S 0385 General Bill, By A.S. Macaulay
 A Bill to amend Section 38-77-280, as amended, Code of Laws of South Carolina,
 1976, relating to collision, comprehensive, fire, theft, and combined
 additional motor vehicle liability insurance coverage, so as to make it
 optional for insurers to offer collision coverage and either comprehensive or
 fire, theft, and combined additional coverage; to provide that all insurers
 writing single interest collision coverage shall provide an applicant for this
 insurance with a certain notice that must be signed by the applicant; and to
 provide that all insurers shall submit rate filings within twelve months
 following the effective date of this Act which must reflect the rate
 decreases, if any, attributable to the passage of this Act.

   12/10/90  Senate Prefiled
   12/10/90  Senate Referred to Committee on Banking and Insurance
   01/08/91  Senate Introduced and read first time SJ-128
   01/08/91  Senate Referred to Committee on Banking and Insurance SJ-12
   02/26/91  Senate Committee report: Favorable Banking and Insurance SJ-11
   03/28/91  Senate Read second time SJ-12
   03/28/91  Senate Ordered to third reading with notice of
                     amendments SJ-12
   01/15/92  Senate Amended SJ-190
   01/15/92  Senate Debate adjourned SJ-192
   01/16/92  Senate Read third time and sent to House SJ-25
   01/21/92  House  Introduced and read first time HJ-9
   01/21/92  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-9
   01/22/92  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-3
   01/23/92  House  Debate adjourned until Wednesday, January 29,
                     1992 HJ-670
   01/29/92  House  Objection by Rep. White, D. Williams, J. Brown,
                     Scott, Beatty, Anderson, HJ-22
   01/29/92  House  Objection by Rep. Kennedy, McLeod, Taylor &
                     Glover HJ-22
   02/12/92  House  Objection withdrawn by Rep. White & D. Williams HJ-35
   04/07/92  House  Debate adjourned until Wednesday, April 8, 1992 HJ-40
   04/08/92  House  Amended HJ-33
   04/08/92  House  Debate adjourned until Wednesday, April 15, 1992 HJ-76
   04/15/92  House  Objection withdrawn by Rep. McLeod HJ-41
   04/15/92  House  Debate adjourned until Wednesday, April 22, 1992 HJ-52
   04/22/92  House  Objection withdrawn by Rep. Beatty HJ-40
   04/22/92  House  Objection by Rep. TC Alexander, L Martin,
                     Hendricks, Cato & Smith HJ-40
   05/05/92  House  Debate interrupted HJ-108
   05/06/92  House  Debate interrupted HJ-126
   05/12/92  House  Debate interrupted HJ-39
   05/14/92  House  Retaining place on calendar recommitted to
                     Committee on Labor, Commerce and Industry HJ-321
   05/20/92  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-5
   06/02/92  House  Amended HJ-78
   06/02/92  House  Debate interrupted HJ-82

AMENDED--NOT PRINTED IN THE HOUSE

n05\8621.bd--385h.1A

June 2, 1992

S. 385

S. Printed 5/20/92--H.

Read the first time January 21, 1992.

A BILL

TO AMEND SECTION 38-77-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLISION, COMPREHENSIVE, FIRE, THEFT, AND COMBINED ADDITIONAL MOTOR VEHICLE LIABILITY INSURANCE COVERAGE, SO AS TO MAKE IT OPTIONAL FOR INSURERS TO OFFER COLLISION COVERAGE AND EITHER COMPREHENSIVE OR FIRE, THEFT, AND COMBINED ADDITIONAL COVERAGE; TO PROVIDE THAT ALL INSURERS WRITING SINGLE INTEREST COLLISION COVERAGE SHALL PROVIDE AN APPLICANT FOR THIS INSURANCE WITH A CERTAIN NOTICE THAT MUST BE SIGNED BY THE APPLICANT; AND TO PROVIDE THAT ALL INSURERS SHALL SUBMIT RATE FILINGS WITHIN TWELVE MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS ACT WHICH MUST REFLECT THE RATE DECREASES, IF ANY, ATTRIBUTABLE TO THE PASSAGE OF THIS ACT.

Amend Title To Conform

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

SECTION 1. The 1976 Code is amended by adding:

"Section 38-77-282. A refusal to write or renew physical damage coverage based in whole or in part on race, sex, religion, national origin, economic status, residence, or lawful occupation is unlawful. An insurer or agent who refuses to write or renew or cancels physical damage coverage shall provide the reasons for the action in writing."

SECTION 2. The 1976 Code is amended by adding:

"Section 38-77-284. (A) Not later than ninety days after the effective date of this section, insurers of automobile insurance shall file with the commissioner revised rates for private passenger automobile physical damage insurance coverages written by them. Each insurer shall file a:

(1) `preferred' rate by driver classification and territory which is a rate less than the `standard' rate;

(2) `standard' rate which must be the approved base rate as defined in Section 38-73-457 by driver classification and territory in effect July 1, 1992;

(3) `substandard' rate by driver classification and territory which is a rate more than the `standard' rate.

(B) The commissioner shall approve the rates filed pursuant to subsection (A) if they meet the requirements, and these rates become effective for all policies of automobile insurance issued or renewed with effective dates after September 30, 1992.

(C) Insurers of automobile insurance may place an automobile risk at any of the three rate levels for physical damage coverages without restriction. However, the Uniform Merit Rating Plan continues to apply to all risks written by them.

(D) An insurer or agent shall provide written notice to the insured of the tier at which physical damage coverage is being written for the insured and the reasons the insured was written in that particular tier."

SECTION 3. 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, at 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 another 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 an applicant or existing policyholder, on renewal, who has collected benefits provided under 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 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 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, 1992, 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, 1992, no private passenger automobile physical damage insurance coverage may be ceded to the facility."

SECTION 4. This act takes effect upon approval by the Governor.