Current Status Bill Number:789 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950427 Primary Sponsor:Russell All Sponsors:Russell Drafted Document Number:bbm\10175jm.95 Companion Bill Number:3321 Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Insurance repair work
Body Date Action Description Com Leg Involved
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Senate 19950427 Introduced, read first time, 02 SBI
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-57-75 SO AS TO MAKE IT AN UNFAIR METHOD OF COMPETITION AND UNFAIR OR DECEPTIVE ACT OR PRACTICE FOR AN INSURER TO CONTRACT OR AGREE WITH ANY COMPANY OR OTHER BUSINESS ENTITY TO MANAGE, HANDLE, OR ARRANGE INSURANCE REPAIR WORK OR TO ACT AS AN AGENT FOR THE INSURER IN ANY MANNER WHERE THE COMPANY OR ENTITY SETS A PRICE WHICH MUST BE MET BY A REPAIR SHOP AS A CONDITION OF DOING CLAIMS REPAIR WORK FOR THE INSURER AND THEN RETAINS A PERCENTAGE OF THE CLAIM PAID BY THE INSURER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-57-75. It is an unfair method of competition and an unfair or deceptive act or practice, and, therefore, illegal under this chapter, for an insurer to establish a contract or agreement with any company or other business entity to manage, handle, or arrange insurance repair work or to act as an agent for the insurer in any manner where the company or entity sets a price which must be met by a repair shop as a condition of doing claims repair work for the insurer and then retains a percentage of the claim paid by the insurer."
SECTION 2. This act takes effect upon approval by the Governor.