Current Status Introducing Body:Senate Bill Number:138 Primary Sponsor:Rose Committee Number:02 Type of Legislation:GB Subject:Motor vehicle insurance claim mediation Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:BBM/9018JM.93 Introduced Date:19930112 Last History Body:Senate Last History Date:19930112 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Rose Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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138 Senate 19930112 Introduced, read first time, 02
referred to Committee
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TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, BY ADDING CHAPTER 78 SO AS TO ESTABLISH MOTOR VEHICLE INSURANCE CLAIM MEDIATION PROCEDURES, INCLUDING A VOLUNTARY MOTOR VEHICLE DISPUTE PROCEDURE AT THE DEPARTMENT OF INSURANCE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 38 of the 1976 Code is amended by adding:
Section 38-78-10. For purposes of this chapter:
(1) `Dispute' is disagreement or dissatisfaction between a claimant and an insurance company licensed to do business in South Carolina arising from the rejection of a claim or an offer of settlement.
(2) `Department' means South Carolina Department of Insurance.
(3) `Claimant' means any person who has filed a notice of claim against an insurance company.
(4) `Motor Vehicle' is as defined in Section 38-77-30(7).
Section 38-78-20. Any person involved in a motor vehicle accident dispute must file with the department a written notice of claim before commencing any civil litigation involving that dispute. This notice of claim must provide the identity, address, and telephone number of the claimant; to the extent known by the claimant, the date and location of the motor vehicle accident; the identity of the persons and insurance companies involved; the nature and basis of the claim; the amount being claimed; and any other information required by the department.
Section 38-78-30. Upon receiving a notice of claim the department must provide all insurance companies involved in the claim, as they become known to be involved, a copy of all information provided to the department by the claimant, and the department must investigate and collect whatever information about the claim it considers appropriate and provide that information to those insurance companies and to the claimant. The claimant and all insurance companies involved must furnish whatever information within their possession as may be requested by the department and must cooperate with the department in investigating the claim.
Section 38-78-40. As soon as practicable after receiving a claim, the department must solicit from insurance companies known to be involved in the dispute any offers of settlement of the claim and promptly communicate to the claimant in writing all offers of settlement received by the department from any insurance company. All offers of settlement by an insurance company are valid for at least fifteen days after communication of the offer to the claimant by the department or the insurance company by United States mail. All written notifications from the department to a claimant about the existence of a settlement offer must be accompanied by a written statement that the claimant is not obligated to accept the offer and may file a lawsuit in lieu of accepting the offer; that if a lawsuit is filed and a lawyer is retained to represent the claimant regarding the lawsuit, the claimant may be required to pay twenty-five percent to fifty percent of the amount of recovery to the lawyer as attorney fees and costs of the lawsuit; and that the claimant may obtain more money by accepting the offer than by bringing a lawsuit seeking a greater recovery.
Section 38-78-50. The department shall make reasonable efforts to investigate and settle a claim. If an offer from an insurance company is accepted by a claimant, the department shall cause the insurance company and the claimant to sign promptly a settlement agreement form devised by the department memorializing the settlement, a copy of which must be provided to all parties. Subsequently, the department shall cause the insurance company to promptly pay the claimant the money offered and accepted as settlement of the claim, and take appropriate action against the insurance company if the claim is not paid in full within thirty days of the signing of the form.
Section 38-78-60. If an insurance company and a claimant have not signed a form memorializing settlement of the claim within one hundred twenty days of receipt by the department of the claim, the claimant may file any lawsuit regarding the claim to the extent permitted notwithstanding this chapter. No court shall have jurisdiction over any lawsuit regarding a claim involving a motor vehicle accident dispute until the claimant has substantially complied with the provisions of this section and one hundred twenty days have elapsed after the receipt by the department of a claim in accordance with the requirements of this section. Any civil litigation must be dismissed without prejudice if the claimant has failed to comply substantially with this section. All statutes of limitation are tolled for one hundred twenty days after receipt by the department of a notice of claim as provided in this section. No attorney may receive more than two hundred dollars for providing legal services to a claimant prior to the commencement of litigation regarding the claim after substantial compliance by the claimant with this section.
Section 38-78-70. All licensed insurance companies have an affirmative duty to provide claimants with written information about the mediation process, in a manner directed by the department, at the time that a claim is rejected or a settlement offer is tendered. This written notification must include information regarding the mediation procedure provided in this chapter; information that mediation settlements may enable a claimant to avoid costly litigation, including the loss of twenty-five percent to fifty percent of any settlement or judgment as attorney fees and costs; and any forms prescribed by the department for filing a notice of claim with the department."
SECTION 2. This act takes effect upon approval by the Governor.