Current Status Bill Number:1142 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19960214 Primary Sponsor:Banking and Insurance Committee SBI 02 All Sponsors:Banking and Insurance Committee Drafted Document Number:bbm\10552jm.96 Companion Bill Number:4658 Residing Body:Senate Subject:Uninsured Motorist Fund
Body Date Action Description Com Leg Involved
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Senate 19960529 Read second time, notice of
general amendments, carrying over
all amendments to third reading
Senate 19960314 Made Special Order
Senate 19960214 Introduced, read first time,
placed on Calendar without reference
View additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
INTRODUCED
February 14, 1996
S. 1142
S. Printed 2/14/96--S.
Read the first time February 14, 1996.
TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT AND DEFINITIONS, SO AS TO ADD A DEFINITION FOR "UNINSURED MOTORIST FUND"; TO AMEND CHAPTER 10, TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION AND FINANCIAL SECURITY, BY ADDING ARTICLE 5 SO AS TO PROVIDE FOR THE ESTABLISHMENT OF AN UNINSURED MOTORIST FUND; TO AMEND SECTION 38-73-470, AS AMENDED, RELATING TO THE DISPOSITION OF THE UNINSURED MOTORIST PREMIUM, SO AS TO PROVIDE THAT ONE DOLLAR OF THIS YEARLY PREMIUM IS DIRECTED TO BE PAID TO THE DEPARTMENT OF PUBLIC SAFETY FOR THE ESTABLISHMENT OF THE "UNINSURED ENFORCEMENT FUND"; TO AMEND SECTION 38-73-910, AS AMENDED, RELATING TO NOTICE OF HEARING AS A PREREQUISITE TO GRANTING OF RATE INCREASES FOR AUTOMOBILE INSURANCE AND CERTAIN OTHER TYPES OF INSURANCE, SO AS TO PROVIDE THAT THE REQUIREMENT OF THIS SECTION IS ABATED UNTIL JANUARY 1, 1998; TO AMEND THE 1976 CODE BY ADDING SECTION 38-73-736 SO AS TO PROVIDE THAT ANY SCHEDULE OF RATES, RATE CLASSIFICATIONS, OR RATING PLANS FOR AUTOMOBILE INSURANCE SHALL PROVIDE FOR AN APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR INSURED PERSONS WHO ARE FIFTY-FIVE YEARS OF AGE AND OLDER AND WHO QUALIFY UNDER SECTION 38-73-737; TO AMEND SECTION 38-77-10, AS AMENDED, RELATING TO THE PURPOSES OF CHAPTER 77, TITLE 38, ON AUTOMOBILE INSURANCE, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE THAT THERE SHALL BE AN ASSIGNED RISK PLAN, KNOWN AS THE "SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN"; TO AMEND SECTION 38-77-30, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND DEFINITIONS, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE A DEFINITION FOR "CANCELLATION" OR "TO CANCEL" AND FOR "INSTITUTIONAL SOURCE", "INSURER-SUPPORT ORGANIZATION", AND "POLICY OF AUTOMOBILE INSURANCE" OR "POLICY"; TO AMEND SECTION 38-77-110, AS AMENDED, FROM JANUARY, 1997, TO SEPTEMBER 30, 1997, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS MUST INSURE AND EXCEPTIONS, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT AUTOMOBILE INSURERS OTHER THAN INSURERS DESIGNATED AND APPROVED AS SPECIALIZED INSURERS BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE MAY NOT REFUSE TO RENEW AUTOMOBILE INSURANCE POLICIES FOR INDIVIDUAL PRIVATE PASSENGER AUTOMOBILES OR SMALL COMMERCIAL RISKS EXCEPT FOR REASONS SPECIFIED IN SECTION 38-77-123, AND TO PROVIDE THAT, AFTER SEPTEMBER 30, 1997, SECTION 38-77-110 IS REPEALED; TO AMEND SECTION 38-77-112, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND THE REQUIREMENT THAT AN INSURANCE APPLICANT OR POLICYHOLDER MUST HAVE A DRIVER'S LICENSE AND EXCEPTIONS, SO AS TO, AMONG OTHER THINGS, DELETE REFERENCES TO CERTAIN CODE SECTIONS AND PROVIDE THAT, AT THE TIME OF APPLICATION, AN INSURER OR AN AGENT SHALL RETAIN FOR THREE YEARS THE DRIVER'S LICENSE NUMBERS FOR ALL APPLICANTS WHO WERE REFUSED COVERAGE AND SHALL FURNISH THIS INFORMATION UPON THE REQUEST OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE; TO AMEND SECTION 38-77-120, AS AMENDED, RELATING TO THE REQUIREMENTS FOR NOTICE OF CANCELLATION OF OR REFUSAL TO RENEW AN AUTOMOBILE INSURANCE POLICY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE NOTICE SHALL PROVIDE FOR THE NOTIFICATION REQUIRED BY SECTION 38-77-390(b), THAT THOSE NOTIFICATION REQUIREMENTS DO NOT APPLY WHEN THE POLICY IS BEING CANCELED OR NOT RENEWED FOR THE REASON SET FORTH IN SECTION 38-77-123(b), AND THAT THE NOTICE SHALL INFORM THE INSURED OF HIS RIGHT TO REQUEST IN WRITING WITHIN FIFTEEN DAYS OF THE RECEIPT OF THE NOTICE THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE REVIEW THE ACTION OF THE INSURER; TO AMEND THE 1976 CODE BY ADDING SECTIONS 38-77-121, 38-77-122, 38-77-123, 38-77-124, 38-77-141, 38-77-142, 38-77-143, 38-77-151, 38-77-154, AND 38-77-155 SO AS TO ENACT PROVISIONS PROVIDING, AMONG OTHER THINGS, THAT ANY APPLICATION FOR THE ORIGINAL ISSUANCE OF A POLICY OF AUTOMOBILE INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE DEFINED IN SECTION 38-77-30 THAT REQUIRES THE INSURED TO DISCLOSE INFORMATION AS TO ANY PREVIOUS CANCELLATION OR REFUSAL TO RENEW SHALL ALSO PERMIT THE INSURED TO OFFER OR PROVIDE A FULL EXPLANATION OF THE REASON FOR THE CANCELLATION OR REFUSAL TO RENEW, THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE AN AUTOMOBILE INSURANCE POLICY AS DEFINED IN SECTION 38-77-30 SOLELY BECAUSE OF CERTAIN SPECIFIED FACTORS, THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE, OR FAIL TO RENEW, A POLICY OF MOTOR VEHICLE LIABILITY INSURANCE SOLELY BECAUSE OF THE AGE OF THE MOTOR VEHICLE TO BE INSURED SO LONG AS THE VEHICLE IS LICENSED, AND THAT MONIES DISTRIBUTED ANNUALLY FROM THE UNINSURED MOTORIST FUND MUST BE DISTRIBUTED IN THE PROPORTION THAT EACH INSURER'S PREMIUM INCOME FOR THE BASIC UNINSURED MOTORISTS LIMITS COVERAGE BEARS TO THE TOTAL PREMIUM INCOME FOR BASIC UNINSURED MOTORISTS LIMITS COVERAGE WRITTEN IN THIS STATE DURING THE PRECEDING YEAR; TO AMEND SECTION 38-77-140, RELATING TO AUTOMOBILE INSURANCE AND BODILY INJURY AND PROPERTY DAMAGE LIMITS, SO AS TO INCREASE THE MINIMUM PROPERTY DAMAGE COVERAGE; TO AMEND SECTION 38-77-150, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST PROVISION, AND THE DEFENSE OF AN ACTION BY AN INSURER, SO AS TO INCREASE THE MINIMUM AMOUNT OF UNINSURED MOTORIST COVERAGE, AND PROVIDE THAT BENEFITS PAID PURSUANT TO THIS SECTION ARE SUBJECT TO SUBROGATION AND ASSIGNMENT IF AN UNINSURED MOTORIST HAS SELECTED THE "FIVE HUNDRED DOLLAR OPTION"; TO AMEND SECTION 38-77-280, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND COLLISION AND COMPREHENSIVE COVERAGES, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE THAT ANY AUTOMOBILE INSURER MAY MAKE COLLISION COVERAGE AND EITHER COMPREHENSIVE OR FIRE, THEFT, AND COMBINED ADDITIONAL COVERAGE AVAILABLE TO AN INSURED OR QUALIFIED APPLICANT WHO REQUESTS THE COVERAGE, AND TO AMEND THE CODE SECTION FOR THE PERIOD FROM JANUARY 1, 1997, TO SEPTEMBER 30, 1997, BY PROVIDING AN EXCEPTION WITH RESPECT TO THE REASONS SPECIFIED IN SECTION 38-77-123; TO AMEND SECTION 38-77-350, AS AMENDED, RELATING TO THE FORM TO BE USED WHEN OPTIONAL AUTOMOBILE INSURANCE COVERAGES ARE OFFERED, SO AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE PROVISION THAT A POLICY OF AUTOMOBILE OFFERED OR ISSUED BY A NEW SERVICING CARRIER FOR THE SOUTH CAROLINA REINSURANCE FACILITY TO REPLACE A POLICY PREVIOUSLY ISSUED BY A FORMER SERVICING CARRIER AND CONTAINING THE SAME COVERAGE LIMITS AS THE FORMER POLICY CONSTITUTES A VALID REPLACEMENT POLICY THAT DOES NOT REQUIRE THE NEW SERVICING CARRIER OR AGENT TO MAKE A NEW OFFER OF COVERAGE OR TO OBTAIN A NEW APPLICATION FROM THE INSURED; TO AMEND THE 1976 CODE BY ADDING SECTIONS 38-77-370, 38-77-380, AND 38-77-390 SO AS TO ENACT PROVISIONS PROVIDING, AMONG OTHER THINGS, THAT, IF AN INDIVIDUAL SUBMITS A WRITTEN REQUEST TO AN INSURER, AGENT, OR INSURANCE-SUPPORT ORGANIZATION FOR ACCESS TO CERTAIN RECORDED PERSONAL INFORMATION ABOUT THE INDIVIDUAL, THE INSURER, AGENT, OR INSURANCE-SUPPORT ORGANIZATION SHALL DO CERTAIN SPECIFIED THINGS WITHIN THIRTY BUSINESS DAYS FROM THE DATE THE REQUEST IS RECEIVED, THAT AN INSURER, AGENT, OR INSURANCE-SUPPORT ORGANIZATION SHALL DO CERTAIN SPECIFIED THINGS WITHIN THIRTY BUSINESS DAYS FROM THE DATE OF RECEIPT OF A WRITTEN REQUEST FROM AN INDIVIDUAL TO CORRECT, AMEND, OR DELETE ANY RECORDED PERSONAL INFORMATION ABOUT THE INDIVIDUAL WITHIN ITS POSSESSION, AND THAT, IN THE EVENT OF AN ADVERSE UNDERWRITING DECISION, THE INSURER OR AGENT RESPONSIBLE FOR THE DECISION SHALL GIVE A WRITTEN NOTICE IN A FORM APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE THAT PROVIDES THE APPLICANT, POLICYHOLDER, OR INDIVIDUAL PROPOSED FOR COVERAGE CERTAIN INFORMATION; TO AMEND SECTION 38-77-530, AS AMENDED, RELATING TO THE PLAN OF OPERATION OF THE REINSURANCE FACILITY, SO AS TO ADD PROVISIONS PROVIDING, AMONG OTHER THINGS, THAT THE PLAN OF OPERATION SHALL COMMENCE RECOUPMENT OF FACILITY ASSESSMENTS BY WAY OF A SURCHARGE ON PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS ISSUED BY A MEMBER OR THROUGH THE FACILITY; TO AMEND SECTION 38-77-590, AS AMENDED, RELATING TO THE REINSURANCE FACILITY AND DESIGNATED PRODUCERS, SO AS TO DELETE CERTAIN PROVISIONS AND TO PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS AFTER JANUARY 1, 1997, AND MUST NOT RENEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS AFTER SEPTEMBER 30, 1977, AND THAT NO POLICIES WITH AN EFFECTIVE DATE AFTER SEPTEMBER 30, 1997, SHALL BE ACCEPTED BY THE REINSURANCE FACILITY; TO AMEND SECTION 38-77-595, RELATING TO CONDITIONS FOR DESIGNATION AS A DESIGNATED PRODUCER OF AN OTHERWISE INELIGIBLE APPLICANT, SO AS TO PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS AFTER JANUARY 1, 1997, AND MUST NOT RENEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS AFTER SEPTEMBER 30, 1997, AND THAT NO POLICIES WITH AN EFFECTIVE DATE AFTER SEPTEMBER 30, 1997, SHALL BE ACCEPTED BY THE REINSURANCE FACILITY; TO AMEND CHAPTER 77, TITLE 38 OF THE 1976 CODE, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 8 SO AS TO ENACT PROVISIONS FOR THE ASSIGNMENT OF RISKS; AND TO REPEAL SECTIONS 38-73-455, RELATING TO AUTOMOBILE INSURANCE RATES, 38-73-456, RELATING TO THE PROHIBITION AGAINST AN INCREASE IN AUTOMOBILE INSURANCE PREMIUMS OR ADDITIONAL SURCHARGES FOR DRIVING VIOLATIONS UNTIL THERE HAS BEEN A CONVICTION, 38-73-457, RELATING TO FILING INFORMATION ON BASE RATES FOR AUTOMOBILE INSURANCE PURPOSES, 38-73-460, RELATING TO THE EFFECT OF GAINS AND LOSSES INCURRED BY MEMBERS OF THE REINSURANCE FACILITY ON AUTOMOBILE INSURANCE RATES, 38-73-465, RELATING TO AUTOMOBILE INSURANCE AND UNFAIRLY DISCRIMINATORY, EXCESSIVE, OR UNREASONABLE PROFITS OR RATES, REVIEW OF RATES, AND RATE EXPERIENCE, 38-73-720, RELATING TO THE STATE RATING AND STATISTICAL DIVISION AND THE POWER TO ESTABLISH RISK AND TERRITORIAL CLASSIFICATIONS, 38-73-730, RELATING TO RISK CLASSIFICATION PLANS FOR AUTOMOBILE INSURANCE PURPOSES, 38-73-731, RELATING TO REMOVAL FROM THE YOUTHFUL DRIVER CLASSIFICATION, 38-73-735, RELATING TO PLANS FOR CREDITS AND DISCOUNTS FOR AUTOMOBILE INSUREDS, 38-73-750, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS MUST FILE THEIR PLANS OR SYSTEMS FOR ALLOCATING EXPENSES AND PROFIT AS RESPECTS THE VARIOUS KINDS OR TYPES OF AUTOMOBILE INSURANCE RISKS AND THE CLASSES OF RISKS THEREUNDER, 38-73-760, RELATING TO UNIFORM STATISTICAL PLANS FOR AUTOMOBILE INSURANCE PURPOSES, 38-73-770, RELATING TO THE REQUIREMENT THAT EVERY CLASSIFICATION PLAN PROMULGATED BY THE DEPARTMENT OF INSURANCE MUST BE SO STRUCTURED AS TO PRODUCE AUTOMOBILE INSURANCE RATES OR PREMIUM CHARGES WHICH ARE ADEQUATE, NOT EXCESSIVE, AND NOT UNFAIRLY DISCRIMINATORY, 38-77-111, RELATING TO AUTOMOBILE INSURANCE POLICIES WHICH MAY BE CEDED TO THE REINSURANCE FACILITY, 38-77-115, RELATING TO THE PROVISION THAT CERTAIN SIGNS ARE REQUIRED IN AN INSURANCE AGENT'S PLACE OF BUSINESS, 38-77-145, RELATING TO THE PROVISION THAT PERSONAL INJURY PROTECTION COVERAGE IS NOT MANDATED UNDER THE AUTOMOBILE INSURANCE LAWS OF THIS STATE, 38-77-285, RELATING TO THE REQUIREMENT THAT ALL AUTOMOBILE INSURANCE COVERAGES MUST BE IN ONE POLICY, 38-77-360, RELATING TO THE PROVISION THAT THERE BE NO INCREASE IN AUTOMOBILE INSURANCE PREMIUMS AFTER CERTAIN FIRST OFFENSE VIOLATIONS, 38-77-600, RELATING TO THE REINSURANCE FACILITY RECOUPMENT CHARGE, 38-77-605, RELATING TO THE REQUIREMENT THAT THE FACILITY RECOUPMENT CHARGE BE DISPLAYED ON THE PREMIUM NOTICE OR BILL, 38-77-610, RELATING TO THE FILING OF RECOUPMENT CHARGES, 38-77-620, RELATING TO THE REQUIREMENT THAT THE FACILITY RECOUPMENT CHARGES APPROVED OR ESTABLISHED PURSUANT TO SECTION 38-77-610 MUST BE ADDED TO THE APPROVED BASE RATE AND OBJECTIVE STANDARDS RATE IN EFFECT FOR EACH AUTOMOBILE INSURER, 38-77-625, RELATING TO THE PROVISION THAT IF AN INSURED IS INVOLVED IN A MOTOR VEHICLE ACCIDENT WHERE HE IS NOT THE AT-FAULT DRIVER, HIS FACILITY RECOUPMENT CHARGE MAY NOT BE INCREASED BY HIS INSURER BECAUSE OF THIS OCCURRENCE, AND ARTICLE 9 OF CHAPTER 77, TITLE 38, RELATING TO THE STATE'S AUTOMOBILE INSURANCE LAWS AND UNLAWFUL ACTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1.Section 56-9-20 of the 1976 Code, as last amended by Section 1472 of Act 181 of 1993, is further amended by adding:
"(17) `Uninsured Motorist Fund' means a fund established to collect fees from registration of uninsured vehicles."
SECTION 2. Chapter 10 of Title 56 of the 1976 Code is amended by adding:
Section 56-10-510. In addition to any other fees prescribed by law, every person registering an uninsured motor vehicle, as defined in Section 56-9-20, at the time of registering or reregistering the uninsured vehicle, shall pay a fee of five hundred dollars. However, if the uninsured motor vehicle is being registered for a period of less than a full year, the uninsured motor vehicle fee shall be prorated to conform to the registration period. Every person applying for registration of a motor vehicle and declaring it to be an insured motor vehicle shall, under the penalties set forth in Section 56-10-520, execute and furnish to the director his certificate that the motor vehicle is an insured motor vehicle as defined by the laws of this State, or that the director has issued to its owner, in accordance with Section 56-9-60, a certificate of self-insurance applicable to the vehicle sought to be registered. The director, or his designee, may require any registered owner of a motor vehicle declared to be insured or any applicant for registration of a motor vehicle to be an insured to submit a certificate of insurance on a form prescribed by the director. The director shall forward the certificate of insurance or bond to the insurance company or surety company, whichever is applicable, for verification as to whether the policy or bond named in the certificate is currently in force. At that time, and not later than thirty days following receipt of the certificate of insurance, the insurance company or surety company shall cause to be filed with the director a written notice if the policy or bond was not applicable as to the named insured. The director shall prescribe the manner in which the written notice shall be made. The refusal or neglect of any owner within thirty days to submit the certificate of insurance when required by the director or his designee or the notification by the insurance company or surety company that the policy or bond named in the certificate of insurance is not in effect, shall require the director to suspend any driver's license and all registration certificates and license plates issued to the owner of the motor vehicle until the person:
(1) has paid to the Director of the Department of Revenue and Taxation a fee of three hundred dollars to be disposed of as provided for in Sections 56-10-550 and 56-10-552 with respect to the motor vehicle determined to be uninsured; and
(2) furnishes proof of financial responsibility for the future in the manner prescribed in Section 56-10-10 et seq. of this chapter. No order of suspension required by this section shall become effective until the director has offered the person an opportunity for an administrative hearing to show cause why the order should not be enforced. Notice of the opportunity for an administrative hearing may be included in the order of suspension. When three years have elapsed from the effective date of the suspension required in this section, the director may relieve the person of the requirement of furnishing proof of future financial responsibility. If the director determines that the fee applicable to the registration of an uninsured motor vehicle has been paid on the vehicle in question on or before the date that the insurance certificate was requested, no suspension action shall be taken. The director shall suspend the driver's license and all registration certificates and license plates of any person on receiving a record of his conviction of a violation of any provisions of Section 56-10-520, but the director shall dispense with the suspension when the person is convicted for a violation of Section 56-10-520 and the department's records show conclusively that the motor vehicle was insured or that the fee applicable to the registration of an uninsured motor vehicle has been paid by the owner before the date and time of the alleged offense.
Section 56-10-520. A person who owns an uninsured motor vehicle:
(1) licensed in the State; or
(2) subject to registration in the State;
who operates or permits the operation of that motor vehicle without first having paid to the director the uninsured motor vehicle fee required by Section 56-10-510, to be disposed of as provided by Section 56-10-550, shall be guilty of a misdemeanor.
A person who is the operator of such an uninsured motor vehicle and not the titled owner, who knows that the required fee has not been paid to the director, shall be guilty of a misdemeanor.
The director or his designee, having reason to believe that a motor vehicle is being operated or has been operated on any specified date, may require the owner of such motor vehicle to submit the certificate of insurance provided for by Section 56-10-510. The refusal or neglect of the owner who has not, before the date of operation, paid the uninsured motor vehicle fee required by Section 56-10-510 as to such motor vehicle, to furnish such certificate shall be prima facie evidence that the motor vehicle was an uninsured motor vehicle at the time of such operation. A person who presents or causes to be presented to the director a false certificate that a motor vehicle is an insured motor vehicle or false evidence that a motor vehicle sought to be registered is an insured motor vehicle, shall be guilty of a misdemeanor.
However, the foregoing portions of this section shall not be applicable if it is established that the owner had good cause to believe and did believe that such motor vehicle was an insured motor vehicle, in which event the provisions of Section 56-10-245 shall be applicable.
Abstracts of records of conviction, as defined in this title, of any violation of any of the provisions of this section shall be forwarded to the director as prescribed by Section 56-9-330. The director shall suspend the driver's license and all registration certificates and license plates of any titled owner of an uninsured motor vehicle upon receiving a record of his conviction of a violation of any provisions of this section, and he shall not thereafter reissue the driver's license and the registration certificates and license plates issued in the name of such person until such person pays the fee applicable to the registration of an uninsured motor vehicle as prescribed in Section 56-10-510 and furnishes proof of future financial responsibility as prescribed by Section 56-10-520 et seq. of this chapter. However, when three years have elapsed from the date of the suspension herein required, the director may relieve such person of the requirement of furnishing proof of future financial responsibility. When such suspension results from a conviction for presenting or causing to be presented to the director a false certificate as to whether a motor vehicle is an insured motor vehicle or false evidence that any motor vehicle sought to be registered is insured, then the director shall not thereafter reissue the driver's license and the registration certificates and license plates issued in the name of such person so convicted for a period of one hundred eighty days from the date of such order of suspension, and only then when all other provisions of law have been complied with by such person. The director shall suspend the driver's license of any person who is the operator but not the titled owner of a motor vehicle upon receiving a record of his conviction of a violation of any provisions of this section and he shall not thereafter reissue the driver's license until thirty days from the date of such order of suspension.
Section 56-10-530. When it appears to the director from the records of his office that an uninsured motor vehicle as defined in Section 56-9-20, subject to registration in the State, is involved in a reportable accident in the State resulting in death, injury, or property damage with respect to which motor vehicle the owner thereof has not paid the uninsured motor vehicle fee as prescribed in Section 56-10-510, the director shall, in addition to enforcing the applicable provisions of Section 56-10-10 et seq. of this chapter, suspend such owner's driver's license and all of his license plates and registration certificates until such person has complied with those provisions of law and has paid to the Director of the Department of Revenue and Taxation a reinstatement fee as provided by Section 56-10-510, to be disposed of as provided by Section 56-10-550, with respect to the motor vehicle involved in the accident and furnishes proof of future financial responsibility in the manner prescribed in Section 56-9-350 et seq.. However, no order of suspension required by this section shall become effective until the director has offered the person an opportunity for an administrative hearing to show cause why the order should not be enforced. Notice of the opportunity for an administrative hearing may be included in the order of suspension. However, when three years have elapsed from the effective date of the suspension herein required, the director may relieve such person of the requirement of furnishing proof of future financial responsibility. The presentation by a person subject to the provisions of this section of a certificate of insurance, executed by an agent or representative of an insurance company qualified to do business in this State, showing that on the date and at the time of the accident the vehicle was an insured motor vehicle as herein defined, or, presentation by such person of evidence that the additional fee applicable to the registration of an uninsured motor vehicle had been paid to the department before the date and time of the accident, shall be sufficient bar to the suspension provided for in this section.
Section 56-10-535. The director, upon receiving notice that a titled owner of a motor vehicle has been convicted of one of the following violations: disobedience of any official traffic device, failure to stop for law enforcement officer when signaled, disobedience to any officer directing traffic, failure to stop for a school bus, leaving the scene of an accident where injury to person or damage to property results, theft or unlawful taking of a vehicle, racing on public highways, driving under the influence of intoxicating liquor or narcotic drugs or where injury to a person of over three hundred dollars each person or damage to property of the insured or other person of over seven hundred fifty dollars results, reckless driving where injury to a person of over three hundred dollars each person or damage to property of the insured or other person of over seven hundred fifty dollars results, homicide or assault arising out of the operation of a motor vehicle, any felony involving the use of a motor vehicle, the transporting of illegal whiskey or unlawful drugs or other controlled or narcotic substances, reckless homicide, wilful making of false statements in the application for license or registration, impersonating an applicant for license or registration, or procuring a license or registration through impersonation whether for himself or another; then shall require the owner to furnish proof of financial responsibility in the manner prescriber in Section 56-9-350, et seq.
However, when three years have elapsed from the effective date of any conviction for the above offenses, the director may relieve such person of the requirement of furnishing proof of future financial responsibility as required in Section 56-9-35, et seq.
Section 56-10-540. Whenever any proof of financial responsibility filed by any person as required by this chapter no longer fulfills the purpose for which required, the director shall require other proof of financial responsibility as required by this chapter and shall suspend such person's driver's license, registration, certificates, and license plates and decals pending the furnishing of proof as required.
A person whose driver's license or registration certificates, or license plates and decals have been suspended as provided in this chapter and have not been reinstated shall immediately return every such license, registration certificate, and set of license plates and decals held by him to the director. A person failing to comply with this requirement shall be guilty of a traffic infraction and, upon conviction, shall be punished as provided in Section 56-9-310, et seq.
Section 56-10-550. Except as provided in Section 56-10-552, funds collected by the Director of the Department of Revenue and Taxation under the provisions of this chapter shall be paid into the State Treasury and held in a special fund to be known as the `Uninsured Motorists Fund' to be disbursed as provided by law. The Director of the Department of Insurance as provided in Sections 38-77-151 and 38-77-154 may expend monies from such funds, for the administration of Title 38.
Section 56-10-551. When any insurance policy certified under this chapter is canceled or terminated, the insurer shall report the fact to the director within fifteen days after the cancellation on a form prescribed by the director.
Section 56-10-552. (A) All funds collected as provided in Section 38-73-470 shall be directed to the Director of the Department of Public Safety for the establishment and maintenance of a special fund, to be known as the `Uninsured Enforcement Fund', to be used by the Department of Public Safety for the purpose of enforcement as required by this chapter.
(B) Fifty percent of the reinstatement fee as provided by Section 56-10-510(1) shall be directed to the Department of Public Safety and deposited into the Uninsured Enforcement Fund to be used by the Department of Public Safety as provided by subsection (A) of this section. The remaining fifty percent of the reinstatement fee as provided by Section 56-10-510 shall be directed to the Uninsured Motorist Fund to be used as provided in Sections 56-10-550, 38-77-151, and 38-77-154.
Section 56-10-553. The Department of Public Safety shall collect data and maintain statistics on the total number of vehicles registered in the state as of June thirtieth of each year, the number of motorists who voluntarily paid the five hundred dollar fee at the time of registration during the fiscal year, the number of motorists who paid the penalty fee after being detected by the Department of Public Safety as being uninsured during the fiscal year, the number of certificates of insurance filed during the fiscal year, the net revenue collections for these fees by the fiscal year, the net funds available in the Uninsured Motorist Fund, and the net funds received from the Department of Insurance from the uninsured motorist fee during fiscal year."
SECTION 3. Section 38-73-470 of the 1976 Code, as last amended by Section 787 of Act 181 of 1993, is further amended to read:
"Section 38-73-470. One dollar of the yearly premium for uninsured motorist coverage must be transferred is directed to be paid to the South Carolina Department of Public Safety for the establishment of the `Uninsured Enforcement Fund', payable on a quarterly basis, to provide funds for the costs of enforcing and administering the provisions of Article 3, Chapter 10, Title 56."
SECTION 4. Section 38-73-910 of the 1976 Code, as last amended by Section 783 of Act 181 of 1993, is further amended to read:
"Section 38-73-910. No increase in the premium rates may be granted for automobile, workers' compensation, fire, allied lines, and homeowners insurance, nor for any other line or type of insurance with respect to which the director or his designee has, by order, made a finding that (a) legal or other compulsion upon the part of the insured to purchase the insurance interferes with competition, or (b) under prevailing circumstances there does not exist substantial competition, unless notice is given in all newspapers of general, statewide circulation at least thirty days in advance of any hearing to consider the increase in premium rates. The notice shall state the time and place of the hearing and the rates that will be considered to be increased.
However, the requirements of public notices and public hearings in this section do not apply to applications for rate increases when the applicant insurer had earned premiums in this State in the previous calendar year of less than five hundred thousand dollars for the line or type of insurance for which the rate increase is sought or, if the rate increase is sought by a rating organization, the earned premiums in this State for all members and subscribers of the organization for whom an increase is sought were less than five hundred thousand dollars for the previous calendar year for the line or type of insurance for which the rate increase is sought.
The requirement of this section is abated until January 1, 1998.
SECTION 5. The 1976 Code is amended by adding:
"Section 38-73-736. Any schedule of rates, rate classifications, or rating plans for automobile insurance as defined in Section 38-77-30 filed with the Department of Insurance shall provide for an appropriate reduction in premium charges for those insured persons who are fifty-five years of age and older and who qualify as provided in Section 38-73-737."
SECTION 6. Section 38-77-10 of the 1976 Code, as last amended by Section 801 of Act 181 of 1993, is further amended to read:
"Section 38-77-10. In order to effect a complete reform of automobile insurance and insurance practices in South Carolina, the purposes of this chapter are to provide:
(1) To provide that every automobile insurance risk which is insurable on the basis of the criteria established in this chapter is entitled to automobile insurance from the automobile insurer of the applicant's choice on the basis of the same rates, policy forms, claims service, and other services provided by the insurer to all other applicants or insureds falling within the classification of risk and territory under the applicable risk and territorial classification plan promulgated by the department so long as all these applicants or insureds have satisfied the same objective standards as established in Sections 38-77-280 and 38-73-455;
(2) To provide a Reinsurance Facility for automobile insurers in which all automobile insurers must participate to the end that the operating expenses and net profit or loss of the Facility may be shared equitably by all the insurers transacting automobile insurance business in this State giving appropriate consideration to degrees of utilization of the Facility by the several insurers of automobile insurance and to provide prohibitions or penalties in respect to excessive utilization of the Facility. for an assigned risk plan, known as the South Carolina Automobile Insurance Plan, for every person who is legally entitled to automobile insurance but has not been able to obtain a motor vehicle liability policy to apply to the Director of the Department of Insurance to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the State who shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility in this chapter;
(3) To provide prohibitions and penalties in respect to unfairly discriminatory or unfairly competitive practices having as their purpose or effect evasion of the statutory mandate of coverage provided in this chapter or imposing an undue or unfair burden upon other automobile insurers through excessive utilization of the Facility. of the coverages as provided in this chapter; and
(4) To provide medical, surgical, funeral, and disability insurance benefits without regard to fault to be offered under automobile insurance policies that provide bodily injury and property damage liability insurance, or other security, for motor vehicles registered in this State."
SECTION 7. Section 38-77-30 of the 1976 Code, as last amended by Section 802 of Act 181 of 1993, is further amended to read:
"Section 38-77-30. As used in this chapter, unless the context requires otherwise:
(1) `Automobile insurance' means automobile bodily injury and property damage liability insurance, including medical payments and uninsured motorist coverage, and automobile physical damage insurance such as automobile comprehensive physical damage, collision, fire, theft, combined additional coverage, and similar automobile physical damage insurance and economic loss benefits as provided by this chapter written or offered by automobile insurers. An automobile insurance policy includes a motor vehicle liability policy as defined in item (7) of Section 56-9-20 and any nonowner automobile insurance policy which covers an individual private passenger automobile not owned by the insured, a family member of the insured, or a resident of the same household as the insured.
(2) `Automobile insurer' means an insurer licensed to do business in South Carolina and authorized to issue automobile insurance policies.
(3) `Bodily injury' includes death resulting therefrom.
(3.5) `Cancellation' or `to cancel' means a termination of a policy during the policy period.
(4) `Damages' includes both actual and punitive damages.
(5) `Facility' means the unincorporated, nonprofit, legal entity created by this chapter to reinsure policies of automobile insurance known as the South Carolina Reinsurance Facility.
(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.; and
(iv) motorcycles, motor-driven cycles, motor scooters, and mopeds.
(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)(iii) golf carts; and
(vi)(iv) small commercial risks.
(6) `Institutional source' means any person or governmental entity that provides information about an individual to an agent, insurer, or insurance-support organization other than:
(a) an agent;
(b) the individual who is the subject of the information; or
(c) a natural person acting in a personal capacity rather than in a business or professional capacity.
(7) `Insured' means the named insured and, while resident of the same household, the spouse of any named insured and relatives of either, while in a motor vehicle or otherwise, and any person who uses with the consent, expressed or implied, of the named insured the motor vehicle to which the policy applies and a guest in the motor vehicle to which the policy applies or the personal representative of any of the above.
(8) `Insurer-support organization' means any person who regularly engages, in whole or in part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurer or agent for insurance transactions, including (i) the furnishing of consumer reports or investigative consumer reports to an insurer or agent for use in connection with an insurance transaction or (ii) the collection of personal information from insurers, agents, or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation, or material nondisclosure in connection with insurance underwriting or insurance claim activity. However, the following persons shall not be considered insurance-support organizations for purposes of this chapter: agents, governmental institutions, insurers, rating organizations, medical care institutions, and medical professionals.
(7)(9) `Motor vehicle' means every self-propelled vehicle which is designed for use upon a highway, including trailers and semitrailers designed for use with these vehicles but excepting traction engines, road rollers, farm trailers, tractor cranes, power shovels and well-drillers, and every vehicle which is propelled by electric power obtained from overhead wires but not operated upon rails. For purposes of this chapter, the term automobile has the same meaning as motor vehicle.
(8)(10) `Nonpayment of premium' means failure of the named insured to pay when due any of his obligations in connection with the payment of premiums on a policy, or any installment of the premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit, or failure to maintain membership in an organization if membership is a condition precedent to insurance coverage.
(10.5) `Policy of automobile insurance' or `policy' means a policy or contract for bodily injury or property damage liability insurance issued or delivered in this State covering liability arising from the ownership, maintenance, or use of any motor vehicle, insuring as the named insured one individual or husband and wife who are residents of the same household, and under which the insured vehicle designated in the policy is either:
(a) a motor vehicle of a private passenger, station wagon, or motorcycle type that is not used commercially, rented to others, or used as a public or livery conveyance where the terms `public or livery conveyance' do not include car pools, or
(b) any other four-wheel motor vehicle which is not used in the occupation, profession, or business, other than farming, of the insured, or as a public or livery conveyance, or rented to others. The term `policy of automobile insurance' or `policy' does not include:
(i) any policy issued through the South Carolina Automobile Insurance Plan,
(ii) any policy covering the operation of a garage, sales agency, repair shop, service station, or public parking place,
(iii) any policy providing insurance only on an excess basis, or
(iv) any other contract providing insurance to the named insured even though the contract may incidentally provide insurance on motor vehicles.
(9)(11) `Quota share reinsurance' means that form of reinsurance in which the reinsurer assumes a fixed percentage of the insured risk.
(10)(12) `Renewal' or `to renew' means the issuance and delivery by an insurer of a policy superseding at the end of the policy period a policy previously issued and delivered by the same insurer, the renewal policy to provide types and limits of coverage at least equal to those contained in the policy being superseded, or the issuance and delivery of a certificate or notice extending the terms of a policy beyond its policy period or term with types and limits of coverage at least equal to those contained in the policy being extended. However, any policy with a policy period or term of less than six months or any period with no fixed expiration date is considered as if written for successive policy periods or terms of six months.
(11)(13) `Small commercial risk' means:
(a) Garage risks including nonmotor vehicle insurance when written in combination with automobile liability coverage.
(b) Ambulance risks.
(c) Commercial risks which have a load capacity less than ten thousand pounds and are not required to have a mandatory filing by a governmental authority other than an SR-22.
(d) Church buses used by a church to transport adults or children to and from services and in activities incidental to church functions, so long as a mandatory filing by any governmental authority other than an SR-22 is not required.
(e) Privately owned school buses used to carry school children and students, their parents or guardians, members of the faculty, school board members, nurses, doctors, and dentists, as well as guests in connection with any school activity and operations incidental thereto, including games, outings, and similar road trips, so long as a mandatory filing by any governmental authority other than an SR-22 is not required.
`Small commercial risk' does not include pulpwood trucks or dump trucks.
(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 director or his designee, 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 director or his designee.
(13)(14) `Uninsured motor vehicle' means a motor vehicle as to which:
(a) there is not bodily injury liability insurance and property damage liability insurance both at least in the amounts specified in Section 38-77-140, or
(b) there is nominally that insurance, but the insurer writing the same successfully denies coverage thereunder, or
(c) there was that insurance, but the insurer who wrote the same is declared insolvent, or is in delinquency proceedings, suspension, or receivership, or is proven unable fully to respond to a judgment, and
(d) there is no bond or deposit of cash or securities in lieu of the bodily injury and property damage liability insurance.
(e) the owner of the motor vehicle has not qualified as a self-insurer in accordance with the applicable provisions of law.
A motor vehicle is considered uninsured if the owner or operator is unknown. However, recovery under the uninsured motorist provision is subject to the conditions set forth in this chapter.
Any motor vehicle owned by the State or any of its political subdivisions is considered an uninsured motor vehicle when the vehicle is operated by a person without proper authorization.
(14)(15) `Underinsured motor vehicle' means a motor vehicle as to which there is bodily injury liability insurance or a bond applicable at the time of the accident in an amount of at least that specified in Section 38-77-140 and the amount of the insurance or bond is less than the amount of the insureds' damages."
SECTION 8. From January 1, 1997 to September 30, 1997, Section 38-77-110 of the 1976 Code, as last amended by Section 803 of Act 181 of 1993, is further amended to read:
"Section 38-77-110. (A) Automobile insurers other than insurers designated and approved as specialized insurers by the director or his designee may not refuse to write or renew automobile insurance policies for individual private passenger automobiles or small commercial risks except for reasons specified in Section 38-77-123. These policies may not be canceled except for reasons which had they existed or been known when the policy was written would have rendered the risk not an insurable risk. Every automobile insurance risk constitutes an insurable risk unless the operator's permit of the named insured has been revoked or suspended and is at the time of application for insurance so revoked or suspended. However, no insurer is required to write or renew automobile insurance on any risk if there exists a valid and enforceable outstanding judgment secured by an insurer, an agent, or licensed premium service company on account of automobile insurance premiums which the applicant or insured or any principal operator who is a member of the named insured's household has failed or refused to pay unless the applicant or insured pays in advance the entire premium for the full term of the policy sought to be issued or renewed or the annual premium, whichever is the lesser. An insurer is not precluded from effecting cancellation of an automobile insurance policy, either upon its own initiative or at the instance of an agent or licensed premium service company, because of the failure of any named insured or principal operator to pay when due any automobile insurance premium or any installment payment. However, notice of cancellation for nonpayment of premium notifies the person to whom the notice is addressed that the notice is void and ineffective if payment of the full amount of the premium or premium indebtedness, whichever is the greater, is made to the insurer, agent, or licensed premium service company named in the notice by the otherwise effective date of cancellation. This notice of cancellation is not considered ineffective for being conditional, ambiguous, or indefinite.
(B) Notwithstanding subsection (A) of this section, no insurer is required to write private passenger automobile insurance with higher limits of coverage than:
(1) two hundred fifty thousand dollars, for bodily injury liability to one person in one accident,
(2) subject to the limit for one person, five hundred thousand dollars because of bodily injury to two or more persons in one accident,
(3) fifty thousand dollars because of injury to or destruction of property of others in any one accident,
(4) five hundred thousand dollars combined single limits for either or both bodily injury and property damage, if any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Section 38-77-340 and who resides in the same household, has one or more of the conditions or factors prescribed in Section 38-73-455(A) existing and if an insurer, at its option, writes such a policy, the policy may not be ceded to the Reinsurance Facility.
(C) With regard to any coverage not required to be written by an insurer under the mandate to write, no insurer may refuse to write such policy, coverage, or endorsement of automobile insurance because of the race, color, creed, national origin, or ancestry of anyone who seeks to become insured.
After September 30, 1997, Section 38-77-110 is repealed."
SECTION 9. Section 38-77-112 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:
"Section 38-77-112. Notwithstanding Sections 38-77-110, 38-77-920, and Section 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. At the time of application, an insurer or an agent shall retain, for a period of three years, the driver's license numbers for all applicants who were refused coverage and shall furnish such information upon the request of the Director of the Department of Insurance or his designee. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must can be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."
SECTION 10. Section 38-77-120(a) of the 1976 Code, as last amended by Section 806 of Act 181 of 1993, is further amended to read:
"(a) No cancellation or refusal to renew by an insurer of a policy of automobile insurance is effective unless the insurer delivers or mails, to the named insured at the address shown in the policy, a written notice of the cancellation or refusal to renew. This notice:
(1) must be approved as to form by the director or his designee prior to use;
(2) shall state the date not less than fifteen days after the date of the mailing or delivering on which the cancellation or refusal to renew becomes effective;
(3) shall state the specific reason or reasons of the insurer for cancellation or refusal to renew and provide for the notification required by subsection (B) of Section 38-77-390. However, those notification requirements shall not apply when the policy is being canceled or not renewed for the reason set forth in Section 38-77-123(B),
(4) shall inform the insured of his right to request in writing within fifteen days of the receipt of notice that the director review the action of the insurer. The notice of cancellation or refusal to renew shall contain the following statement to inform the insured of such right:
Within fifteen days of receiving this notice, you or your attorney may request in writing that the director review this action to determine whether the insurer has complied with South Carolina laws in canceling or nonrenewing your policy. If this insurer has failed to comply with the cancellation or nonrenewal laws, the director may require that your policy be reinstated. However, the director is prohibited from making underwriting judgments. If this insurer has complied with the cancellation or nonrenewal laws, the director does not have the authority to overturn this action.'
(5) shall inform the insured of the possible availability of other insurance which may be obtained through his agent, through another insurer, or through the South Carolina Automobile Insurance Plan.
Nothing in this subsection prohibits any insurer or agent from including in the notice of cancellation or refusal to renew, any additional disclosure statements required by state or federal laws, or any additional information relating to the availability of other insurance."
SECTION 11. The 1976 Code is amended by adding:
"Section 38-77-121. (A) Any application for the original issuance of a policy of insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle as defined in Section 38-77-30 shall have the following statement printed on or attached to the first page of the application form, in boldface type: READ YOUR POLICY. THE POLICY OF INSURANCE FOR WHICH THIS APPLICATION IS BEING MADE, IF ISSUED, MAY BE CANCELED WITHOUT CAUSE AT THE OPTION OF THE INSURER AT ANY TIME IN THE FIRST 60 DAYS DURING WHICH IT IS IN EFFECT AND AT ANY TIME THEREAFTER FOR REASONS STATED IN THE POLICY.'
(B) Any application for the original issuance of a policy of insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle defined in Section 38-77-30 that requires the insured to disclose information as to any previous cancellation or refusal to renew shall also permit the insured to offer or provide a full explanation of the reason for the cancellation or refusal to renew.
(C) The notice required by this section shall be given by the insurer to any applicant within ten days of the application in the event the applicant is not provided a written copy of the application and the coverage has been bound by such insurer.
This section shall not apply to the renewal of any policy of insurance.
Section 38-77-122. (A) No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 solely because of any one or more of the following factors: the age, sex, location of residence in this State, race, color, creed, national origin, ancestry, marital status, income level, previous refusal of automobile insurance by another insurer, prior purchase of insurance through the South Carolina Automobile Insurance Plan or lawful occupation, including the military service, of the person seeking the coverage. Nothing in this section prohibits any insurer from limiting the issuance of motor vehicle insurance policies to those who are residents of this State nor does this section prohibit any insurer from limiting the issuance of motor vehicle insurance policies only to persons engaging in or who have engaged in a particular profession or occupation, or who are members of a particular religious sect.
Nothing in this section prohibits any insurer from setting rates in accordance with relevant actuarial data.
(E) Any insurer or agent who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer or agent is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer or agent to enforce this section.
Section 38-77-123. (A)(1) No insurer shall refuse to renew an automobile insurance policy solely because of any one or more of the following factors:
(a) age;
(b) sex;
(c) location of residence in this State;
(d) race;
(e) color;
(f) creed;
(g) national origin;
(h) ancestry;
(i) marital status;
(j) income level;
(k) lawful occupation, including the military service;
(l) lack of driving experience, or number of years driving experience;
(m) lack of supporting business or lack of the potential for acquiring such business;
(n) one or more accidents or violations that occurred more than thirty-six months immediately preceding the upcoming anniversary date;
(o) one or more claims submitted under the uninsured motorists coverage of the policy where the uninsured motorist is known or there is physical evidence of contact;
(p) single claim by a single insured submitted under the medical payments coverage or medical expense coverage due to an accident for which the insured was neither wholly nor partially at fault;
(q) one or more claims submitted under the comprehensive or towing coverages. However, nothing in this section shall prohibit an insurer from modifying or refusing to renew the comprehensive or towing coverages at the time of renewal of the policy on the basis of one or more claims submitted by an insured under those coverages, provided that the insurer shall mail or deliver to the insured at the address shown in the policy written notice of any such change in coverage at least forty-five days prior to the renewal; or
(r) two or fewer motor vehicle accidents within a three-year period unless the accident was caused either wholly or partially by the named insured, a resident of the same household, or other customary operator.
(2) Nothing in this section shall require any insurer to renew a policy for an insured where the insured's occupation has changed so as to materially increase the risk. Nothing contained in subsection (A)(1)(p), (q), and (r) of this subsection shall prohibit an insurer from refusing to renew a policy where a claim is false or fraudulent. Nothing in this section prohibits any insurer from setting rates in accordance with relevant actuarial data except that no insurer may set rates based in whole or in part on race, color, creed, national origin, ancestry, income level, or place of residence at any level smaller than a county.
(B) No insurer shall cancel a policy except for one or more of the following reasons:
(1) the named insured or any other operator who either resides in the same household or customarily operates a motor vehicle insured under the policy has had his driver's license suspended or revoked during the policy period or, if the policy is a renewal, during its policy period or the ninety days immediately preceding the last anniversary of the effective date.
(2) The named insured fails to pay the premium for the policy or any installment of the premium, whether payable to the insurer or its agent either directly or indirectly under any premium finance plan or extension of credit.
(C) There shall be no liability on the part of and no cause of action of any nature shall arise against the director or his designees; any insurer, its authorized representatives, its agents, or its employees; or any person furnishing to the insurer information as to reasons for cancellation or refusal to renew, for any statement made by any of them in complying with this section or for providing information pertaining to the cancellation or refusal to renew. For the purposes of this section, no insurer shall be required to furnish a notice of cancellation or refusal to renew to anyone other than the named insured, any person designated by the named insured, any other person to whom such notice is required to be given by the terms of the policy and the director.
(D) Within fifteen days of receipt of the notice of cancellation or refusal to renew, any insured or his attorney shall be entitled to request in writing to the director that he review the action of the insurer in canceling or refusing to renew the policy of the insured. Upon receipt of the request, the director shall promptly begin a review to determine whether the insurer's cancellation or refusal to renew complies with the requirements of this section and of Section 38-77-120 if the notice was sent by mail. The policy shall remain in full force and effect during the pendency of the review by the director except where the cancellation or refusal to renew is for the reason set forth in subitem (2) of subsection (B) of this section, in which case the policy shall terminate as of the effective date stated in the notice. Where the director finds from the review that the cancellation or refusal to renew has not complied with the requirements of this section or of Section 38-77-120, he shall immediately notify the insurer, the insured, and any other person to whom such notice was required to be given by the terms of the policy that the cancellation or refusal to renew is not effective. Nothing in this section authorizes the director to substitute his judgment as to underwriting for that of the insurer. (E) Each insurer shall maintain for at least three years, records of cancellation and refusal to renew and copies of every notice or statement referred to in Section 38-77-120 of this section that it sends to any of its insureds.
(F) The provisions of this section shall not apply to any insurer that limits the issuance of policies of motor vehicle liability insurance to one class or group of persons engaged in any one particular profession, trade, occupation, or business. Nothing in this section requires an insurer to renew a policy of automobile insurance if the insured does not conform to the occupational or membership requirements of an insurer who limits its writings to an occupation or membership of an organization. No insurer is required to renew a policy if the insured becomes a nonresident of South Carolina.
(G) Any insurer who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer, agent, or broker is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer, agent, or broker to enforce this section.
Section 38-77-124. No insurer or agent shall refuse to issue or fail to renew a policy of motor vehicle liability insurance solely because of the age of the motor vehicle to be insured, provided the motor vehicle is licensed.
Section 38-77-141. No new policy or original premium notice of insurance covering liability arising out of the ownership, maintenance, or use of a motor vehicle may be issued or delivered unless it contains the following statement printed in boldface type, or unless the statement is attached to the front of or is enclosed with the policy or premium notice:
IN ADDITION TO THE INSURANCE COVERAGE REQUIRED BY LAW TO PROTECT YOU AGAINST A LOSS CAUSED BY AN UNINSURED MOTORIST, IF YOU HAVE PURCHASED LIABILITY INSURANCE COVERAGE THAT IS HIGHER THAN THAT REQUIRED BY LAW TO PROTECT YOU AGAINST LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF THE MOTOR VEHICLES COVERED BY THIS POLICY, AND YOU HAVE NOT ALREADY PURCHASED UNINSURED MOTORIST INSURANCE COVERAGE EQUAL TO YOUR LIABILITY INSURANCE COVERAGE:
(1) YOUR UNINSURED AND UNDERINSURED MOTORIST INSURANCE COVERAGE HAS INCREASED TO THE LIMITS OF YOUR LIABILITY COVERAGE AND THIS INCREASE WILL COST YOU AN EXTRA PREMIUM CHARGE; AND
(2) YOUR TOTAL PREMIUM CHARGE FOR YOUR MOTOR VEHICLE INSURANCE COVERAGE WILL INCREASE IF YOU DO NOT NOTIFY YOUR AGENT OR INSURER OF YOUR DESIRE TO REDUCE COVERAGE WITHIN TWENTY DAYS OF THE MAILING OF THE POLICY OR THE PREMIUM NOTICE, AS THE CASE MAY BE;
(3) IF THIS IS A NEW POLICY AND YOU HAVE ALREADY SIGNED A WRITTEN REJECTION OF SUCH HIGHER LIMITS IN CONNECTION WITH IT, PARAGRAPHS (1) AND (2) OF THIS NOTICE DO NOT APPLY.'
After twenty days, the insurer is relieved of the obligation imposed by this subsection to attach or imprint the foregoing statement to any subsequently delivered renewal policy, extension certificate, other written statement of coverage continuance, or to any subsequently mailed premium notice.
Section 38-77-142. (A) No policy or contract of bodily injury or property damage liability insurance covering liability arising from the ownership, maintenance, or use of a motor vehicle may be issued or delivered in this State to the owner of the vehicle or may be issued or delivered by an insurer licensed in this State upon a motor vehicle, that is principally garaged, docked, or used in this State, unless the policy contains a provision insuring the named insured, and any other person using or responsible for the use of the motor vehicle with the expressed or implied consent of the named insured, against liability for death or injury sustained, or loss or damage incurred within the coverage of the policy or contract as a result of negligence in the operation or use of the vehicle by the named insured or by any such person. Each policy or contract of liability insurance, or endorsement to the policy or contract, insuring private passenger automobiles principally garaged, docked, or used in this State, that has as the named insured an individual or husband and wife and that includes, with respect to any liability insurance provided by the policy, contract, or endorsement for use of a nonowned automobile a provision requiring permission or consent of the owner of the automobile for the insurance to apply, shall be construed to include permission or consent of the custodian in the provision requiring permission or consent of the owner.
(B) No policy or contract of bodily injury or property damage liability insurance relating to the ownership, maintenance, or use of a motor vehicle may be issued or delivered in this State to the owner of a vehicle or may be issued or delivered by an insurer licensed in this State upon a motor vehicle principally garaged or used in this State without an endorsement or provision insuring the named insured, and any other person using or responsible for the use of the motor vehicle with the expressed or implied consent of the named insured, against liability for death or injury sustained, or loss or damage incurred within the coverage of the policy or contract as a result of negligence in the operation or use of the motor vehicle by the named insured or by any other person. This provision applies notwithstanding the failure or refusal of the named insured or other person to cooperate with the insurer under the terms of the policy. If the failure or refusal to cooperate prejudices the insurer in the defense of an action for damages arising from the operation or use of the insured motor vehicle, then the endorsement or provision is void. If an insurer has actual notice of a motion for judgment or complaint having been served on an insured, the mere failure of the insured to turn the motion or complaint over to the insurer may not be a defense to the insurer, nor void the endorsement or provision, nor in any way relieve the insurer of its obligations to the insured, provided the insured otherwise cooperates and in no way prejudices the insurer.
Where the insurer has elected to provide a defense to its insured under such circumstances and files responsive pleadings in the name of its insured, the insured is not subject to sanctions for failure to comply with discovery pursuant to the South Carolina Rules of Civil Procedure unless it can be shown that the suit papers actually reached the insured, and that the insurer has failed after exercising due diligence to locate its insured, and as long as the insurer provides such information in response to discovery as it can without the assistance of the insured.
(C) Any endorsement, provision, or rider attached to or included in any policy of insurance which purports or seeks to limit or reduce the coverage afforded by the provisions required by this section is void.
Section 38-77-143. (A)(1) Each policy or contract of bodily injury or property damage liability insurance which provides insurance to a named insured in connection with the business of selling, leasing, repairing, servicing, storing, or parking motor vehicles, against liability arising from the ownership, maintenance, or use of a motor vehicle incident thereto shall contain a provision that the insurance coverage applicable to those motor vehicles are not applicable to a person other than the named insured and his employees in the course of their employment if there is any other valid and collectible insurance applicable to the same loss covering the other person under a policy with limits at least equal to the financial responsibility requirements specified in Section 38-77-140. The provision applies to motor vehicles which are either for the purpose of demonstrating to the other person as a prospective purchaser, or which are loaned or leased to the other person as a convenience during the repairing or servicing of a motor vehicle for the other person, or leased to the other person for six months or more.
(2) If the other valid and collectible insurance has limits less than the financial responsibility requirements specified in Section 38-77-140, then the coverage afforded a person other than the named insured and his employees in the course of their employment is applicable to the extent necessary to equal the financial responsibility requirements specified in Section 38-77-140.
(3) If there is no other valid and collectible insurance available, the coverage under the policy afforded a person, other than the named insured and his employees in the course of their employment, is applicable, but the amount recoverable in such case may not exceed the financial responsibility requirements specified in Section 38-77-140. If there is no other valid and collectible collision or upset insurance available and if the policy provides insurance to the named insured for collision or upset, it shall include any other person as an additional insured, unless in the case of a leased vehicle the other persons receives a conspicuous written disclosure at the commencement of the lease, warning the person that he is not an additional insured under the owner's policy for collision or upset coverage.
(B)(1) A policy or contract of bodily injury or property damage liability insurance relating to the ownership, maintenance, or use of a motor vehicle excludes coverage to persons other than (i) the named insured, or (ii) directors, stockholders, partners, agents, or employees of the named insured, or (iii) residents of the household of either (i) or (ii), while those persons are employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles if there is any other valid or collectible insurance applicable to the same loss covering the persons under a policy with limits at least equal to the financial responsibility requirements specified in Section 38-77-140.
(2) If the other valid and collectible insurance has limits less than the financial responsibility requirements specified in Section 38-77-140, then the coverage afforded a person other than the named insured while that person is employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles is applicable to the extent necessary to equal the financial responsibility requirements specified in Section 38-77-140.
(3) If there is no other valid and collectible insurance available, the coverage afforded a person other than the named insured while that person is employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles shall apply, but the amount recoverable shall not exceed the financial responsibility requirements specified in Section 38-77-140.
Section 38-77-151. All funds collected by the Director of the Department of Revenue and Taxation under the provisions of Chapter 10 of Title 56 shall be paid into the State Treasury and held in a special fund to be known as the `Uninsured Motorists Fund' to be disbursed as provided by law. The Director of the Department of Insurance, as provided in Sections 38-77-154 and 38-77-155, may expend such funds, for the administration of this chapter; provided, however, that the Department of Insurance shall retain ten percent of the Uninsured Motorists Fund to be used by the Department of Insurance to enforce the provisions of Title 38, including Sections 38-77-112, 38-77-122, and 38-77-123, to publish for consumers an automobile insurance buyer's guide, a brochure comparing automobile insurance premiums with a section comparing automobile insurance premiums, and to provide for a public awareness campaign.
Section 38-77-154. The Uninsured Motorists Fund shall be under the supervision and control of the Department of Insurance. Payments from the Uninsured Motorists Fund shall be made on warrants of the Comptroller General issued on vouchers signed by a person designated by the director. The purpose of the Uninsured Motorists Fund is to reduce the cost of the insurance required by Section 38-77-150 and to protect and educate consumers as provided by Section 38-77-151.
Section 38-77-155. The director shall distribute monies annually from the Uninsured Motorists Fund among the several insurers writing motor vehicle bodily injury and property damage liability insurance on motor vehicles registered in this State. Monies shall be distributed in the proportion that each insurer's premium income for the basic uninsured motorists limits coverage bears to the total premium income for basic uninsured motorists limits coverage written in this State during the preceding year. Premium income shall be gross premiums less cancellation and return premiums for coverage required by Section 38-77-150. Only insurers that maintain records satisfactory to the director shall receive any payment from the Uninsured Motorists Fund. Records shall be considered satisfactory if they adequately disclose the loss experience for the coverage."
SECTION 12. Section 38-77-140 of the 1976 Code, is amended to read:
"Section 38-77-140. No automobile insurance policy may be issued or delivered in this State to the owner of a motor vehicle or may be issued or delivered by an insurer licensed in this State upon any motor vehicle then principally garaged or principally used in this State, unless it contains a provision insuring the persons defined as insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor vehicles within the United States or Canada, subject to limits exclusive of interest and costs, with respect to each motor vehicle, as follows: fifteen thousand dollars because of bodily injury to one person in any one accident, and, subject to the limit for one person, thirty thousand dollars because of bodily injury to two or more persons in any one accident, and five ten thousand dollars because of injury to or destruction of property of others in any one accident. Nothing in this article prevents an insurer from issuing, selling, or delivering a policy providing liability coverage in excess of these requirements."
SECTION 13. Section 38-77-150 of the 1976 Code, as last amended by Section 807 of Act 181 of 1993, is further amended to read:
"Section 38-77-150. (A) No automobile insurance policy or contract may be issued or delivered unless it contains a provision by endorsement or otherwise, herein referred to as the uninsured motorist provision, undertaking to pay the insured all sums which he is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle, within limits which may be no less than the requirements of Section 38-77-140. The uninsured motorist provision shall also provide for no less than five ten thousand dollars' coverage for injury to or destruction of the property of the insured in any one accident but may provide an exclusion of the first two hundred dollars of the loss or damage. The director or his designee may prescribe the form to be used in providing uninsured motorist coverage and when prescribed and promulgated no other form may be used.
(B) No action may be brought under the uninsured motorist provision unless copies of the pleadings in the action establishing liability are served in the manner provided by law upon the insurer writing the uninsured motorist provision. The insurer has the right to appear and defend in the name of the uninsured motorist in any action which may affect its liability and has thirty days after service of process on it in which to appear. The evidence of service upon the insurer may not be made a part of the record.
(C) Benefits paid pursuant to this section are subject to subrogation and assignment if an uninsured motorist has selected the five hundred dollar option."
SECTION 14. A. Section 38-77-280 of the 1976 Code, as last amended by Section 810 of Act 181 of 1993, is further amended to read:
"Section 38-77-280. (A) Except as provided in subsection (B), all automobile insurers, including those insurance companies writing private passenger physical damage coverages only, shall Any automobile insurer may make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage.
Collision coverage must have a mandatory deductible of two hundred fifty dollars, but an insured or qualified applicant, at his option, may select an additional deductible in appropriate increments up to one thousand dollars.
Comprehensive coverage or fire, theft, and combined additional coverages must have a mandatory deductible of two hundred fifty dollars, but an insured, at his option, may select an additional deductible in appropriate increments up to one thousand dollars. This deductible does not apply to auto safety glass. It is an unfair trade practice, as described in Sections 38-57-30 and 38-57-40, for an insurer or an agent to sell collision insurance, comprehensive coverage, or fire, theft, and combined additional coverages unless the insured is notified at the time of application of the savings which may be realized if the applicant or the insured selects a higher deductible. This notice is required only at the time of the initial sale and must be in a form approved by the director or his designee. An insurer may offer insureds lower deductibles at the insurer's option.
(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 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, 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 an applicant or existing policyholder, on renewal, who has collected benefits provided under 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).
(C) Notwithstanding Section 38-77-110, Automobile physical damage coverage in an automobile insurance policy may be canceled at any time during the policy period by reason of the factors or conditions described in Section 38-73-455(A) or Section 38-77-280(B) which existed before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.
(D) No policy of insurance which provides automobile physical damage coverage only may be ceded to the facility.
(E) Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than those provided for in Section 38-73-457 if the rates are filed with the department and approved by the director or his designee. Any applicant or existing policyholder, to be charged this different rate, must be denied the coverage pursuant to subsection (B) at the rate provided in Section 38-73-457.
(F) A carrier may not cede collision coverage, comprehensive coverage, or fire, theft, and combined additional coverages with a deductible of less than two hundred fifty dollars. An insured or qualified applicant may select an additional deductible in appropriate increments up to one thousand dollars. However, the mandatory deductible does not apply to safety glass."
B. From January 1, 1997 to September 30, 1997, Section 38-77-280 of the 1976 Code, as last amended by Section 810 of Act 181 of 1993, is further amended to read:
"Section 38-77-280. (A) Except as provided in subsection (B), all automobile insurers, including those insurance companies writing private passenger physical damage coverages only, shall make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage except for reasons specified in Section 38-77-123.
Collision coverage must have a mandatory deductible of two hundred fifty dollars, but an insured or qualified applicant, at his option, may select an additional deductible in appropriate increments up to one thousand dollars.
Comprehensive coverage or fire, theft, and combined additional coverages must have a mandatory deductible of two hundred fifty dollars, but an insured, at his option, may select an additional deductible in appropriate increments up to one thousand dollars. This deductible does not apply to auto safety glass. It is an unfair trade practice, as described in Sections 38-57-30 and 38-57-40, for an insurer or an agent to sell collision insurance, comprehensive coverage, or fire, theft, and combined additional coverages unless the insured is notified at the time of application of the savings which may be realized if the applicant or the insured selects a higher deductible. This notice is required only at the time of the initial sale and must be in a form approved by the director or his designee. An insurer may offer insureds lower deductibles at the insurer's option.
(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 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, 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 an applicant or existing policyholder, on renewal, who has collected benefits provided under 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).
(C) Notwithstanding Section 38-77-110, automobile physical damage coverage in an automobile insurance policy may be canceled at any time during the policy period by reason of the factors or conditions described in Section 38-73-455(A) or Section 38-77-280(B) which existed before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.
(D) No policy of insurance which provides automobile physical damage coverage only may be ceded to the facility.
(E) Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than those provided for in Section 38-73-457 if the rates are filed with the department and approved by the director or his designee. Any applicant or existing policyholder, to be charged this different rate, must be denied the coverage pursuant to subsection (B) at the rate provided in Section 38-73-457.
(F) A carrier may not cede collision coverage, comprehensive coverage, or fire, theft, and combined additional coverages with a deductible of less than two hundred fifty dollars. An insured or qualified applicant may select an additional deductible in appropriate increments up to one thousand dollars. However, the mandatory deductible does not apply to safety glass."
SECTION 15. Section 38-77-350(C) of the 1976 Code, as added by Act 148 of 1989 and last amended by Act 496 of 1994, is further amended to read:
"(C) An automobile insurer is not required to make a new offer of coverage on any automobile insurance policy which renews, extends, changes, supersedes, or replaces an existing policy. However, the first renewal notices for existing policies after December 1, 1989, must include the form provided in subsection (A). A policy of automobile insurance offered or issued by a new servicing carrier for the South Carolina Reinsurance Facility to replace a policy previously issued by a former servicing carrier and containing the same coverage limits as the former policy constitutes a valid replacement policy that does not require the new servicing carrier or agent to make a new offer of coverage or to obtain a new application from the insured."
SECTION 16. The 1976 Code is amended by adding:
"Section 38-77-370. (A) If an individual, after proper identification, submits a written request to an insurer, agent, or insurance-support organization for access to recorded personal information about the individual that is reasonably described by the individual and reasonably able to be located and retrieved by the insurer, agent, or insurance-support organization, the insurer, agent, or insurance-support organization, within thirty business days from the date the request is received shall:
(1) inform the individual of the nature and substance of the recorded personal information in writing, by telephone, or by other oral communication, whichever the insurer, agent or insurance-support organization prefers;
(2) permit the individual to see and obtain a copy of the recorded personal information pertaining to him or to obtain a copy of the recorded personal information by mail, whichever the individual prefers, unless the recorded personal information is in coded form, in which case an accurate translation in plain language must be provided in writing;
(3) disclose to the individual the identity, if recorded, of those persons to whom the insurer, agent, or insurance-support organization has disclosed the personal information within two years before the request, and if the identity is not recorded, the names of those insurers, agents, insurance-support organizations, or other persons to whom the information is disclosed normally; and
(4) provide the individual with a summary of the procedures by which he may request correction, amendment, or deletion of recorded personal information.
(B) Any personal information provided pursuant to subsection (A) of this section shall identify the source of the information if it is an institutional source.
(C) Medical record information supplied by a medical care institutions or medical professional and requested under subsection (A) of this section, together with the identity of the medical professional or medical care institution that provided the information, must be supplied either directly to the individual or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer, agent, or insurance-support organization prefers. If it elects to disclose the information to a medical professional designated by the individual, the insurer, agent, or insurance-support organization shall notify the individual, at the time of the disclosure, that it has provided the information to the medical professional.
(D) Except for personal information provided under this Section, an insurer, agent, or insurance-support organization may charge a reasonable fee to cover the costs incurred in providing a copy of recorded personal information to individuals.
(E) The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. With respect to the copying and disclosure of recorded personal information pursuant to a request under subsection (A) of this section, an insurer, agent, or insurance-support organization may make arrangements with an insurance-support organization or a consumer reporting agency to copy and disclose recorded personal information on its behalf.
(F) The rights granted to individuals in this section shall extend to all natural persons to the extent information about them is collected and maintained by an insurer, agent, or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection shall not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.
(G) For purposes of this section, `insurance-support organization' does not include `consumer reporting agency'.
Section 38-77-380. (A) Within thirty business days from the date of receipt of a written request from an individual to correct, amend, or delete any recorded personal information about the individual within its possession, an insurer, agent, or insurance-support organization shall either:
(1) correct, amend, or delete the portion of the recorded personal information in dispute; or
(2) notify the individual of:
(a) its refusal to make the correction, amendment, or deletion;
(b) the reasons for the refusal; and
(c) the individual's right to file a statement as provided in subsection (C).
(B) If the insurer, agent, or insurance-support organization corrects, amends, or deletes recorded personal information in accordance with item (1) of subsection (A) of this section, the insurer, agent, or insurance-support organization shall notify the individual in writing and furnish the correction, amendment, or fact of deletion to:
(1) any person specifically designated by the individual who, within the preceding two years, may have received the recorded personal information;
(2) any insurance-support organization whose primary source of personal information is insurers if the insurance-support organization has received systematically the recorded personal information from the insurer within the preceding seven yeas. The correction, amendment, or fact of deletion need not be furnished if the insurance-support organization no longer maintains recorded personal information about the individual; and
(3) any insurance-support organization that furnished the personal information that has been corrected, amended, or deleted.
(C) Whenever an individual disagrees with an insurer's agent's or insurance-support organization's refusal to correct, amend, or delete recorded personal information, the individual is permitted to file with the insurer, agent, or insurance-support organization:
(1) a concise statement setting forth what the individual thinks is the correct, relevant, or fair information; and
(2) a concise statement of the reasons why the individual disagrees with the insurer's, agent's, or insurance-support organization's refusal to correct, amend, or delete recorded personal information.
(D) If an individual files either statement as described in subsection (C), the insurer, agent, or support organization shall:
(1) file the statement with the disputed personal information and provide a means by which anyone reviewing the disputed personal information will be made aware of the individual's statement and have access to it; and
(2) in a subsequent disclosure by the insurer, agent, or support organization of the recorded personal information that is the subject of disagreement, clearly identify the matter or matters in dispute and provide the individual's statement along with the recorded personal information being disclosed; and
(3) furnish the statement to the persons and in the manner specified in subsection (B).
(E) The rights granted to individuals in this section extend to all natural persons to the extent information about them is collected and maintained by an insurer, agent, or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection do not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.
(F) For purposes of this section, `insurance-support organization' does not include `consumer reporting agency'.
Section 38-77-390. (A) In the event of an adverse underwriting decision, including those that involve policies referred to in Section 38-77-120, the insurer or agent responsible for the decision shall give a written notice in a form approved by the director that:
(1) either provides the applicant, policyholder, or individual proposed for coverage with the specific reason or reasons for the adverse underwriting decision in writing or advises the person that upon written request he may receive the specific reason or reasons in writing; and
(2) provides the applicant, policyholder, or individual proposed for coverage with a summary of the rights established under subsection (B) of this section and Sections 38-77-380.
(B) Upon receipt of a written request within ninety business days from the date of the mailing of notice or other communication of an adverse underwriting decision to an applicant, policyholder, or individual proposed for coverage, the insurer or agent shall furnish to the person within twenty-one business days from the date of receipt of the written request:
(1) the specific reason or reasons for the adverse underwriting decision, in writing, if that information was not furnished initially in writing pursuant to subsection (A)(1);
(2) the specific items of personal and privileged information that support those reasons; however:
(a) the insurer or agent shall not be required to furnish specific items of privileged information if it has a reasonable suspicion, based upon specific information available for review by the director, that the applicant, policyholder, or individual proposed for coverage has engaged in criminal activity, fraud, material misrepresentation, or material nondisclosure; and
(b) specific items of medical-record information supplied by a medical-care institution or medical professional must be disclosed either directly to the individual about whom the information relates or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer or agent prefers; and
(3) the names and addresses of the institutional sources that supplied the specific items of information given pursuant to subsection (B)(2) of this section. However, the identity of any medical professional or medical-care institution must be disclosed either directly to the individual or to the designated medical professional, whichever the insurer or agent prefers.
(C) The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. However, the insurer or agent making an adverse underwriting decision shall remain responsible for compliance with the obligations imposed by this section.
(D) When an adverse underwriting decision results solely from an oral request or inquiry, the explanation of reasons and summary of rights required by subsection (A) of this section may be given orally."
SECTION 17. Section 38-77-530 of the 1976 Code, as last amended by Section 818 of Act 181 of 1993, is further amended to read:
"Section 38-77-530. The plan of operation of the facility is subject to the approval of the director or his designee which may be granted only if the plan provides for equitable apportionment of the operating expenses and profits or losses among the members. The plan may, if the director or his designee considers it feasible and equitable, make provision for separate apportionments between private passenger automobile insurance business and commercial automobile insurance business, or, alternatively or in addition to that division, the plan may make provision for separate apportionments between automobile liability insurance business, including medical payments and uninsured motorist insurance, and automobile physical damage insurance business. Any such apportionments shall give consideration to a comparison between the writings or car-year exposures of each insurer of automobile insurance and the total writings or car-year exposures of all automobile insurers or, in the case of any separate apportionments approved by the director or his designee, a comparison between the writings or car-year exposures of each insurer within the applicable category of automobile insurance and the writings or car-year exposures of all insurers within that category.
In connection with his approval of the plan, the director or his designee may require that the plan make provision for such comparisons for a one-year period or for a longer period not to exceed five years and may provide for weighing the experience so as to attach a greater weight to the more recent experience.
In connection with the approval of the plan's provisions respecting equitable apportionment of the operating expenses or gains or losses of the facility, the director or his designee may require that the plan make provision for a comparison between each insurer's percentage of the aggregate written premiums or car-year exposures respecting automobile insurance or any such category thereof and the insurer's percentage of total cessions to the facility of such insurance or category thereof so as to provide that the insurer's portion of the operating expenses or gains or losses must be the average of the two percentages; or the director or his designee may approve or require any other similar or comparable provision for the apportionment of the expenses or gains or losses of the facility which relates insurers' shares to their respective utilization of the facility.
The plan of operation, provided that insurers writing liability and physical damage coverages to include nonowners, shall commence recoupment of facility assessments by way of a surcharge on private passenger and commercial automobile business issued by a member or through the facility. Such surcharge shall be a percentage of the premium adopted by the governing board of the facility; and the charges determined on the basis of the surcharge shall be displayed as a part of the applicable premium charges. The surcharge for recoupment shall be shown as a separate charge.
(1) Any recoupment charge paid by policyholders must be considered premium for the purpose of calculating premium taxes and commissions and is subject to normal policy cancellation procedures.
(2) Any net operating gains resulting from the operation of the facility must be retained by the facility, and the gains and any investment income derived from the gains must be used to offset future operating losses.
(3) The total funds recouped by all insurers less commission and premium tax expenses and time value of money considerations must be paid to the Reinsurance Facility in accordance with the plan of operation. The governing board shall redistribute the funds to the insurers based upon each insurer's share of the Reinsurance Facility losses. Recoupment must be used solely for the purpose of recovering past facility operating deficits. The plan of operation must provide that the amount ultimately received by an individual company is not more than the company's share of the Reinsurance Facility losses, plus the time value of money."
SECTION 18. Section 38-77-590 of the 1976 Code, as last amended by Sections 821-825 of Act 181 of 1993, is amended to read:
"Section 38-77-590. (a) Not more than six months after July 9, 1974, or at an earlier time as the director or his designee considers necessary by reason of complaints regarding want of access to automobile insurance in particular areas or want of outlets for producers, the director or his designee shall survey the various areas of the State to ascertain if sufficient marketing outlets exist in all areas or are available to all producers. Upon a finding by the director or his designee that insufficient marketing outlets exist in particular areas or that certain producers have been deprived of a market for risks previously serviced by them, the director or his designee may, after consultation with the facility, designate one or more insurers to service the areas through agents appointed by them or may designate the producers as the agents of any insurer. The arrangements shall include provision for one hundred percent quota share reinsurance through the facility of any automobile insurance policy marketed through the arrangements, at the option of the insurer, and the reinsurance is not subject to the statutory provisions or regulations regarding excessive utilization of the facility.
(b) After the effective date of this section, those producers previously designated by the director or his designee may continue to serve in that capacity under the jurisdiction and control of the governing board of the facility, except that any change in the rate of commissions allowed designated producers is subject to the approval of the director or his designee.
(c) A producer may be designated by the governing board of the facility upon application for designation and is eligible for designation upon a finding by the governing board that the applicant meets the following qualifications:
(1) The applicant has been, for ten continuous years, a licensed resident property and casualty insurance agent and agency owner or principal with authority from one or more licensed insurers to write liability and physical damage insurance on private passenger automobiles;
(2) At the time of application the applicant is servicing and owns the renewals on private passenger and commercial automobile insurance business, the net premiums on which exceeded seventy-five thousand dollars of potential cedeable automobile insurance during any one of the previous five calendar years preceding the application;
(3) Neither the applicant, nor any employee of the applicant or the applicant's corporate agency, nor any partner or shareholder in any related insurance agency, related premium service company, or related other business, has any direct or indirect connection with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State except for motorcycle insurance and types not cedeable to the facility;
(4) The applicant has not contributed to his termination as agent by any insurer because of any illegal breach of agency agreement or other related, improper, or unethical conduct; and
(5) The books, records, and accounts of the insurance business of the applicant have been audited at the expense of the applicant and found by the governing board to be indicative of a financially sound operation.
(d) Prior to designation as a producer, the applicant shall furnish at his expense a bond in an amount of not less than fifty thousand dollars for the faithful performance of the duties as a producer, executed by the applicant as principal and a corporate surety licensed to do business in this State as surety, and shall also have effective errors and omissions insurance by an insurer licensed to do business in this State, with the bond and errors and omissions insurance being subject to approval by the governing board.
(e) The governing board shall assign a specific location to each producer designated. The governing board shall determine from the director or his designee the locations assigned by him to those producers whom the director or his designee has designated. Designated producers may not open or maintain any other locations without the written authorization of the governing board; provided, however, that an applicant maintaining multiple offices on June 4, 1987, is entitled to maintain two locations as a designated agent which he owned and operated at that time and through which premiums in at least the amount of seventy-five thousand dollars were written. The governing board shall terminate the designation, and the director or his designee shall revoke all agents' licenses of any producer who does not comply with this requirement upon demand by the governing board. Upon termination, the producer's expirations on designated business become the property of the facility.
(f) The designation of a producer by the director or his designee or the governing board is transferable to a spouse, child, parent, brother, or sister of the producer upon the designated producer's retirement, incapacity, or death. The duties of a designated producer may be performed by one or more qualified employees of the producer or the producer's corporate agency.
(g) Neither a designated producer, nor any employee of a designated producer or the producer's corporate agency, nor any partner or shareholder in any related insurance agency, related premium service company, or related other business, may have any direct or indirect connection with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State except for motorcycle insurance and types not cedable to the facility. The governing board shall terminate the designation of any producer, and the director or his designee shall revoke all licenses of the producer and of any other insurance agent and premium service company knowingly involved in this connection. Upon termination, the producer's expirations on designated business become the property of the facility.
(h) A designated carrier who fails a claims audit shall have no new designated producer assignments until the time it passes a re-audit within a reasonable time prescribed by the governing board. If this carrier fails two claims audits, including a re-audit, within any three-year period that carrier is disqualified for renewal of its contract with the facility upon expiration of its existing contract.
A producer designated under this section may not write new private passenger and commercial automobile insurance business after January 1, 1997, and must not renew private passenger and commercial automobile business after September 30, 1997. No policies with an effective date after September 30, 1997, shall be accepted by the facility."
SECTION 19. Section 38-77-595 of the 1976 Code, as added by Act 524 of 1990, is amended by adding:
"A producer designated under this section may not write new private passenger and commercial automobile insurance business after January 1, 1997, and must not renew private passenger and commercial automobile business after September 30, 1997. No policies with an effective date after September 30, 1997, shall be accepted by the facility."
SECTION 20. Title 38, Chapter 77 of the 1976 Code is amended by adding:
Section 38-77-810. The director may make reasonable regulations for the assignment of risks to insurance carriers. He shall establish rate classifications, rating schedules, rates, and regulations to be used by insurance carriers issuing assigned risk, policies of motor vehicle liability, physical damage, and medical payments insurance in accordance with this chapter as appear to it to be proper in the establishment of rate classifications, rating schedules, rates, and regulations, it shall be guided by the principles and practices which have been established under its statutory authority to regulate motor vehicle liability, physical damage, and medical payments insurance rates and it may act in conformity with its statutory discretionary authority in such matters.
Section 38-77-820. Every person who has been unable to obtain a motor vehicle liability policy shall have the right to apply to the director to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the State and the insurance carrier, whether a stock or mutual company, reciprocal, or interinsurance exchange, or other type or form of insurance organization, as provided in this chapter shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility as provided in this chapter, and in addition shall provide, at the option of the insured, reasonable motor vehicle physical damage and medical payments coverages, (both as defined in Chapter 77, Title 38) in the same policy. Every person who has otherwise obtained a motor vehicle liability insurance policy, or who has been afforded motor vehicle liability insurance under the laws of this State, but who was not afforded motor vehicle medical payments insurance or motor vehicle physical damage insurance in the same policy, or who was not afforded such coverages under the provisions of that section, shall have the right to apply to the director to have his risk assigned to an insurance carrier, as provided above, licensed to write and writing either or both coverages, and the insurance carrier shall issue a policy providing the coverage or coverages applied for.
Section 38-77-840. The director may in its discretion, after reviewing all information pertaining to the applicant or policyholder available from its records, the records of the department, or from other sources:
(1) refuse to assign an application;
(2) approve the rejection of an application by an insurance carrier;
(3) approve the cancellation of a policy of motor vehicle liability, physical damage, and medical payments insurance by an insurance carrier; or
(4) refuse to approve the renewal or the reassignment of an expiring policy.
Section 38-77-850. Any information filed with the director by an insurance carrier in connection with an assigned risk shall be confidential and solely for the information of the director and its staff and shall not be disclosed to any person, including an applicant, policyholder, and any other insurance carrier.
Section 38-77-860. (A) The director shall not be required to disclose to any person, including the applicant or policyholder, its reasons for:
(1) refusing to assign an application;
(2) approving the rejection of an application by an insurance carrier;
(3) approving the cancellation of a policy of motor vehicle liability, physical damage, and medical payments insurance by an insurance carrier; or
(4) refusing to approve the renewal or the reassignment of an expiring policy.
(B) The director or anyone acting for it shall not be held liable for any act or omission in connection with the administration of the duties imposed upon it by the provisions of this chapter, except upon proof of actual malfeasance.
Section 38-77-870. The provisions of this chapter relevant to assignment of risks shall be available to nonresidents who are unable to obtain a policy of motor vehicle liability, physical damage, and medical payments insurance with respect only to motor vehicles registered and used in the State.
Section 38-77-880. Notwithstanding any other provision of law, the provisions of this chapter relating to assignment of risks shall be available to carriers by motor vehicle who are required by law to carry public liability and property damage insurance for the protection of the public."
SECTION 21. Sections 38-73-455, 38-73-456, 38-73-457, 38-73-460, 38-73-465, 38-73-720, 38-73-730, 38-73-731, 38-73-735, 38-73-750, 38-73-760, 38-73-770, 38-77-111, 38-77-115, 38-77-145, 38-77-285, 38-77-360, 38-77-600, 38-77-605, 38-77-610, 38-77-620, and 38-77-625 and Article 9 of Chapter 77 of Title 38 of the 1976 Code are repealed.
SECTION 22. Except as may be otherwise specifically provided in this act, this act takes effect January 1, 1997.