Current Status Introducing Body:House Bill Number:3554 Primary Sponsor:J. Bailey Committee Number:26 Type of Legislation:GB Subject:Motor vehicle insurance, provisions Residing Body:House Current Committee:Labor, Commerce and Industry Companion Bill Number:680 707 Date Tabled:Feb 18, 1992 Computer Document Number:NO5/7260.BD Introduced Date:Feb 20, 1991 Last History Body:House Last History Date:Feb 18, 1992 Last History Type:Tabled in Committee Scope of Legislation:Statewide All Sponsors:J. Bailey Corning McElveen Quinn Scott Type of Legislation:General Bill
Bill Body Date Action Description CMN
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3554 House Feb 18, 1992 Tabled in Committee 26
3554 House Feb 20, 1991 Introduced, read first time, 26
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-73-1425 SO AS TO PROVIDE FOR THE FINAL RATE OR PREMIUM CHARGE FOR A PRIVATE PASSENGER AUTOMOBILE INSURANCE RISK CEDED TO THE REINSURANCE FACILITY; TO AMEND SECTION 38-73-455, RELATING TO AUTOMOBILE INSURANCE RATES, SO AS TO LIMIT THE PROHIBITION ON MEMBER COMPANIES OF AN AFFILIATED GROUP OF AUTOMOBILE INSURERS IN UTILIZING DIFFERENT FILED RATES; TO AMEND SECTION 38-77-280, AS AMENDED, RELATING TO AUTOMOBILE COLLISION AND COMPREHENSIVE COVERAGE, SO AS TO AUTHORIZE THE REFUSAL TO WRITE CERTAIN COVERAGE; AND TO AMEND SECTION 38-77-950, AS AMENDED, RELATING TO USE OF THE REINSURANCE FACILITY BY AN INSURER, SO AS TO REQUIRE NOTICE TO POLICYHOLDERS OF CERTAIN RISKS CEDED TO THE FACILITY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-73-1425. The final rate or premium charge for a private passenger automobile insurance risk ceded to the facility which does not qualify for the safe driver discount in Section 38-73-760(e) is the final rate or premium charge required by Section 38-73-1420 or the final rate or premium charge approved for use by the insurer, whichever is greater."
SECTION 2. Section 38-73-455(C) of the 1976 Code is amended to read:
"(C) Member companies of an affiliated group of automobile insurers may not utilize different filed rates for automobile insurance coverages which they are mandated by law to write. For the purpose of this section, an affiliated group of automobile insurers includes any a group of automobile insurers under common ownership, management, or control. Those automobile insurers designated pursuant to Section 38-77-590(a), for automobile insurance risks written by them through producers designated by the facility governing board pursuant to that same section, shall utilize the rates or premium charges by coverage filed and authorized for use by the rating organization licensed by the commissioner pursuant to Article 11, Chapter 73 of this title, which has the largest number of members or subscribers for automobile insurance rates. However, those automobile insurers designated pursuant to Section 38-77-590(a) are not required to use those same rates or premium charges described in the preceding sentence for risks written by them through their duly authorized agents not appointed pursuant to Section 38-77-590."
SECTION 3. Section 38-77-280(B) of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:
"(B) Notwithstanding subsection (A) and Sections 38-77-110 and 38-77-920, automobile insurers may refuse to write automobile physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for any an applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other another operator not excluded in accordance with Section 38-77-340 and who resides in the same household, where one or more of the conditions or factors prescribed in Section 38-73-455 exist. In addition, automobile insurers may refuse to write physical damage insurance coverage to any an applicant or existing policyholder, on renewal, who has collected benefits provided under any automobile insurance physical damage coverage during the thirty-six months immediately preceding the effective date of coverage, for two or more total fire losses or two or more total theft losses. Automobile insurers may refuse to write for private passenger automobiles physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for an applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or another operator not excluded in accordance with Section 38-77-340 and who resides in the same household, which does not qualify for the safe driver discount in Section 38-73-760(e)."
SECTION 4. Section 38-77-950 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:
"Section 38-77-950. It is the intent of this chapter that the facility may must not be excessively nor unreasonably utilized by automobile insurers for unfairly competitive purposes or for purposes of unfairly discriminating against certain classes or types of automobile insurance risks having the same or similar objective risk characteristics as other risks in the same class under the rating plan for the classification of risks promulgated by the department, nor for the purpose of discriminating against such the risks or any risks in certain rating territories. The commissioner shall prohibit unreasonable or excessive utilization of the facility.
A prima facie case of excessive or unreasonable utilization is established upon a showing that an automobile insurance insurer or a group of such insurers under the same management has ceded or is about to cede more than thirty-five percent of total direct cedeable written premiums on South Carolina automobile insurance as reported in the most recently filed annual statement(s) of such the insurer or group.
Upon the written request of the policyholder, all insurance companies doing business in this State shall give written notice to the policyholder informing him whether or not he and any a driver under the policy is in the facility. Insurers shall give written notice to the policyholder of a risk ceded to the facility which does not qualify for the safe driver discount in Section 38-73-760(e)."
SECTION 5. Total direct cedeable written premiums as used in Section 38-77-950 of the 1976 Code, amended in this act, do not include premiums attributable to risks ceded to the facility that do not qualify for the safe driver discount in Section 38-73-760(e) for twenty-four months following the effective date of this act.
SECTION 6. Upon approval by the Governor, this act takes effect on October 1, 1991. However, insurers may file rates with the Chief Insurance Commissioner before October 1, 1991, as necessary to conform to the provisions of this act.