S*0666(Rat #0059, Act #0047 of 2015)  General Bill, By Hayes
 AN ACT TO AMEND SECTION 38-39-70, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO MATTERS THAT MAY BE INCLUDED IN INSURANCE PREMIUM SERVICE
 AGREEMENTS, SO AS TO PROVIDE THESE AGREEMENTS ALSO MAY INCLUDE INTEREST ON
 MITIGATION LOANS AS APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR
 HIS DESIGNEE AND TO PROVIDE INTEREST CHARGES RELATED TO MITIGATION PROJECTS OR
 LOANS MUST BE LIMITED TO THE STATUTORY LEGAL RATE OF INTEREST; AND TO AMEND
 SECTION 38-39-80, RELATING TO ACTIVITIES PROHIBITED OF INSURANCE PREMIUM
 SERVICE COMPANIES, SO AS TO PROVIDE INSURANCE PREMIUM SERVICE COMPANIES MAY
 NOT WRITE INSURANCE OR SELL OTHER SERVICES OR COMMODITIES IN CONNECTION WITH A
 PREMIUM SERVICE AGREEMENT EXCEPT AS APPROVED BY THE DIRECTOR OR HIS DESIGNEE
 FOR MITIGATION PURPOSES. - ratified title

   04/15/15  Senate Introduced and read first time (Senate Journal-page 3)
   04/15/15  Senate Referred to Committee on Banking and Insurance
                     (Senate Journal-page 3)
   04/23/15  Senate Committee report: Favorable Banking and Insurance
                     (Senate Journal-page 11)
   04/28/15  Senate Read second time (Senate Journal-page 31)
   04/28/15  Senate Roll call Ayes-40  Nays-1 (Senate Journal-page 31)
   04/29/15  Senate Read third time and sent to House
                     (Senate Journal-page 42)
   04/30/15  House  Introduced and read first time (House Journal-page 33)
   04/30/15  House  Referred to Committee on Labor, Commerce and
                     Industry (House Journal-page 33)
   05/21/15  House  Recalled from Committee on Labor, Commerce and
                     Industry (House Journal-page 24)
   05/26/15  House  Read second time (House Journal-page 40)
   05/26/15  House  Roll call Yeas-76  Nays-3 (House Journal-page 40)
   05/27/15  House  Read third time and enrolled (House Journal-page 7)
   05/28/15         Ratified R 59
   06/03/15         Signed By Governor
   06/08/15         Effective date 06/03/15
   06/09/15         Act No. 47

(A47, R59, S666)

AN ACT TO AMEND SECTION 38-39-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MATTERS THAT MAY BE INCLUDED IN INSURANCE PREMIUM SERVICE AGREEMENTS, SO AS TO PROVIDE THESE AGREEMENTS ALSO MAY INCLUDE INTEREST ON MITIGATION LOANS AS APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE AND TO PROVIDE INTEREST CHARGES RELATED TO MITIGATION PROJECTS OR LOANS MUST BE LIMITED TO THE STATUTORY LEGAL RATE OF INTEREST; AND TO AMEND SECTION 38-39-80, RELATING TO ACTIVITIES PROHIBITED OF INSURANCE PREMIUM SERVICE COMPANIES, SO AS TO PROVIDE INSURANCE PREMIUM SERVICE COMPANIES MAY NOT WRITE INSURANCE OR SELL OTHER SERVICES OR COMMODITIES IN CONNECTION WITH A PREMIUM SERVICE AGREEMENT EXCEPT AS APPROVED BY THE DIRECTOR OR HIS DESIGNEE FOR MITIGATION PURPOSES.

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

Inclusion of mitigation loan interest on premium service agreements

SECTION    1.    Section 38-39-70(c) of the 1976 Code is amended to read:

"(c)    A premium service contract may include policy premiums, policy fees, agent commissions and fees, premium taxes, inspection fees, charges for motor vehicle (driving record) or property charges and claims history reports, and other automobile related services. All amounts must be disclosed on the premium service agreement. It also may include interest on mitigation loans as approved by the director or his designee. Any interest charges related to mitigation projects or loans must be limited to the legal rate of interest as set forth in Section 34-31-20(B)."

Prohibited activities, exceptions

SECTION    2.    Section 38-39-80(a) of the 1976 Code is amended to read:

"(a)    A premium service company may not write any insurance or sell any other service or commodity in connection with a premium service contract, except as approved by the director or his designee for mitigation purposes."

Time effective

SECTION    3.    This act takes effect upon approval by the Governor.

Ratified the 28th day of May, 2015.

Approved the 3rd day of June, 2015.