H*3985(Rat #0337, Act #0300 of 1996)  General Bill, By Richardson, Bailey, Cato, 
Mason and Simrill
 A Bill to amend Section 38-73-910, as amended, Code of Laws of South Carolina,
 1976, relating to insurance rates, rate-making, and rate filing and notice of
 hearing as a prerequisite to the granting of a rate increase and exceptions,
 so as to delete certain language and provisions, and to provide, among other
 things, that the notice shall state the amount of increase, the type and line
 of coverage, and the proposed effective date and shall allow any insured or
 affected party to request within fifteen days a public hearing upon the
 propriety of the rate increase request before the Administrative Law Judge
 Division.-amended title

   04/11/95  House  Introduced and read first time HJ-6
   04/11/95  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-6
   04/26/95  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-3
   05/02/95  House  Debate adjourned until Wednesday, May 10, 1995 HJ-20
   05/10/95  House  Read second time HJ-9
   05/11/95  House  Read third time and sent to Senate HJ-13
   05/11/95  Senate Introduced and read first time SJ-21
   05/11/95  Senate Referred to Committee on Banking and Insurance SJ-21
   03/05/96  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-11
   03/06/96  Senate Amended SJ-28
   03/06/96  Senate Read second time SJ-28
   03/06/96  Senate Ordered to third reading with notice of
                     amendments SJ-28
   04/10/96  Senate Read third time and returned to House with
                     amendments SJ-19
   04/17/96  House  Concurred in Senate amendment and enrolled HJ-58
   04/30/96         Ratified R 337
   05/07/96         Became law without Governor's signature
   05/07/96         Effective date 05/07/96
   05/16/96         Copies available
   05/16/96         Act No. 300

AN ACT TO AMEND SECTION 38-73-910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE RATES, RATE-MAKING, AND RATE FILING AND NOTICE OF HEARING AS A PREREQUISITE TO THE GRANTING OF A RATE INCREASE AND EXCEPTIONS, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND TO PROVIDE, AMONG OTHER THINGS, THAT THE NOTICE SHALL STATE THE AMOUNT OF INCREASE, THE TYPE AND LINE OF COVERAGE, AND THE PROPOSED EFFECTIVE DATE AND SHALL ALLOW ANY INSURED OR AFFECTED PARTY TO REQUEST WITHIN FIFTEEN DAYS A PUBLIC HEARING UPON THE PROPRIETY OF THE RATE INCREASE REQUEST BEFORE THE ADMINISTRATIVE LAW JUDGE DIVISION.

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

Notice of hearing; copy to Consumer Advocate; etc.

SECTION 1. Section 38-73-910 of the 1976 Code, as amended by Section 783 of Act 181 of 1993, is further amended to read:

"Section 38-73-910. No increase in the premium rates may be granted for automobile, workers' compensation, fire, allied lines, and homeowners' insurance, nor for any other line or type of insurance with respect to which the director or his designee has, by order, made a finding that (a) legal or other compulsion upon the part of the insured to purchase the insurance interferes with competition, or (b) under prevailing circumstances there does not exist substantial competition, unless notice is given in all newspapers of general, statewide circulation at least thirty days in advance of the insurer's proposed effective date of the increase in premium rates. The notice shall state the amount of increase, the type and line of coverage, and the proposed effective date and shall allow any insured or affected party to request within fifteen days a public hearing upon the propriety of the rate increase request before the Administrative Law Judge Division. A copy of the notice must be sent to the Consumer Advocate.

However, the requirements of public notices and public hearings in this section do not apply to applications for rate increases when the applicant insurer had earned premiums in this State in the previous calendar year of less than two million dollars for the line or type of insurance for which the rate increase is sought or, if the rate increase is sought by a rating organization, the earned premiums in this State for all members and subscribers of the organization for whom an increase is sought were less than two million dollars for the previous calendar year for the line or type of insurance for which the rate increase is sought. The two million dollars must be increased by a factor equal to the increase in the consumer price index, all items, every three years."

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

Became law without the signature of the Governor -- 5/7/96.