Current Status Introducing Body:House Bill Number:4294 Primary Sponsor:Harrelson Committee Number:26 Type of Legislation:GB Subject:Motor vehicle group insurance plan Residing Body:House Current Committee:Labor, Commerce and Industry Computer Document Number:BBM/9689.JM Introduced Date:Jan 29, 1992 Last History Body:House Last History Date:Jan 29, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Harrelson Type of Legislation:General Bill
Bill Body Date Action Description CMN
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4294 House Jan 29, 1992 Introduced, read first time, 26
referred to Committee
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TO AMEND SECTION 38-77-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GROUP AUTOMOBILE INSURANCE AND THE RATE THEREFOR, SO AS TO PROVIDE FOR NEGOTIATING AND CONTRACTING FOR THE SALE OF GROUP AUTOMOBILE INSURANCE BY AN INSURER THROUGH ITS AGENT, DELETE CERTAIN PROVISIONS, PROVIDE FOR THE RATE OF THE GROUP PLAN OR CONTRACT, AND REQUIRE THAT THE GROUP PLAN OR CONTRACT MUST BE COUNTERSIGNED BY AND PROCESSED THROUGH A RESIDENT AGENT; AND TO REPEAL SECTION 38-73-480, RELATING TO THE RATE FOR GROUP AUTOMOBILE INSURANCE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-130 of the 1976 Code is amended to read:
"Section 38-77-130. An automobile insurer, through its agent, may negotiate and contract for the sale of automobile insurance with any bona fide group of twenty or more persons who are employed by a common employer or who have been members for six months or more of a fraternal order, labor union, or employment association. The insurer may negotiate, enter a contractual relationship, and service the contract solely and directly with the bona fide representative of the group. An insurance contract sold on the basis of a group plan or contract shall have a rate not less than five percent less than the individual rate for which the insurer markets a substantially similar policy. The agent may negotiate for the sale of an insurance contract on the basis of a group plan or contract for whatever rate the agent's insurer will allow, except that the rate must be at least five percent lower than the individual rate for which the insurer markets a substantially similar policy. The group plan or contract must be countersigned by and processed through a resident agent of the insurer."
SECTION 2. Section 38-73-480 of the 1976 Code is repealed.
SECTION 3. This act takes effect upon approval by the Governor.