S 0789 General Bill, By Russell

Similar(H 3321)
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 38-57-75 so as to make it an unfair method of competition and unfair or
 deceptive act or practice for an insurer to contract or agree with any company
 or other business entity to manage, handle, or arrange insurance repair work
 or to act as an agent for the insurer in any manner where the company or
 entity sets a price which must be met by a repair shop as a condition of doing
 claims repair work for the insurer and then retains a percentage of the claim
 paid by the insurer.

   04/27/95  Senate Introduced and read first time SJ-2
   04/27/95  Senate Referred to Committee on Banking and Insurance SJ-2

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-57-75 SO AS TO MAKE IT AN UNFAIR METHOD OF COMPETITION AND UNFAIR OR DECEPTIVE ACT OR PRACTICE FOR AN INSURER TO CONTRACT OR AGREE WITH ANY COMPANY OR OTHER BUSINESS ENTITY TO MANAGE, HANDLE, OR ARRANGE INSURANCE REPAIR WORK OR TO ACT AS AN AGENT FOR THE INSURER IN ANY MANNER WHERE THE COMPANY OR ENTITY SETS A PRICE WHICH MUST BE MET BY A REPAIR SHOP AS A CONDITION OF DOING CLAIMS REPAIR WORK FOR THE INSURER AND THEN RETAINS A PERCENTAGE OF THE CLAIM PAID BY THE INSURER.

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

SECTION 1. The 1976 Code is amended by adding:

"Section 38-57-75. It is an unfair method of competition and an unfair or deceptive act or practice, and, therefore, illegal under this chapter, for an insurer to establish a contract or agreement with any company or other business entity to manage, handle, or arrange insurance repair work or to act as an agent for the insurer in any manner where the company or entity sets a price which must be met by a repair shop as a condition of doing claims repair work for the insurer and then retains a percentage of the claim paid by the insurer."

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