H*4493(Rat #0405, Act #0363)  General Bill, By J.J. Bailey, R.S. Corning, 
J.T. McElveen, Quinn and Scott

Similar(S 976)
 A Bill to amend Section 37-4-203, as amended, Code of Laws of South Carolina,
 1976, relating to consumer credit insurance, filing and approval of rates and
 forms, and credit life insurance premiums, so as to increase the minimum
 charge, and decrease the rate charged for credit life insurance in certain
 categories; to amend Section 37-2-202, as amended, relating to credit sales,
 maximum charges, and additional charges, so as to reference more than one
 consumer in the case of joint consumer credit insurance; and to amend Section
 37-3-202, as amended, relating to loans, maximum charges, and additional
 charges, so as to reference more than one debtor in the case of joint consumer
 credit insurance.-amended title

   01/13/94  House  Introduced and read first time HJ-269
   01/13/94  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-269
   03/23/94  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-5
   04/06/94  House  Amended HJ-36
   04/06/94  House  Read second time HJ-37
   04/07/94  House  Read third time and sent to Senate HJ-9
   04/12/94  Senate Introduced and read first time SJ-13
   04/12/94  Senate Referred to Committee on Banking and Insurance SJ-13
   04/12/94  Senate Recalled from Committee on Banking and Insurance SJ-32
   04/13/94  Senate Read second time SJ-29
   04/14/94  Senate Read third time and enrolled SJ-41
   04/27/94         Ratified R 405
   05/02/94         Signed By Governor
   05/02/94         Effective date 01/01/95
   05/10/94         Copies available

AN ACT TO AMEND SECTION 37-4-203, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONSUMER CREDIT INSURANCE, FILING AND APPROVAL OF RATES AND FORMS, AND CREDIT LIFE INSURANCE PREMIUMS, SO AS TO INCREASE THE MINIMUM CHARGE AND DECREASE THE RATE CHARGED FOR CREDIT LIFE INSURANCE IN CERTAIN CATEGORIES; TO AMEND SECTION 37-2-202, AS AMENDED, RELATING TO CREDIT SALES, MAXIMUM CHARGES, AND ADDITIONAL CHARGES, SO AS TO REFERENCE MORE THAN ONE CONSUMER IN THE CASE OF JOINT CONSUMER CREDIT INSURANCE; AND TO AMEND SECTION 37-3-202, AS AMENDED, RELATING TO LOANS, MAXIMUM CHARGES, AND ADDITIONAL CHARGES, SO AS TO REFERENCE MORE THAN ONE DEBTOR IN THE CASE OF JOINT CONSUMER CREDIT INSURANCE.

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

Minimum charge increased; decrease in rate

SECTION 1. Section 37-4-203(5) of the 1976 Code, as last amended by Act 142 of 1991, is further amended to read:

"(5) Credit life insurance premiums for each one hundred dollars of indebtedness are considered reasonable and may be charged if they are not greater than the amounts given in the following table times the number of years, or fraction of a year, that the indebtedness is scheduled to continue, subject to a minimum charge of three dollars:

Individual

Joint Insurance

More than one consumer; joint insurance coverage

SECTION 2. Section 37-2-202(2)(b) of the 1976 Code, as last amended by Act 142 of 1991, is further amended to read:

"(b) with respect to consumer credit insurance providing life, accident, health, or unemployment coverage, if the insurance coverage is not required by the creditor, and this fact is clearly and conspicuously disclosed in writing to the consumer, and if in order to obtain the insurance in connection with the extension of credit, the consumer, or two of them in the case of joint coverage, gives specific, dated, and separately signed affirmative written indication of his desire to do so after written disclosure to him of the cost of it with a statement similar to the following appearing in caps, underlined, or disclosed in another prominent manner with the consumer signature required by this section: CONSUMER CREDIT INSURANCE IS NOT REQUIRED TO OBTAIN CREDIT AND WILL NOT BE PROVIDED UNLESS YOU SIGN AND AGREE TO PAY THE ADDITIONAL COST; and"

More than one debtor; joint insurance coverage

SECTION 3. Section 37-3-202(2)(b) of the 1976 Code, as last amended by Act 142 of 1991, is further amended to read:

"(b) consumer credit insurance providing life, accident and health, or unemployment insurance coverage, if the insurance coverage is not required by the lender, and this fact is clearly and conspicuously disclosed in writing to the debtor, and if, in order to obtain the insurance in connection with the loan, the debtor, or two of them in the case of joint coverage, gives specific, dated, and separately signed affirmative written indication of his desire to do so after written disclosure to him of the cost thereof with a statement similar to the following appearing in caps, underlined, or disclosed in another prominent manner with the consumer signature required by this section: CONSUMER CREDIT INSURANCE IS NOT REQUIRED TO OBTAIN CREDIT AND WILL NOT BE PROVIDED UNLESS YOU SIGN AND AGREE TO PAY THE ADDITIONAL COST; and"

Time effective

SECTION 4. This act takes effect January 1, 1995.

Approved the 2nd day of May, 1994.