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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-225, TO EXTEND VARIOUS MOTOR VEHICLE INSURANCE COVERAGES TO "LOANER" VEHICLES AND DEMONSTRATOR VEHICLES AND PROVIDE FOR RELATED MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 77, Title 38 of the 1976 Code is amended by adding:
"Section 38-77-225. Notwithstanding any other provision of law, every motor vehicle liability insurance policy, every motor vehicle physical damage insurance policy, every motor vehicle uninsured and underinsured motorist insurance policy, and every motor vehicle insurance policy covering death or bodily injury insuring a motor vehicle licensed in this State or the occupants of the motor vehicle shall extend their liability, physical damage, uninsured, and underinsured motorist and death or bodily injury coverages to include any other motor vehicle operated by the insured individual and its occupants if the other motor vehicle is loaned by a licensed automobile dealer as a temporary substitute, with or without compensation, to the insured individual for use as a temporary substitute vehicle while the insured's vehicle is out of use because of breakdown, repair, or servicing, or if the other motor vehicle is loaned by a licensed automobile dealer for use as a demonstrator vehicle or for an overnight test drive. However, coverage extends to the loaned or demonstrator vehicle only to the extent of the coverage provided, if any, to the automobile being repaired, serviced, or in the case of a vehicle loaned for an overnight test drive, the vehicle left at the dealership by the owner as security for the test drive vehicle. These extensions of liability, physical damage, uninsured, and underinsured motorist and death or bodily injury coverages are primary."
SECTION 2. This act takes effect upon approval by the Governor and applies to all policies of insurance issued or renewed on and after the effective date of this act.
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