Current Status Introducing Body:Senate Bill Number:245 Primary Sponsor:Macaulay Committee Number:26 Type of Legislation:GB Subject:Motor vehicle insurance, collision optional Residing Body:House Current Committee:Labor, Commerce and Industry Computer Document Number:BBM/9068JM.93 Introduced Date:19930120 Date of Last Amendment:19930310 Last History Body:House Last History Date:19940420 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Macaulay Peeler McConnell Martin Ford Thomas Williams Leatherman Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
245 House 19940420 Introduced, read first time, 26
referred to Committee
245 Senate 19940419 Read third time, sent to House
245 Senate 19940413 Debate interrupted
245 Senate 19940203 Debate interrupted
245 Senate 19930603 Carried over, retaining its
place on the Calendar,
Senator Leventis retaining
the floor
245 Senate 19930602 Debate interrupted
245 Senate 19930310 Amended, read second time,
ordered to third reading with
notice of general amendments
245 Senate 19930309 Committee Report: Favorable 02
with amendment
245 Senate 19930120 Introduced, read first time, 02
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
COMMITTEE AMENDMENT ADOPTED
March 10, 1993
S. 245
Introduced by SENATORS Macaulay, Peeler, McConnell, Martin, Ford, Thomas, Williams and Leatherman
S. Printed 3/10/93--S.
Read the first time January 20, 1993.
TO AMEND SECTION 38-77-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLISION, COMPREHENSIVE, FIRE, THEFT, AND COMBINED ADDITIONAL MOTOR VEHICLE LIABILITY INSURANCE COVERAGE, SO AS TO MAKE IT OPTIONAL FOR INSURERS TO OFFER COLLISION COVERAGE AND EITHER COMPREHENSIVE OR FIRE, THEFT, AND COMBINED ADDITIONAL COVERAGE; TO PROVIDE THAT ALL INSURERS WRITING SINGLE INTEREST COLLISION COVERAGE SHALL PROVIDE AN APPLICANT FOR THIS INSURANCE WITH A CERTAIN NOTICE THAT MUST BE SIGNED BY THE APPLICANT; AND TO PROVIDE THAT ALL INSURERS SHALL SUBMIT RATE FILINGS WITHIN TWELVE MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS ACT WHICH MUST REFLECT THE RATE DECREASES, IF ANY, ATTRIBUTABLE TO THE PASSAGE OF THIS ACT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-280 of the 1976 Code, as last amended by Act 113 of 1991, 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 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 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 Section 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 Section 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 an applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or another 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 an applicant or existing policyholder, on renewal, who has collected benefits provided under 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. Automobile insurers may refuse to write for private passenger automobiles physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for an applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or another operator not excluded in accordance with Section 38-77-340 and who resides in the same household, which does not qualify for the safe driver discount in Section 38-73-760e.
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 canceled 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 automobile physical damage coverage may be ceded to the facility.
(E) Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than from 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.
(G) In determining the premium rates to be charged on automobile insurance, it is unlawful to consider race, color, creed, religion, national origin, ancestry, location of residence, occupation, or economic status."
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 October 1, 1993.