Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
January 24, 2008
S. 858
Introduced by Senators McConnell, Rankin, O'Dell, Elliott, Malloy and McGill
S. Printed 1/24/08--S.
Read the first time January 8, 2008.
To whom was referred a Bill (S. 858) to amend Section 38-73-1095, Code of Laws of South Carolina, 1976, as amended, relating to essential property insurance and rating plan factors, so as to provide credits, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, Section 38-73-1095(C) as found in SECTION 1, by deleting Section 38-73-1095(C) in its entirety and inserting:
/ "(C) Rating plans for essential property insurance in the coastal area or in the seacoast area, shall include discounts and credits or surcharges and debits calculated upon the following rating factors:
(1) use of storm shutters;
(2) use of roof tie downs;
(3) construction standards;
(4) building codes;
(5) distance from water;
(6) elevation;
(7) flood insurance;
(8) policy deductibles; and
(9) other applicable factors requested by the insurer or rating organization or selected by order of the director involving the risk or hazard. An order issued pursuant to this section must comply with the requirements of Section 1-23-140.
The department may by regulation define how the implementation of these factors qualify for credits or discounts. The regulation must specify what evidence or proof the policyholder or applicant shall present to obtain the credit or discount. This section applies to policies issued or renewed in the coastal area or in the seacoast area after December 31, 2007, and this section applies to policies issued and renewed in all other areas of the State after October 31, 2008." /
Renumber sections to conform.
Amend title to conform.
DAVID L. THOMAS for Committee.
EXPLANATION OF IMPACT:
The Department of Insurance indicates that this bill would require additional General Funds of the State totaling $46,450 the first year of implementation. Currently, the department performs rating activities on plans in the coastal and seacoast areas. This bill expands this activity statewide, which would result in an increase in the number of rating plans that will be needed to be reviewed. Recurring costs of $38,700 would cover salary and fringe benefits for One (1.00) FTE position and $2,700 for operating expenses would be needed to complete the analysis of companies filing forms and notification with the department. Nonrecurring cost of $5,050 would cover office equipment, computers and supplies. Therefore, first year costs are estimated at $46,450 while recurring costs annually thereafter would be $41,400.
Approved By:
Harry Bell
Office of State Budget
TO AMEND SECTION 38-73-1095, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, RELATING TO ESSENTIAL PROPERTY INSURANCE AND RATING PLAN FACTORS, SO AS TO PROVIDE CREDITS AND DISCOUNTS OR SURCHARGES AND DEBITS CALCULATED ON CERTAIN RATING FACTORS FOR RETROFITTING PROPERTY IN ALL AREAS OF THE STATE IN ADDITION TO PROVIDING CREDITS AND DISCOUNTS OR SURCHARGES AND DEBITS CALCULATED ON CERTAIN RATING FACTORS FOR RETROFITTING PROPERTY IN THE COASTAL AREA OR SEACOAST AREA.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-73-1095(C), as last amended by Act 78 of 2007, is further amended to read:
"(C) Rating plans for essential property insurance in the coastal area or in the seacoast area, shall include discounts and credits or surcharges and debits calculated upon the following rating factors:
(1) use of storm shutters;
(2) use of roof tie downs;
(3) construction standards;
(4) building codes;
(5) distance from water;
(6) elevation;
(7) flood insurance;
(8) policy deductibles; and
(9) other applicable factors requested by the insurer or rating organization or selected by order of the director involving the risk or hazard. An order issued pursuant to this section must comply with the requirements of Section 1-23-140.
The department may by regulation define how the implementation of these factors qualify for credits or discounts. The regulation must specify what evidence or proof the policyholder or applicant shall present to obtain the credit or discount. This section applies to policies issued or renewed in the coastal area or in the seacoast area after December 31, 2007, and this section applies to policies issued and renewed in all other areas of the State after March 31, 2008."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, June 22, 2009 at 3:09 P.M.