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Bill Number: 3 Ratification Number: 3 Act Number 205 Introducing Body: Senate Subject: Freeze on rate increases
(A205, R3, S3)
A JOINT RESOLUTION TO PROHIBIT AN INSURER OR RATING ORGANIZATION DOING BUSINESS IN THIS STATE FROM FILING FOR APPROVAL OF A PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE INCREASE UNTIL AFTER JULY 1, 1989, AND TO PROVIDE FOR RELATED MATTERS.
Whereas, the General Assembly is concerned about the automobile insurance climate in South Carolina, including the filing of private passenger automobile insurance rate increases; and
Whereas, the provisions of Act 166 of 1987, which substantially amended the automobile insurance statutes in this State, have been in effect for only a relatively short period; and
Whereas, Act 532 of 1988 (the Safer Highways Act) has been in effect only since January 1, 1989; and
Whereas, statistical data reflecting actual private passenger automobile experience in South Carolina for 1988 has not as yet been collated; and
Whereas, it is necessary and desirable to stabilize private passenger automobile insurance rates at current levels so as to allow the General Assembly sufficient time to evaluate properly the effect of these situations and conditions, as well as to consider further appropriate legislation in this area. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
Freeze on rate increases
SECTION 1. An insurer or rating organization doing business in this State may not file for approval of a private passenger automobile insurance rate increase until after July 1, 1989. No insurer may adopt a rating organization's rate for private passenger automobile insurance during the period of this moratorium if that insurer does not currently utilize these rates. No pending private passenger automobile insurance rate increase may be considered for approval until after July 1, 1989, and the provisions of Section 38-73-960 of the 1976 Code of Laws are suspended during the period of this moratorium.
SECTION 2. The provisions of this act do not prevent the filing and approval of the Reinsurance Facility recoupment charge required by Section 38-77-610.
SECTION 3. The provisions of this act do not prevent the filing and approval of private passenger automobile insurance rate decreases nor prevent an insurer from requesting approval of a downward deviation from rates currently approved for a rating organization if that insurer is currently authorized to utilize, and is utilizing, that rating organization's approved private passenger automobile insurance rates.
SECTION 4. This act takes effect upon approval by the Governor.