Current Status Introducing Body:
HouseBill Number: 3859Primary Sponsor: J. BaileyType of Legislation: GBSubject: Motor vehicle liability insuranceResiding Body: SenateComputer Document Number: CYY/18500.SDIntroduced Date: Apr 11, 1991Last History Body: SenateLast History Date: May 21, 1992Last History Type: Committee Polled: Favorable with amendmentScope of Legislation: StatewideAll Sponsors: J. BaileyType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3859 Senate May 21, 1992 Polled out of Committee: 02 Favorable with amendment 3859 Senate May 14, 1991 Introduced, read first time, 02 referred to Committee 3859 House May 10, 1991 Read third time, sent to Senate 3859 House May 09, 1991 Unanimous consent for third reading on next Legislative day 3859 House May 09, 1991 Read second time 3859 House May 01, 1991 Committee Report: Favorable 26 3859 House Apr 11, 1991 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
POLLED OUT OF COMMITTEE
MAJORITY FAVORABLE WITH AMENDMENT
May 21, 1992
S. Printed 5/21/91--S.
Read the first time May 14, 1991.
To whom was referred a Bill (H. 3859), to amend Section 56-10-280, as amended, Code of Laws of South Carolina, 1976, relating to the duration and cancellation of certain motor vehicle liability insurance, etc., respectfully
Has polled the Bill out majority favorable with amendment, to wit:
Amend the bill, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:
/ SECTION 1. Section 38-77-280 of the 1976 Code, as last amended by Act 557 of 1990, is further amended to read:
"Section 38-77-280. (A) Except as provided in subsection (B), all automobile insurers, including those insurance companies writing private passenger physical damage coverages only, shall may make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage.
If Collision collision coverage is offered or provided, it must have a mandatory deductible of two hundred fifty dollars, but an insured or qualified applicant, at his option, may select an additional deductible in appropriate increments up to one thousand dollars.
If Comprehensive comprehensive coverage or fire, theft, and combined additional coverages is offered or provided, it must have a mandatory deductible of two hundred fifty dollars, but an insured, at his option, may select an additional deductible in appropriate increments up to one thousand dollars. This deductible does not apply to auto safety glass. It is an unfair trade practice, as described in Sections 38-57-30 and 38-57-40, for an insurer or an agent to sell collision insurance, comprehensive coverage, or fire, theft, and combined additional coverages unless the insured is notified at the time of application of the savings which may be realized if the applicant or the insured selects a higher deductible. This notice is required only at the time of the initial sale and must be in a form approved by the Chief Insurance Commissioner. An insurer may offer insureds lower deductibles at the insurer's option.
(B) Notwithstanding subsection (A) and Sections 38-77-110 and 38-77-920, automobile insurers may refuse to write automobile physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Section 38-77-340 and who resides in the same household, where one or more of the conditions or factors prescribed in Section 38-73-455 exist. In addition, automobile insurers may refuse to write physical damage insurance coverage to any applicant or existing policyholder, on renewal, who has collected benefits provided under any automobile insurance physical damage coverage during the thirty-six months immediately preceding the effective date of coverage, for two or more total fire losses or two or more total theft losses. All insurers subject to the provisions of this section writing single interest collision coverage shall provide an applicant for the insurance at the time of his application a notice separate and apart from any other form used in the application. The notice must be signed by the applicant evidencing his acknowledgment of having read the notice. The notice must contain the following language printed in bold face type:
`NOTICE: THE INSURANCE COVERAGE YOU ARE HEREBY PURCHASING IS ONLY SINGLE INTEREST COLLISION COVERAGE. THE AMOUNT OF INSURANCE DECREASES AS YOU PAY OFF THE AMOUNT OF YOUR INDEBTEDNESS. YOU MAY NOT RECEIVE ANY INSURANCE PROCEEDS OVER AND ABOVE THE AMOUNT OF THE OUTSTANDING BALANCE ON YOUR LOAN.'
(C) Notwithstanding Section 38-77-110, automobile physical damage coverage in an automobile insurance policy may be cancelled at any time during the policy period by reason of the factors or conditions described in Section 38-73-455(A) or Section 38-77-280(B) which existed before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.
(D) No policy of insurance which provides or includes automobile physical damage coverage only may be ceded to the facility.
(E) Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than those provided for in Section 38-73-457 if the rates are filed and approved by the Chief Insurance Commissioner. Any applicant or existing policyholder, to be charged this different rate, must be denied the coverage pursuant to subsection (B) at the rate provided in Section 38-73-457.
(F) A carrier may not cede collision coverage, comprehensive coverage, or fire, theft, and combined additional coverages with a deductible of less than two hundred fifty dollars. An insured or qualified applicant may select an additional deductible in appropriate increments up to one thousand dollars. However, the mandatory deductible does not apply to safety glass." /
SECTION 2. All insurers shall submit rate filings within twelve months following the effective date of this act, which filings must reflect the rate decreases, if any, attributable to the passage of this act.
SECTION 3. This act takes effect upon approval by the Governor. /
Amend title to conform.
TO AMEND SECTION 56-10-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DURATION AND CANCELLATION OF CERTAIN MOTOR VEHICLE LIABILITY INSURANCE POLICIES ISSUED TO MEET FINANCIAL RESPONSIBILITY REQUIREMENTS, SO AS TO PERMIT CANCELLATION OF THE POLICY IF THE INSURED HAS SECURED ANOTHER POLICY THAT MEETS THESE FINANCIAL RESPONSIBILITY REQUIREMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 56-10-280 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:
"Section 56-10-280. All contracts or policies of insurance issued to meet the financial responsibility requirements prescribed in this chapter must be issued for not less than six months. A contract or policy of insurance remains in full force and effect at least sixty days notwithstanding any power of attorney which may purport to give the attorney-in-fact the right to effect cancellation on behalf of the insured; however, a contract or policy may be cancelled within the first sixty days only under the following circumstances:
(1) a check or bank draft tendered by the insured for payment of premium is returned unpaid for insufficient funds or other reason by the insured's financial institution; or
(2) the insured produces satisfactory proof from the Department of Highways and Public Transportation that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration; or
(3) the insured has secured another policy that meets the financial responsibility requirements prescribed in this chapter.
The provisions of this section do not prohibit refunds to the insured for cancellations after sixty days resulting from causes other than nonpayment of premium. Where an insurance company cancels a contract or policy pursuant to this section for nonpayment of premium under the circumstances described above which occurs within the first sixty days, the insurance company or agent is entitled to charge and collect a fifteen dollar penalty in addition to that otherwise provided by law, and the penalty charge is not a premium charge."
SECTION 2. This act takes effect upon approval by the Governor.