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Bill Number: 3534 Ratification Number: 403 Act Number 376 Introducing Body: House Subject: Definition of individual private passenger automobile
(A376, R403, H3534)
AN ACT TO AMEND SECTION 38-77-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF AUTOMOBILE INSURANCE, SO AS TO DEFINE "INDIVIDUAL PRIVATE PASSENGER AUTOMOBILE" FOR THESE PURPOSES, AND TO PROVIDE THAT SPECIALIZED INSURERS MAY NOT CEDE RISKS TO AND DOES NOT RECOUP LOSSES OF THE REINSURANCE FACILITY AND MAY BE EXCUSED FROM THE MERIT RATING PLAN AND THE CLASSIFICATION AND TERRITORIAL PLANS UPON APPROVAL OF THE COMMISSIONER.
Be it enacted by the General Assembly of the State of South Carolina:
Definition of individual private passenger automobile
SECTION 1. Section 38-77-30 of the 1976 Code is amended by adding the following item:
"(5.5) (a) 'Individual private passenger automobile' means the following types of motor vehicles owned by or leased under a long-term contract by an individual or individuals:
( i) motor vehicles of the private passenger type or station wagon type;
( ii) panel trucks, delivery sedans, vehicles with a pickup body, vans, or similar motor vehicles designed for use on streets and highways and so licensed; and
(iii) motor homes, so long as the motor vehicles described in (ii) and (iii) are not used in the occupation, profession, or business of the insured other than farming and ranching.
(b) A motor vehicle is not considered 'owned by or leased under a long-term contract by an individual or individuals' if the motor vehicle is owned by a partnership or corporation, unless the motor vehicle is owned by a farm family copartnership or a farm family corporation and is garaged principally on a farm or ranch.
(c) A motor vehicle is not considered 'used in the occupation, profession, or business of the insured', because it is used in the course of driving to and from work.
(d) Individual private passenger automobile does not include:
( i) motor vehicles that are used for public or livery conveyance or rented to others without a driver;
( ii) fire department vehicles, police vehicles, ambulances, and rescue squad vehicles which are publicly owned;
(iii) motorcycles, motor-driven cycles, motor scooters, and mopeds;
( iv) dune buggies, all terrain vehicles, go carts, and snowmobiles;
( v) golf carts; and
( vi) small commercial risks."
Provisions affecting specialized insurers
SECTION 2. Item 12 of Section 38-77-30 of the 1976 Code is amended to read:
"(12) 'Specialized insurer' means an insurer which specializes in certain types of business such as, but without limitation on the generality, commercial automobile business, and which may be relieved, with the approval of the Commissioner, of the obligation to write types of business inconsistent with this specialty, such as private passenger automobile business. However, no insurer may be approved as a specialized insurer or continue to be so approved unless it accepts all insurable risks falling within the types of business to which it confines its writings without distinctions among applicants or policyholders as to policy forms, terms, rates or services other than as the distinctions are reflected in the approved rating plan for the classification of risks. No insurer may be approved as a specialized insurer because it specializes in or purports to specialize in select or preferred risks. A specialized insurer may not cede risks to the Reinsurance Facility and thus does not recoup losses of the Facility. Specialized insurers may be excused from using the merit rating plan and the uniform classification and territorial plans upon approval by the Commissioner."
SECTION 3. This act takes effect upon approval by the Governor.