Download This Version in Microsoft Word format
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-59-22 SO AS TO PROVIDE IT IS AN IMPROPER CLAIM PRACTICE FOR AN AUTOMOBILE INSURANCE POLICY TO REQUIRE A CLAIMANT TO USE A PARTICULAR REPAIR SERVICE FOR AN ESTIMATE OR REPAIR OF A COVERED CLAIM, ENGAGE IN CERTAIN INTIMIDATING OR THREATENING CONDUCT TOWARD A CLAIMANT, OR UNILATERALLY AND ARBITRARILY DISREGARD A REPAIR PROCEDURE OR REPAIR COST IDENTIFIED BY AN ESTIMATING SYSTEM TO WHICH THE INSURER AND AN AUTOMOBILE REPAIR FACILITY HAVE AGREED TO USE TO DETERMINE THE COST OF A PARTICULAR REPAIR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 59, Title 38 of the 1976 Code is amended by adding:
"Section 38-59-22. In addition to the provisions of Section 38-59-20, an insurer issuing an automobile insurance policy under Chapter 77 of this title engages in an improper claim practice if it:
(1) requires a claimant under the policy to use a particular automobile repair facility for a mechanical or body repair or an estimate for the cost of a repair made pursuant to the claim;
(2) engages in an act or practice that intimidates, coerces, or threatens a reasonable claimant;
(3) provides an incentive or inducement to encourage a claimant to use a particular repair facility; or
(4) unilaterally and arbitrarily disregards a repair procedure or repair cost identified by an estimating system to which the insurer and an automobile repair facility have agreed to use to determine the cost of a particular automobile repair."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on February 9, 2011 at 11:59 AM