S 643 Session 111 (1995-1996)
S 0643 General Bill, By Thomas
A Bill to amend Section 38-77-160, as amended, Code of Laws of South Carolina,
1976, relating to the automobile insurance law, additional uninsured motorist
coverage, and underinsured motorist coverage, so as to delete certain
provisions, including the provision that if 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
an accident; and to amend the 1976 Code by adding Section 38-77-162 so as to
define "Class 1 insured" and "Class II insured" and provide, among other
things, that Class 1 insureds may stack uninsured or underinsured motorist
coverage up to the limits on the vehicle involved in an accident and that
Class II insureds may not stack uninsured or underinsured motorist coverage
and may collect only such coverage on the vehicle they are occupying and one
endorsement from any of the insured's personal policies.
03/16/95 Senate Introduced and read first time SJ-5
03/16/95 Senate Referred to Committee on Banking and Insurance SJ-5
A BILL
TO AMEND SECTION 38-77-160, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
AUTOMOBILE INSURANCE LAW, ADDITIONAL
UNINSURED MOTORIST COVERAGE, AND UNDERINSURED
MOTORIST COVERAGE, SO AS TO DELETE CERTAIN
PROVISIONS, INCLUDING THE PROVISION THAT IF 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 AN ACCIDENT;
AND TO AMEND THE 1976 CODE BY ADDING SECTION
38-77-162 SO AS TO DEFINE "CLASS I INSURED"
AND "CLASS II INSURED" AND PROVIDE,
AMONG OTHER THINGS, THAT CLASS I INSUREDS MAY
STACK UNINSURED OR UNDERINSURED MOTORIST
COVERAGE UP TO THE LIMITS ON THE VEHICLE
INVOLVED IN AN ACCIDENT AND THAT CLASS II
INSUREDS MAY NOT STACK UNINSURED OR
UNDERINSURED MOTORIST COVERAGE AND MAY
COLLECT ONLY SUCH COVERAGE ON THE VEHICLE THEY
ARE OCCUPYING AND ONE ENDORSEMENT FROM ANY OF
THE INSURED'S PERSONAL POLICIES.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 38-77-160 of the 1976 Code, as last
amended by Act 461 of 1994, is further amended to read:
"Section 38-77-160. Automobile insurance carriers shall
offer, at the option of the insured, uninsured 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 or in excess of any damages cap or limitation imposed by
statute. 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. Benefits paid pursuant to this
section are not subject to subrogation and assignment.
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."
SECTION 2. The 1976 Code is amended by adding:
"Section 38-77-162. (1) Class I insureds may stack
uninsured or underinsured motorist coverage up to the limits on the
vehicle involved in the accident. In the event the Class I insured is
a pedestrian or otherwise not occupying an owned vehicle, the
insured may stack uninsured or underinsured motorist coverage up
to the lesser coverage provided by any insured endorsement.
(2) A `Class I insured' means:
(a) a person occupying an owned vehicle;
(b) a person occupying a vehicle owned by a resident
relative;
(c) a pedestrian; or
(d) a person occupying a bicycle or other means of
transportation that does not constitute a motor vehicle.
(3) Class II insureds may not stack uninsured or underinsured
motorist coverage and may collect only such coverage on the
vehicle they are occupying and one endorsement from any of the
insured's personal policies. If the insured is protected by different
automobile insurance carriers, the payment must be prorated equally
among all carriers which provide coverage to the insured.
(4) A `Class II insured' means a guest passenger occupying a
vehicle which is not owned by that person nor owned by a resident
relative of that person."
SECTION 3. This act takes effect upon approval by the
Governor.
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