Current Status Introducing Body:House Bill Number:3990 Primary Sponsor:Jennings Type of Legislation:GB Subject:Motor vehicle insurance, air bags Residing Body:House Computer Document Number:CYY/18589.SD Introduced Date:May 09, 1991 Date of Last Amendment:Jun 03, 1992 Last History Body:Senate Last History Date:Jun 03, 1992 Last History Type:Amended, read third time, returned with amendment Scope of Legislation:Statewide All Sponsors:Jennings Baxley M. Martin L. Elliott Burch White Harrison Houck Farr J. Harris Hodges Snow McElveen Beasley Neilson McLeod Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3990 Senate Jun 03, 1992 Amended, read third time,
returned with amendment
3990 Senate May 28, 1992 Read second time
3990 Senate May 28, 1992 Recalled from Committee 02
3990 Senate Feb 25, 1992 Introduced, read first time, 02
referred to Committee
3990 House Feb 20, 1992 Read third time, sent to
Senate
3990 House Feb 19, 1992 Amended, read second time
3990 House Feb 12, 1992 Committee Report: Favorable 26
with amendment
3990 House May 09, 1991 Introduced, read first time, 26
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
AS PASSED BY THE SENATE
June 3, 1992
H. 3990
Introduced by REPS. Jennings, Baxley, M. Martin, L. Elliott, Burch, White, Harrison, Houck, Farr, J. Harris, Hodges, Snow, McElveen, Beasley, Neilson and McLeod
S. Printed 6/3/92--S.
Read the first time February 25, 1992.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-165 SO AS TO PROVIDE THAT THE PROPERTY DAMAGE COVERAGE CONTAINED IN ANY AUTOMOBILE INSURANCE POLICY WRITTEN IN THIS STATE AND THE COLLISION COVERAGE, IF ANY, IN THE POLICY IS DEEMED TO COVER THE COST OF REPLACING OR REPAIRING THE AIR BAGS IN AUTOMOBILES INVOLVED IN A CLAIM UNDER THE POLICY, AND TO PROVIDE THAT NO INSURER BY ENDORSEMENT TO THE POLICY MAY EXCEPT OUT OR NEGATE THIS PROVISION.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-77-165. The property damage coverage contained in any automobile insurance policy written in this State and the collision coverage, if any, in the policy is deemed to cover the cost of replacing or repairing the air bags, if necessary, in automobiles involved in a claim under the policy when an automobile accident occurs. No insurer by endorsement to the policy may except out or negate this provision."
SECTION 2. The 1976 Code is amended by adding:
"Section 38-77-282. A refusal to write or renew physical damage coverage based in whole or in part on race, sex, religion, national origin, economic status, residence, or lawful occupation is unlawful. An insurer or agent who refuses to write or renew or cancels physical damage coverage shall provide the reasons for the action in writing."
SECTION 3. The 1976 Code is amended by adding:
"Section 38-77-284. (A) Not later than ninety days after the effective date of this section, insurers of automobile insurance shall file with the commissioner revised rates for private passenger automobile physical damage insurance coverages written by them. Each insurer shall file a:
(1) `preferred' rate by driver classification and territory which is a rate less than the `standard' rate;
(2) `standard' rate which must be the approved base rate as defined in Section 38-73-457 by driver classification and territory in effect July 1, 1992;
(3) `substandard' rate by driver classification and territory which is a rate more than the `standard' rate.
(B) The commissioner shall approve the rates filed pursuant to subsection (A) if they meet the requirements, and these rates become effective for all policies of automobile insurance issued or renewed with effective dates after September 30, 1992.
(C) Insurers of automobile insurance may place an automobile risk at any of the three rate levels for physical damage coverages without restriction. However, the Uniform Merit Rating Plan continues to apply to all risks written by them.
(D) An insurer or agent shall provide written notice to the insured of the tier at which physical damage coverage is being written for the insured and the reasons the insured was written in that particular tier."
SECTION 4. Section 38-77-280 of the 1976 Code, as last amended by Act 113 of 1991, is further amended to read:
"Section 38-77-280. (A) Except as provided in subsection (B), all automobile insurers, including those insurance companies writing private passenger physical damage coverages only, shall may make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage.
If collision coverage is offered or provided, it must have a mandatory deductible of two hundred fifty dollars, but an insured or qualified applicant, at his option, may select an additional deductible in appropriate increments up to one thousand dollars.
If comprehensive coverage or fire, theft, and combined additional coverages are offered or provided, they must have a mandatory deductible of two hundred fifty dollars, but an insured, at his option, may select an additional deductible in appropriate increments up to one thousand dollars. This deductible does not apply to auto safety glass. It is an unfair trade practice, as described in Sections 38-57-30 and 38-57-40, for an insurer or an agent to sell collision insurance, comprehensive coverage, or fire, theft, and combined additional coverages unless the insured is notified at the time of application of the savings which may be realized if the applicant or the insured selects a higher deductible. This notice is required only at the time of the initial sale and must be in a form approved by the Chief Insurance Commissioner. An insurer may offer insureds lower deductibles at the insurer's option.
(B) [Until October 1, 1992, subsection (B) reads as follows:] Notwithstanding subsection (A) and Sections 38-77-110 and 38-77-920, automobile insurers may refuse to write automobile physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Section 38-77-340 and who resides in the same household, where one or more of the conditions or factors prescribed in Section 38-73-455 exist. In addition, automobile insurers may refuse to write physical damage insurance coverage to any applicant or existing policyholder, on renewal, who has collected benefits provided under any automobile insurance physical damage coverage during the thirty-six months immediately preceding the effective date of coverage, for two or more total fire losses or two or more total theft losses. [From and after October 1, 1992, subsection (B) reads as follows:] Notwithstanding subsection (A) and Sections 38-77-110 and 38-77-920, automobile insurers may refuse to write automobile physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for an applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or another operator not excluded in accordance with Section 38-77-340 and who resides in the same household, where one or more of the conditions or factors prescribed in Section 38-73-455 exist. In addition, automobile insurers may refuse to write physical damage insurance coverage to an applicant or existing policyholder, on renewal, who has collected benefits provided under automobile insurance physical damage coverage during the thirty-six months immediately preceding the effective date of coverage, for two or more total fire losses or two or more total theft losses. Automobile insurers may refuse to write for private passenger automobiles physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for an applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or another operator not excluded in accordance with Section 38-77-340 and who resides in the same household, which does not qualify for the safe driver discount in Section 38-73-760(e). All insurers subject to this section writing single interest collision coverage shall provide an applicant for the insurance, upon application, a notice separate from other forms used in the application. The notice must be signed by the applicant evidencing his acknowledgment of having read the notice. The notice must contain the following language printed in bold face type:
`NOTICE: THE INSURANCE COVERAGE YOU ARE PURCHASING IS ONLY SINGLE INTEREST COLLISION COVERAGE. THE AMOUNT OF INSURANCE DECREASES AS YOU PAY OFF THE AMOUNT OF YOUR INDEBTEDNESS. YOU MAY NOT RECEIVE INSURANCE PROCEEDS ABOVE THE AMOUNT OF THE OUTSTANDING BALANCE ON YOUR LOAN.'
(C) Notwithstanding Section 38-77-110, automobile physical damage coverage in an automobile insurance policy may be canceled at any time during the policy period by reason of the factors or conditions described in Section 38-73-455(A) or Section 38-77-280(B) which existed before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.
(D) No policy of insurance which provides or includes 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 and approved by the Chief Insurance Commissioner. Any applicant or existing policyholder, to be charged this different rate, must be denied the coverage pursuant to subsection (B) at the rate provided in Section 38-73-457.
(F) A carrier may not cede collision coverage, comprehensive coverage, or fire, theft, and combined additional coverages with a deductible of less than two hundred fifty dollars. An insured or qualified applicant may select an additional deductible in appropriate increments up to one thousand dollars. However, the mandatory deductible does not apply to safety glass."
SECTION 5. All insurers shall submit rate filings within twelve months after the effective date of this act. These filings must reflect the rate decreases, if any, attributable to the passage of this act.
SECTION 6. This act takes effect upon approval by the Governor.