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Bill 3505

                    Current Status

Bill Number:                      3505
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20010208
Primary Sponsor:                  Easterday
All Sponsors:                     Easterday
Drafted Document Number:          l:\council\bills\dka\4098mm01.doc
Residing Body:                    House
Current Committee:                Labor, Commerce and Industry Committee 26 
                                  HLCI
Subject:                          Motor vehicle insurance, economic impact 
                                  disclosure statement required by insurer when 
                                  claim filed by insured


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   20010208  Introduced, read first time,           26 HLCI
                  referred to Committee


              Versions of This Bill

TO AMEND ARTICLE 5, CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE'S AUTOMOBILE INSURANCE LAW AND THE SOUTH CAROLINA REINSURANCE FACILITY, DESIGNATED PRODUCERS, AND FACILITY RECOUPMENT CHARGES, BY ADDING SECTION 38-77-627 SO AS TO PROVIDE FOR DISCLOSURE OF ECONOMIC IMPACT BY AN INSURER AS THE RESULT OF A CLAIM BEING FILED BY AN INSURED, THE FORMAL WITHDRAWAL OF A CLAIM BY THE INSURED FOLLOWING RECEIPT OF THE ECONOMIC IMPACT DISCLOSURE, APPROVAL OF FORMS AND THE PROMULGATION OF REGULATIONS BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, WAIVER BY THE INSURED OF HIS RIGHTS AND PRIVILEGES IN THIS SECTION, AND AN ADMINISTRATIVE FINE TO BE ASSESSED AGAINST AN INSURER WHICH VIOLATES THIS SECTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 5, Chapter 77, Title 38 of the 1976 Code is amended by adding:

    "Section 38-77-627.    (A)    Notwithstanding any other provision of this article, upon a claim being submitted to the insurer by an insured pursuant to his policy, the insurer, within ten working days of receipt of the claim, must notify the insured in writing and make full disclosure to him of the total economic impact and effect of that claim upon the insured's rates and premiums as provided by the insured's policy, including a detailed listing of surcharges, recoupment charges, and all other applicable charges or fees accruing as a result of that claim. The notification must indicate the length of time during which an increase in premiums or rates, or the addition of surcharges, recoupment charges, and other charges or fees, remain in effect for the insured because of the claim submitted by him to the insurer. Within ten days of receipt by the insured of the economic impact disclosure statement from the insurer, as required by this section, the insured may elect to withdraw the claim. The withdrawal must be made on a withdrawal-of-claim form attached to the economic impact disclosure statement sent by the insurer to the insured pursuant to this section. If the insured withdraws the claim, an increase in premiums or rates may not be made for that insured, nor may surcharges, recoupment charges, or other charges be charged to him as a result of that claim.

    (B)    The Director of the Department of Insurance shall approve all forms, statements, and notices authorized by this section and shall promulgate regulations for the necessary and proper enforcement of this section.

    (C)    Upon submitting a claim under his policy to the insurer, the insured may waive his rights and privileges provided by this section. The waiver must be effected in writing and be dated, signed by the insured, and witnessed by two individuals. The purpose for waiver as provided by this subsection is to effectuate a settlement of the claim at a time sooner than the first deadline provided in subsection (A), and the insurer must settle with the insured in that manner upon obtaining the insured's waiver pursuant to this subsection (C).

    (D)    An insurer that violates a provision of this section must pay an administrative fine to the Department of Insurance in the amount of one thousand dollars, one-half of which must be remitted by the department to the insured. The Director of the Department of Insurance shall determine if a violation has occurred."

SECTION    2.    This act takes effect upon approval by the Governor.

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