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H. 4321
STATUS INFORMATION
General Bill
Sponsors: Reps. F.N. Smith, Whipper and Moody-Lawrence
Document Path: l:\council\bills\dka\3499dw06.doc
Introduced in the House on January 10, 2006
Currently residing in the House Committee on Labor, Commerce and Industry
Summary: Homeowners insurance
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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11/16/2005 House Prefiled
11/16/2005 House Referred to Committee on Labor, Commerce and Industry
1/10/2006 House Introduced and read first time HJ-29
1/10/2006 House Referred to Committee on Labor, Commerce and Industry
HJ-29
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-5-220 SO AS TO PROVIDE THAT AN INDIVIDUAL WITH NO CREDIT HISTORY MAY NOT BE REFUSED UNDERWRITING, CANCELLATION, RENEWAL OF A POLICY, ASSIGNATION TO A RATING TIER, THE PLACING OF A PERSON WITH AN AFFILIATED COMPANY, OR REQUIRING A PARTICULAR PAYMENT PLAN WITH REGARD TO A HOMEOWNER'S INSURANCE POLICY; AND BY ADDING SECTION 39-5-190 TO MAKE A VIOLATION OF SECTION 38-5-220 AN UNFAIR TRADE PRACTICE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 5, Title 38 of the 1975 Code is amended by adding:
"Section 38-5-220. (A) For purposes of this section 'credit history' means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing, or credit capacity that is used or expected to be used, or collected in whole or in part, for the purpose of determining personal lines insurance premiums covered by this section or eligibility for coverage.
(B) With respect to homeowners' insurance, an insurer may not:
(1) refuse to underwrite, cancel, or refuse to renew a risk based, in whole or in part, on the credit history of an applicant or insured;
(2) rate a risk based, in whole or in part, on the credit history of an applicant or insured in any manner including, but not limited to:
(a) the provision or removal of a discount;
(b) assigning the insured or applicant to a rating tier; or
(c) placing an insured or applicant with an affiliated company; or
(3) require a particular payment plan based, in whole or in part, on the credit history of the insured or applicant."
SECTION 2. Chapter 5, Title 39 of the 1976 Code is amended by adding:
"Section 39-5-190. It is an unfair trade practice and unlawful for an insurer as defined in Section 38-1-20(25) to violate the provisions of Section 38-5-220."
SECTION 3. This act takes effect upon approval by the Governor.
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