of claims) appointed by the Governor, a
representative of an automobile insurer appointed by the Consumer
Advocate, a member of the judiciary appointed by the Chief Justice of
the Supreme Court, an insurance agent appointed by the commissioner,
and one person specializing in readability appointed by the Governor
shall formulate the rejection form to be used by all insurers in South
Carolina. The rejection forms for personal protection insurance shall
meet the readability index of no higher than the ninth grade level on the
Flesch Reading Ease Test. The committee shall also develop a brochure
at no higher than the ninth grade level that must be enclosed with the
policyholder's renewal notice the first time the policy is renewed after
the effective date of this chapter.
(B) The form shall establish the effective date of such a rejection.
Any rejection by a person who is under a legal disability shall be made
on behalf of such person by a parent, legal guardian, conservator, or
committee and shall remain in effect until revoked or until the person is
no longer under legal disability, whichever is sooner. The failure of
such guardian, parent, conservator, or committee of a person under a
legal disability to file a rejection, within six months from the date that
this chapter would otherwise become applicable to such person, is
deemed to be an affirmative acceptance of the limitations on tort
liability. Any person who at the time of an accident does not have basic
personal protection but has not formally rejected such limitations and
has in effect security equivalent to that required by Section 38-77-140
is deemed to have fully rejected the tort limitations for that accident
only.
(C) A rejection of tort limitations must be immediately filed with the
insurance company or agent who provides the insurance policy and is
effective on the effective date of the policy. The rejection applies to any
motor vehicle accident occurring on or after that date. The rejection
remains effective until it is revoked in writing on a form approved by the
commissioner at the time of renewal or issuance of a new policy by the
purchase of a tort policy. The revocation of the rejection is effective
until it is withdrawn in a manner prescribed by the commissioner. The
rejection form must be provided by the insurer or agent to the insured
upon the written request of the insured or the request of a person with
the legal capacity to ask for the insured.
(D) The commissioner shall establish and maintain a program
designed to assure that all consumers are adequately informed about the
comparative cost of personal protection insurance and liability insurance
for those persons who choose to reject limitations on tort rights and
liabilities, as well as the benefits, rights and responsibilities of insureds
under each type of insurance.
(E) A person who has personal protection coverage or who rejects
tort limitations on a form approved by the commissioner is bound by that
choice and is precluded from claiming liability of any party based on
being inadequately informed as to the coverage or rejection. This
restriction also applies to relatives residing in the same household who
are covered by the same policy.
(F) Each motor vehicle insurer issuing motor vehicle liability
insurance in this State may require that all policies within a household
be either personal protection policies or liability policies which satisfy
the financial responsibility laws of this State. However, policies
purchased separately by members of the same household may be
different policies.
(G) To further insure preservation of the right to reject the limitations
on tort rights contained in this chapter, the commissioner shall establish
procedures whereby any person who does not own a motor vehicle and
who is not a resident relative of such an owner may, after sustaining
accidental bodily injury, execute a form prescribed by the commissioner
for rejecting such limitation within sixty days after the date of the
accident. If any personal protection benefits are paid before the
rejection is effective, the personal protection insurer has a right of
subrogation for any payments made through a tort recovery.
Section 38-78-125. (A) A person may bring a cause of action for
injury against a person who caused him actual economic loss, for any
uncompensated economic loss.
(B) A person suffering accidental bodily injury while occupying or
when struck by a motor vehicle which is insured for personal protection
and who is not at the time of the accident covered by a rejection of
limitations on tort rights and liabilities under Section 38-78-120 and is
not an uninsured motorist may receive personal protection benefits
applicable to the motor vehicle and has a right to claim uncompensated
economic loss against the personal protection insured. A person who
files a claim under this subsection has the same rights and duties as a
personal protection insured with respect to a claim by that insured.
(C) An uninsured injured motorist may not claim in tort for property
damage except for such damage that exceeds ten thousand dollars or for
noneconomic damages, unless the motor vehicle operator is driving
under the influence of alcohol or illegal drugs or is guilty of intentional
misconduct. An uninsured motorist retains fault liability with respect to
others. A person driving under the influence of alcohol or illegal drugs
may not claim in tort for either economic or noneconomic damages
against a person who has rejected tort limitations. A person who rejects
tort limitations shall not collect personal protection benefits unless he or
she has revoked his or her rejection under Section 38-78-120(C).
(D) A personal protection insured has a cause of action against
another personal protection insured for property damage to recover any
required deductible.
Section 38-78-140. (A) Personal protection benefits are payable
monthly as loss accrues. Loss accrues not when the injury occurs but as
work loss, replacement services loss, or medical expense is incurred.
The benefits are overdue if they are not paid within thirty days after the
personal protection insurer receives reasonable proof of the fact and the
amount of loss sustained, except that a personal protection insurer may
accumulate claims for a period not to exceed thirty days, in which case
benefits are not overdue if they are paid within twenty days after the
period of accumulation. If reasonable proof is not supplied for the
whole claim, the amount supported by reasonable proof is overdue if it
is not paid within thirty days after the proof is received by the insurer.
Any part or all of the remainder of the claim that is later supported by
reasonable proof is overdue if it is not paid within thirty days after the
proof is received by the insurer. To determine the extent to which any
benefits are overdue, a payment is treated as made on the date a draft or
other valid instrument is mailed or, if not so posted, the date of delivery.
The personal protection insurer may pay personal protection benefits
directly to a person who supplies necessary products, services, or
accommodations to the injured person. All overdue payments shall bear
an annual eighteen percent interest rate.
(B) In addition to the interest payments, if the insured has filed suit
to recover overdue payments, the insured shall be entitled to reasonable
attorney's fees and costs incurred in such suit. The recovery set forth
here is the exclusive remedy for an insurer's failure to pay or delay in
paying personal protection benefits for conduct of an insurer arising out
of the manner in which the insurer denied or delayed payment. An
attorney shall not charge a separate fee to collect benefits except those
incurred in connection with the suit for overdue payments. In any action
by or on behalf of an insurer, a provider or an insured, attorney's fees
shall be awarded only to the prevailing party.
(C) An insurer who rejects a claim for basic personal protection
benefits shall give to the claimant prompt written notice of the rejection,
specifying the reason.
Section 38-78-150. (A) Personal protection benefits, except medical
benefits, are exempt from garnishment, attachment, execution, or any
other process or claim to the extent that wages or earnings are exempt
under any applicable law.
(B) An agreement for assignment of any right to personal protection
benefits payable in the future, except for medical benefits, is
unenforceable except to the extent that the benefits are for the cost of
products, services, or accommodations provided or to be provided by the
assignee or that the benefits are for loss of income from work or
replacement services and are assigned to secure payment of alimony,
maintenance, or child support.
Section 38-78-160. An insurer is allowed a reasonable attorney fee
for defending a claim for benefits that is fraudulent or so excessive as to
have no reasonable foundation. The fee may be treated as an offset
against benefits due or which thereafter accrue. The insurer may recover
from the claimant any part of the fee not offset or otherwise paid.
Section 38-78-170. An insurer under a policy of personal protection
insurance may require written notice to be given as soon as practicable
after an accident involving a secured vehicle for which it provides
coverage.
Section 38-78-190. If no personal protection benefits have been paid
other than death benefits, a person may bring an action against the
personal protection insurer not later than two years after the accidental
bodily injury occurred. If personal protection benefits have been paid,
a person may bring an action to recover further benefits not later than
two years after the last payment of benefits or four years after the date
the accidental bodily injury occurred, whichever is earlier.
Section 38-78-200. (A) If the mental or physical condition of an
injured person is material to any claim for past or future personal
protection benefits, the injured person shall submit to reasonable mental
or physical examinations by a physician or physicians designated by the
insurer, at the insurer's expense. The examinations shall take place at a
reasonably convenient time and location. A personal protection insurer
may include provisions of this nature in a personal protection policy.
(B) If after a request by a personal protection insurer a person refuses
to submit to reasonable mental and physical examinations by a physician
or physicians designated by the insurer or refuses to undergo mental or
rehabilitation services payable by the insurer, the insurer, on written
notice, may deny benefits applicable to the period during which the
person refuses to submit to the examination.
Section 38-78-210. (A) On request by a claimant or personal
protection insurer, an employer shall provide information on a form
approved by the commissioner, including the work records and earnings,
regarding an employee who has filed a claim for personal protection
benefits. On request of the claimant or insurer the information must
cover the period specified by the claimant or insurer making the request
and may include a reasonable period before, and the entire period after,
the injury.
(B) The claimant, upon request by the insurer, must provide to the
insurer the names and addresses of the physicians and medical facilities
rendering diagnosis or treatment in regard to the injury or to a relevant
injury and the claimant shall authorize the insurer to inspect and copy
any relevant medical records.
(C) Every physician or other health care provider, including, but not
limited to, a hospital, clinic, or other medical institution providing,
before or after an injury resulting from a motor vehicle accident upon
which a claim for personal protection benefits is based, any products,
services, or accommodations in relation to that or any other injury, or in
relation to a condition claimed to be connected with that or any other
injury, shall, if requested to do so by the personal protection insurer
against whom the claim has been made, furnish a written report of the
history, condition, treatment, and the dates and costs of such treatment,
of the injured person. Every such physician or other health care
provider, hospital, clinic, or other medical institution shall also promptly
produce and permit the inspection and copying of its records regarding
such history, condition, and treatment, and the dates and costs of
treatment. A physician providing such information to a personal
protection insurer shall be entitled to a fee of fifty cents per page for
providing copies of the medical record, provided a minimum fee of ten
dollars plus postage is authorized. Physicians may charge other
reasonable fees for the production of other reports or information
requested by the personal insurance carrier.
(D) No cause of action for violation of a physician-patient privilege
or invasion of the right of privacy is allowed against any physician or
other health care provider, hospital, clinic, or other medical institution
complying with the provisions of this section.
(E) The person requesting records and a sworn statement under this
section shall pay all reasonable costs connected therewith.
(F) A court may order or prohibit discovery of any records under
this section in case of any dispute as to the right of a claimant or insurer
to discover the information required to be disclosed by this section.
Section 38-78-240. A physician or other health care provider,
including, but not limited to, a hospital, clinic, or other health care
institution rendering treatment to an injured person, may charge only a
reasonable amount for the products, services, and accommodations
rendered. The charge shall not exceed the amount the person or
institution customarily charges for the products, services, and
accommodations in cases not involving automobile insurance.
Section 38-78-260. The commissioner shall adopt rules which
encourage personal protection insurers to institute incentives for
personal protection insureds to install, maintain, and make use of
injury-reducing devices such as seat and harness belts, air bags, and
child restraint systems.
Section 38-78-280. (A) Each insurer authorized to transact business
or transacting business in this State shall file with the commissioner a
form approved by the commissioner which states that any contract of
motor vehicle liability insurance, wherever issued, covering the
maintenance or use of a motor vehicle while the motor vehicle is in this
State, is deemed to satisfy Section 38-78-40 once the vehicle has been
continuously present in this State for thirty days unless the named
insured has rejected the limitations on tort rights and liabilities under
Section 38-78-120.
(B) If a person is entitled to personal protection benefits or their
equivalent under the requirements of more than one state, the person
shall elect to recover under the laws of one state. The election
represents the exclusive source of recovery of all personal protection
benefits, or their equivalent, paid or payable under the financial
responsibility requirements of that or any other state.
Section 38-78-290. All insurance coverages provided under this
chapter are subject to such terms, conditions, and exclusions which have
been approved by the commissioner.
Section 38-78-325. The commissioner may promulgate regulations
for effective administration which are fair, equitable, and consistent with
the purpose of this chapter."
SECTION 2. The 1976 Code is amended by adding:
"Section 38-73-1075. No insurer shall increase the premium on
an automobile liability insurance policy solely as a result of a claim for
an automobile accident filed by an insured if the insured was not at fault
nor contributorily negligent.
An insured may notify in writing the commissioner if the insured
believes that an insurer has increased his premium in violation of this
section. The commissioner shall investigate the complaint, take
appropriate action, and send written notice of his actions to the
insured."
SECTION 3. Section 38-77-30(1) of the 1976 Code, as last amended
by Act 443 of 1992, is further amended to read:
"(1) `Automobile insurance' means automobile bodily injury
and property damage liability insurance, including medical payments
and uninsured motorist coverage, and automobile physical damage
insurance such as automobile comprehensive physical damage, collision,
fire, theft, combined additional coverage, and similar automobile
physical damage insurance and economic loss benefits as provided by
this chapter written or offered by automobile insurers. An automobile
insurance policy includes a motor vehicle liability policy as defined in
item (7) of Section 56-9-20 and any nonowner automobile insurance
policy which covers an individual private passenger automobile not
owned by the insured, a family member of the insured, or a resident of
the same household as the insured and includes the personal
protection policy as defined in Section 38-78-30(C)."
SECTION 4. Section 38-77-110(B) of the 1976 Code, as added by Act
148 of 1989, is amended by adding the following:
"(5) two hundred fifty thousand dollars for added personal
protection coverage as defined in Section 38-78-30(B), which may, at
the request of the applicant or insured, for an additional charge, include
more than two hundred dollars per week for loss of income and more
than one hundred dollars per week for replacement services loss."
SECTION 5. Article 3, Chapter 77, Title 38 of the 1976 Code is
amended by adding:
"Section 38-77-355. (A) In a claim or action for personal
injury or wrongful death arising out of the ownership, operation, use, or
maintenance of a motor vehicle, the court shall admit into evidence the
total amount paid to the claimant from collateral sources, and the court
shall instruct the jury to deduct from its verdict the value of all benefits
received by the claimant from collateral sources.
(B) For purposes of this section, `collateral sources' means payments
made to the claimant, or on his behalf, by or pursuant to:
(1) automobile liability, uninsured motorist, underinsured
motorist, or automobile accident insurance that provides health benefits
or income disability coverage;
(2) personal protection benefits paid or payable by law;
(3) payments made from a policy of automobile insurance by or
on behalf of a joint tortfeaser, either by way of settlement or judgment.
(C) No claimant may make claim or demand, no court may order
payment, and no insurer may pay by way of settlement, covenant not to
sue, or trust or loan agreement for an item of damages to the extent that
the claimant has already received, or will receive, reimbursement for that
item as a result of a collateral source payment as defined in this
section."
SECTION 6. Section 38-77-280 of the 1976 Code, as last amended by
Act 113 of 1991, is further amended to read:
"Section 38-77-280. (A) Except as provided in subsection
(B), all automobile insurers, including those insurance companies
writing private passenger physical damage coverages only, shall make
collision coverage and either comprehensive or fire, theft, and combined
additional coverage available to an insured or qualified applicant who
requests the coverage.
Collision coverage must have a mandatory deductible of two hundred
fifty dollars, but an insured or qualified applicant, as his option, may
select an additional deductible in appropriate increments up to one
thousand dollars.
Comprehensive coverage or fire, theft, and combined additional
coverages must have a mandatory deductible of two hundred fifty
dollars, but an insured, at his option, may select an additional deductible
in appropriate increments up to one thousand dollars. This deductible
does not apply to auto safety glass. It is an unfair trade practice, as
described in Sections 38-57-30 and 38-57-40, for an insurer or an agent
to sell collision insurance, comprehensive coverage, or fire, theft, and
combined additional coverages unless the insured is notified at the time
of application of the savings which may be realized if the applicant or
the insured selects a higher deductible. This notice is required only at
the time of the initial sale and must be in a form approved by the Chief
Insurance Commissioner. An insurer may offer insureds lower
deductibles at the insurer's option.
(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 an 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 Section
38-77-340 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. Automobile insurers
may refuse to write for private passenger automobiles comprehensive
physical damage, collision, fire, theft, and combined additional
coverage, for an applicant or existing policyholder, on renewal, for a
motor vehicle customarily operated by an individual, either the named
insured or another operator not excluded in accordance with Section
38-77-340 and who resides in the same household, which does not
qualify for the safe driver discount in Section 38-73-760(e).
(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) or Section 38-77-280(B) which
existed before the commencement of the policy period and which were
not disclosed to the insurer at the commencement of the policy period.
(D) No policy of insurance which provides automobile physical
damage coverage only may be ceded to the facility.
(E) Insurers of automobile insurance may charge a rate for physical
damage insurance coverages different than those provided for in Section
38-73-457 if the rates are filed and approved by the Chief Insurance
Commissioner. Any applicant or existing policyholder, to be charged
this different rate, must be denied the coverage pursuant to subsection
(B) at the rate provided in Section 38-73-457.
(F) A carrier may not cede collision coverage, comprehensive
coverage, or fire, theft, and combined additional coverages with a
deductible of less than two hundred fifty dollars. An insured or qualified
applicant may select an additional deductible in appropriate increments
up to one thousand dollars. However, the mandatory deductible does not
apply to safety glass. Notwithstanding Sections 38-77-110 and
38-77-920, after September 30, 1996, automobile insurers may refuse to
write or renew private passenger automobile physical damage insurance
coverage, including automobile comprehensive physical damage,
collision, fire, theft, and combined additional coverage for an applicant
or existing policyholder. After September 30, 1996, no private
passenger automobile physical damage insurance coverage may be
ceded to the Facility."
SECTION 7. Section 38-77-30(4) of the 1976 Code is amended to
read:
"(4) `Damages' includes both actual and
punitive damages only."
SECTION 8. Section 38-77-140 of the 1976 Code is amended to read:
"Section 38-77-140. (A) No automobile insurance
policy may be issued or delivered in this State to the owner of a motor
vehicle or may be issued or delivered by an insurer licensed in this State
upon any motor vehicle then principally garaged or principally used in
this State, unless it contains a provision insuring the persons defined as
insured against loss from the liability imposed by law for actual
damages arising out of the ownership, maintenance, or use of these
motor vehicles within the United States or Canada, subject to limits
exclusive of interest and costs, with respect to each motor vehicle, as
follows: fifteen thousand dollars because of bodily injury to one person
in any one accident, and, subject to the limit for one person, thirty
thousand dollars because of bodily injury to two or more persons in any
one accident, and five thousand dollars because of injury to or
destruction of property of others in any one accident. Nothing in this
article prevents an insurer from issuing, selling, or delivering a policy
providing liability coverage in excess of these requirements.
(B) An insurer shall also offer the insured, in accordance with
Section 38-77-350, a rider or endorsement for an additional premium to
cover such liability for punitive damages. The insured has the option of
accepting or refusing coverage for punitive damages.
As a result of passage of this section, all insurers offering bodily
injury liability coverage shall file with the Chief Insurance
Commissioner, not later than ninety days after the effective date of this
act, revised premium rates for bodily injury liability coverage to be
effective on automobile insurance policies issued or renewed with
effective dates on or after January 1, 1995. The revised rates must be
approved by the commissioner and reflect a reduction in the currently
approved premium rate for this coverage of at least one and one-half
percent. Insurers shall file with the commissioner not later than sixty
days after the effective date of this act premium charges for the punitive
damages loss coverage. The premium rate for this coverage shall
become effective for the automobile insurance policies issued or
renewed with effective dates on or after January 1, 1995, and may not
be approved if it is more, when combined with the reduced premium rate
for the new bodily injury liability coverage with limitations on the
recovery of punitive damages, than the bodily injury liability premium
rate for that insurer on the effective date of this act; however, after
December 31, 1995, an insurer may apply to the Chief Insurance
Commissioner for a rate adjustment for such coverage, based on its
actual experience."
SECTION 9. Section 38-77-150 of the 1976 Code is amended to read:
"Section 38-77-150. (A) No automobile insurance
policy or contract may be issued or delivered unless it contains a
provision by endorsement or otherwise, herein referred to as the
uninsured motorist provision, undertaking to pay the insured all sums
which he is legally entitled to recover as actual damages from
the owner or operator of an uninsured motor vehicle, within limits which
may be are no less than the requirements of Section
38-77-140 and no more than the insured's bodily injury and property
damage liability limits. The uninsured motorist provision shall
also provide for no less than five thousand dollars' coverage for injury
to or destruction of the property of the insured in any one accident but
may provide an exclusion of the first two hundred dollars of the loss or
damage.
(B) Automobile insurers shall offer, at the option of the insured
and in the manner hereinafter described, higher limits of uninsured
motorist coverage in accordance with Section 38-77-350. The offer of
higher limits must be made in connection with every initial application
for an automobile insurance policy by including a written explanation
of the coverage and inquiry of the applicant, in a form prescribed by the
Chief Insurance Commissioner, as to whether the applicant desires to
purchase uninsured motorist coverage with limits greater than the
mandatory coverages described in subsection (A). No such explanation
or inquiry need be made with respect to any renewal, replacement,
reinstatement, substitute, or modification of the policy. An insured may,
at any time and subject to the limits of this section, specifically request
in writing uninsured motorist coverage limits greater than that provided
on the current or any prior policy.
(C) Insurers shall offer on a form prescribed by the Chief
Insurance Commissioner `nonstackable' policies of uninsured motorist
coverage containing policy provisions establishing that if the insured
accepts this offer:
(1) Regardless of the number of vehicles involved, persons
covered, number of premiums paid, or vehicles or premiums shown on
the policy or policies under which the insured might otherwise be
entitled to benefits, the coverage provided as to two or more motor
vehicles under the same or different policies may not under any
circumstances be added together, combined with, or stacked to
determine the limit of insurance coverage available to an injured person
for any one accident, except as provided in item (3) of this subsection
(C).
(2) If at the time of the accident the injured person is occupying
a motor vehicle, the uninsured motorist coverage available to him is the
coverage available as to that motor vehicle.
(3) If the injured person is occupying a motor vehicle which is
not owned by him or by a family member residing with him, he is
entitled to the highest limits of uninsured motorist coverage afforded for
any one vehicle as to which he is named insured. Such coverage is
excess over the coverage on the vehicle he is occupying.
(4) The uninsured motorist coverage provided by the policy
does not apply to the named insured who is injured while occupying any
vehicle owned by the named insured for which uninsured motorist
coverage was not purchased.
(5) If at the time of the accident the injured person is not
occupying a motor vehicle, he is entitled to select any one limit of
uninsured motorist coverage for any one vehicle afforded by a policy
under which he is insured as a named insured.
(6) In connection with the offer authorized by this subsection,
insurers shall inform the named insured, applicant, or lessee, on a form
prescribed by the Chief Insurance Commissioner, of the limitations
imposed under this subsection and that such coverage is an alternative
to coverage without such limitations. If this form is signed by a named
insured, applicant, or lessee, it is conclusively presumed that there was
an informed, knowing acceptance of such limitations, and neither the
insurance company nor the insurance agent has any liability to the
insured for the insured's failure to purchase stackable coverage. When
the named insured, applicant, or lessee has initially accepted such
limitations, the acceptance applies to any policy which renews, extends,
changes, supersedes, reinstates or replaces an existing policy unless the
named insured requests deletion of the limitations and pays the
appropriate premium for the coverage. Any insurer who provides
coverage which includes the limitations provided in this subsection shall
file revised premium rates with the Department of Insurance for such
uninsured motorist coverage to take effect before initially providing such
coverage. The revised rates must reflect the anticipated reduction in loss
costs attributable to such limitations but, in any event, must reflect a
reduction in the uninsured motorist coverage premium of at least fifteen
percent for policies with such limitations. Insurers shall file within
ninety days after the effective date of this act, revised premium rates
with the Chief Insurance Commissioner to be effective on automobile
insurance policies issued or renewed with effective dates on or after
January 1, 1995.
(D) Premium rates made by insurers for uninsured motorist
coverage must be determined and regulated as premium rates for
automobile insurance generally are determined and regulated. The
Chief Insurance Commissioner may prescribe shall
approve the form to be used in providing uninsured motorist
coverage and when prescribed and promulgated no other form
may be used.
(E) No action may be brought under the uninsured motorist
provision unless copies of the pleadings in the action establishing
liability are served in the manner provided by law upon the insurer
writing the uninsured motorist provision. The insurer has the right to
appear and defend in the name of the uninsured motorist in any action
which may affect its liability and has thirty days after service of process
on it in which to appear. The evidence of service upon the insurer may
not be made a part of the record.
(F) Benefits paid pursuant to this section are subject to
subrogation and assignment."
SECTION 10. Section 38-77-160 of the 1976 Code, as last amended
by Act 148 of 1989, is further amended to read:
"Section 38-77-160. (A) Automobile insurance
carriers insurers shall offer on a form prescribed by the
Chief Insurance Commissioner, at the option of the insured in
accordance with Section 38-77-350 uninsured
underinsured motorist coverage up to the limits of the insured's
liability coverage in addition to the mandatory coverage prescribed by
Section 38-77-150. Such carriers shall also offer, at the option of the
insured, underinsured motorist coverage up to the limits of the insured
liability coverage to provide coverage in the event that damages are
sustained in excess of the liability limits carried by an at fault insured
or underinsured motorist. If, however, an insured or named insured is
protected by uninsured or underinsured motorist coverage in excess of
the basic limits, the policy shall provide that the insured or named
insured is protected only to the extent of the coverage he has on the
vehicle involved in the accident. If none of the insured's or named
insured's vehicles is involved in the accident, coverage is available only
to the extent of coverage on any one of the vehicles with the excess or
underinsured coverage. up to the limits selected for the
insured's liability coverage to provide coverage in the event the insured
becomes legally entitled to collect damages from the owner or operator
of an underinsured motor vehicle, as defined in Section 38-77-30(14).
The maximum liability of the insurer under the underinsured motorist
coverage provided is the lesser of: (1) the difference between the limit
of underinsured motorist coverage and the amount paid or payable to the
insured by or for any person or organization who is held legally liable
for the bodily injury or property damage, or (2) the amount of damages
sustained, but not recovered. In no event may the liability of the insurer
under such coverage be more than the limits of underinsured motorist
coverage provided.
(B) An insured entitled to benefits under an uninsured motorist
provision is not entitled to benefits under an underinsured motorist
provision. An insured entitled to benefits under an underinsured
motorist provision is not entitled to benefits under an uninsured motorist
provision.
(C) Insurers shall offer on a form prescribed by the Chief
Insurance Commissioner `nonstackable' policies of underinsured
motorist coverage containing policy provisions establishing that if the
insured accepts this offer:
(1) Regardless of the number of vehicles involved, persons
covered, number of premiums paid, or vehicles or premiums shown on
the policy or policies under which the insured might otherwise be
entitled to benefits, the coverage provided as to two or more motor
vehicles under the same or different policies may not under any
circumstances be added together, combined with, or stacked to
determine the limit of insurance coverage available to an injured person
for any one accident, except as provided in item (3) of this subsection
(C).
(2) If at the time of the accident the injured person is occupying
a motor vehicle, the underinsured motorist coverage available to him is
the coverage available as to that motor vehicle.
(3) If the injured person is occupying a motor vehicle which is not
owned by him or by a family member residing with him, he is entitled
to the highest limits of underinsured motorist coverage afforded for any
one vehicle as to which he is named insured. Such coverage is excess
over the coverage on the vehicle he is occupying.
(4) The underinsured motorist coverage provided by the policy
does not apply to the named insured who is injured while occupying any
vehicle owned by the named insured for which underinsured motorist
coverage was not purchased.
(5) If at the time of the accident the injured person is not
occupying a motor vehicle, he is entitled to select any one limit of
underinsured motorist coverage for any one vehicle afforded by a policy
under which he is insured as a named insured.
(6) In connection with the offer authorized by this subsection,
insurers shall inform the named insured, applicant, or lessee, on a form
prescribed by the chief insurance commissioner, of the limitations
imposed under this subsection and that such coverage is an alternative
to coverage without such limitations. If this form is signed by a named
insured, applicant, or lessee, it is conclusively presumed that there was
an informed, knowing acceptance of such limitations, and neither the
insurance company nor the insurance agent has any liability to the
insured for the insured's failure to purchase stackable coverage. When
the named insured, applicant, or lessee has initially accepted such
limitations, the acceptance applies to any policy which renews, extends,
changes, supersedes, reinstates or replaces an existing policy unless the
named insured requests deletion of the limitations and pays the
appropriate premium for the coverage.
(D) If an insured is entitled to uninsured motorist or
underinsured motorist coverage under more than one policy the
maximum amount the insured may recover may not exceed the highest
limit of such coverage provided for any one vehicle under any one
policy. If more than one policy applies, the following is the order of
priority: (1) a policy covering a motor vehicle occupied by the injured
person at the time of the accident; (2) a policy covering a motor vehicle
not involved in the accident under which the injured person is named
insured; (3) a policy covering a motor vehicle not involved in the
accident under which the injured person is an insured other than a named
insured. Coverage available under a lower priority policy applies only
to the extent it exceeds the coverage of a higher priority policy. The
underinsured motorist coverage does not apply to bodily injury,
sickness, or death of an insured while occupying a motor vehicle owned
by, furnished, or available for the regular use of the insured, a resident
spouse, or resident relative, if such motor vehicle is not described in the
policy under which a claim is made, or is not a newly acquired or
replacement vehicle covered under the terms of the policy.
(E) Underinsured motorist Benefits
benefits paid pursuant to this section are not subject to
subrogation and assignment.
(F) No action may be brought under the underinsured
motorist provision unless copies of the pleadings in the action
establishing liability are served in the manner provided by law upon the
insurer writing the underinsured motorist provision. The insurer has the
right to appear and defend in the name of the underinsured motorist in
any action which may affect its liability and has thirty days after service
of process on it in which to appear. The evidence of service upon the
insurer may not be made a part of the record. In the event the
automobile insurance insurer for the putative at-fault insured chooses to
settle in part the claims against its insured by payment of its applicable
liability limits on behalf of its insured, the underinsured motorist insurer
may assume control of the defense of action for its own benefit. No
underinsured motorist policy may contain a clause requiring the insurer's
consent to settlement with the at-fault party.
Insurers offering uninsured motorist coverage must file with the
commissioner no more than ninety days after the effective date of this
act revised premium rates for this coverage to be effective on all policies
of automobile insurance containing such coverage issued on or renewed
with effective dates on or after January 1, 1995. The revised rate must
be approved by the commissioner and reflect a reduction in the currently
approved premium rate for this coverage of at least eighteen percent;
provided, however, that after December 31, 1995, an insurer may apply
to the Chief Insurance Commissioner for a rate adjustment for such
coverage, based on its actual experience. In the first year following such
reductions, an insurer may apply to the Chief Insurance Commissioner
for a rate adjustment, based on its actual experience, and include
consideration of the time value of money."
SECTION 11. Section 56-9-350 of the 1976 Code is amended to
read:
"Section 56-9-350. The operator or owner of a motor vehicle
involved in an accident resulting in property damage of four hundred
dollars or more or in bodily injury or death, must be furnished a
written request form at the time of the accident, or as soon after the
accident as possible, by the investigating officer for completion and
verification of liability insurance coverage, the form to be in a manner
prescribed by the Department.
The completed and verified form must be returned by the operator or
owner to the Department within fifteen days from the date the form was
delivered by the officer. Failure to return the form, verified in the proper
manner, is prima facie evidence that the vehicle was uninsured.
The operator or owner of a motor vehicle involved in an accident
resulting in property damage of four hundred dollars or more, or in
bodily injury or death, which was not investigated by a law enforcement
officer shall furnish to the Department a written report and verification
of liability insurance coverage, the proof to be in a manner prescribed by
the Department within fifteen days after the accident shall
forward a written report of the accident to the department on a form
prescribed by the department. The report must contain information to
enable the department to determine whether the requirements for the
deposit of security under Section 56-9-351 are inapplicable by reason of
the existence of insurance or other exceptions specified in this title.
Failure to file the report, in the proper verified manner, is prima facie
evidence that the vehicle was not registered in compliance with this
title."
SECTION 12. Section 56-10-10 of the 1976 Code is amended to
read:
"Section 56-10-10. Every owner of a motor vehicle
required to be registered in this State shall maintain the security required
by Section 56-10-20 with respect to each such motor vehicle owned by
him throughout the period the registration is in effect. Security
must be maintained on every motor vehicle required to be registered in
this State where the owners or other operators not excluded in
accordance with Section 38-77-340 reside in the same household and are
insureds under the same policy, if one of the owners or other operators
does not qualify for the safe driver discount in Section 38-73-760(E).
Such security must be maintained with respect to each such motor
vehicle owned by him throughout the period the registration is in
effect. No certificate of registration may be issued or transferred to
an owner by the executive director unless the owner or prospective
owner produces satisfactory evidence that the security is in effect,
including the name of the owner's automobile liability insurer, the name
of the agent, the identification number of the insurance policy, and the
effective dates of the policy, except in cases where other security is
approved."
SECTION 13. Section 56-10-220 of the 1976 Code is amended to
read:
"Section 56-10-220. Every person required to provide
security on a motor vehicle as provided in Section 56-10-10
applying for registration for a motor vehicle shall at the time of such
registration and licensing declare the vehicle to be an insured motor
vehicle under the penalty set forth in Section 56-10-260 and shall
execute and furnish to the department his certificate that such motor
vehicle is an insured motor vehicle and that he will maintain insurance
thereon during the registration period. The certificate must be in the
form prescribed by the department. The department may require any
registered owner or any applicant for registration and licensing of a
motor vehicle declared to be an insured motor vehicle to submit a
certificate of insurance executed by an authorized agent or representative
of an insurance company authorized to do business in this State. Such
certificate must also be in a form prescribed by the department."
SECTION 14. Section 56-10-240 of the 1976 Code is amended to
read:
"Section 56-10-240. If, during the period for which it is
licensed, a motor vehicle for which security is required as provided
in Section 56-10-10 is or becomes an uninsured motor vehicle, then
the vehicle owner immediately shall obtain insurance on the vehicle or
within five days after the effective date of cancellation or expiration of
his liability insurance policy surrender the motor vehicle license plates
and registration certificates issued for the motor vehicle. If five working
days after the last day to pay an automobile liability insurance premium,
whether it is the premium due date or a grace period that is granted
customarily or contractually a motor vehicle is an uninsured motor
vehicle, the insurer shall give written notice, or notice by magnetic or
electronic media in a manner considered satisfactory to the department,
within ten days after the five-day period ends, in addition to that notice
previously given in accordance with law, by delivery under United
States Post Office bulk certified mail, return receipt requested, to the
department of the cancellation or refusal to renew under the following
circumstances:
(1) the lapse or termination of such insurance or security occurs
within three months of issuance provided that this subsection only
applies to new policies, and not renewal or replacement policies; or
(2) the lapse or termination occurs after three months for a resident
who fails one or more of the objective standards prescribed in
Section 38-73-455 who does not qualify for the safe driver
discount in Section 38-73-760(E). The department may, in its
discretion, authorize insurers to utilize alternative methods of providing
notice of cancellation of or refusal to renew to the department. The
department may not reissue registration certificates and license plates for
that vehicle until satisfactory evidence has been filed by the owner or by
the insurer who gave the cancellation or refusal to renew notice to the
department that the vehicle is insured. Upon receiving information to the
effect that a policy is canceled or otherwise terminated on a motor
vehicle registered in South Carolina, the department shall suspend the
license plates and registration certificate and shall initiate action as
required within fifteen days of the notice of cancellation to pick up the
license plates and registration certificate. A person who has had his
license plates and registration certificate suspended by the department,
but who at the time of suspension possesses liability insurance coverage
sufficient to meet the financial responsibility requirements as set forth
in this chapter, has the right to appeal the suspension immediately to the
Chief Insurance Commissioner. If the commissioner determines that the
person has sufficient liability insurance coverage, he shall notify the
department, and the suspension is voided immediately. The department
shall give notice by first class mail of the cancellation or suspension of
registration privileges to the vehicle owner at his last known address.
However, when license plates are surrendered pursuant to this section,
they must be held at the department office in the county where the
person who surrenders the plates resides.
If the vehicle owner unlawfully refuses to surrender the suspended
items as required in this article, the department through its designated
agents or by request to a county or municipal law enforcement agency
may take possession of the suspended license plates and registration
certificate and may not reissue the registration until proper proof of
liability insurance coverage is provided and until the owner has paid a
reinstatement fee of two hundred dollars for the first refusal under this
section, and three hundred dollars for each subsequent refusal. A person
who voluntarily surrenders his license plates and registration certificate
before their suspension shall only be charged a reinstatement fee of five
dollars.
A person wilfully failing to return his motor vehicle license plates and
registration certificates as required in this section is guilty of a
misdemeanor and, upon conviction, must be punished as follows:
(1) for a first offense, fined not less than one hundred dollars nor
more than two hundred dollars or imprisoned for thirty days;
(2) for a second offense, fined two hundred dollars or imprisoned for
thirty days, or both;
(3) for a third and subsequent offense, imprisoned for not less than
forty-five days nor more than six months.
Only convictions which occurred within ten years including and
immediately preceding the date of the last conviction constitute prior
convictions within the meaning of this section."
SECTION 15. Chapter 10, Title 56 of the 1976 Code is amended by
adding:
"Article 5
Registration and Licensing of
Uninsured Motor Vehicles
Section 56-10-510. As used in this article:
(1) `Conviction' includes the entry of any plea of guilty or nolo
contendere and the forfeiture of any bail or collateral deposited to secure
a defendant's appearance.
(2) `Insured motor vehicle' is a motor vehicle as to which (a) there
is bodily injury liability insurance and property damage liability
insurance, both in the amounts specified in Section 38-77-140, issued by
an insurer authorized to do business in this State, (b) a bond has been
given or cash or securities delivered in lieu of the insurance, (c) the
owner has qualified as a self-insurer in accordance with the provisions
of Section 56-9-60, or (d) the owner has at least basic personal
protection insurance as defined in Section 38-78-30(C); and
(3) `Uninsured motor vehicle' is a motor vehicle required to be
registered as to which (a) there is no bodily injury liability insurance and
property damage liability insurance, (b) no bond has been given or cash
or securities delivered in lieu thereof, (c) the owner has not qualified as
a self-insurer, and (d) there is no basic or added personal protection
insurance as defined in Section 38-78-30.
(4) `Department' is the South Carolina Department of Highways and
Public Transportation.
Section 56-10-520. In addition to any other fees prescribed by law,
every person registering and licensing an uninsured motor vehicle, as
defined in Section 56-10-510, in this State shall pay, at the time of
registering and licensing an uninsured motor vehicle, the sum of two
hundred and fifty dollars. Credit for payment made on a motor vehicle
subsequently transferred during the same licensing year must be applied
to any motor vehicle thereafter registered by the uninsured motorist
during the same licensing year. Every person knowingly operating an
uninsured motor vehicle pursuant to this section shall not be deemed in
violation of Section 56-10-270.
Section 56-10-530. The department of Highways and Public
Transportation may require that a person applying for licensing and
registration of a motor vehicle shall certify under the penalties set forth
in Section 56-10-260 whether or not each motor vehicle is an insured
motor vehicle as defined in Section 56-10-510 or the department may in
its discretion require that a person (a) produce as evidence of financial
responsibility a certificate on a form prescribed by the department of
insurance or self-insurance complying with the requirements of Section
56-9-60, (b) has given bond or delivered the cash or securities as
provided in Sections 56-9-570 and 56-9-580, respectively, or (c) pay the
fee prescribed in Section 56-10-520.
Section 56-10-560. All funds collected by the department under the
provisions of this article must be deposited to the credit of the State
Treasurer and monthly transferred to a special deposit fund to be known
as the `Uninsured Motorists Fund' to be disbursed as provided in Section
56-10-570 to 56-10-590.
Section 56-10-570. The fund is under the supervision and control of
the Chief Insurance Commissioner and must be paid out, on warrants of
the Comptroller General issued on vouchers signed by the commissioner
or persons he designates, for the purpose of defraying the costs of
administration of this article by the department and for reducing the
operating losses of the Reinsurance Facility as provided in Section
56-10-580. As determined by the commissioner, when the recoupment
fee is no longer necessary to pay for losses incurred by the facility as a
result of the phasing out of the facility as provided for by Section
38-77-1310, the fund must be paid out for financing of driver safety
measurers and for enforcing the uninsured motorist laws of the State as
determined by the General Assembly.
Section 56-10-580. The Chief Insurance Commissioner annually,
prior to September 30 of each year, shall make distribution from the
fund as follows:
(1) to the department, the amount certified by it as its administrative
costs and expenses for this article. These payments may be made on a
quarterly basis.
(2) to the Reinsurance Facility to reduce the operating losses of the
Facility for the twelve month period in which they are collected and to
reduce the recoupment charges prescribed in Section 38-77-1310
assessed to drivers with the safe driver discount.
(3) to finance driver safety measures and enforce the uninsured
motorist laws of the State as determined by the General Assembly, when
the recoupment fee is no longer necessary to pay for losses incurred by
the Facility, determined by the commissioner, as a result of the phasing
out of the Facility as provided for by Section 38-77-1310.
Section 56-10-590. The Chief Insurance Commissioner may
promulgate regulations necessary to implement the provisions of this
article.
Section 56-10-610. This article does not repeal any other provision
contained in this title, but is cumulative to such other provisions."
SECTION 16. Section 38-77-110(A) of the 1976 Code, as last
amended by Act 148 of 1989, is further amended to read:
"(A) Automobile insurers other than insurers designated and
approved as specialized insurers by the commissioner may not refuse to
write or renew automobile insurance policies for individual private
passenger automobiles if the risk qualifies for the safe driver
discount in Section 38-73-760(e) or small commercial risks. These
policies may not be canceled except for reasons which had they existed
or been known when the policy was written would have rendered the
risk not an insurable risk. Every automobile insurance risk constitutes
an insurable risk unless the operator's permit of the named insured has
been revoked or suspended and is at the time of application for insurance
so revoked or suspended. However, no insurer is required to write or
renew automobile insurance on any risk if there exists a valid and
enforceable outstanding judgment secured by an insurer, an agent, or
licensed premium service company on account of automobile insurance
premiums which the applicant or insured or any principal operator who
is a member of the named insured's household has failed or refused to
pay unless the applicant or insured pays in advance the entire premium
for the full term of the policy sought to be issued or renewed or the
annual premium, whichever is the lesser. No insurer is required to
write or renew private passenger automobile insurance if the risk does
not qualify for the safe driver discount in Section 38-73-760(e). An
insurer is not precluded from effecting cancellation of an automobile
insurance policy, either upon its own initiative or at the instance of an
agent or licensed premium service company, because of the failure of
any named insured or principal operator to pay when due any
automobile insurance premium or any installment payment. However,
notice of cancellation for nonpayment of premium notifies the person to
whom the notice is addressed that the notice is void and ineffective if
payment of the full amount of the premium or premium indebtedness,
whichever is the greater, is made to the insurer, agent, or licensed
premium service company named in the notice by the otherwise
effective date of cancellation. This notice of cancellation is not
considered ineffective for being conditional, ambiguous, or
indefinite."
SECTION 17. Section 38-77-110(C) of the 1976 Code, as added by
Act 148 of 1989, is amended to read:
"(C) With regard to any coverage not required to be
written by an insurer under the mandate to write, no No
insurer may refuse to write or renew such policy, coverage, or
endorsement of automobile insurance because of the race, color, creed,
national origin, or ancestry, or income of anyone who
seeks to become insured."
SECTION 18. Section 38-77-110 of the 1976 Code, as last amended
by Act 148 of 1989, is further amended by adding:
"(D) An applicant denied coverage must be provided in
writing by the denying insurer the reason or reasons for which the
applicant has been refused insurance by that insurer, at the time of the
denial."
SECTION 19. Chapter 77 of Title 38 of the 1976 Code is amended
by adding:
"Article 13
Joint Underwriting Association
Section 38-77-1310. (A) The Reinsurance Facility is abolished
effective October 1, 1994. There is created the South Carolina Joint
Underwriting Association. The administration of the phase out of the
Facility is transferred to the Joint Underwriting Association.
(B) As of July 1, 1997, the Facility recoupment charge must not be
included in the rate or premium charged by the insurers of private
passenger automobile insurance to drivers who qualify for the safe driver
discount. If any losses are incurred as a result of the operation of the
Facility, the losses attributable to the Facility must be distributed among
insured drivers as provided in subsection (C) until the commissioner
determines all of the losses have been accounted for, unless provided
otherwise.
(C) Consistent with subsection (B), the rate or premium charged by
insurers of private passenger automobile insurance must include a
recoupment charge, which must be added to the appropriate rate
prescribed in Section 38-73-455 to compensate for any remaining losses
incurred by the Facility as a result of its operation up to the effective
date of this article. The operating losses of the Facility for a
twelve-month period must be recouped in the subsequent twelve-month
period.
(1) Prior to December first of each year, the governing board of
the Facility shall calculate the recoupment amount, by coverage, by
dividing the net Facility operating loss, adjusted to reflect prudently
incurred expenses, consistent with the provisions of Section 38-73-465,
and the time value of money, by mandated coverage for the preceding
Facility accounting year, by the total number of earned car years in
South Carolina, by coverage, for the same period of time. .368
multiplied by the recoupment is to be borne by risks having zero
surcharge points under the Uniform Merit Plan promulgated by the
commissioner. The remainder of the recoupment (.614 multiplied by the
recoupment) represents R in the formula P1X +2P2X +3P3X + 4P4X +
5P5X + 6P6X + 7P7X + 8P8X + 9P9X + 10P10X = R. In this formula
to be utilized in determining the Facility recoupment charge:
(a) P1 is the percentage of risks which have one surcharge
point under the Uniform Merit Rating Plan;
(b) P2 is the percentage of risks which have two surcharge
points under the Uniform Merit Rating Plan;
(c) P3 is the percentage of risks which are subject to a
surcharge of three points under the Uniform Merit Rating Plan;
(d) P4 is the percentage of risks which are subject to a
surcharge of four points under the Uniform Merit Rating Plan;
(e) P5 is the percentage of risks subject to a surcharge of five
points under the Uniform Merit Rating Plan;
(f) P6 is the percentage of risks subject to a surcharge of six
points under the Uniform Merit Rating Plan;
(g) P7 is the percentage of risks subject to a surcharge of seven
points under the Uniform Merit Rating Plan;
(h) P8 is the percentage of risks subject to a surcharge of eight
points under the Uniform Merit Rating Plan;
(i) P9 is the percentage of risks subject to a surcharge of nine
points under the Uniform Merit Rating Plan;
(j) P10 or more is the percentage of risks subject to a surcharge
of ten or more points under the Uniform Merit Rating Plan;
(k) X is the dollar amount by coverage, to be charged all risks
having one surcharge point under the Uniform Merit Rating Plan
promulgated by the commissioner. This dollar amount, by coverage, is
the Facility recoupment charge to be added to the base rate or objective
standards rate prescribed in Sections 38-73-455 and 38-73-457 for all
risks which have one surcharge point.
(2) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which have one
surcharge point under the Uniform Merit Rating Plan is calculated by
multiplying X by a factor of one.
(3) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which have two
surcharge points under the Uniform Merit Rating Plan is calculated by
multiplying X by a factor of two.
(4) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of three points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of three.
(5) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of four points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of four.
(6) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of five points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of five.
(7) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of six points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of six.
(8) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of seven points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of seven.
(9) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of eight points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of eight.
(10) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of nine points under the Uniform Merit Rating Plan is
calculated by multiplying X by a factor of nine.
(11) The Facility recoupment charge by coverage to be added to
the base rate or objective standards rate for all risks which are subject to
a surcharge of ten or more points under the Uniform Merit Rating Plan
is calculated by multiplying X by a factor of ten.
(12) In determining the number of surcharge points a risk has for
the purposes of this section, no surcharge points assigned under the
Uniform Merit Rating Plan because the principal operator of the
automobile has not been licensed in any state for at least one year
immediately preceding the writing of the risk or as a result of a failure
of any motor vehicle equipment requirement may be considered.
(13) This section applies to all private passenger automobile
insurance policies issued or renewed after June 30, 1995. However,
insurers unable to comply with the provisions of this section and renewal
provisions required by law may comply with the provisions of this
section at any time after June 30, 1995, but in no event later than
October 1, 1995.
Section 38-77-1330. As used in this article:
(1) `Association' means the South Carolina Joint Underwriting
Association established pursuant to this article.
(2) `Net direct premiums' means gross direct premiums written on
automobile liability insurance as computed by the Chief Insurance
Commissioner less return premiums or the unused or unabsorbed
portions of premium deposits.
Section 38-77-1340. (A) A joint underwriting association is
created consisting of all automobile insurers licensed to write within this
State automobile insurance policies. Every such insurer is and must
remain a member of the association as a condition of its authority to
continue to transact this kind of insurance in this State.
(B) The purpose of the association is to provide automobile
insurance on a self-supporting basis to the fullest extent possible for
private passenger, small commercial, and motorcycle risks.
Section 38-77-1350. The association has the power on behalf of its
members to make agreements among themselves with respect to the
equitable apportionment among them of insurance which may be
afforded applicants who are in good faith entitled to or have lost their
safe driver discount, but are unable to procure such insurance through
ordinary methods, and such insurers may agree among themselves on the
use of reasonable rate modifications for such insurance. Such
agreements and rate modifications shall be subject to the approval of the
department.
Section 38-77-1360. (A) The department shall, after consultation
with the insurers licensed to write automobile liability insurance in this
State, adopt a reasonable plan or plans for the equitable apportionment
among such insurers of applicants for such insurance who are in good
faith entitled to or have lost their safe driver discount, but are unable to,
procure such insurance through ordinary methods, and, when such plan
has been adopted, all such insurers shall subscribe thereto and shall
participate therein. Such plan or plans shall include rules for
classification of risks and rates therefor by driver classification and
territory. Any insured placed with the plan shall be notified of the fact
that insurance coverage is being afforded through the plan and not
through the private market, and such notification shall be given in
writing within ten days of such placement. To assure that plan rates are
made adequate to pay claims and expenses, insurers shall develop a
means of obtaining loss and expense experience at least annually, and
the plan shall file such experience, when available, with the department
in sufficient detail to make a determination of rate adequacy.
(B) The plan of operation shall provide for economic, fair, and
nondiscriminatory administration and for the prompt and efficient
provision of insurance and may contain other provisions, including, but
not limited to, preliminary assessment of all members for initial
expenses necessary to commence operations, establishment of necessary
facilities, management of the association, assessment of the members to
defray losses and expenses, commission arrangements, reasonable and
objective underwriting standards, appointment of servicing carriers, and
procedures for determining amounts of insurance to be provided by the
association.
(C) Trend factors shall not be found to be inappropriate if not in
excess of trend factors normally used in the development of residual
market rates by the appropriate licensed rating organization. Each
application for coverage in the plan shall include, in boldfaced 12-point
type immediately preceding the applicant's signature, the following
statement:
`THIS INSURANCE IS BEING AFFORDED THROUGH THE
SOUTH CAROLINA JOINT UNDERWRITING ASSOCIATION AND
NOT THROUGH THE PRIVATE MARKET. PLEASE BE ADVISED
THAT COVERAGE WITH A PRIVATE INSURER MAY BE
AVAILABLE FROM ANOTHER AGENT AT A LOWER COST.
AGENT AND COMPANY LISTINGS ARE AVAILABLE IN THE
LOCAL YELLOW PAGES.'
(D) The plan of operation shall provide that any profit achieved by
the association must be added to the reserves of the association or
returned to the policyholders as a dividend but under no circumstances
whatsoever shall any profit be paid over to or received by an insurer
either in currency or any other benefit of any kind.
(E) Amendments to the plan of operation may be made by the
directors of the association with the approval of the commissioner or
must be made at the direction of the commissioner after proper notice
and public hearing.
(F) The association may not write private passenger automobile
insurance with higher limits of coverage than:
(1) two hundred fifty thousand dollars, for bodily injury liability
to one person in one accident,
(2) subject to the limit for one person, five hundred thousand
dollars because of bodily injury to two or more persons in one accident,
(3) fifty thousand dollars because of injury to or destruction of
property of others in any one accident,
(4) five hundred thousand dollars, combined single limits for
either or both bodily injury and property damage,
(5) two hundred fifty thousand dollars of added personal
protection benefits or personal protection liability limits up to the limits
of the personal protection benefits.
(G) If a driver covered by the association maintains a driving record
without a chargeable accident or driving conviction for three
consecutive years while they are covered by the association, the
association must attempt to place the driver with an insurer in the
voluntary market. This provision does not preclude the driver from
seeking automobile insurance coverage on the voluntary market at any
other time. If a driver has not been able to purchase insurance on the
voluntary market after seven consecutive years of maintaining a driving
record with no chargeable accidents or driving convictions the driver
must be placed by the association with an automobile insurance
company doing business in the voluntary market in this State. The
company must be chosen based on its percentage of automobile
insurance business written in this State on the voluntary market. The
company may charge the driver any one of the company's four rates
according to driver classification and territory. A driver assigned under
this provision may not be refused insurance until the driver fails to
qualify for the safe driver discount.
Section 38-77-1370. The rates, rating plans, rating rules, rating
classifications, territories, and policy forms applicable to insurance
written by the association and the statistical and experience data relating
thereto are subject to this chapter and to those provisions of Chapter 73
of Title 38 which are not inconsistent with this chapter.
Section 38-77-1380. The commissioner shall obtain complete
statistical data in respect to automobile insurance losses and reparation
costs as well as all other costs or expenses which underlie or are related
to automobile insurance. The commissioner shall promulgate any
statistical plan he considers necessary for the purpose of gathering data
referable to loss and loss adjustment expense experience and other
expense experience. When the statistical plan is promulgated, the
association shall adopt and use it.
Section 38-77-1390. In structuring rates and determining the profit
or loss of the association in respect to such insurance, consideration
must be given by the commissioner to all investment income so that
investment income is a part of the ratemaking and ratesetting process.
Section 38-77-1395. No later than sixty days after the passage of
this act, the board must file with the commissioner rates for personal
protection policies as may be defined by law and rates for private
passenger automobile insurance liability coverages, uninsured motorist
coverages, and underinsured motorist coverages. All of these rates are
subject to surcharges or discounts, if any, applicable under any approved
Merit Rating Plan, credit, or discount plan promulgated or approved by
the commissioner. The board must file:
(1) a standard rate by driver classification and territory fifteen
percent less than the rate defined in (2). This rate applies to all private
passenger automobile insurance risks which qualify for the safe driver
discount and are insured directly by or ceded to the association; and
(2) a rate by driver classification and territory less than the rate
defined in (3) which applies to all private passenger automobile
insurance risks which have between one and three merit surcharge points
and are insured directly by or ceded to the association; and
(3) a rate by driver classification and territory less than the rate
defined in (4) which applies to all private passenger automobile
insurance risks which have between four and ten merit surcharge points
and are insured directly by or ceded to the association; and
(4) a rate by driver classification and territory which applies to all
private passenger automobile insurance risks which have more than ten
merit surcharge points and are insured directly by or ceded to the
association.
These four rates must be construed so that when the experience
generated by them is combined, the association is able to provide private
passenger automobile insurance on a self-supporting basis.
Upon the approval of these rates, they must be utilized for all private
passenger automobile insurance risks either ceded to or insured directly
by the association. The association must submit policy forms, rating
plans, and rating rules applicable to insurance to be written by the
association to the commissioner for his approval.
Section 38-77-1400. The premium rate charged for coverage must
be at rates established on an actuarially sound basis, including
consideration of trends in the frequency and severity of losses and must
be calculated to be self-supporting.
Section 38-77-1410. The association may provide a rate increase or
assessment subject to the commissioner's approval.
Section 38-77-1420. Any deficit sustained by the association in any
year must be recouped, pursuant to the plan of operation and the rating
plan then in effect, by one or both of the following procedures:
(1) an assessment upon the policyholders, which may not exceed
one additional annual premium at the then current rate;
(2) a rate increase applicable prospectively.
Section 38-77-1430. After the initial year of operation, rates, rating
plans, and rating rules and any provision for recoupment through
policyholder assessment or premium rate increase must be based upon
the association's loss and expense experience and investment income,
together with any other information based upon this experience and
income as the commissioner considers appropriate. The resultant
premium rates must be on an actuarially sound basis and must be
calculated to be self-supporting.
If sufficient funds are not available for the sound financial operation
of the association, pending recoupment as provided in Section
38-77-1420, all members, on a temporary basis, shall contribute to the
financial requirements of the association in the manner provided for in
Section 38-77-1440. Any such contribution must be reimbursed to the
members following recoupment as provided in Section 38-77-1420.
Section 38-77-1440. All insurers which are members of the
association shall participate in its writings, expenses, and losses in the
proportion that the net direct premiums of each member, excluding that
portion of premiums attributable to the operation of the association,
written during the preceding calendar year bear to the aggregate net
direct premiums written in this State by all members of the association.
Each insurer's participation in the association must be determined
annually on the basis of the net direct premiums written during the
preceding calendar year, as reported in the annual statements and other
reports filed by the insurer with the commissioner. No member may be
obligated in any one year to reimburse the association because of its
proportionate share in the deficit from operations of the association in
that year in excess of one percent of its surplus to policyholders and the
aggregate amount not so reimbursed must be reallocated among the
remaining members in accordance with the method of determining
participation prescribed in this section after excluding from the
computation the total net direct premiums of all members not sharing in
the excess deficit. If the deficit from operations allocated to all members
of the association in any calendar year exceeds one percent of their
respective surplus to policyholders, the amount of the deficit must be
allocated to each member in accordance with the method of determining
participation prescribed in this section.
Section 38-77-1450. Every member of the association is bound by
the approved plan of operation of the association and the rules of the
board of directors of the association.
Section 38-77-1460. (A) If the authority of an insurer to transact
automobile insurance in this State terminates for any reason, its
obligations as a member of the association continue until all its
obligations are fulfilled and the commissioner has so found and certified
to the board of directors.
(B) If a member insurer merges into or consolidates with another
insurer authorized to transact insurance in this State or another insurer
authorized to transact insurance in this State has reinsured the insurer's
entire automobile insurance business in this State, both the insurer and
its successor or assuming reinsurer, as the case may be, are liable for the
insurer's obligations to the association.
(C) Any unsatisfied net liability of any insolvent member of the
association must be assumed by and apportioned among the remaining
members in the same manner in which assessments or gain and loss are
apportioned and the association shall acquire and have all rights and
remedies allowed by law in behalf of the remaining members against the
estate or funds of the insolvent insurer for funds due the association.
Section 38-77-1470. The joint underwriting association is governed
by a board of seven directors, one of whom is appointed by the
Governor to represent the general public and four of whom are
appointed by the Governor and represent automobile insurers who are
members of the association. Two directors, appointed by the Governor,
are agents authorized to represent automobile insurers licensed to do
business in this State.
The approved plan of operation of the association may make
provision for combining insurers under common ownership or
management into groups for voting, assessment, and all other purposes
and may provide that not more than one of the officers or employees of
such a group may serve as a director at any one time. The board of
directors shall elect a chairman by majority vote and he, or his designee,
must preside at all meetings of the board.
Section 38-77-1480. Any applicant for insurance through the
association or any insurer adversely affected, or claiming to be adversely
affected, by any ruling, action, or decision by or on behalf of the
association, may appeal to the commissioner within thirty days after the
ruling, action, or decision.
Section 38-77-1490. The association shall file in the office of the
commissioner annually by March first a statement containing
information with respect to its transactions, condition, operations, and
affairs during the preceding year. The statement shall contain
information prescribed by the commissioner and must be in the form he
directs.
The commissioner, at any reasonable time, may require the
association to furnish additional information concerning its transactions,
condition, or any matter connected therewith considered to be material
and of assistance in evaluating the scope, operations, and experience of
the association.
Section 38-77-1500. The commissioner shall make an examination
into the financial condition and affairs of the association at least
annually and shall file a report thereon with the Commission, the
Governor, and the General Assembly. The expenses of the examination
must be paid by the association."
SECTION 20. Section 38-73-455 of the 1976 Code, as last amended by
Act 113 of 1991, is further amended to read:
"Section 38-73-455. (A) An automobile insurer
shall offer two four different rates for automobile
insurance, a base rate as defined in Section 38-73-457 and an
objective standards rate which is twenty-five percent above the base
rate. Both All of these rates are subject to all
surcharges or discounts, if any, applicable under any approved merit
rating plan, credit, or discount plan promulgated or approved
by the commissioner.
(B) No later than ninety days after the passage of this act,
insurers of automobile insurance must file with the commissioner rates
for personal protection policies as defined by Section 38-78-30 and
revised rates for all other private passenger automobile insurance
policies written by them. Each insurer must file:
(1) a `preferred' rate by driver classification and territory, which
is a rate less than the standard rate defined herein. This rate applies to
private passenger automobile insurance risks which qualify for the safe
driver discount; and
(2) a `standard' rate which must be the approved base rate as
defined in Section 38-73-457, by driver classification and territory in
effect on July 1, 1994. This rate applies to private passenger automobile
insurance risks which qualify for the safe driver discount; and
(3) a `nonpreferred' rate by driver classification and territory,
which is a rate more than the standard rate but less than the rate by
driver classification and territory for the substandard rate and is
applicable to all private passenger automobile insurance risks; and
(4) a `substandard' rate by driver classification and territory,
which is a rate more than the nonpreferred rate but less than or equal to
the substandard rate by driver classification and territory for the South
Carolina Joint Underwriting Association, as provided for in Article 13
of Chapter 77 of Title 38, and is applicable to all private passenger
automobile risks.
(C) The commissioner must approve the rates filed pursuant to
subsection (A). If the rates are approved, the rates shall become
effective for all policies of automobile insurance issued or renewed with
effective dates on or after January 1, 1997.
(D) Insurers may place any automobile insurance risk at any of the
four rate levels without restriction unless provided otherwise in this
chapter. An insurer or agent shall provide written notice to the insurer
of the tier at which coverage is being written for the insured and the
reasons the insured was written in that particular tier. However, the
Uniform Merit Rating Plan must continue to apply to all risks written by
them.
(E) An applicant and all operators of the insured automobile who
have qualified for the safe driver discount for the last five years and who
reside in the same household, and the automobile or the automobile it
replaced has been insured for liability or personal protection coverage
for the past twelve months must be written at the preferred or standard
rate and may not be ceded to the Joint Underwriting Association. A
driver who is claimed as a dependent for income tax purposes is not
required to meet the five year requirement as long as the dependent
qualifies for the safe driver discount.
(F) An applicant and all operators of the insured automobile who
have qualified for the safe driver discount for the last ten years and who
reside in the same household and the automobile or the automobile it
replaced has been insured for liability or personal protection coverage
for the past twelve months must be written at the preferred rate and may
not be ceded to the Joint Underwriting Association. A driver who is
claimed as a dependent for income tax purposes is not required to meet
the ten year requirement as long as the dependent qualifies for the safe
driver discount.
(G) All policies of automobile insurance issued or renewed with
effective dates on or after October 1, 1996, that are written by
automobile insurers designated pursuant to Section 38-77-590(A), for
risks written by them through producers designated pursuant to that
same section, and all policies ceded to the Joint Underwriting
Association by automobile insurers must be written at the rates provided
for in Section 38-77-1395. However, the Uniform Merit Rating Plan
must apply to all such risks.
(H) The Board of Directors of the association must file rates by
driver classification and territory for both the personal protection
policies as defined by Section 38-78-30, liability coverages, and
uninsured motorist coverage.
Applicants, or a current policyholder, seeking automobile
insurance with an insurer must be written at the base rate, unless one of
the conditions or factors in subitems (1) through (8) of item (A) is
present.
(A) The named insured or any operator who is not excluded in
accordance with Section 37-77-340 and who resides in the same
household or customarily operates an automobile insured under the same
policy, individually:
(1) has obtained a policy of automobile insurance or continuation
thereof through material misrepresentation within the preceding
thirty-six months; or
(2) has had convictions for driving violations on three or more
separate occasions within the thirty-six months immediately preceding
the effective date of coverage as reflected by the motor vehicle record
of each insured driver as maintained by the Department of Highways
and Public Transportation; or
(3) has had two or more `chargeable' accidents within the thirty-six
months immediately preceding the effective date of coverage. A
`chargeable' accident is defined as one resulting in bodily injury to any
person in excess of three hundred dollars per person, death, or damage
to the property of the insured or other person in excess of seven hundred
fifty dollars. Accidents occurring under the circumstances enumerated
below are not considered chargeable.
(a) The automobile was lawfully parked. An automobile
rolling from a parked position is not considered as lawfully parked but
is considered as operated by the last operator.
(b) The applicant or other operator or owner was reimbursed
by or on behalf of a person responsible for the accident or has a
judgment against this person.
(c) The automobile of an applicant or other operator was struck
in the rear by another vehicle and the applicant or other operator has not
been convicted of a moving traffic violation in connection with the
accident.
(d) The operator of the other automobile involved in the
accident was convicted of a moving traffic violation and the applicant
or other operator was not convicted of a moving traffic violation in
connection therewith.
(e) An automobile operated by the applicant or other operator
is damaged as a result of contact with a `hit and run' driver, if the
applicant or other operator so reports the accident to the proper authority
within twenty-four hours or, if the person is injured, as soon as the
person is physically able to do so.
(f) Accidents involving damage by contact with animals or
fowl.
(g) Accidents involving physical damage, limited to an caused
by flying gravel, missiles, or falling objects.
(h) Accidents occurring as a result of the operation of any
automobile in response to an emergency if the operator at the time of the
accident was responding to a call of duty as a paid or volunteer member
of any police or fire department, first aid squad, or any law enforcement
agency. This exception does not include an accident occurring after the
emergency situation ceases or after the private passenger motor vehicle
ceases to be used in response to the emergency; or
(4) has had one `chargeable' accident and two convictions for
driving violations, all occurring on separate occasions, within the
thirty-six months immediately preceding the effective date of coverage
as reflected by the motor vehicle record of each insured driver as
maintained by the Department of Highways and Public Transportation;
or
(5) has been convicted of or forfeited bail during the thirty-six
months immediately preceding the effective date of coverage for
operating a motor vehicle while in an intoxicated condition or while
under the influence of drugs; or
(6) has been convicted or forfeited bail during the thirty-six
months immediately preceding the effective date for:
(a) any felony involving the use of a motor vehicle,
(b) criminal negligence resulting in death, homicide, or assault
arising out of the operation of a motor vehicle,
(c) leaving the scene of an accident without stopping to report,
(d) theft or unlawful taking of a motor vehicle,
(e) operating during a period of revocation or suspension of
registration or license,
(f) Knowingly permitting an unlicensed person to drive,
(g) reckless driving,
(h) the making of material false statements in the application
for licenses or registration,
(i) impersonating an applicant for license or registration or
procuring a license or registration through impersonation, whether for
himself or another,
(j) filing of a false or fraudulent claim or knowingly aiding or
abetting another in the presentation of such a claim,
(k) failure to stop a motor vehicle when signaled by means or
a siren or flashing light by a law enforcement vehicle; or
(7) has for thirty or more consecutive days during the twelve
months immediately preceding the effective date of coverage, owned or
operated the automobile to be insured (or if newly acquired, the
automobile it replaces) without liability coverage in violation of the laws
of this State; or
(8) has used the insured automobile as follows or if the insured
automobile is:
(a) used in carrying passengers for hire or compensation,
except that the use of an automobile for a car pool must not be
considered use of an automobile for hire or compensation,
(b) used in the business of transportation of flammables or
explosives,
(c) used in illegal operation, or
(d) no longer principally used and garaged within the State, but
not to include students who are operating a motor vehicle registered in
this State while attending an institution located in another state.
(B) In the event that one or more of the conditions or factors
prescribed in items (1) through (8) of subsection (A) exist, the motor
vehicle customarily operated by that individual must be written at the
objective standards rate.
(C) (I) Member companies of an affiliated group of
automobile insurers may not utilize different filed rates for
automobile insurance coverages which they are mandated by law to
write. For the purpose of this section, an affiliated group of
automobile insurers includes a group of automobile insurers under
common ownership, management, or control. Those automobile
insurers designated pursuant to Section 38-77-590(a), for automobile
insurance risks written by them through producers designated by the
Facility governing board pursuant to that section, shall utilize the rates
or premium charges by coverage filed and authorized for use by the
rating organization licensed by the Commissioner pursuant to Article 11,
Chapter 73 of this title, which has the largest number of members or
subscribers for automobile insurance rates. However, those automobile
insurers designated pursuant to Section 38-77-590(a) are not required to
use those same rates or premium charges described in the preceding
sentence for risks written by them through their authorized agents not
appointed pursuant to Section 38-77-590.
(D) (J) An automobile insurance policy may be
endorsed at any time during the policy period to reflect the correct rate
or premium applicable by reason of the factors or conditions described
in subsection (A) which existed prior to the commencement of the policy
period in which the endorsement is made, regardless of whether the
factors or conditions were known or disclosed to the insurer at the
commencement of the policy period. However, no No
policy may be endorsed during a policy period to reflect factors or
conditions occurring during that policy period. A policy may be
endorsed during a policy period to recognize the addition or deletion of
an operator or vehicle.
(E) For purposes of determining the applicable rates to be charged
an insured, an automobile insurer shall obtain and review an applicant's
motor vehicle record."
SECTION 21. Section 38-73-760 of the 1976 Code, as last amended by
Act 148 of 1989, is further amended by adding:
"(g) No surcharge may be assessed for the first conviction of
speeding less than twenty miles per hour if the person convicted has
maintained the safe driver discount for the previous three years.
(h) No surcharge may be assessed for convictions of the following
violations occurring on or after January 1, 1995: failing to dim lights;
operating with improper lights; operating with improper brakes; or
operating a vehicle in unsafe condition."
SECTION 22. Section 56-10-270 of the 1976 Code is amended to read:
"Section 56-10-270. (a) Any person knowingly operating an
uninsured motor vehicle subject to registration in this State or any
person knowingly allowing the operation of an uninsured motor vehicle
subject to registration in this State is guilty of a misdemeanor and, upon
conviction, must be punished as follows:
(1) for a first offense, fined not less than one
two hundred dollars nor more than two three
hundred dollars or imprisoned for thirty days or may be ordered to
perform up to fifty public service hours, or a combination of these,
and,
(2) upon conviction of a second offense, be fined
two three hundred dollars or imprisoned for thirty days
or perform up to one hundred public service hours, or a combination
of these, or both, and
(3) for a third and subsequent offenses must be
imprisoned for not less than forty-five days nor more than six months
and be fined four hundred dollars or serve up to two hundred public
service hours, or a combination of these. Only convictions which
occurred within five years including and immediately preceding the date
of the last conviction constitute prior convictions within the meaning of
this section. An uninsured motor vehicle includes an insured vehicle
with respect to which the operator has been excluded from coverage
pursuant to the provisions of Section 38-77-340.
(b) The department upon receipt of information to the effect that any
person has been convicted of violating subsection (a) of this section
shall suspend the driving privilege and all license plates and registration
certificates issued in the person's name for a period of thirty days for
a first offense, for a period of ninety days for a second offense, and for
a period of six months for a third and each subsequent offense.
and may not reinstate that The person's privileges
may not be reinstated until proof of financial responsibility has
been filed.
(c) Any person whose license plates and registration certificates
which are suspended as provided in this section, which are not
suspended for any other reason, may have them immediately restored,
if he files proof of financial responsibility with the department."
SECTION 23. The 1976 Code is amended by adding:
"Section 38-77-116. Upon issuance of a new private passenger
automobile insurance policy, the insurance company or agent must
review with the new applicant a list of driving offenses and the related
fine and punishment, as well as the possible increase in the rates, the
effect of any surcharges, or the effect of the loss of the safe driver
discount. This list must be on a form approved by the Chief Insurance
Commissioner and must accompany the policy."
SECTION 24. After September 30, 1994, the governing board of the
Joint Underwriting Association, enacted pursuant to Article 13 of
Chapter 77 of Title 38 of the 1976 Code as contained in this act, shall
contract with one or more insurers or business entities to serve as the
designated carrier and shall establish a procedure for the selection of the
designated carrier. In developing this procedure, the board must
establish criteria which will assure the designated carrier's ability to
adequately provide policy-writing and claims service. However, the
board may not require that the designated carrier be a licensed insurance
company. Designated carrier contracts must be for a period of three
years and must be awarded upon the terms and conditions for
competitive sealed bidding as provided in Section 11-35-1520 of the
1976 Code.
If the designated carrier fails two claims audits, including a re-audit,
within the contract term, the designated carrier is disqualified for
renewal of its contract with the Facility upon expiration of its existing
contract. Designated carrier contracts awarded pursuant to this section
must provide that the failure of two claims audits, including a re-audit,
during the contract term constitutes a material breach of the contract.
After July 1, 1994, the governing board of the association may not
designate any new producers.
Commissions paid to agents for policies ceded to or placed in the
Joint Underwriting Association shall be set by the association's board of
directors.
SECTION 25. The 1976 Code is amended by adding:
"Section 38-77-175. (A) When the operator or owner of a
motor vehicle is issued a traffic ticket for a moving violation by a law
enforcement officer, he must be furnished a written request form to
complete to verify liability insurance coverage. The form must be in a
manner prescribed by regulation of the Department of Highways and
Public Transportation.
(B) The completed and verified form must be returned by the
operator or owner to the department within fifteen days from the date he
receives it. Failure to return the form verified in the proper manner is
prima facie evidence that the vehicle was uninsured.
(C) Any fine collected for a violation of Section 56-10-270, relating
to driving uninsured, as a result of this section must be deposited in the
treasury of the municipality or the county employing the law
enforcement officer who issued the original ticket, if such law
enforcement officer is a municipal or county employee, or in the general
fund of the State, if the law enforcement officer who issued the original
ticket is an employee of a state agency or department."
SECTION 26. The 1976 Code is amended by adding:
"Section 56-7-12. (A) When the operator or owner of a motor
vehicle is issued a traffic ticket for a moving violation by a law
enforcement officer, he must be furnished a written request form to
complete to verify liability insurance coverage. The form must be in a
manner prescribed by regulation of the Department of Highways and
Public Transportation.
(B) The completed and verified form must be returned by the
operator or owner to the department within fifteen days from the date he
receives it. Failure to return the form verified in the proper manner is
prima facie evidence that the vehicle was uninsured.
(C) Any fine collected for a violation of Section 56-10-270, relating
to driving uninsured, as a result of this section must be deposited in the
treasury of the municipality or the county employing the law
enforcement officer who issued the original ticket, if such law
enforcement officer is a municipal or county employee, or in the general
fund of the State, if the law enforcement officer who issued the original
ticket is an employee of a state agency or department."
SECTION 27. Article 5 of Chapter 77 of Title 38 of the 1976 Code
and Sections 38-73-1420, 38-73-1425, 38-77-285, 38-77-920,
38-77-940, 38-77-950, and 38-77-960 are repealed on October 1, 1994.
SECTION 28. Section 38-77-111 of the 1976 Code, as added by Act
148 of 1989, is amended to read:
"Section 38-77-111. An automobile insurer may cede the
coverages of an automobile insurance policy that it is mandated to write
to the Reinsurance Facility Joint Underwriting
Association but it may not cede coverages under a policy that it is
not mandated by law to write except for tort liability and personal
protection coverages and uninsured motorist coverage for those risks
that do not qualify for the safe driver discount. However, if an
insurer cedes a coverage it is mandated to write by law, it shall cede all
coverages under that policy that it is mandated to write."
SECTION 29. If any provision of the act or the application thereof to
any person or circumstance is held to be unconstitutional or otherwise
invalid, the remainder of this act and the application of such provision
to other persons or circumstances are not affected thereby, and it is to be
conclusively presumed that the legislature would have enacted the
remainder of this act without such invalid or unconstitutional provision,
except that if Section 38-78-110 or Section 38-78-120 is found to be
unconstitutional or invalid it is to be conclusively presumed that the
legislature would not have enacted the remainder of this act without such
limitations, and the entire act is invalid. If Section 38-78-110 is found
to be unconstitutional or invalid, personal protection insurers have no
obligation to pay personal protection benefits with respect to accidents
occurring on or after the date of the finding of such unconstitutionality
or invalidity and, in addition, are subrogated to all of the rights of
personal protection insureds for all previous such benefits paid.
SECTION 30. Except as otherwise specifically provided herein, this
act takes effect upon approval by the Governor.
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