Current Status Bill Number:View additional legislative information at the LPITS web site.
350Ratification Number: 193Act Number: 127Introducing Body: SenateSubject: Property and liability insurance
(A127, R193, S350)
AN ACT TO AMEND SECTION 37-4-301, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY AND LIABILITY INSURANCE, SO AS TO PROVIDE THAT INSURANCE COVERAGE OF A SUBSTANTIAL RISK OF LOSS OF OR DAMAGE TO PROPERTY MUST BE ENTIRELY OR PARTIALLY RELATED TO THE CREDIT TRANSACTION IN ORDER FOR THE CREDITOR TO CONTRACT FOR OR RECEIVE A SEPARATE CHARGE FOR THE INSURANCE.
Be it enacted by the General Assembly of the State of South Carolina:
Separate charge for insurance
SECTION 1. Section 37-4-301 of the 1976 Code is amended to read:
"Section 37-4-301. (1) A creditor may not contract for or receive a separate charge for insurance against loss of or damage to property unless:
(a) The insurance covers a substantial risk of loss or damage to property, all or part of which is related to the credit transaction.
(b) The amount, terms, and conditions of the insurance are reasonable in relation to the character and value of the property insured or to be insured; and
(c) The term of the insurance is reasonable in relation to the terms of credit.
(2) The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity."
SECTION 2. This act shall take effect upon approval by the Governor.