H 3357 Session 112 (1997-1998)
H 3357 General Bill, By J.H. Hodges, J.L.M. Cromer, Kirsh and Littlejohn
Similar(S 125, S 254)
A BILL TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT AND
DEFINITIONS, SO AS TO PROVIDE A DEFINITION FOR "UNINSURED MOTORIST
FUND".-SHORT TITLE
02/04/97 House Introduced and read first time HJ-7
02/04/97 House Referred to Committee on Labor, Commerce and
Industry HJ-16
A BILL
TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR
VEHICLE FINANCIAL RESPONSIBILITY ACT AND
DEFINITIONS, SO AS TO PROVIDE A DEFINITION FOR
"UNINSURED MOTORIST FUND"; TO AMEND CHAPTER 10,
TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION
AND FINANCIAL SECURITY, BY ADDING ARTICLE 5 SO AS
TO PROVIDE FOR THE ESTABLISHMENT OF AN UNINSURED
MOTORIST FUND; TO AMEND SECTION 38-73-470, AS
AMENDED, RELATING TO PROPERTY, CASUALTY, AND
INLAND MARINE INSURANCE, SURETY RATES,
RATE-MAKING ORGANIZATIONS, AND DISPOSITION OF
THE UNINSURED MOTORIST PREMIUM, SO AS TO, AMONG
OTHER THINGS, PROVIDE THAT ONE DOLLAR OF THE
YEARLY PREMIUM BE PLACED ON DEPOSIT WITH THE
STATE TREASURER IN THE "UNINSURED ENFORCEMENT
FUND"; TO AMEND SECTION 38-73-910, AS AMENDED,
RELATING TO INSURANCE, RATES, RATE-MAKING, RATE
FILING, AND NOTICE OF HEARING AS A PREREQUISITE TO
GRANTING OF RATE INCREASES AND EXCEPTIONS, SO AS
TO, AMONG OTHER THINGS, DELETE "AUTOMOBILE
INSURANCE" FROM THE LIST OF LINES OR TYPES OF
INSURANCE FOR WHICH IT IS PROVIDED THAT NO
INCREASE IN PREMIUM RATES MAY BE GRANTED UNDER
CERTAIN CONDITIONS AND CIRCUMSTANCES, AND
PROVIDE THAT, EXCEPT AS PROVIDED IN THIS SECTION,
OVERALL AVERAGE RATE LEVEL INCREASES OR
DECREASES FOR ALL COVERAGES COMBINED OF SEVEN
PERCENT ABOVE OR BELOW THE INSURER'S RATES IN
EFFECT MAY TAKE EFFECT WITHOUT PRIOR APPROVAL
WITH RESPECT TO RATES FOR AUTOMOBILE INSURANCE
POLICIES; BY ADDING SECTION 38-73-736 SO AS TO
PROVIDE THAT ANY SCHEDULE OF RATES, RATE
CLASSIFICATIONS, OR RATING PLANS FOR AUTOMOBILE
INSURANCE AS DEFINED IN SECTION 38-77-30 FILED WITH
THE DEPARTMENT OF INSURANCE MUST PROVIDE FOR AN
APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR
THOSE INSURED PERSONS WHO ARE FIFTY-FIVE YEARS OF
AGE AND OLDER AND WHO QUALIFY AS PROVIDED IN
SECTION 38-73-737; TO AMEND SECTION 38-77-10, AS
AMENDED, RELATING TO THE DECLARATION OF THE
PURPOSE OF THE AUTOMOBILE INSURANCE LAW, SO AS
TO DELETE CERTAIN PROVISIONS AND LANGUAGE, AND
PROVIDE, AMONG OTHER THINGS, THAT ONE OF THE
PURPOSES IS TO PROVIDE FOR AN ASSIGNED RISK PLAN
KNOWN AS THE "SOUTH CAROLINA AUTOMOBILE
INSURANCE PLAN" FOR CERTAIN PERSONS; TO AMEND
SECTION 38-77-30, AS AMENDED, RELATING TO
AUTOMOBILE INSURANCE AND DEFINITIONS, SO AS TO,
AMONG OTHER THINGS, DELETE CERTAIN DEFINITIONS
AND PROVIDE DEFINITIONS FOR "CANCELLATION",
"FACILITY PHYSICAL DAMAGE RATE", "INSTITUTIONAL
SOURCE", "INSURER SUPPORT ORGANIZATION", AND
"POLICY OF AUTOMOBILE INSURANCE"; BY ADDING
SECTION 38-77-596 SO AS TO PROVIDE THAT THE
GOVERNING BOARD OF THE SOUTH CAROLINA
REINSURANCE FACILITY ANNUALLY SHALL DEVELOP
AND FILE PRIVATE PASSENGER AUTOMOBILE LOSS
COMPONENTS FOR AUTOMOBILE INSURANCE COVERAGES
BASED ON THE TOTAL EXPERIENCE OF ALL RISKS CEDED
TO THE FACILITY WHICH ARE ACTUARIALLY SOUND AND
SUPPORTED BY STATISTICAL EVIDENCE; TO AMEND
SECTION 38-77-112, AS AMENDED, RELATING TO THE
AUTOMOBILE INSURANCE LAW, THE REQUIREMENT THAT
AN APPLICANT FOR, OR POLICYHOLDER OF, SUCH
INSURANCE HAVE A DRIVER'S LICENSE AND EXCEPTIONS
SO AS TO, AMONG OTHER THINGS, REQUIRE THAT AT THE
TIME OF APPLICATION AN INSURER OR AN AGENT RETAIN
FOR A PERIOD OF THREE YEARS THE DRIVER'S LICENSE
NUMBERS FOR ALL APPLICANTS WHO WERE REFUSED
COVERAGE AND FURNISH THIS INFORMATION TO THE
DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS
DESIGNEE UPON REQUEST; TO AMEND SECTION 38-77-120,
AS AMENDED, RELATING TO REQUIREMENTS FOR NOTICE
OF CANCELLATION OF OR REFUSAL TO RENEW AN
AUTOMOBILE INSURANCE POLICY, SO AS TO PROVIDE,
AMONG OTHER THINGS, THAT THE REQUIRED NOTICE
MUST PROVIDE FOR THE NOTIFICATION REQUIRED BY
SECTION 38-77-390(B) AND PROVIDE FOR CERTAIN
EXCEPTIONS; TO AMEND THE 1976 CODE BY ADDING
SECTION 38-77-121 SO AS TO PROVIDE, AMONG OTHER
THINGS, THAT ANY APPLICATION FOR THE ORIGINAL
ISSUANCE OF A POLICY OF AUTOMOBILE INSURANCE
COVERING LIABILITY ARISING OUT OF THE OWNERSHIP,
MAINTENANCE, OR USE OF ANY MOTOR VEHICLE AS
DEFINED IN SECTION 38-77-30 MUST HAVE A CERTAIN
STATEMENT PRINTED ON OR ATTACHED TO THE FIRST
PAGE OF THE APPLICATION FORM; BY ADDING SECTION
38-77-122 SO AS TO PROVIDE, AMONG OTHER THINGS,
THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE AN
AUTOMOBILE INSURANCE POLICY AS DEFINED IN
SECTION 38-77-30 BECAUSE OF THE APPLICANT'S AGE,
SEX, LOCATION OF RESIDENCE IN SOUTH CAROLINA,
RACE, COLOR, CREED, NATIONAL ORIGIN, ANCESTRY,
MARITAL STATUS, INCOME LEVEL, PREVIOUS REFUSAL
OF AUTOMOBILE INSURANCE BY ANOTHER INSURER,
PRIOR PURCHASE OF INSURANCE THROUGH THE SOUTH
CAROLINA AUTOMOBILE INSURANCE PLAN, OR LAWFUL
OCCUPATION, INCLUDING MILITARY SERVICE; BY
ADDING SECTION 38-77-123 SO AS TO PROVIDE, AMONG
OTHER THINGS, THAT NO INSURER SHALL REFUSE TO
RENEW AN AUTOMOBILE INSURANCE POLICY BECAUSE
OF CERTAIN SPECIFIED FACTORS AND THAT NOTHING IN
THIS SECTION REQUIRES AN INSURER TO RENEW A
POLICY OF AUTOMOBILE INSURANCE WHERE THE
INSURED'S OCCUPATION HAS CHANGED SO AS TO
MATERIALLY INCREASE THE RISK; BY ADDING SECTION
38-77-124 SO AS TO PROVIDE THAT NO INSURER OR AGENT
SHALL REFUSE TO ISSUE OR FAIL TO RENEW A POLICY OF
MOTOR VEHICLE LIABILITY INSURANCE SOLELY
BECAUSE OF THE AGE OF THE MOTOR VEHICLE TO BE
INSURED SO LONG AS THE MOTOR VEHICLE IS LICENSED;
BY ADDING SECTION 38-77-141 SO AS TO PROVIDE, AMONG
OTHER THINGS, THAT NO NEW POLICY OR ORIGINAL
PREMIUM NOTICE OF INSURANCE COVERING LIABILITY
ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE
OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED
UNLESS IT CONTAINS A CERTAIN STATEMENT PRINTED IN
BOLDFACE TYPE OR UNLESS THAT STATEMENT IS
ATTACHED TO THE FRONT OF OR IS ENCLOSED WITH THE
POLICY OR PREMIUM NOTICE; BY ADDING SECTION
38-77-142 SO AS TO PROVIDE, AMONG OTHER THINGS,
THAT NO POLICY OR CONTRACT OF BODILY INJURED OR
PROPERTY DAMAGE LIABILITY INSURANCE COVERING
LIABILITY ARISING FROM THE OWNERSHIP,
MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE
ISSUED OR DELIVERED IN SOUTH CAROLINA TO THE
OWNER OF THE VEHICLE OR MAY BE ISSUED OR
DELIVERED BY AN INSURER LICENSED IN SOUTH
CAROLINA UPON A MOTOR VEHICLE THAT IS
PRINCIPALLY GARAGED, DOCKED, OR USED IN THIS
STATE UNLESS THE POLICY CONTAINS A PROVISION
INSURING THE NAMED INSURED AND ANY OTHER PERSON
USING OR RESPONSIBLE FOR THE USE OF THE MOTOR
VEHICLE WITH THE EXPRESSED OR IMPLIED CONSENT OF
THE NAMED INSURED AGAINST LIABILITY FOR DEATH OR
INJURY SUSTAINED OR LOSS OR DAMAGE INCURRED
WITHIN THE COVERAGE OF THE POLICY OR CONTRACT AS
A RESULT OF NEGLIGENCE IN THE OPERATION OR USE OF
THE VEHICLE BY THE NAMED INSURED OR BY ANY SUCH
PERSON; BY ADDING SECTION 38-77-143 SO AS TO
PROVIDE, AMONG OTHER THINGS, THAT A POLICY OR
CONTRACT OF BODILY INJURY OR PROPERTY DAMAGE
LIABILITY INSURANCE RELATING TO THE OWNERSHIP,
MAINTENANCE, OR USE OF A MOTOR VEHICLE EXCLUDES
COVERAGE TO PERSONS OTHER THAN THE NAMED
INSURED OR DIRECTORS, STOCKHOLDERS, PARTNERS,
AGENTS, OR EMPLOYEES OF THE NAMED INSURED, OR
RESIDENTS OF THE HOUSEHOLD OF EITHER OF THESE
GROUPS WHILE THOSE PERSONS ARE EMPLOYED OR
OTHERWISE ENGAGED IN THE BUSINESS OF SELLING,
REPAIRING, SERVICING, STORING, OR PARKING MOTOR
VEHICLES IF THERE IS ANY OTHER VALID OR
COLLECTIBLE INSURANCE APPLICABLE TO THE SAME
LOSS COVERING THE PERSONS UNDER A POLICY WITH
LIMITS AT LEAST EQUAL TO THE FINANCIAL
RESPONSIBILITY REQUIREMENTS SPECIFIED IN SECTION
38-77-140; BY ADDING SECTION 38-77-151 SO AS TO
PROVIDE, AMONG OTHER THINGS, THAT ALL FUNDS
COLLECTED BY THE DIRECTOR OF THE DEPARTMENT OF
REVENUE UNDER CHAPTER 10, TITLE 56 MUST BE PLACED
ON DEPOSIT WITH THE STATE TREASURER AND HELD IN
A SPECIAL FUND TO BE KNOWN AS THE "UNINSURED
MOTORISTS FUND" TO BE DISBURSED AS PROVIDED BY
LAW; BY ADDING SECTION 38-77-154 SO AS TO PROVIDE
THAT THE UNINSURED MOTORISTS FUND SHALL BE
UNDER THE SUPERVISION AND CONTROL OF THE
DEPARTMENT OF INSURANCE, REQUIRE PAYMENTS FROM
THIS FUND TO BE MADE ON WARRANTS OF THE
COMPTROLLER GENERAL ISSUED ON VOUCHERS SIGNED
BY A PERSON DESIGNATED BY THE DIRECTOR OF THE
DEPARTMENT OF INSURANCE, AND SET FORTH THE
PURPOSE OF THE FUND; BY ADDING SECTION 38-77-155 SO
AS TO PROVIDE, AMONG OTHER THINGS, THAT THE
DIRECTOR OF THE DEPARTMENT OF INSURANCE SHALL
DISTRIBUTE MONIES ANNUALLY FROM THE UNINSURED
MOTORISTS FUND AMONG THE SEVERAL INSURERS
WRITING MOTOR VEHICLE BODILY INJURY AND
PROPERTY DAMAGE LIABILITY INSURANCE ON MOTOR
VEHICLES REGISTERED IN SOUTH CAROLINA; TO AMEND
SECTION 38-77-140, RELATING TO BODILY INJURY AND
PROPERTY DAMAGE LIMITS UNDER THE AUTOMOBILE
INSURANCE LAW, SO AS TO RAISE THE MINIMUM LIMITS
OF COVERAGE FOR INJURY TO OR DESTRUCTION OF
PROPERTY OF OTHERS IN ANY ONE ACCIDENT; TO AMEND
SECTION 38-77-150, AS AMENDED, RELATING TO
AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST
PROVISION, AND DEFENSE OF AN ACTION BY THE
INSURER, SO AS TO PROVIDE FOR A MINIMUM OF TEN
THOUSAND RATHER THAN FIVE THOUSAND DOLLARS
COVERAGE FOR INJURY TO OR DESTRUCTION OF THE
PROPERTY OF THE INSURED IN ANY ONE ACCIDENT, AND
PROVIDE THAT BENEFITS PAID PURSUANT TO THIS
SECTION ARE SUBJECT TO SUBROGATION AND
ASSIGNMENT IF AN UNINSURED MOTORIST HAS
SELECTED THE OPTION TO BE UNINSURED BY PAYING
THE FEE PURSUANT TO SECTION 56-10-510; TO AMEND
SECTION 38-77-280, AS AMENDED, RELATING TO THE
PROVISIONS FOR COLLISION COVERAGE AND
COMPREHENSIVE COVERAGE UNDER THE AUTOMOBILE
INSURANCE LAW, SO AS TO DELETE CERTAIN PROVISIONS
AND LANGUAGE, AND MAKE THE PROVISIONS OF THE
SECTION APPLICABLE TO "ANY AUTOMOBILE INSURER",
AND TO AMEND THE SAME SECTION FOR THE PERIOD
JANUARY 1 TO SEPTEMBER 30, 1998, SO AS TO PROVIDE
THAT ALL AUTOMOBILE INSURERS, INCLUDING THOSE
WRITING PRIVATE PASSENGER PHYSICAL DAMAGE
COVERAGES ONLY, MAY AT THEIR OWN ELECTION, MAKE
COLLISION COVERAGE AND EITHER COMPREHENSIVE OR
FIRE, THEFT, AND COMBINED ADDITIONAL COVERAGE
AVAILABLE TO AN INSURED OR QUALIFIED APPLICANT
WHO REQUESTS THE COVERAGE, EXCEPT FOR REASONS
SPECIFIED IN SECTION 38-77-123, AT THE RATES AND
UNDER THE RULES AS HAVE BEEN APPROVED BY THE
DIRECTOR OF THE DEPARTMENT OF INSURANCE; TO
AMEND SECTION 38-77-350, AS AMENDED, RELATING TO
AUTOMOBILE INSURANCE AND THE FORM REQUIRED TO
BE USED IN THE OFFERING OF OPTIONAL COVERAGES, SO
AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE
PROVISION REGARDING POLICIES OF INSURANCE
OFFERED OR ISSUED BY A NEW SERVICING CARRIER FOR
THE REINSURANCE FACILITY TO REPLACE POLICIES
PREVIOUSLY ISSUED BY A FORMER SERVICING CARRIER
AND CONTAINING THE SAME COVERAGE LIMITS AS THE
FORMER POLICIES; BY ADDING SECTION 38-77-370 SO AS
TO PROVIDE THAT IF AN INDIVIDUAL, AFTER PROPER
IDENTIFICATION, SUBMITS A WRITTEN REQUEST TO AN
INSURANCE-SUPPORT ORGANIZATION FOR ACCESS TO
RECORDED PERSONAL INFORMATION ABOUT THE
INDIVIDUAL THAT IS REASONABLY DESCRIBED BY THE
INDIVIDUAL AND ABLE TO BE LOCATED AND RETRIEVED
BY THE INSURANCE-SUPPORT ORGANIZATION, THE
INSURANCE-SUPPORT ORGANIZATION, WITHIN THIRTY
BUSINESS DAYS FROM THE DATE THE REQUEST IS
RECEIVED, SHALL TAKE CERTAIN ACTION, AND PROVIDE
FOR RELATED AND INCIDENTAL MATTERS; BY ADDING
SECTION 38-77-390 SO AS TO PROVIDE THAT IN THE EVENT
OF A CANCELLATION OR NONRENEWAL OF AN
AUTOMOBILE INSURANCE POLICY, INCLUDING
CANCELLATIONS OR NONRENEWALS THAT INVOLVE
POLICIES REFERRED TO IN SECTION 38-77-120, THE
INSURER OR AGENT RESPONSIBLE FOR THE
CANCELLATION OR NONRENEWAL SHALL GIVE CERTAIN
WRITTEN NOTICE IN A FORM APPROVED BY THE
DIRECTOR OF THE DEPARTMENT OF INSURANCE TO THE
APPLICANT, POLICYHOLDER, OR INDIVIDUAL PROPOSED
FOR COVERAGE, AND PROVIDE FOR RELATED AND
INCIDENTAL MATTERS; TO AMEND SECTION 38-77-530, AS
AMENDED, RELATING TO THE PLAN OF OPERATION OF
THE REINSURANCE FACILITY, SO AS TO PROVIDE, AMONG
OTHER THINGS, THAT THE PLAN MUST COMMENCE
RECOUPMENT OF FACILITY ASSESSMENTS BY WAY OF A
SURCHARGE ON PRIVATE PASSENGER AND COMMERCIAL
AUTOMOBILE BUSINESS ISSUED BY A MEMBER OR
THROUGH THE FACILITY, THAT THE SURCHARGE MUST
BE A PERCENTAGE OF THE PREMIUM ADOPTED BY THE
GOVERNING BOARD OF THE FACILITY, THAT THE
CHARGES DETERMINED ON THE BASIS OF THE
SURCHARGE MUST BE DISPLAYED AS A PART OF THE
APPLICABLE PREMIUM CHARGES, AND THAT THE
FACILITY SHALL CONVERT TO THE
PERCENTAGE-OF-PREMIUM BASIS OF RECOUPMENT BY
MARCH 1, 1998; TO AMEND SECTION 38-77-590, AS
AMENDED, RELATING TO THE REINSURANCE FACILITY
AND DESIGNATED PRODUCERS, SO AS TO DELETE
CERTAIN PROVISIONS, AND PROVIDE THAT A PRODUCER
DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW
PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE
INSURANCE BUSINESS TO BE PLACED IN THE FACILITY
AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN
EFFECTIVE DATE AFTER MARCH 1, 2001 SHALL NOT BE
ACCEPTED BY THE FACILITY; TO AMEND SECTION
38-77-595, RELATING TO THE SOUTH CAROLINA
REINSURANCE FACILITY AND CONDITIONS FOR
DESIGNATION OF AN OTHERWISE INELIGIBLE APPLICANT
FOR "DESIGNATED PRODUCER", SO AS TO PROVIDE THAT
A PRODUCER DESIGNATED UNDER THIS SECTION MAY
NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL
AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN
THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY
WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001 SHALL
NOT BE ACCEPTED BY THE FACILITY; TO AMEND
CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE
INSURANCE, BY ADDING ARTICLE 8 SO AS TO ENACT
PROVISIONS OF LAW CONCERNING "ASSIGNMENT OF
RISKS"; TO PROVIDE THAT BEGINNING MARCH 1, 1998,
INSURERS MAY NONRENEW A POLICY OF INSURANCE
THAT THEY HAVE CURRENTLY CEDED TO THE SOUTH
CAROLINA REINSURANCE FACILITY, AND PROVIDE THAT
THIS PROVISION DOES NOT APPLY TO BUSINESS WRITTEN
THROUGH THE DESIGNATED PRODUCERS; TO REPEAL
ARTICLE 5 CHAPTER 77, TITLE 38, RELATING TO THE
SOUTH CAROLINA REINSURANCE FACILITY AND
DESIGNATED PRODUCERS, EFFECTIVE JANUARY 1, 2005;
TO REPEAL SECTION 38-73-450, RELATING TO THE
FAIRNESS OF AUTOMOBILE INSURANCE RATES OR
PREMIUM CHARGES AND BURDEN ON THE INSURER TO
PROVE FAIRNESS, SECTION 38-73-455, RELATING TO
AUTOMOBILE INSURANCE RATES, SECTION 38-73-457,
RELATING TO THE REQUIREMENT UPON AUTOMOBILE
INSURERS AND RATING ORGANIZATIONS TO FILE
INFORMATION ON BASE RATES, SECTION 38-73-460,
RELATING TO THE EFFECT OF GAINS AND LOSSES
INCURRED BY MEMBER INSURERS OF THE REINSURANCE
FACILITY ON RATES FOR AUTOMOBILE INSURANCE,
SECTION 38-73-465, RELATING TO AUTOMOBILE
INSURANCE AND UNFAIRLY DISCRIMINATORY,
EXCESSIVE, OR UNREASONABLE PROFITS OR RATES,
SECTION 38-73-720, RELATING TO INSURANCE, THE STATE
RATING AND STATISTICAL DIVISION, AND THE POWER TO
ESTABLISH RISK AND TERRITORIAL CLASSIFICATIONS,
SECTION 38-73-730, RELATING TO INSURANCE, THE STATE
RATING AND STATISTICAL DIVISION, AND RISK
CLASSIFICATION PLANS, SECTION 38-73-731, RELATING TO
INSURANCE, THE STATE RATING AND STATISTICAL
DIVISION, REMOVAL FROM THE YOUTHFUL DRIVER
CLASSIFICATION, AND REFUND OF EXCESS PREMIUM
PAID, SECTION 38-73-735, RELATING TO INSURANCE, THE
STATE RATING AND STATISTICAL DIVISION, AND THE
PLAN FOR CREDITS AND DISCOUNTS, SECTION 38-73-750,
RELATING TO THE REQUIREMENT THAT AUTOMOBILE
INSURERS FILE WITH THE STATE RATING AND
STATISTICAL DIVISION THEIR PLANS OR SYSTEMS FOR
ALLOCATING EXPENSES AND PROFIT AS RESPECTS THE
VARIOUS KINDS OR TYPES OF AUTOMOBILE INSURANCE
RISKS AND THE CLASSES OF RISKS THEREUNDER,
SECTION 38-73-760, RELATING TO INSURANCE, THE
STATE-RATING AND STATISTICAL DIVISION, AND
UNIFORM STATISTICAL PLANS, SECTION 38-73-770,
RELATING TO INSURANCE AND THE REQUIREMENT THAT
EVERY CLASSIFICATION PLAN PROMULGATED BY THE
DEPARTMENT OF INSURANCE BE SO STRUCTURED AS TO
PRODUCE RATES OR PREMIUM CHARGES WHICH ARE
ADEQUATE, NOT EXCESSIVE, AND NOT UNFAIRLY
DISCRIMINATORY, SECTION 38-73-775, RELATING TO THE
ANNUAL FILING OF THE PHYSICAL DAMAGE LOSS
COMPONENT BY THE SOUTH CAROLINA REINSURANCE
FACILITY, SECTION 38-77-110, RELATING TO THE
"MANDATE TO WRITE", AUTOMOBILE INSURANCE
COVERAGE, THE REQUIREMENT UPON INSURERS TO
INSURE, AND EXCEPTIONS, SECTION 38-77-111, RELATING
TO AUTOMOBILE INSURANCE POLICIES WHICH MAY BE
CEDED TO THE REINSURANCE FACILITY, SECTION
38-77-115, RELATING TO THE AUTOMOBILE INSURANCE
LAW AND THE SIGNS REQUIRED IN AN AGENT'S PLACE OF
BUSINESS, SECTION 38-77-145, RELATING TO THE
AUTOMOBILE INSURANCE LAW AND THE PROVISION
THAT PERSONAL INJURY PROTECTION COVERAGE IS NOT
MANDATED, SECTION 38-77-285, RELATING TO THE
REQUIREMENT THAT ALL AUTOMOBILE INSURANCE
COVERAGES ARE TO BE IN ONE POLICY, SECTION
38-77-360, RELATING TO THE PROHIBITION AGAINST AN
INCREASE IN AUTOMOBILE INSURANCE PREMIUMS AFTER
CERTAIN FIRST-OFFENSE VIOLATIONS, SECTION 38-77-600,
RELATING TO AUTOMOBILE INSURANCE AND THE
REINSURANCE FACILITY RECOUPMENT CHARGE, SECTION
38-77-605, RELATING TO THE REQUIREMENT THAT THE
REINSURANCE FACILITY RECOUPMENT CHARGE MUST BE
DISPLAYED IN A CERTAIN MANNER IN INSURANCE
PREMIUM NOTICES OR BILLS, SECTION 38-77-610,
RELATING TO AUTOMOBILE INSURANCE AND THE FILING
OF REINSURANCE FACILITY RECOUPMENT CHARGES,
SECTION 38-77-620, RELATING TO AUTOMOBILE
INSURANCE AND THE INCLUSION OF FACILITY
RECOUPMENT CHARGES IN AUTOMOBILE INSURANCE
RATES, SECTION 38-77-625, RELATING TO THE PROVISION
THAT IF AN INSURED IS INVOLVED IN A MOTOR VEHICLE
ACCIDENT WHERE HE IS NOT THE AT-FAULT DRIVER, HIS
REINSURANCE FACILITY RECOUPMENT CHARGE MAY
NOT BE INCREASED BY HIS INSURER BECAUSE OF THIS
OCCURRENCE, AND ARTICLE 9, CHAPTER 77, TITLE 38,
RELATING TO THE AUTOMOBILE INSURANCE LAW AND
CERTAIN UNLAWFUL ACTS; AND TO PROVIDE THAT
NONRENEWAL NOTICES MAY BE SENT BEFORE MARCH 1,
1998 FOR AUTOMOBILE INSURANCE POLICIES RENEWING
ON OR AFTER THAT DATE.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 56-9-20 of the 1976 Code, as last amended
by Act 459 of 1996, is further amended by adding the following
appropriately-numbered item:
"( ) 'Uninsured Motorist Fund' means a fund established for fees
collected by the Director of the Department of Revenue from
registration of uninsured vehicles."
SECTION 2. Chapter 10 of Title 56 of the 1976 Code is amended
by adding:
"Article 5
Establishment of Uninsured Motorist Fund
Section 56-10-510. In addition to any other fees prescribed by
law, every person registering an uninsured motor vehicle, as defined
in Section 56-9-20, at the time of registering or reregistering the
uninsured vehicle, shall pay a fee of five hundred dollars. However,
if the uninsured motor vehicle is being registered for a period of less
than a full year, the uninsured motor vehicle fee must be prorated to
conform to the registration period. Every person applying for
registration of a motor vehicle and declaring it to be an insured motor
vehicle, under the penalties set forth in Section 56-10-520, shall
execute and furnish to the director his certificate that the motor
vehicle is an insured motor vehicle as defined by the laws of this
State, or that the director has issued to its owner, in accordance with
Section 56-9-60, a certificate of self-insurance applicable to the
vehicle sought to be registered. The director, or his designee, may
require any registered owner of a motor vehicle declared to be
insured or any applicant for registration of a motor vehicle to be an
insured to submit a certificate of insurance on a form prescribed by
the director. The director must forward the certificate of insurance
or bond to the insurance company or surety company, whichever is
applicable, for verification as to whether the policy or bond named in
the certificate is currently in force. At that time, and not later than
thirty days following receipt of the certificate of insurance, the
insurance company or surety company must cause to be filed with the
director a written notice if the policy or bond was not applicable as
to the named insured. The director must prescribe the manner in
which the written notice must be made. The refusal or neglect of any
owner within thirty days to submit the certificate of insurance when
required by the director or his designee or the notification by the
insurance company or surety company that the policy or bond named
in the certificate of insurance is not in effect, must require the director
to suspend any driver's license and all registration certificates and
license plates issued to the owner of the motor vehicle until the
person:
(1) has paid to the Director of the Department of Revenue a fee of
three hundred dollars to be disposed of as provided for in Sections
56-10-550 and 56-10-552 with respect to the motor vehicle
determined to be uninsured; and
(2) furnishes proof of financial responsibility for the future in the
manner prescribed in Section 56-10-10, et seq. of this chapter. An
order of suspension required by this section is not effective until the
director has offered the person an opportunity for an administrative
hearing to show cause why the order should not be enforced. Notice
of the opportunity for an administrative hearing may be included in
the order of suspension. When three years have elapsed from the
effective date of the suspension required in this section, the director
may relieve the person of the requirement of furnishing proof of
future financial responsibility. If the director determines that the fee
applicable to the registration of an uninsured motor vehicle has been
paid on the vehicle in question on or before the date that the
insurance certificate was requested, no suspension action must be
taken. The director shall suspend the driver's license and all
registration certificates and license plates of any person on receiving
a record of his conviction of a violation of any provisions of Section
56-10-520, but the director shall dispense with the suspension when
the person is convicted for a violation of Section 56-10-520 and the
department's records show conclusively that the motor vehicle was
insured or that the fee applicable to the registration of an uninsured
motor vehicle has been paid by the owner before the date and time of
the alleged offense.
Section 56-10-520. A person who owns an uninsured motor
vehicle:
(1) licensed in the State; or
(2) subject to registration in the State;
who operates or permits the operation of that motor vehicle without
first having paid to the director the uninsured motor vehicle fee
required by Section 56-10-510, to be disposed of as provided by
Section 56-10-550, shall be guilty of a misdemeanor.
A person who is the operator of such an uninsured motor vehicle
and not the titled owner, who knows that the required fee has not
been paid to the director, shall be guilty of a misdemeanor.
The director or his designee, having reason to believe that a motor
vehicle is being operated or has been operated on any specified date,
may require the owner of such motor vehicle to submit the certificate
of insurance provided for by Section 56-10-510. The refusal or
neglect of the owner who has not, before the date of operation, paid
the uninsured motor vehicle fee required by Section 56-10-510 as to
such motor vehicle, to furnish such certificate must be prima facie
evidence that the motor vehicle was an uninsured motor vehicle at the
time of such operation. A person who presents or causes to be
presented to the director a false certificate that a motor vehicle is an
insured motor vehicle or false evidence that a motor vehicle sought
to be registered is an insured motor vehicle, is guilty of a
misdemeanor.
However, the foregoing portions of this section must not be
applicable if it is established that the owner had good cause to believe
and did believe that such motor vehicle was an insured motor vehicle,
in which event the provisions of Section 56-10-245 must be
applicable.
Abstracts of records of conviction, as defined in this title, of any
violation of any of the provisions of this section must be forwarded
to the director as prescribed by Section 56-9-330. The director shall
suspend the driver's license and all registration certificates and
license plates of any titled owner of an uninsured motor vehicle upon
receiving a record of his conviction of a violation of any provisions
of this section, and he shall not thereafter reissue the driver's license
and the registration certificates and license plates issued in the name
of such person until such person pays the fee applicable to the
registration of an uninsured motor vehicle as prescribed in Section
56-10-510 and furnishes proof of future financial responsibility as
prescribed by Section 56-10-520, et seq. of this chapter. However,
when three years have elapsed from the date of the suspension herein
required, the director may relieve such person of the requirement of
furnishing proof of future financial responsibility. When such
suspension results from a conviction for presenting or causing to be
presented to the director a false certificate as to whether a motor
vehicle is an insured motor vehicle or false evidence that any motor
vehicle sought to be registered is insured, then the director shall not
thereafter reissue the driver's license and the registration certificates
and license plates issued in the name of such person so convicted for
a period of one hundred eighty days from the date of such order of
suspension, and only then when all other provisions of law have been
complied with by such person. The director shall suspend the
driver's license of any person who is the operator but not the titled
owner of a motor vehicle upon receiving a record of his conviction
of a violation of any provisions of this section and he shall not
thereafter reissue the driver's license until thirty days from the date
of such order of suspension.
Section 56-10-530. When it appears to the director from the
records of his office that an uninsured motor vehicle as defined in
Section 56-9-20, subject to registration in the State, is involved in a
reportable accident in the State resulting in death, injury, or property
damage with respect to which motor vehicle the owner thereof has
not paid the uninsured motor vehicle fee as prescribed in Section
56-10-510, the director shall, in addition to enforcing the applicable
provisions of Section 56-10-10, et seq. of this chapter, suspend such
owner's driver's license and all of his license plates and registration
certificates until such person has complied with those provisions of
law and has paid to the Director of the Department of Revenue a
reinstatement fee as provided by Section 56-10-510, to be disposed
of as provided by Section 56-10-550, with respect to the motor
vehicle involved in the accident and furnishes proof of future
financial responsibility in the manner prescribed in Section 56-9-350,
et seq.. However, no order of suspension required by this section
must become effective until the director has offered the person an
opportunity for an administrative hearing to show cause why the
order should not be enforced. Notice of the opportunity for an
administrative hearing may be included in the order of suspension.
However, when three years have elapsed from the effective date of
the suspension herein required, the director may relieve such person
of the requirement of furnishing proof of future financial
responsibility. The presentation by a person subject to the provisions
of this section of a certificate of insurance, executed by an agent or
representative of an insurance company qualified to do business in
this State, showing that on the date and at the time of the accident the
vehicle was an insured motor vehicle as herein defined or,
presentation by such person of evidence that the additional fee
applicable to the registration of an uninsured motor vehicle had been
paid to the department before the date and time of the accident, must
be sufficient bar to the suspension provided for in this section.
Section 56-10-535. The director, upon receiving notice that a
titled owner of a motor vehicle has been convicted of one of the
following violations: disobedience of any official traffic device,
failure to stop for law enforcement officer when signaled,
disobedience to any officer directing traffic, failure to stop for a
school bus, leaving the scene of an accident where injury to person
or damage to property results, theft or unlawful taking of a vehicle,
racing on public highways, driving under the influence of
intoxicating liquor or narcotic drugs or where injury to a person of
over three hundred dollars per person or damage to property of the
insured or other person of over seven hundred fifty dollars results,
reckless driving where injury to a person of over three hundred
dollars per person or damage to property of the insured or other
person of over seven hundred fifty dollars results, homicide or assault
arising out of the operation of a motor vehicle, any felony involving
the use of a motor vehicle, the transporting of illegal whiskey or
unlawful drugs or other controlled or narcotic substances, reckless
homicide, wilful making of false statements in the application for
license or registration, impersonating an applicant for license or
registration, or procuring a license or registration through
impersonation whether for himself or another; then shall require the
owner to furnish proof of financial responsibility in the manner
prescriber in Section 56-9-350, et seq.
However, when three years have elapsed from the effective date of
any conviction for the above offenses, the director may relieve such
person of the requirement of furnishing proof of future financial
responsibility as required in Section 56-9-35, et seq.
Section 56-10-540. Whenever any proof of financial
responsibility filed by any person as required by this chapter no
longer fulfills the purpose for which required, the director shall
require other proof of financial responsibility as required by this
chapter and shall suspend such person's driver's license, registration,
certificates, and license plates and decals pending the furnishing of
proof as required.
A person whose driver's license or registration certificates, or
license plates and decals have been suspended as provided in this
chapter and have not been reinstated shall immediately return every
such license, registration certificate, and set of license plates and
decals held by him to the director. A person failing to comply with
this requirement shall be guilty of a traffic infraction and, upon
conviction, shall be punished as provided in Section 56-9-310, et seq.
Section 56-10-550. Except as provided in Section 56-10-552,
funds collected by the Director of the Department of Revenue under
the provisions of this chapter must be placed on deposit with the State
Treasurer and held in a special fund to be known as the 'Uninsured
Motorists Fund' to be disbursed as provided by law. The Director of
the Department of Insurance as provided in Sections 38-77-151 and
38-77-154 may expend monies from such funds for the
administration of Title 38.
Section 56-10-551. When any insurance policy certified under
this chapter is canceled or terminated, the insurer shall report the fact
to the director within fifteen days after the cancellation on a form
prescribed by the director.
Section 56-10-552. (A) All funds collected as provided in
Section 38-73-470 must be directed to the Director of the Department
of Public Safety for the establishment and maintenance of a special
fund, to be known as the 'Uninsured Enforcement Fund', to be used
by the Department of Public Safety for the purpose of enforcement
as required by this chapter.
(B) Fifty percent of the reinstatement fee as provided by Section
56-10-510(1) must be transferred by the Department of Revenue to
the Department of Public Safety and recorded to the Uninsured
Enforcement Fund to be used by the Department of Public Safety as
provided by subsection (A) of this section. The remaining fifty
percent of the reinstatement fee as provided by Section 56-10-510
must be retained in the Uninsured Motorist Fund to be used as
provided in Sections 56-10-550, 38-77-151, and 38-77-154.
Section 56-10-553. (A) The Department of Public Safety shall
collect data and maintain statistics on the total number of vehicles
registered in the State as of June thirtieth of each year, the number of
motorists who voluntarily paid the five hundred dollar fee at the time
of registration during the fiscal year, the number of motorists who
paid the penalty fee after being detected by the Department of Public
Safety as being uninsured during the fiscal year, the number of
certificates of insurance filed during the fiscal year, the net revenue
collections for these fees by the fiscal year, the net funds available in
the Uninsured Motorist Fund, and the net funds received from the
Department of Insurance from the uninsured motorist fee during
fiscal year.
(B) The Department of Public Safety shall implement programs
designed to ensure full compliance with the financial responsibility
laws. These programs must include random sampling of licensed
drivers with moving violations requesting proof of insurance. Other
programs may be added.
(C) The Department of Public Safety shall provide an annual
report to the General Assembly containing the information required
in subsections (A) and (B) of this section."
SECTION 3. Section 38-73-470 of the 1976 Code, as last amended
by Section 783 of Act 181 of 1993, is further amended to read:
"Section 38-73-470. One dollar of the yearly premium for
uninsured motorist coverage must be transferred is
directed to be paid to the South Carolina Department of Public
Safety to be placed on deposit with the State Treasurer in the
'Uninsured Enforcement Fund', payable on a quarterly basis, to
provide funds for the costs of enforcing and administering the
provisions of Article 3, Chapter 10, Title 56. Interest earned by
the 'Uninsured Fund' must be retained by that fund."
SECTION 4. Section 38-73-910 of the 1976 Code, as last amended
by Acts 300, 360, and 378 of 1996, is further amended to read:
"Section 38-73-910. (A) No increase in the premium
rates may be granted for automobile, workers' compensation,
fire, allied lines, and homeowners' insurance, nor for any other line
or type of insurance with respect to which the director or his designee
has, by order, made a finding that (a) legal or other compulsion upon
the part of the insured to purchase the insurance interferes with
competition, or (b) under prevailing circumstances there does not
exist substantial competition, unless notice is given in all newspapers
of general, statewide circulation at least thirty days in advance of the
insurer's proposed effective date of the increase in premium rates.
The notice shall state the amount of increase, the type and line of
coverage, and the proposed effective date and shall allow any insured
or affected party to request within fifteen days a public hearing upon
the propriety of the rate increase request before the Administrative
Law Judge Division. A copy of the notice must be sent to the
Consumer Advocate.
However, the requirements of public notices and public hearings in
this section do not apply to applications for rate increases when the
applicant insurer had earned premiums in this State in the previous
calendar year of less than two million dollars for the line or type of
insurance for which the rate increase is sought or, if the rate increase
is sought by a rating organization, the earned premiums in this State
for all members and subscribers of the organization for whom an
increase is sought were less than two million dollars for the previous
calendar year for the line or type of insurance for which the rate
increase is sought. The two million dollars must be increased by a
factor equal to the increase in the consumer price index, all items,
every three years.
However, a private insurer licensed to underwrite essential property
insurance as defined by Section 38-75-310(1), notwithstanding any
limitations included within this title, may file and use, pursuant to the
provisions of Section 38-73-1095, any rates which result in insurance
premium rates of ninety percent, or less, of the insurance premium
rates then approved for the South Carolina Wind and Hail
Underwriting Association for use within the coastal area of South
Carolina as defined by Section 38-75-310(5).
(B) Except as provided in subsection (C) of this section,
overall average rate level increases or decreases, for all coverages
combined, of seven percent above or below the insurer's rates in
effect may take effect without prior approval with respect to rates for
automobile insurance policies.
(C) Notwithstanding any other provisions of this chapter, for any
policies governed by this section, filings that produce rate level
changes within the limitation specified in subsection (B) of this
section becomes effective without prior approval; provided, however,
that (1) no more than one rate increase within the limitation specified
in subsection (B) of this section may be implemented during any
twelve-month period and (2) no rate increase within the limitation
specified in subsection (B) of this section may be implemented until
the onset of the new policy period and unless the insurer, at least
thirty days in advance of the end of the policy period, mails or
delivers to the named insured, at the address shown in the policy, a
written notice of its intention to change the rate. The specific reason
or reasons for the rate change must be stated in, or must accompany,
the notice.
(D) The Director of the Department of Insurance or his designee
shall promulgate regulations implementing the provisions of this
section.
(E) On or before March 31, 2001, the Director of the Department
of Insurance or his designee shall report to the General Assembly on
the effectiveness of flexible rating for automobile insurance policies.
The report must analyze the impact of flexible rating on:
(1) the extent and nature of competition;
(2) size and significance of coverage;
(3) level and range or rates and rate changes among insurers;
(4) extent of consumer complaints to the Department of
Insurance;
(5) volume of cancellations and nonrenewals;
(6) changes in the number of policies by territory and by class,
including age and sex, in each territory; and
(7) the number of new insured, nonrenewed insured and
business written by each insurer.
(F) This section must cease to be of any force or effect after June
30, 2001."
SECTION 5. The 1976 Code is amended by adding:
"Section 38-73-736. Any schedule of rates, rate classifications, or
rating plans for automobile insurance as defined in Section 38-77-30
filed with the Department of Insurance must provide for an
appropriate reduction in premium charges for those insured persons
who are fifty-five years of age and older and who qualify as provided
in Section 38-73-737."
SECTION 6. Section 38-77-10 of the 1976 Code, as last amended
by Act 326 of 1996, is further amended to read:
"Section 38-77-10. In order to effect a complete reform of
automobile insurance and insurance practices in South Carolina, the
purposes of this chapter are to provide:
(1) To provide that every automobile insurance risk which
is insurable on the basis of the criteria established in this chapter is
entitled to bodily injury liability and property damage liability
automobile insurance from the automobile insurer of the
applicant's choice on the basis of the same rates, policy forms, claims
service, and other services provided by the insurer to all other
applicants or insureds falling within the classification of risk and
territory under the applicable risk and territorial classification plan
promulgated by the department so long as all these applicants or
insureds have satisfied the same objective standards as established in
Sections 38-77-280 and 38-73-455;
(2) To provide a Reinsurance Facility for automobile insurers
in which all automobile insurers which provide bodily injury liability
insurance, property damage liability insurance, or both, must
participate to the end that the operating expenses and net profit or
loss of the facility may be shared equitably by all the insurers
transacting bodily injury liability and property damage liability
automobile insurance business in this State giving appropriate
consideration to degrees of utilization of the facility by the several
insurers of bodily injury liability and property damage liability
automobile insurance and to provide prohibitions or penalties in
respect to excessive utilization of the facility. for an assigned
risk plan, known as the South Carolina Automobile Insurance Plan,
for every person who is legally entitled to automobile insurance but
has not been able to obtain a motor vehicle liability policy to apply
to the Director of the Department of Insurance to have his risk
assigned to an insurance carrier licensed to write and writing motor
vehicle liability insurance in the State who shall issue a motor vehicle
liability policy which will meet at least the minimum requirements
for establishing financial responsibility in this chapter;
(3) To provide prohibitions and penalties in respect to
unfairly discriminatory or unfairly competitive practices having as
their purpose or effect evasion of the statutory mandate of
coverage provided in this chapter or imposing an undue or unfair
burden upon other automobile insurers through excessive utilization
of the Facility. of the coverages as provided in this chapter;
and
(4) To provide medical, surgical, funeral, and disability
insurance benefits without regard to fault to be offered under
automobile insurance policies that provide bodily injury and property
damage liability insurance, or other security, for motor vehicles
registered in this State."
SECTION 7. Section 38-77-30 of the 1976 Code, as last amended
by Act 326 of 1996, is further amended to read:
"Section 38-77-30. As used in this chapter, unless the context
requires otherwise:
(1) 'Automobile insurance' means automobile bodily injury and
property damage liability insurance, including medical payments and
uninsured motorist coverage, and automobile physical damage
insurance such as automobile comprehensive physical damage,
collision, fire, theft, combined additional coverage, and similar
automobile physical damage insurance and economic loss benefits as
provided by this chapter written or offered by automobile insurers.
An automobile insurance policy includes a motor vehicle liability
policy as defined in item (7) of Section 56-9-20 and any nonowner
automobile insurance policy which covers an individual private
passenger automobile not owned by the insured, a family member of
the insured, or a resident of the same household as the insured.
(2) 'Automobile insurer' means an insurer licensed to do business
in South Carolina and authorized to issue automobile insurance
policies.
(3) 'Bodily injury' includes death resulting therefrom.
(3.5) 'Cancellation' or 'to cancel' means a termination of a
policy during the policy period.
(4) 'Damages' includes both actual and punitive damages.
(4.5) 'Facility physical damage rate' means the final rate or
premium charge for physical damage coverage which must be
established by adding the physical damage loss component developed
under Section 38-73-780 to the expense component developed under
Section 38-73-1420.
(5) 'Facility' means the unincorporated, nonprofit, legal
entity created by this chapter to reinsure policies of automobile
insurance known as the South Carolina Reinsurance Facility.
(5.5)(a) 'Individual private passenger automobile' means the
following types of motor vehicles owned by or leased under a
long-term contract by an individual or individuals:
(i) motor vehicles of the private passenger type or station
wagon type;
(ii) panel trucks, delivery sedans, vehicles with a pickup
body, vans, or similar motor vehicles designed for use on streets and
highways and so licensed; and
(iii) motor homes, so long as the motor vehicles described in
(ii) and (iii) are not used in the occupation, profession, or business of
the insured other than farming and ranching.; and
(iv) motorcycles, motor-driven cycles, motor scooters, and
mopeds.
(b) A motor vehicle is not considered 'owned by or leased under
a long-term contract by an individual or individuals' if the motor
vehicle is owned by a partnership or corporation, unless the motor
vehicle is owned by a farm family copartnership or a farm family
corporation and is garaged principally on a farm or ranch.
(c) A motor vehicle is not considered 'used in the occupation,
profession, or business of the insured', because it is used in the
course of driving to and from work.
(d) Individual private passenger automobile does not include:
(i) motor vehicles that are used for public or livery
conveyance or rented to others without a driver;
(ii) fire department vehicles, police vehicles, ambulances, and
rescue squad vehicles which are publicly owned;
(iii) motorcycles, motor-driven cycles, motor scooters, and
mopeds;
(iv) dune buggies, all terrain vehicles, go carts,
and snowmobiles;
(v)(iv) golf carts; and
(vi)(v) small commercial risks.
(6) 'Institutional source' means any person or governmental
entity that provides information about an individual to an agent,
insurer, or insurance-support organization other than:
(a) an agent;
(b) the individual who is the subject of the information; or
(c) a natural person acting in a personal capacity rather than in
a business or professional capacity.
(7) 'Insured' means the named insured and, while
resident of the same household, the spouse of any named insured and
relatives of either, while in a motor vehicle or otherwise, and any
person who uses with the consent, expressed or implied, of the named
insured the motor vehicle to which the policy applies and a guest in
the motor vehicle to which the policy applies or the personal
representative of any of the above.
(8) 'Insurer-support organization' means any person who
regularly engages, in whole or in part, in the practice of assembling
or collecting information about natural persons for the primary
purpose of providing the information to an insurer or agent for
insurance transactions, including (i) the furnishing of consumer
reports or investigative consumer reports to an insurer or agent for
use in connection with an insurance transaction or (ii) the collection
of personal information from insurers, agents, or other
insurance-support organizations for the purpose of detecting or
preventing fraud, material misrepresentation, or material
nondisclosure in connection with insurance underwriting or insurance
claim activity. However, the following persons shall not be
considered insurance-support organizations for purposes of this
chapter: agents, governmental institutions, insurers, rating
organizations, medical care institutions, and medical professionals.
(7)(9) 'Motor vehicle' means every self-propelled
vehicle which is designed for use upon a highway, including trailers
and semitrailers designed for use with these vehicles but excepting
traction engines, road rollers, farm trailers, tractor cranes, power
shovels and well-drillers, and every vehicle which is propelled by
electric power obtained from overhead wires but not operated upon
rails. For purposes of this chapter, the term automobile has the same
meaning as motor vehicle.
(8)(10) 'Nonpayment of premium' means failure
of the named insured to pay when due any of his obligations in
connection with the payment of premiums on a policy, or any
installment of the premium, whether the premium is payable directly
to the insurer or its agent or indirectly under any premium finance
plan or extension of credit, or failure to maintain membership in an
organization if membership is a condition precedent to insurance
coverage.
(10.5) 'Policy of automobile insurance' or 'policy' means a
policy or contract for bodily injury or property damage liability
insurance issued or delivered in this State covering liability arising
from the ownership, maintenance, or use of any motor vehicle,
insuring as the named insured one individual or husband and wife
who are residents of the same household, and under which the
insured vehicle designated in the policy is either:
(a) a motor vehicle of a private passenger, station wagon, or
motorcycle type that is not used commercially, rented to others, or
used as a public or livery conveyance where the terms 'public or
livery conveyance' do not include car pools, or
(b) any other four-wheel motor vehicle which is not used in the
occupation, profession, or business, other than farming, of the
insured, or as a public or livery conveyance, or rented to others. The
term 'policy of automobile insurance' or 'policy' does not include:
(i) any policy issued through the South Carolina Automobile
Insurance Plan,
(ii) any policy covering the operation of a garage, sales
agency, repair shop, service station, or public parking place,
(iii) any policy providing insurance only on an excess basis,
or
(iv) any other contract providing insurance to the named
insured even though the contract may incidentally provide insurance
on motor vehicles.
(9)(11) 'Quota share reinsurance' means that form
of reinsurance in which the reinsurer assumes a fixed percentage of
the insured risk.
(10)(12) 'Renewal' or 'to renew' means the
issuance and delivery by an insurer of a policy superseding at the end
of the policy period a policy previously issued and delivered by the
same insurer, the renewal policy to provide types and limits of
coverage at least equal to those contained in the policy being
superseded, or the issuance and delivery of a certificate or notice
extending the terms of a policy beyond its policy period or term with
types and limits of coverage at least equal to those contained in the
policy being extended. However, any policy with a policy period or
term of less than six months or any period with no fixed expiration
date is considered as if written for successive policy periods or terms
of six months.
(11)(13) 'Small commercial risk' means:
(a) Garage risks including nonmotor vehicle insurance when
written in combination with automobile liability coverage.
(b) Ambulance risks.
(c) Commercial risks which have a load capacity less than ten
thousand pounds and are not required to have a mandatory filing by
a governmental authority other than an SR-22.
(d) Church buses used by a church to transport adults or
children to and from services and in activities incidental to church
functions, so long as a mandatory filing by any governmental
authority other than an SR-22 is not required.
(e) Privately owned school buses used to carry school children
and students, their parents or guardians, members of the faculty,
school board members, nurses, doctors, and dentists, as well as guests
in connection with any school activity and operations incidental
thereto, including games, outings, and similar road trips, so long as
a mandatory filing by any governmental authority other than an
SR-22 is not required.
'Small commercial risk' does not include pulpwood trucks or dump
trucks.
(12) 'Specialized insurer' means an insurer which
specializes in certain types of business such as, but without limitation
on the generality, commercial automobile business, and which may
be relieved, with the approval of the director or his designee, of the
obligation to write types of business inconsistent with this specialty,
such as private passenger automobile business. However, no insurer
may be approved as a specialized insurer or continue to be so
approved unless it accepts all insurable risks falling within the types
of business to which it confines its writings without distinctions
among applicants or policyholders as to policy forms, terms, rates or
services other than as the distinctions are reflected in the approved
rating plan for the classification of risks. No insurer may be
approved as a specialized insurer because it specializes in or purports
to specialize in select or preferred risks. A specialized insurer may
not cede risks to the Reinsurance Facility and thus does not recoup
losses of the facility. Specialized insurers may be excused from
using the merit rating plan and the uniform classification and
territorial plans upon approval by the director or his designee.
(13)(14) 'Uninsured motor vehicle' means a
motor vehicle as to which:
(a) there is not bodily injury liability insurance and property
damage liability insurance both at least in the amounts specified in
Section 38-77-140, or
(b) there is nominally that insurance, but the insurer writing the
same successfully denies coverage thereunder, or
(c) there was that insurance, but the insurer who wrote the same
is declared insolvent, or is in delinquency proceedings, suspension,
or receivership, or is proven unable fully to respond to a judgment,
and
(d) there is no bond or deposit of cash or securities in lieu of the
bodily injury and property damage liability insurance.
(e) the owner of the motor vehicle has not qualified as a
self-insurer in accordance with the applicable provisions of law.
A motor vehicle is considered uninsured if the owner or operator is
unknown. However, recovery under the uninsured motorist provision
is subject to the conditions set forth in this chapter.
Any motor vehicle owned by the State or any of its political
subdivisions is considered an uninsured motor vehicle when the
vehicle is operated by a person without proper authorization.
(14)(15) 'Underinsured motor vehicle' means a
motor vehicle as to which there is bodily injury liability insurance or
a bond applicable at the time of the accident in an amount of at least
that specified in Section 38-77-140 and the amount of the insurance
or bond is less than the amount of the insureds' damages."
SECTION 8. The 1976 Code is amended by adding:
"Section 38-77-596. (A) The governing board of the South
Carolina Reinsurance Facility annually shall develop and file private
passenger automobile loss components for automobile insurance
coverages based on the total experience of all risks ceded to the
facility which are actuarially sound and supported by statistical
evidence. The governing board shall contract with independent
actuarial services to develop the loss component. Due consideration
must be given to actual loss experience within the facility for the
most recent three-year period for which such information is available.
(B) The loss component developed under this section is applicable
to the risk and territorial classification plan adopted by the facility.
Nothing in this section precludes the governing board of the facility
from filing for approval, or the Director of the Department of
Insurance from requiring the governing board to file for approval,
variations in loss components and rates which are based upon
differences in risk characteristics including, but not limited to,
difference in driving records.
(C) The governing board of the facility annually shall review the
private passenger automobile loss components to determine if they
are actuarially-sound and supported by the statistical evidence. If
rate changes are required, the governing board shall submit
appropriate filings for approval with the director. Rate increases
must be capped at an overall ten percent increase each year. This cap
does not apply on an individual insured basis. These rate filings are
subject to public hearing pursuant to applicable provisions of the
Administrative Procedures Act."
SECTION 9. Section 38-77-112 of the 1976 Code, as last amended
by Act 148 of 1989, is further amended to read:
"Section 38-77-112. Notwithstanding Sections 38-77-110,
38-77-920, and Section 38-77-280, no automobile
insurer is required to write coverage for automobile insurance as
defined in Section 38-77-30 for any applicant or existing
policyholder who does not at the time of application or renewal
possess a valid South Carolina motor vehicle or special restricted
driver's license. At the time of application, an insurer or an agent
shall retain, for a period of three years, the driver's license numbers
for all applicants who were refused coverage and shall furnish such
information upon the request of the Director of the Department of
Insurance or his designee. This section does not apply to an
individual who is handicapped and who owns a vehicle in this State
but who does not have a valid driver's license. If an automobile is
principally garaged and operated in this State, the owner of the
vehicle must can be offered coverage thereon
regardless of whether or not he possesses a valid South Carolina
driver's license if he designates to the insurer who the principal
operator of the vehicle will be and this person has a valid South
Carolina driver's license or otherwise meets the requirements of this
section. This requirement does not apply to personnel of the Armed
Forces of the United States on active duty and officially stationed in
this State who possess a valid motor vehicle driver's license issued
by another state or territory of the United States or the District of
Columbia. This requirement is waived ninety days for individuals
who move into South Carolina with the intent of making South
Carolina their place of residence if they possess a valid driver's
license issued by another state or territory of the United States or the
District of Columbia."
SECTION 10. Section 38-77-120(a) of the 1976 Code, as last
amended by Section 806 of Act 181 of 1993, is further amended to
read:
"(a) No cancellation or refusal to renew by an insurer of a policy of
automobile insurance is effective unless the insurer delivers or
mails, to the named insured at the address shown in the
policy, a written notice of the cancellation or refusal to renew.
This notice:
(1) must be approved as to form by the director or his designee
prior to before use;
(2) shall must state the date not less than fifteen
days after the date of the mailing or delivering on which the
cancellation or refusal to renew becomes effective;
(3) shall must state the specific reason or
reasons of the insurer for cancellation or refusal to renew and
provide for the notification required by subsection (B) of Section
38-77-390. However, those notification requirements must not apply
when the policy is being canceled or not renewed for the reason set
forth in Section 38-77-123(B),
(4) must inform the insured of his right to request in writing
within fifteen days of the receipt of notice that the director review the
action of the insurer. The notice of cancellation or refusal to renew
must contain the following statement to inform the insured of such
right:
'IMPORTANT NOTICE
Within fifteen days of receiving this notice, you or your attorney may
request in writing that the director review this action to determine
whether the insurer has complied with South Carolina laws in
canceling or nonrenewing your policy. If this insurer has failed to
comply with the cancellation or nonrenewal laws, the director may
require that your policy be reinstated. However, the director is
prohibited from making underwriting judgments. If this insurer has
complied with the cancellation or nonrenewal laws, the director does
not have the authority to overturn this action.'
(5) must inform the insured of the possible availability of other
insurance which may be obtained through his agent, through another
insurer, or through the South Carolina Automobile Insurance Plan.
Nothing in this subsection prohibits any insurer or agent from
including in the notice of cancellation or refusal to renew, any
additional disclosure statements required by state or federal laws, or
any additional information relating to the availability of other
insurance."
SECTION 11. The 1976 Code is amended by adding:
"Section 38-77-121. (A) Any application for the original issuance
of a policy of insurance covering liability arising out of the
ownership, maintenance, or use of any motor vehicle as defined in
Section 38-77-30 must have the following statement printed on or
attached to the first page of the application form, in boldface type:
'READ YOUR POLICY. THE POLICY OF INSURANCE FOR
WHICH THIS APPLICATION IS BEING MADE, IF ISSUED,
MAY BE CANCELED WITHOUT CAUSE AT THE OPTION OF
THE INSURER AT ANY TIME IN THE FIRST 90 DAYS DURING
WHICH IT IS IN EFFECT AND AT ANY TIME THEREAFTER
FOR REASONS STATED IN THE POLICY.'
(B) Any application for the original issuance of a policy of
insurance covering liability arising out of the ownership,
maintenance, or use of any motor vehicle defined in Section 38-77-30
that requires the insured to disclose information as to any previous
cancellation or refusal to renew must also permit the insured to offer
or provide a full explanation of the reason for the cancellation or
refusal to renew.
(C) The notice required by this section must be given by the
insurer to any applicant within ten days of the application in the event
the applicant is not provided a written copy of the application and the
coverage has been bound by such insurer.
This section does not apply to the renewal of any policy of
insurance.
Section 38-77-122. (A) No insurer or agent shall refuse to issue
an automobile insurance policy as defined in Section 38-77-30
because of any one or more of the following factors: the age, sex,
location of residence in this State, race, color, creed, national origin,
ancestry, marital status, income level, previous refusal of automobile
insurance by another insurer, prior purchase of insurance through the
South Carolina Automobile Insurance Plan, or lawful occupation,
including the military service, of the person seeking the coverage.
Nothing in this section prohibits any insurer from limiting the
issuance of motor vehicle insurance policies to those who are
residents of this State nor does this section prohibit any insurer from
limiting the issuance of motor vehicle insurance policies only to
persons engaging in or who have engaged in a particular profession
or occupation, or who are members of a particular religious sect.
Nothing in this section prohibits any insurer from setting rates in
accordance with relevant actuarial data.
(B) Any insurer or agent who violates this section shall be subject
to the penalties as provided in Section 38-2-10. If the Director of the
Department of Insurance or his designee finds that an insurer or agent
is participating in a pattern of unfair discrimination, the director or
his designee may impose a fine of up to two hundred thousand
dollars. The director or his designee at any time may examine an
insurer or agent to enforce this section.
Section 38-77-123. (A)(1) No insurer shall refuse to renew an
automobile insurance policy because of any one or more of the
following factors:
(a) age;
(b) sex;
(c) location of residence in this State;
(d) race;
(e) color;
(f) creed;
(g) national origin;
(h) ancestry;
(i) marital status;
(j) income level;
(k) lawful occupation, including the military service;
(l) lack of driving experience, or number of years of driving
experience;
(m) lack of supporting business or lack of the potential for
acquiring such business;
(n) one or more accidents or violations that occurred more
than thirty-six months immediately preceding the upcoming
anniversary date;
(o) one or more claims submitted under the uninsured
motorists coverage of the policy where the uninsured motorist is
known or there is physical evidence of contact;
(p) single claim by a single insured submitted under the
medical payments coverage or medical expense coverage due to an
accident for which the insured was neither wholly nor partially at
fault;
(q) one or more claims submitted under the comprehensive
or towing coverages. However, nothing in this section prohibits an
insurer from modifying or refusing to renew the comprehensive or
towing coverages at the time of renewal of the policy on the basis of
one or more claims submitted by an insured under those coverages,
provided that the insurer mails or delivers to the insured at the
address shown in the policy written, notice of the change in coverage
at least forty-five days before the renewal; or
(r) two or fewer motor vehicle accidents within a three-year
period unless the accident was caused either wholly or partially by
the named insured, a resident of the same household, or other
customary operator.
(2) Nothing in this section requires an insurer to renew a policy
for an insured where the insured's occupation has changed so as to
materially increase the risk. Nothing contained in subsection
(A)(1)(p), (q), and (r) of this subsection prohibits an insurer from
refusing to renew a policy where a claim is false or fraudulent.
Nothing in this section prohibits an insurer from setting rates in
accordance with relevant actuarial data except that no insurer may set
rates based in whole or in part on race, color, creed, national origin,
ancestry, income level, or place of residence at any level smaller than
a county.
(B) No insurer shall cancel a policy except for one or more of the
following reasons:
(1) The named insured or any other operator who either resides
in the same household or customarily operates a motor vehicle
insured under the policy has had his driver's license suspended or
revoked during the policy period or, if the policy is a renewal, during
its policy period or the ninety days immediately preceding the last
anniversary of the effective date.
(2) The named insured fails to pay the premium for the policy
or any installment of the premium, whether payable to the insurer or
its agent either directly or indirectly under any premium finance plan
or extension of credit.
(C) There shall be no liability on the part of and no cause of action
of any nature shall arise against the director or his designees; any
insurer, its authorized representatives, its agents, or its employees; or
any person furnishing to the insurer information as to reasons for
cancellation or refusal to renew, for any statement made by any of
them in complying with this section or for providing information
pertaining to the cancellation or refusal to renew. For the purposes
of this section, no insurer shall be required to furnish a notice of
cancellation or refusal to renew to anyone other than the named
insured, any person designated by the named insured, any other
person to whom such notice is required to be given by the terms of
the policy and the director.
(D) Within fifteen days of receipt of the notice of cancellation or
refusal to renew, any insured or his attorney shall be entitled to
request in writing to the director that he review the action of the
insurer in canceling or refusing to renew the policy of the insured.
Upon receipt of the request, the director shall promptly begin a
review to determine whether the insurer's cancellation or refusal to
renew complies with the requirements of this section and of Section
38-77-120 if the notice was sent by mail. The policy must remain in
full force and effect during the pendency of the review by the director
except where the cancellation or refusal to renew is for the reason set
forth in subitem (2) of subsection (B) of this section, in which case
the policy terminates as of the effective date stated in the notice.
Where the director finds from the review that the cancellation or
refusal to renew has not complied with the requirements of this
section or of Section 38-77-120, he shall immediately notify the
insurer, the insured, and any other person to whom such notice was
required to be given by the terms of the policy that the cancellation
or refusal to renew is not effective. Nothing in this section authorizes
the director to substitute his judgment as to underwriting for that of
the insurer.
(E) Each insurer shall maintain for at least three years, records of
cancellation and refusal to renew and copies of every notice or
statement referred to in Section 38-77-120 of this section that it sends
to any of its insureds.
(F) The provisions of this section do not apply to any insurer that
limits the issuance of policies of motor vehicle liability insurance to
one class or group of persons engaged in any one particular
profession, trade, occupation, or business. Nothing in this section
requires an insurer to renew a policy of automobile insurance if the
insured does not conform to the occupational or membership
requirements of an insurer who limits its writings to an occupation or
membership of an organization. No insurer is required to renew a
policy if the insured becomes a nonresident of South Carolina.
(G) Any insurer who violates this section shall be subject to the
penalties as provided in Section 38-2-10. If the Director of the
Department of Insurance or his designee finds that an insurer, agent,
or broker is participating in a pattern of unfair discrimination, the
director or his designee may impose a fine of up to two hundred
thousand dollars. The director or his designee at any time may
examine an insurer, agent, or broker to enforce this section.
Section 38-77-124. No insurer or agent shall refuse to issue or fail
to renew a policy of motor vehicle liability insurance solely because
of the age of the motor vehicle to be insured, provided the motor
vehicle is licensed.
Section 38-77-141. No new policy or original premium notice of
insurance covering liability arising out of the ownership,
maintenance, or use of a motor vehicle may be issued or delivered
unless it contains the following statement printed in boldface type, or
unless the statement is attached to the front of or is enclosed with the
policy or premium notice:
'IMPORTANT NOTICE
IN ADDITION TO THE INSURANCE COVERAGE REQUIRED
BY LAW TO PROTECT YOU AGAINST A LOSS CAUSED BY
AN UNINSURED MOTORIST, IF YOU HAVE PURCHASED
LIABILITY INSURANCE COVERAGE THAT IS HIGHER THAN
THAT REQUIRED BY LAW TO PROTECT YOU AGAINST
LIABILITY ARISING OUT OF THE OWNERSHIP,
MAINTENANCE, OR USE OF THE MOTOR VEHICLES
COVERED BY THIS POLICY, AND YOU HAVE NOT
ALREADY PURCHASED UNINSURED MOTORIST
INSURANCE COVERAGE EQUAL TO YOUR LIABILITY
INSURANCE COVERAGE:
(1) YOUR UNINSURED AND UNDERINSURED MOTORIST
INSURANCE COVERAGE HAS INCREASED TO THE LIMITS
OF YOUR LIABILITY COVERAGE AND THIS INCREASE WILL
COST YOU AN EXTRA PREMIUM CHARGE; AND
(2) YOUR TOTAL PREMIUM CHARGE FOR YOUR MOTOR
VEHICLE INSURANCE COVERAGE WILL INCREASE IF YOU
DO NOT NOTIFY YOUR AGENT OR INSURER OF YOUR
DESIRE TO REDUCE COVERAGE WITHIN TWENTY DAYS OF
THE MAILING OF THE POLICY OR THE PREMIUM NOTICE,
AS THE CASE MAY BE;
(3) IF THIS IS A NEW POLICY AND YOU HAVE ALREADY
SIGNED A WRITTEN REJECTION OF SUCH HIGHER LIMITS
IN CONNECTION WITH IT, PARAGRAPHS (1) AND (2) OF
THIS NOTICE DO NOT APPLY.'
After twenty days, the insurer is relieved of the obligation imposed
by this subsection to attach or imprint the foregoing statement to any
subsequently delivered renewal policy, extension certificate, other
written statement of coverage continuance, or to any subsequently
mailed premium notice.
Section 38-77-142. (A) No policy or contract of bodily injury or
property damage liability insurance covering liability arising from the
ownership, maintenance, or use of a motor vehicle may be issued or
delivered in this State to the owner of the vehicle or may be issued or
delivered by an insurer licensed in this State upon a motor vehicle
that is principally garaged, docked, or used in this State unless the
policy contains a provision insuring the named insured and any other
person using or responsible for the use of the motor vehicle with the
expressed or implied consent of the named insured against liability
for death or injury sustained or loss or damage incurred within the
coverage of the policy or contract as a result of negligence in the
operation or use of the vehicle by the named insured or by any such
person. Each policy or contract of liability insurance, or endorsement
to the policy or contract, insuring private passenger automobiles
principally garaged, docked, or used in this State, that has as the
named insured an individual or husband and wife and that includes,
with respect to any liability insurance provided by the policy,
contract, or endorsement for use of a nonowned automobile a
provision requiring permission or consent of the owner of the
automobile for the insurance to apply, must be construed to include
permission or consent of the custodian in the provision requiring
permission or consent of the owner.
(B) No policy or contract of bodily injury or property damage
liability insurance relating to the ownership, maintenance, or use of
a motor vehicle may be issued or delivered in this State to the owner
of a vehicle or may be issued or delivered by an insurer licensed in
this State upon a motor vehicle principally garaged or used in this
State without an endorsement or provision insuring the named
insured, and any other person using or responsible for the use of the
motor vehicle with the expressed or implied consent of the named
insured, against liability for death or injury sustained, or loss or
damage incurred within the coverage of the policy or contract as a
result of negligence in the operation or use of the motor vehicle by
the named insured or by any other person. This provision applies
notwithstanding the failure or refusal of the named insured or other
person to cooperate with the insurer under the terms of the policy. If
the failure or refusal to cooperate prejudices the insurer in the defense
of an action for damages arising from the operation or use of the
insured motor vehicle, then the endorsement or provision is void. If
an insurer has actual notice of a motion for judgment or complaint
having been served on an insured, the mere failure of the insured to
turn the motion or complaint over to the insurer may not be a defense
to the insurer, nor void the endorsement or provision, nor in any way
relieve the insurer of its obligations to the insured, provided the
insured otherwise cooperates and in no way prejudices the insurer.
Where the insurer has elected to provide a defense to its insured
under such circumstances and files responsive pleadings in the name
of its insured, the insured is not subject to sanctions for failure to
comply with discovery pursuant to the South Carolina Rules of Civil
Procedure unless it can be shown that the suit papers actually reached
the insured, and that the insurer has failed after exercising due
diligence to locate its insured, and as long as the insurer provides
such information in response to discovery as it can without the
assistance of the insured.
(C) Any endorsement, provision, or rider attached to or included
in any policy of insurance which purports or seeks to limit or reduce
the coverage afforded by the provisions required by this section is
void.
Section 38-77-143. A policy or contract of bodily injury or
property damage liability insurance relating to the ownership,
maintenance, or use of a motor vehicle excludes coverage to persons
other than (i) the named insured, or (ii) directors, stockholders,
partners, agents, or employees of the named insured, or (iii) residents
of the household of either (i) or (ii), while those persons are
employed or otherwise engaged in the business of selling, repairing,
servicing, storing, or parking motor vehicles if there is any other
valid or collectible insurance applicable to the same loss covering the
persons under a policy with limits at least equal to the financial
responsibility requirements specified in Section 38-77-140.
If the other valid and collectible insurance has limits less than the
financial responsibility requirements specified in Section 38-77-140,
then the coverage afforded a person other than the named insured
while that person is employed or otherwise engaged in the business
of selling, repairing, servicing, storing, or parking motor vehicles is
applicable to the extent necessary to equal the financial responsibility
requirements specified in Section 38-77-140.
If there is no other valid and collectible insurance available, the
coverage afforded a person other than the named insured while that
person is employed or otherwise engaged in the business of selling,
repairing, servicing, storing, or parking motor vehicles must apply,
but the amount recoverable must not exceed the financial
responsibility requirements specified in Section 38-77-140.
Section 38-77-151. All funds collected by the Director of the
Department of Revenue under the provisions of Chapter 10 of Title
56 must be placed on deposit with the State Treasurer and held in a
special fund to be known as the 'Uninsured Motorists Fund' to be
disbursed as provided by law. Interest earned by the 'Uninsured
Motorists Fund' must be retained by that fund. The Director of the
Department of Insurance, as provided in Sections 38-77-154 and
38-77-155, may expend such funds, for the administration of this
chapter; provided, however, that the Department of Insurance shall
retain ten percent of the Uninsured Motorists Fund to be used by the
Department of Insurance to enforce the provisions of Title 38,
including Sections 38-77-112, 38-77-122, and 38-77-123, to publish
for consumers an automobile insurance buyer's guide, a brochure
comparing automobile insurance premiums with a section comparing
automobile insurance premiums, and to provide for a public
awareness campaign.
Section 38-77-154. The Uninsured Motorists Fund shall be under
the supervision and control of the Department of Insurance.
Payments from the Uninsured Motorists Fund shall be made on
warrants of the Comptroller General issued on vouchers signed by a
person designated by the director. The purpose of the Uninsured
Motorists Fund is to reduce the cost of the insurance required by
Section 38-77-150 and to protect and educate consumers as provided
by Section 38-77-151.
Section 38-77-155. The director shall distribute monies annually
from the Uninsured Motorists Fund among the several insurers
writing motor vehicle bodily injury and property damage liability
insurance on motor vehicles registered in this State. Monies must be
distributed in the proportion that each insurer's premium income for
the basic uninsured motorists limits coverage bears to the total
premium income for basic uninsured motorists limits coverage
written in this State during the preceding year. Premium income
must be gross premiums less cancellation and return premiums for
coverage required by Section 38-77-150. Only insurers that maintain
records satisfactory to the director shall receive any payment from the
Uninsured Motorists Fund. Records must be considered satisfactory
if they adequately disclose the loss experience for the coverage."
SECTION 12. Section 38-77-140 of the 1976 Code is amended to
read:
"Section 38-77-140. No automobile insurance policy may be
issued or delivered in this State to the owner of a motor vehicle or
may be issued or delivered by an insurer licensed in this State upon
any motor vehicle then principally garaged or principally used in this
State, unless it contains a provision insuring the persons defined as
insured against loss from the liability imposed by law for damages
arising out of the ownership, maintenance, or use of these motor
vehicles within the United States or Canada, subject to limits
exclusive of interest and costs, with respect to each motor vehicle, as
follows: fifteen thousand dollars because of bodily injury to one
person in any one accident, and, subject to the limit for one
person, thirty thousand dollars because of bodily injury to two or
more persons in any one accident, and five ten
thousand dollars because of injury to or destruction of property of
others in any one accident. Nothing in this article prevents an insurer
from issuing, selling, or delivering a policy providing liability
coverage in excess of these requirements."
SECTION 13. Section 38-77-150 of the 1976 Code, as last amended
by Section 807 of Act 181 of 1993, is further amended to read:
"Section 38-77-150. (A) No automobile insurance
policy or contract may be issued or delivered unless it contains a
provision by endorsement or otherwise, herein referred to as the
uninsured motorist provision, undertaking to pay the insured all sums
which he is legally entitled to recover as damages from the owner or
operator of an uninsured motor vehicle, within limits which may be
no less than the requirements of Section 38-77-140. The uninsured
motorist provision must also provide for no less than five
ten thousand dollars' coverage for injury to or destruction of
the property of the insured in any one accident but may provide an
exclusion of the first two hundred dollars of the loss or damage. The
director or his designee may prescribe the form to be used in
providing uninsured motorist coverage and when prescribed and
promulgated no other form may be used.
(B) No action may be brought under the uninsured
motorist provision unless copies of the pleadings in the action
establishing liability are served in the manner provided by law upon
the insurer writing the uninsured motorist provision. The insurer has
the right to appear and defend in the name of the uninsured motorist
in any action which may affect its liability and has thirty days after
service of process on it in which to appear. The evidence of service
upon the insurer may not be made a part of the record.
(C) Benefits paid pursuant to this section are subject to
subrogation and assignment if an uninsured motorist has selected the
option to be uninsured by paying the fee pursuant to Section
56-10-510."
SECTION 14. A. Section 38-77-280 of the 1976 Code, as last
amended by Act 326 of 1996, is further amended to read:
"Section 38-77-280. (A) All automobile insurers, including
those insurance companies writing private passenger physical damage
coverages only, Any automobile insurer may, at
their its own election, make collision coverage and
either comprehensive or fire, theft, and combined additional coverage
available to an insured or qualified applicant who requests the
coverage at such rates and under such rules as have been approved by
the director. Automobile insurers contracted pursuant to Section
38-77-590 for risks written by them through producers assigned by
the facility governing board pursuant to that section may make
available collision coverage and either comprehensive or fire, theft,
and combined additional coverage available to an insured or qualified
applicant who requests the coverage. Notwithstanding Section
38-77-590(g), a designated producer may have one or more voluntary
outlets for automobile physical damage.
(B) Any automobile physical damage insurance coverage
deductible or policy deductible does not apply to automobile safety
glass.
(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 the uniform merit rating plan 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 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 with the
department and approved by the director or his designee.
Notwithstanding Section 38-77-111, automobile physical damage
insurance coverage may be ceded to the facility. However,
automobile physical damage coverages ceded to the facility by an
insurer or servicing carrier must be at the facility physical damage
rate as defined in Section 38-77-30.
(F)(D) In determining the premium rates to be
charged on physical damage coverage or single interest collision
coverage, it is unlawful to consider race, color, creed, religion,
national origin, ancestry, location of residence in this State, economic
status, or income level. Nor may an insurer, agent, or broker refuse
to write or renew physical damage insurance coverage or single
interest collision coverage based upon race, color, creed, religion,
national origin, ancestry, location of residence in this State, economic
status, or income level. However, nothing in this subsection may
preclude the use of a territorial plan approved by the director. If the
Director of the Department of Insurance or the director's designee
finds that an insurer, agent, or broker is participating in a pattern of
unfair discrimination, the director or the director's designee may
impose a fine of up to two hundred thousand dollars. The director or
the director's designee at any time may examine an insurer, agent, or
broker to enforce this section. The expense of examination must be
paid by the insurer, agent, or broker."
B. From January 1, 1998 to September 30, 1998, Section
38-77-280(A) of the 1976 Code, as last amended by Act 326 of 1996,
is further amended to read:
"(A) All automobile insurers, including those insurance
companies writing private passenger physical damage coverages
only, may, at their own election, make collision coverage and either
comprehensive or fire, theft, and combined additional coverage
available to an insured or qualified applicant who requests the
coverage, except for reasons specified in Section 38-77-123,
at such rates and under such rules as have been approved by the
director. Automobile insurers contracted pursuant to Section
38-77-590 for risks written by them through producers assigned by
the facility governing board pursuant to that section may make
available collision coverage and either comprehensive or fire, theft,
and combined additional coverage available to an insured or qualified
applicant who requests the coverage. Notwithstanding Section
38-77-590(g), a designated producer may have one or more voluntary
outlets for automobile physical damage."
SECTION 15. Section 38-77-350(C) of the 1976 Code, as last
amended by Act 496 of 1994, is further amended to read:
"(C) An automobile insurer is not required to make a new offer
of coverage on any automobile insurance policy which renews,
extends, changes, supersedes, or replaces an existing policy.
However, the first renewal notices for existing policies after
December 1, 1989, must include the form provided in subsection (A).
A policy of automobile insurance offered or issued by a new
servicing carrier for the South Carolina Reinsurance Facility to
replace a policy previously issued by a former servicing carrier and
containing the same coverage limits as the former policy constitutes
a valid replacement policy that does not require the new servicing
carrier or agent to make a new offer of coverage or to obtain a new
application from the insured."
SECTION 16. The 1976 Code is amended by adding:
"Section 38-77-370. (A) If an individual, after proper
identification, submits a written request to an insurance-support
organization for access to recorded personal information about the
individual that is reasonably described by the individual and
reasonably able to be located and retrieved by the insurance-support
organization, the insurance-support organization, within thirty
business days from the date the request is received shall:
(1) inform the individual of the nature and substance of the
recorded personal information in writing, by telephone, or by other
oral communication, whichever the insurance-support organization
prefers;
(2) permit the individual to see and obtain a copy of the
recorded personal information pertaining to him or to obtain a copy
of the recorded personal information by mail, whichever the
individual prefers, unless the recorded personal information is in
coded form, in which case an accurate translation in plain language
must be provided in writing;
(3) disclose to the individual the identity, if recorded, of those
persons to whom the insurance-support organization has disclosed the
personal information within two years before the request, and if the
identity is not recorded, the names of those insurance-support
organizations or other persons to whom the information is disclosed
normally; and
(4) provide the individual with a summary of the procedures by
which he may request correction, amendment, or deletion of recorded
personal information.
(B) Any personal information provided pursuant to subsection (A)
of this section must identify the source of the information if it is an
institutional source.
(C) Medical record information supplied by a medical care
institution or medical professional and requested under subsection
(A) of this section, together with the identity of the medical
professional or medical care institution that provided the information,
must be supplied either directly to the individual or to a medical
professional designated by the individual and licensed to provide
medical care with respect to the condition to which the information
relates, whichever the insurer, agent, or insurance-support
organization prefers. If it elects to disclose the information to a
medical professional designated by the individual, the insurer, agent,
or insurance-support organization shall notify the individual, at the
time of the disclosure, that it has provided the information to the
medical professional.
(D) Except for personal information provided under this Section,
an insurer, agent, or insurance-support organization may charge a
reasonable fee to cover the costs incurred in providing a copy of
recorded personal information to individuals.
(E) The obligations imposed by this section upon an insurer or
agent may be satisfied by another insurer or agent authorized to act
on its behalf. With respect to the copying and disclosure of recorded
personal information pursuant to a request under subsection (A) of
this section, an insurer, agent, or insurance-support organization may
make arrangements with an insurance-support organization or a
consumer reporting agency to copy and disclose recorded personal
information on its behalf.
(F) The rights granted to individuals in this section must extend to
all natural persons to the extent information about them is collected
and maintained by an insurer, agent, or insurance-support
organization in connection with an insurance transaction. The rights
granted to all natural persons by this subsection must not extend to
information about them that relates to and is collected in connection
with or in reasonable anticipation of a claim or civil or criminal
proceeding involving them.
(G) For purposes of this section, 'insurance-support organization'
does not include 'consumer reporting agency'.
Section 38-77-390. (A) In the event of a cancellation or
nonrenewal, including those that involve policies referred to in
Section 38-77-120, the insurer or agent responsible for the
cancellation or nonrenewal shall give a written notice in a form
approved by the director that:
(1) either provides the applicant, policyholder, or individual
proposed for coverage with the specific reason or reasons for the
cancellation or nonrenewal in writing or advises the person that upon
written request he may receive the specific reason or reasons in
writing; and
(2) provides the applicant, policyholder, or individual proposed
for coverage with a summary of the rights established under
subsection (B) of this section and Section 38-77-380.
(B) Upon receipt of a written request within ninety business days
from the date of the mailing of notice or other communication of a
cancellation or nonrenewal to an applicant, policyholder, or
individual proposed for coverage, the insurer or agent shall furnish
to the person within twenty-one business days from the date of
receipt of the written request:
(1) the specific reason or reasons for the cancellation or
nonrenewal in writing, if that information was not furnished initially
in writing pursuant to subsection (A)(1);
(2) the specific items of personal and privileged information
that support those reasons; however:
(a) the insurer or agent shall not be required to furnish
specific items of privileged information if it has a reasonable
suspicion, based upon specific information available for review by
the director, that the applicant, policyholder, or individual proposed
for coverage has engaged in criminal activity, fraud, material
misrepresentation, or material nondisclosure; and
(b) specific items of medical-record information supplied by
a medical-care institution or medical professional must be disclosed
either directly to the individual about whom the information relates
or to a medical professional designated by the individual and licensed
to provide medical care with respect to the condition to which the
information relates, whichever the insurer or agent prefers; and
(3) the names and addresses of the institutional sources that
supplied the specific items of information given pursuant to
subsection (B)(2) of this section. However, the identity of any
medical professional or medical-care institution must be disclosed
either directly to the individual or to the designated medical
professional, whichever the insurer or agent prefers.
(C) The obligations imposed by this section upon an insurer or
agent may be satisfied by another insurer or agent authorized to act
on its behalf. However, the insurer or agent making the cancellation
or nonrenewal shall remain responsible for compliance with the
obligations imposed by this section.
(D) When a cancellation or nonrenewal results solely from an oral
request or inquiry, the explanation of reasons and summary of rights
required by subsection (A) of this section may be given orally."
SECTION 17. Section 38-77-530 of the 1976 Code, as last amended
by Section 818 of Act 181 of 1993, is further amended to read:
"Section 38-77-530. The plan of operation of the facility is subject
to the approval of the director or his designee which may be granted
only if the plan provides for equitable apportionment of the operating
expenses and profits or losses among the members. The plan may,
if the director or his designee considers it feasible and equitable,
make provision for separate apportionments between private
passenger automobile insurance business and commercial automobile
insurance business, or, alternatively or in addition to that
division, the plan may make provision for separate apportionments
between automobile liability insurance business, including medical
payments and uninsured motorist insurance, and automobile physical
damage insurance business. Any such apportionments shall
must give consideration to a comparison between the
writings or car-year exposures of each insurer of automobile
insurance and the total writings or car-year exposures of all
automobile insurers or, in the case of any separate apportionments
approved by the director or his designee, a comparison between the
writings or car-year exposures of each insurer within the applicable
category of automobile insurance and the writings or car-year
exposures of all insurers within that category.
In connection with his approval of the plan, the director or his
designee may require that the plan make provision for such
comparisons for a one-year period or for a longer period not to
exceed five years and may provide for weighing the experience so as
to attach a greater weight to the more recent experience.
In connection with the approval of the plan's provisions respecting
equitable apportionment of the operating expenses or gains or losses
of the facility, the director or his designee may require that the plan
make provision for a comparison between each insurer's percentage
of the aggregate written premiums or car-year exposures respecting
automobile insurance or any such category thereof and the insurer's
percentage of total cessions to the facility of such insurance or
category thereof so as to provide that the insurer's portion of the
operating expenses or gains or losses must be the average of the two
percentages; or the director or his designee may approve or require
any other similar or comparable provision for the apportionment of
the expenses or gains or losses of the facility which relates insurers'
shares to their respective utilization of the facility.
The plan of operation, provided that insurers writing liability
and physical damage coverages to include nonowners, must
commence recoupment of facility assessments by way of a surcharge
on private passenger and commercial automobile business issued by
a member or through the facility. Such surcharge must be a
percentage of the premium adopted by the governing board of the
facility; and the charges determined on the basis of the surcharge
must be displayed as a part of the applicable premium charges. The
surcharge for recoupment must be shown as a separate charge.
(1) Any recoupment charge paid by policyholders must be
considered premium for the purpose of calculating premium taxes
and commissions and is subject to normal policy cancellation
procedures.
(2) Any net operating gains resulting from the operation of the
facility must be retained by the facility, and the gains and any
investment income derived from the gains must be used to offset
future operating losses.
(3) The total funds recouped by all insurers less commission and
premium tax expenses and time value of money considerations must
be paid to the Reinsurance Facility in accordance with the plan of
operation. The governing board shall redistribute the funds to the
insurers based upon each insurer's share of the Reinsurance Facility
losses. Recoupment must be used solely for the purpose of
recovering past facility operating deficits. The plan of operation
must provide that the amount ultimately received by an individual
company is not more than the company's share of the Reinsurance
Facility losses, plus the time value of money.
(4) The Reinsurance Facility shall convert to the
percentage-of-premium basis of recoupment by March 1, 1998."
SECTION 18. Section 38-77-590 of the 1976 Code, as last amended
by Sections 821-825 of Act 181 of 1993, is further amended to read:
"Section 38-77-590. (a) Not more than six months after July 9,
1974, or at an earlier time as the director or his designee considers
necessary by reason of complaints regarding want of access to
automobile insurance in particular areas or want of outlets for
producers, the director or his designee shall survey the various areas
of the State to ascertain if sufficient marketing outlets exist in all
areas or are available to all producers. Upon a finding by the director
or his designee that insufficient marketing outlets exist in particular
areas or that certain producers have been deprived of a market for
risks previously serviced by them, the director or his designee may,
after consultation with the facility, designate one or more insurers to
service the areas through agents appointed by them or may designate
the producers as the agents of any insurer. The arrangements
shall must include provision for one hundred percent
quota share reinsurance through the facility of any automobile
insurance policy marketed through the arrangements, at the option of
the insurer, and the reinsurance is not subject to the statutory
provisions or regulations regarding excessive utilization of the
facility.
(b) After the effective date of this section, those producers
previously designated by the director or his designee may continue
to serve in that capacity under the jurisdiction and control of the
governing board of the facility, except that any change in the rate of
commissions allowed designated producers is subject to the approval
of the director or his designee.
(c) A producer may be designated by the governing board of the
facility upon application for designation and is eligible for
designation upon a finding by the governing board that the applicant
meets the following qualifications:
(1) The applicant has been, for ten continuous years, a licensed
resident property and casualty insurance agent and agency owner or
principal with authority from one or more licensed insurers to write
liability and physical damage insurance on private passenger
automobiles;
(2) At the time of application the applicant is servicing and
owns the renewals on private passenger and commercial automobile
insurance business, the net premiums on which exceeded seventy-five
thousand dollars of potential cedeable automobile insurance during
any one of the previous five calendar years preceding the application;
(3) Neither the applicant, nor any employee of the applicant or
the applicant's corporate agency, nor any partner or shareholder in
any related insurance agency, related premium service company, or
related other business, has any direct or indirect connection with any
voluntary market outlet for the purpose of writing any type of
automobile insurance in this State except for motorcycle insurance
and types not cedeable to the facility;
(4) The applicant has not contributed to his termination as agent
by any insurer because of any illegal breach of agency agreement or
other related, improper, or unethical conduct; and
(5) The books, records, and accounts of the insurance business
of the applicant have been audited at the expense of the applicant and
found by the governing board to be indicative of a financially sound
operation.
(d) Prior to Before designation as a producer, the
applicant shall furnish at his expense a bond in an amount of not less
than fifty thousand dollars for the faithful performance of the duties
as a producer, executed by the applicant as principal and a corporate
surety licensed to do business in this State as surety, and shall also
have effective errors and omissions insurance by an insurer licensed
to do business in this State, with the bond and errors and omissions
insurance being subject to approval by the governing board.
(e) The governing board shall assign a specific location to each
producer designated. The governing board shall determine from the
director or his designee the locations assigned by him to those
producers whom the director or his designee has designated.
Designated producers may not open or maintain any other locations
without the written authorization of the governing board; provided,
however, that an applicant maintaining multiple offices on June 4,
1987, is entitled to maintain two locations as a designated agent
which he owned and operated at that time and through which
premiums in at least the amount of seventy-five thousand dollars
were written. The governing board shall terminate the designation,
and the director or his designee shall revoke all agents' licenses of
any producer who does not comply with this requirement upon
demand by the governing board. Upon termination, the producer's
expirations on designated business become the property of the
facility.
(f) The designation of a producer by the director or his designee
or the governing board is transferable to a spouse, child, parent,
brother, or sister of the producer upon the designated producer's
retirement, incapacity, or death. The duties of a designated producer
may be performed by one or more qualified employees of the
producer or the producer's corporate agency.
(g) Neither a designated producer, nor any employee of a
designated producer or the producer's corporate agency, nor any
partner or shareholder in any related insurance agency, related
premium service company, or related other business, may have any
direct or indirect connection with any voluntary market outlet for the
purpose of writing any type of automobile insurance in this State
except for motorcycle insurance and types not cedeable to the
facility. The governing board shall terminate the designation of any
producer, and the director or his designee shall revoke all licenses of
the producer and of any other insurance agent and premium service
company knowingly involved in this connection. Upon termination,
the producer's expirations on designated business become the
property of the facility.
(h) A designated carrier who fails a claims audit shall have
no new designated producer assignments until the time it passes a
re-audit within a reasonable time prescribed by the governing board.
If this carrier fails two claims audits, including a re-audit, within any
three-year period that carrier is disqualified for renewal of its contract
with the facility upon expiration of its existing contract.
A producer designated under this section may not write new
private passenger and commercial automobile insurance business to
be placed in the facility after March 1, 1998. A policy with an
effective date after March 1, 2001 shall not be accepted by the
facility."
SECTION 19. Section 38-77-595 of the 1976 Code, as added by
Act 524 of 1990, is amended by adding:
"A producer designated under this section may not write new
private passenger and commercial automobile insurance business to
be placed in the facility after March 1, 1998. A policy with an
effective date after March 1, 2001 shall not be accepted by the
facility."
SECTION 20. Title 38, Chapter 77 of the 1976 Code is amended by
adding:
"Article 8
Assignment of Risks
Section 38-77-810. The director may promulgate reasonable
standards for the assignment of risks to insurance carriers and
servicing carriers, and an assigned risk plan must be established by
March 1, 1998. More than one assigned risk plan may be established.
The director may make reasonable regulations for the assignment of
risks to insurance carriers. He shall establish rate classifications,
rating schedules, rates, and regulations to be used by insurance
carriers issuing assigned risk, policies of motor vehicle liability,
physical damage, and underinsured and uninsured motorist insurance
in accordance with this chapter as appear to it to be proper in the
establishment of rate classifications, rating schedules, rates, and
regulations, it shall be guided by the principles and practices which
have been established under its statutory authority to regulate motor
vehicle liability, physical damage, and medical payments insurance
rates and it may act in conformity with its statutory discretionary
authority in such matters.
The servicing carriers for the assigned risk plan may be
competitively bid as provided for in this section. If the assigned risk
plan is competitively bid, then the director or his designee shall
appoint a committee or committees of individuals as he considers
qualified to establish standards and procedures for the consideration
and evaluation of bids. Insurers, or other vendors in conjunction with
a licensed automobile insurer, may submit bids. The committee or
committees shall evaluate and award contracts pursuant to the
bidding process established by the committee or committees, subject
to the final approval of the director or his designee. The director may
require a bid fee to cover the expenses of implementing this section.
Section 38-77-820. Every person who has been unable to obtain
a motor vehicle liability policy shall have the right to apply to the
director to have his risk assigned to an insurance carrier licensed to
write and writing motor vehicle liability insurance in the State and
the insurance carrier, whether a stock or mutual company, reciprocal,
or interinsurance exchange, or other type or form of insurance
organization, as provided in this chapter shall issue a motor vehicle
liability policy which will meet at least the minimum requirements
for establishing financial responsibility as provided in this chapter,
and in addition shall provide, at the option of the insured, reasonable
motor vehicle physical damage and medical payments coverages,
(both as defined in Chapter 77, Title 38) in the same policy. Every
person who has otherwise obtained a motor vehicle liability insurance
policy, or who has been afforded motor vehicle liability insurance
under the laws of this State, but who was not afforded motor vehicle
medical payments insurance or motor vehicle physical damage
insurance in the same policy, or who was not afforded such coverages
under the provisions of that section, shall have the right to apply to
the director to have his risk assigned to an insurance carrier, as
provided above, licensed to write and writing either or both
coverages, and the insurance carrier shall issue a policy providing the
coverage or coverages applied for.
Section 38-77-830. Insurance carriers may satisfy their assigned
risk plan obligations by joining with other insurers to establish an
Assigned Risk Pool whereby one or more insurers accepts the
assignments of other insurers and in return, the other insurers agree
to be responsible for any assessment necessary to pay losses
associated with the servicing carrier's pool policies. These
agreements are subject to approval by the director.
Section 38-77-840. The director may in its discretion, after
reviewing all information pertaining to the applicant or policyholder
available from its records, the records of the department, or from
other sources:
(1) refuse to assign an application;
(2) approve the rejection of an application by an insurance carrier;
(3) approve the cancellation of a policy of motor vehicle liability,
physical damage, and medical payments insurance by an insurance
carrier; or
(4) refuse to approve the renewal or the reassignment of an
expiring policy.
Section 38-77-850. Any information filed with the director by an
insurance carrier in connection with an assigned risk must be
confidential and solely for the information of the director and its staff
and must not be disclosed to any person, including an applicant,
policyholder, and any other insurance carrier.
Section 38-77-860. (A) The director is not required to disclose
to any person, including the applicant or policyholder, its reasons for:
(1) refusing to assign an application;
(2) approving the rejection of an application by an insurance
carrier;
(3) approving the cancellation of a policy of motor vehicle
liability, physical damage, and medical payments insurance by an
insurance carrier; or
(4) refusing to approve the renewal or the reassignment of an
expiring policy.
(B) The director or anyone acting for him is not held liable for any
act or omission in connection with the administration of the duties
imposed upon it by the provisions of this chapter, except upon proof
of actual malfeasance.
Section 38-77-870. The provisions of this chapter relevant to
assignment of risks must be available to nonresidents who are unable
to obtain a policy of motor vehicle liability, physical damage, and
medical payments insurance with respect only to motor vehicles
registered and used in the State.
Section 38-77-880. Notwithstanding any other provision of law,
the provisions of this chapter relating to assignment of risks must be
available to carriers by motor vehicle who are required by law to
carry public liability and property damage insurance for the
protection of the public."
SECTION 21. Beginning March 1, 1998, insurers may nonrenew a
policy that they have currently ceded to the South Carolina
Reinsurance Facility. This provision does not apply to business
written through the designated producers.
SECTION 22. Article 5 of Chapter 77, Title 38 of the 1976 Code is
repealed effective January 1, 2005.
SECTION 23. Sections 38-73-450, 38-73-455, 38-73-457,
38-73-460, 38-73-465, 38-73-720, 38-73-730, 38-73-731, 38-73-735,
38-73-750, 38-73-760, 38-73-770, 38-73-775, 38-77-110, 38-77-111,
38-77-115, 38-77-145, 38-77-285, 38-77-360, 38-77-600, 38-77-605,
38-77-610, 38-77-620, and 38-77-625 and Article 9 of Chapter 77 of
Title 38 of the 1976 Code are repealed.
SECTION 24. The provisions of this act take effect as follows: (a)
Sections 1, 2, and 3 on February 1, 1998; (b) Sections 4 through 19
and Sections 21 and 23 on March 1, 1998; and (c) Sections 20 and 22
upon approval by the Governor, except as may be otherwise
specifically provided in any of those sections.
Nonrenewal notices may be sent before March 1, 1998, for policies
renewing on or after March 1, 1998.
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