Current StatusView additional legislative information at the LPITS web site.Bill Number: 1218 Ratification Number: 567 Act Number 503 Introducing Body: Senate Subject: Definition of "underinsured motor vehicle"
(A503, R567, S1218)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-73-1105 SO AS TO PROVIDE THAT THE DEFINITION OF "UNDERINSURED MOTOR VEHICLE" CONTAINED IN SECTION 38-77-30 MAY NOT BE USED BY AN INSURER UNLESS THE INSURER REDUCES HIS RATE FOR UNDERINSURED MOTORIST COVERAGE BY AN AMOUNT DETERMINED APPROPRIATE BY THE CHIEF INSURANCE COMMISSIONER AND REFUNDS ANY PREMIUMS THAT THE COMMISSIONER DETERMINES IS NECESSARY TO CORRESPOND WITH THE NEW DEFINITION, PROVIDE THE CONDITIONS UNDER WHICH AN INSURER MAY USE THE DEFINITION IN ITS SETTLEMENT NEGOTIATIONS, AND TO PROVIDE A PENALTY FOR VIOLATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
"Underinsured motor vehicle"
SECTION 1. Article 9, Chapter 73, Title 38 of the 1976 Code is amended by adding:
"Section 38-73-1105. The definition of 'underinsured motor vehicle' contained in item (14) of Section 38-77-30 may not be used by an insurer unless the insurer reduces his rate for underinsured motorist coverage by an amount determined appropriate by the Commissioner and refunds any such premium that the Commissioner determines is necessary to correspond with the new definition. An insurer may not use the definition in its settlement negotiations unless the insurer has filed and the Commissioner has approved an endorsement to its contract. If an insurer uses the new definition in its negotiations with a person before having the contract endorsed it is an unfair claims practice and in addition is bad faith entitling the injured person to reasonable attorney fees, punitive damages, and all actual damages."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.