Current Status Bill Number:643 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950316 Primary Sponsor:Thomas All Sponsors:Thomas Drafted Document Number:bbm\9780jm.95 Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Motor vehicle insurance; uninsured, underinsured
Body Date Action Description Com Leg Involved
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Senate 19950316 Introduced, read first time, 02 SBI
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 38-77-160, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTOMOBILE INSURANCE LAW, ADDITIONAL UNINSURED MOTORIST COVERAGE, AND UNDERINSURED MOTORIST COVERAGE, SO AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE PROVISION THAT IF AN INSURED OR NAMED INSURED IS PROTECTED BY UNINSURED OR UNDERINSURED MOTORIST COVERAGE IN EXCESS OF THE BASIC LIMITS, THE POLICY SHALL PROVIDE THAT THE INSURED OR NAMED INSURED IS PROTECTED ONLY TO THE EXTENT OF THE COVERAGE HE HAS ON THE VEHICLE INVOLVED IN AN ACCIDENT; AND TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-162 SO AS TO DEFINE "CLASS I INSURED" AND "CLASS II INSURED" AND PROVIDE, AMONG OTHER THINGS, THAT CLASS I INSUREDS MAY STACK UNINSURED OR UNDERINSURED MOTORIST COVERAGE UP TO THE LIMITS ON THE VEHICLE INVOLVED IN AN ACCIDENT AND THAT CLASS II INSUREDS MAY NOT STACK UNINSURED OR UNDERINSURED MOTORIST COVERAGE AND MAY COLLECT ONLY SUCH COVERAGE ON THE VEHICLE THEY ARE OCCUPYING AND ONE ENDORSEMENT FROM ANY OF THE INSURED'S PERSONAL POLICIES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-160 of the 1976 Code, as last amended by Act 461 of 1994, is further amended to read:
"Section 38-77-160. Automobile insurance carriers shall offer, at the option of the insured, uninsured motorist coverage up to the limits of the insured's liability coverage in addition to the mandatory coverage prescribed by Section 38-77-150. Such carriers shall also offer, at the option of the insured, underinsured motorist coverage up to the limits of the insured liability coverage to provide coverage in the event that damages are sustained in excess of the liability limits carried by an at fault insured or underinsured motorist or in excess of any damages cap or limitation imposed by statute. If, however, an insured or named insured is protected by uninsured or underinsured motorist coverage in excess of the basic limits, the policy shall provide that the insured or named insured is protected only to the extent of the coverage he has on the vehicle involved in the accident. If none of the insured's or named insured's vehicles is involved in the accident, coverage is available only to the extent of coverage on any one of the vehicles with the excess or underinsured coverage. Benefits paid pursuant to this section are not subject to subrogation and assignment.
No action may be brought under the underinsured 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 underinsured motorist provision. The insurer has the right to appear and defend in the name of the underinsured 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. In the event the automobile insurance insurer for the putative at-fault insured chooses to settle in part the claims against its insured by payment of its applicable liability limits on behalf of its insured, the underinsured motorist insurer may assume control of the defense of action for its own benefit. No underinsured motorist policy may contain a clause requiring the insurer's consent to settlement with the at-fault party."
SECTION 2. The 1976 Code is amended by adding:
"Section 38-77-162. (1) Class I insureds may stack uninsured or underinsured motorist coverage up to the limits on the vehicle involved in the accident. In the event the Class I insured is a pedestrian or otherwise not occupying an owned vehicle, the insured may stack uninsured or underinsured motorist coverage up to the lesser coverage provided by any insured endorsement.
(2) A `Class I insured' means:
(a) a person occupying an owned vehicle;
(b) a person occupying a vehicle owned by a resident relative;
(c) a pedestrian; or
(d) a person occupying a bicycle or other means of transportation that does not constitute a motor vehicle.
(3) Class II insureds may not stack uninsured or underinsured motorist coverage and may collect only such coverage on the vehicle they are occupying and one endorsement from any of the insured's personal policies. If the insured is protected by different automobile insurance carriers, the payment must be prorated equally among all carriers which provide coverage to the insured.
(4) A `Class II insured' means a guest passenger occupying a vehicle which is not owned by that person nor owned by a resident relative of that person."
SECTION 3. This act takes effect upon approval by the Governor.