Current Status Bill Number:4776 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980310 Primary Sponsor:Easterday All Sponsors:Easterday, Bowers Drafted Document Number:bbm\9734jm.98 Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Motor vehicle insurer, economic impact by; disclosure as result of claims; Insurance, Reinsurance facility
Body Date Action Description Com Leg Involved
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House 19980317 Co-Sponsor added (Rule 5.2) by Rep. Bowers
House 19980310 Introduced, read first time, 26 HLCI
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND ARTICLE 5 OF CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE'S AUTOMOBILE INSURANCE LAW AND THE SOUTH CAROLINA REINSURANCE FACILITY, DESIGNATED PRODUCERS, AND FACILITY RECOUPMENT CHARGES, BY ADDING SECTION 38-77-627 SO AS TO PROVIDE FOR DISCLOSURE OF ECONOMIC IMPACT BY AN INSURER AS THE RESULT OF A CLAIM BEING FILED BY AN INSURED, ALLOW THE FORMAL WITHDRAWAL OF A CLAIM BY THE INSURED FOLLOWING RECEIPT OF THE ECONOMIC IMPACT DISCLOSURE, PROVIDE FOR APPROVAL OF FORMS AND THE PROMULGATION OF REGULATIONS BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, PROVIDE FOR WAIVER BY THE INSURED OF HIS RIGHTS AND PRIVILEGES UNDER THIS SECTION, AND PROVIDE FOR AN ADMINISTRATIVE FINE TO BE ASSESSED AGAINST AN INSURER WHICH VIOLATES THIS SECTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5 of Chapter 77, Title 38 of the 1976 Code is amended by adding:
"Section 38-77-627. (A) Notwithstanding any other provision of this article, upon a claim being submitted by an insured under his policy to the insurer, the insurer, within ten working days of receipt of the claim, shall notify the insured in writing and make full disclosure to him of the total economic impact and effect of that claim upon the insured's rates and premiums under the insured's policy, including a detailed listing of surcharges, recoupment charges, and all other applicable charges or fees accruing as a result of that claim. The notification must indicate the length of time during which any increase in premiums or rates, or the addition of surcharges, recoupment charges, and other charges or fees, shall remain in effect for the insured because of the claim submitted by him to the insurer. Within ten days of receipt by the insured of the economic impact disclosure statement from the insurer, as required by this section, the insured may elect to withdraw the claim. The withdrawal must be made on a withdrawal-of-claim form attached to the economic impact disclosure statement sent by the insurer to the insured pursuant to this section. If the insured withdraws the claim, no increase in premiums or rates may be made for that insured, or any surcharges, recoupment charges, or other charges be charged to him, as a result of that claim.
(B) The Director of the Department of Insurance shall approve all forms, statements, and notices authorized by this section and shall promulgate regulations for the necessary and proper enforcement of this section.
(C) Upon submitting a claim under his policy to the insurer, the insured may waive his rights and privileges under this section. The waiver must be effected in writing, dated, signed by the insured, and witnessed by two individuals. The purpose for waiver under this subsection is to effectuate a settlement of the claim at a time sooner than the first deadline set forth in subsection (A), and it shall be the duty of the insurer to settle with the insured in such manner upon obtaining the insured's waiver pursuant to this subsection (C).
(D) An insurer which violates any provision of this section shall pay an administrative fine to the Department of Insurance in the amount of one thousand dollars, one-half of which must be remitted by the department to the insured. The Director of the Department of Insurance shall determine whether a violation has occurred."
SECTION 2. This act takes effect upon approval by the Governor.