S 0997 General Bill, By McConnell, Matthews, Courtney, Patterson, Reese, Hayes, 
Jackson and Passailaigue
 A BILL TO AMEND SECTION 38-77-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO DEFINITIONS REGARDING AUTOMOBILE INSURANCE, SO AS TO DEFINE,
 AMONG OTHER TERMS, "AFTER-MARKET CRASH PART" AND "CRASH PART"; AND BY ADDING
 SECTIONS 38-77-246 THROUGH 38-77-256 SO AS TO PRESCRIBE THE CONDITIONS UNDER
 WHICH AN INSURER MAY REQUIRE THE USE OF AFTER-MARKET CRASH PARTS IN VEHICLE
 REPAIR, TO REQUIRE DISCLOSURE OF THE REQUIRED USE OF SUCH PARTS, AND TO
 PROVIDE PENALTIES.

   01/11/00  Senate Introduced and read first time SJ-54
   01/11/00  Senate Referred to Committee on Banking and Insurance SJ-54
   01/20/00  Senate Committee report: Favorable Banking and Insurance SJ-10
   02/01/00  Senate Read second time SJ-11
   02/01/00  Senate Ordered to third reading with notice of
                     amendments SJ-11
   02/09/00  Senate Read third time and sent to House SJ-34
   02/10/00  House  Introduced and read first time HJ-6
   02/10/00  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-7

January 20, 2000

S. 997

Introduced by Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue

S. Printed 1/20/00--S. [SEC 1/26/00 4:38 PM]

Read the first time January 11, 2000.

To whom was referred a Bill (S. 997), to amend Section 38-77-30, as amended, Code of Laws of South Carolina, 1976, relating to definitions regarding automobile insurance, so as to define, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

EDWARD E. SALEEBY, for Committee.

TO AMEND SECTION 38-77-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS REGARDING AUTOMOBILE INSURANCE, SO AS TO DEFINE, AMONG OTHER TERMS, "AFTER-MARKET CRASH PART" AND "CRASH PART"; AND BY ADDING SECTIONS 38-77-246 THROUGH 38-77-256 SO AS TO PRESCRIBE THE CONDITIONS UNDER WHICH AN INSURER MAY REQUIRE THE USE OF AFTER-MARKET CRASH PARTS IN VEHICLE REPAIR, TO REQUIRE DISCLOSURE OF THE REQUIRED USE OF SUCH PARTS, AND TO PROVIDE PENALTIES.

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

SECTION 1. Section 38-77-30 of the 1976 Code is amended by adding at the end:

"(16) 'After-market crash part' means a crash part made by or for a manufacturer other than the manufacturer for the vehicle.

(17) 'Claimant' means a first-party claimant or a third-party claimant.

(18) 'Automobile insurer' means an insurer as defined in Section 38-1-20(25) that writes automobile insurance coverages.

(19) 'Crash part' means a sheet metal or plastic part that generally is a component of the exterior of a motor vehicle, which includes an inner or outer panel."

SECTION 2. The 1976 Code is amended by adding:

"Section 38-77-246. An automobile insurer may not require the use of an after-market part in the repair of a motor vehicle as a condition of payment under a policy covering damages to the motor vehicle unless the after-market crash part is at least equal to the original part in terms of function and warranty. An insurer that specifies the use of after-market crash parts must include in the costs for repairs the costs of any modifications necessary to attain satisfactory fit, finish, and corrosion protection.

Section 38-77-248. No automobile insurance policy or contract may be issued or delivered unless it contains a provision by endorsement, or otherwise, authorizing the insurer to require the use of auto after-market crash parts. The provision must be in at least 14-point type. A provision that is substantially similar to the following complies with the requirements of this section:

'If we pay for repairs on your car, we may require the use of parts not made by or for your car's manufacturer. Those parts must be at least equal to the original part in terms of function and warranty. We will pay to ensure that the parts have satisfactory fit, finish, and corrosion protection'.

Section 38-77-250. An automobile insurer which requires use or installation of after-market crash parts must disclose to a claimant in writing, either on the estimate for repairs or on a separate document attached to the estimate, the following information in at least 14 point type:

'This estimate may have been made using after-market crash parts. These parts were not made by or for the manufacturer of your car. These parts must be at least equal to the original part in terms of function and warranty. We will pay to ensure that the parts have satisfactory fit, finish, and corrosion protection. Questions concerning this issue should be directed to the South Carolina Department of Insurance'.

Section 38-77-252. After-market crash parts installed on a motor vehicle must be clearly identified on the estimate and invoice for repair.

Section 38-77-254. An automobile part that is not made by or for the manufacturer must have affixed or inscribed on it the logo or name of the manufacturer and, when practical, the logo or name of the manufacturer must be visible.

Section 38-77-256. The director or his designee may impose any of the penalties provided in Section 38-2-10 for a violation of Sections 38-77-246, 38-77-248, 38-77-250, 38-77-252, 38-77-254, or 38-77-256.

SECTION 3. This act takes effect 180 days after approval by the Governor.