S*0431(Rat #0049, Act #0026 of 2011)  General Bill, By McConnell, Rankin, 
Setzler, Campbell, Shoopman, Reese, Bright, Alexander, S. Martin, Fair, Cromer, 
Bryant, Elliott, O'Dell, Campsen, Ford, Rose, Lourie, Cleary, Verdin, McGill, 
Williams, Nicholson, Knotts, Land and Scott

Similar(H 3449)
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 38-61-70 SO AS TO DEFINE A "COMMERCIAL GENERAL LIABILITY INSURANCE POLICY",
 "CONSTRUCTION PROFESSIONAL", AND "CONSTRUCTION RELATED WORK", TO PROVIDE THAT
 A COMMERCIAL GENERAL LIABILITY INSURANCE POLICY MUST DEFINE OR BE DEEMED TO
 DEFINE THE WORD "OCCURRENCE" IN A SPECIFIC MANNER, AND TO PROVIDE FOR THE
 SCOPE AND LIMITS OF APPLICABILITY OF THIS SECTION. - ratified title

   01/26/11  Senate Introduced and read first time (Senate Journal-page 6)
   01/26/11  Senate Referred to Committee on Banking and Insurance
                     (Senate Journal-page 6)
   02/15/11  Senate Committee report: Favorable with amendment
                     Banking and Insurance (Senate Journal-page 14)
   02/16/11         Scrivener's error corrected
   03/03/11  Senate Special order, set for March 3, 2011
                     (Senate Journal-page 32)
   03/03/11  Senate Roll call Ayes-33  Nays-12 (Senate Journal-page 32)
   03/17/11  Senate Debate interrupted (Senate Journal-page 15)
   03/22/11  Senate Debate interrupted (Senate Journal-page 17)
   03/29/11  Senate Debate interrupted (Senate Journal-page 18)
   03/30/11  Senate Committee Amendment Adopted (Senate Journal-page 48)
   03/30/11  Senate Amended (Senate Journal-page 48)
   03/30/11  Senate Read second time (Senate Journal-page 48)
   03/30/11  Senate Roll call Ayes-41  Nays-2 (Senate Journal-page 48)
   03/31/11  Senate Read third time and sent to House
                     (Senate Journal-page 29)
   03/31/11  Senate Roll call Ayes-39  Nays-2 (Senate Journal-page 29)
   03/31/11  House  Introduced and read first time (House Journal-page 75)
   03/31/11  House  Referred to Committee on Labor, Commerce and
                     Industry (House Journal-page 75)
   05/04/11  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry (House Journal-page 2)
   05/05/11  House  Amended (House Journal-page 15)
   05/05/11  House  Read second time (House Journal-page 15)
   05/05/11  House  Roll call Yeas-104  Nays-0 (House Journal-page 15)
   05/05/11  House  Unanimous consent for third reading on next
                     legislative day (House Journal-page 18)
   05/06/11  House  Read third time and returned to Senate with
                     amendments (House Journal-page 107)
   05/12/11  Senate Concurred in House amendment and enrolled
                     (Senate Journal-page 12)
   05/12/11  Senate Roll call Ayes-36  Nays-0 (Senate Journal-page 12)
   05/17/11         Ratified R 49
   05/17/11         Signed By Governor
   05/24/11         Effective date See Act for Effective Date
   05/24/11         Act No. 26

(A26, R49, S431)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-61-70 SO AS TO DEFINE A "COMMERCIAL GENERAL LIABILITY INSURANCE POLICY", "CONSTRUCTION PROFESSIONAL", AND "CONSTRUCTION RELATED WORK", TO PROVIDE THAT A COMMERCIAL GENERAL LIABILITY INSURANCE POLICY MUST DEFINE OR BE DEEMED TO DEFINE THE WORD "OCCURRENCE" IN A SPECIFIC MANNER, AND TO PROVIDE FOR THE SCOPE AND LIMITS OF APPLICABILITY OF THIS SECTION.

Be it enacted by the General Assembly of the State of South Carolina:

Commercial general liability insurance policies, definitions, requirements, application limited to coverage for construction professionals for liability arising from construction related work

SECTION    1.    Chapter 61, Title 38 of the 1976 Code is amended by adding:

"Section 38-61-70.    (A)    For purposes of this section:

(1)    'Commercial general liability insurance policy' means a contract of insurance that covers occurrences of damages or injury during the policy period and insures a construction professional for liability arising from construction related work.

(2)    'Construction professional' means a person, sole proprietorship, partnership, corporation, limited liability company, or other recognized legal entity that engages in the development, construction, installation, or repair of an improvement to real property.

(3)    'Construction related work' means activities by a construction professional involving the development, construction, installation, or repair of an improvement to real property.

(B)    Commercial general liability insurance policies shall contain or be deemed to contain a definition of 'occurrence' that includes:

(1)    an accident, including continuous or repeated exposure to substantially the same general harmful conditions; and

(2)    property damage or bodily injury resulting from faulty workmanship, exclusive of the faulty workmanship itself.

(C)    This section is not intended to restrict or limit the nature or types of exclusions from coverage that an insurer, including a surplus lines insurer, may include in a commercial general liability insurance policy.

(D)    This section applies only to a commercial general liability insurance policy that insures a construction professional for liability arising from construction related work.

(E)    This section applies to any pending or future dispute over coverage that would otherwise be affected by this section as to all commercial general liability insurance policies issued in the past, currently in existence, or issued in the future."

Severability clause

SECTION    2.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

Time effective

SECTION    3.    This act takes effect upon approval by the Governor and applies to any pending or future dispute over coverage that would otherwise be affected by this section as to commercial general liability insurance policies issued in the past, currently in existence, or issued in the future.

Ratified the 17th day of May, 2011.

Approved the 17th day of May, 2011.