Bill 3985

                    Current Status

Bill Number:                    3985
Ratification Number:            337
Act Number:                     300
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19950411
Primary Sponsor:                Richardson, 
All Sponsors:                   Richardson, Bailey, Simrill, Cato
                                and Mason 
Drafted Document Number:        bbm\10129jm.95
Date Bill Passed both Bodies:   19960417
Date of Last Amendment:         19960306
Governor's Action:              U  Became law without signature of
                                Governor
Date of Governor's Action:      19960507
Subject:                        Motor vehicle insurance, rating
                                requirements

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19960515  Act No. A300
------  19960507  Unsigned, became law without
                  signature of Governor
------  19960430  Ratified R337
House   19960417  Concurred in Senate amendment, 
                  enrolled for ratification
Senate  19960410  Read third time, returned to House
                  with amendment
Senate  19960306  Amended, read second time, 
                  ordered to third reading 
                  with notice of general amendments
Senate  19960305  Committee report: Favorable with         02 SBI
                  amendment
Senate  19950511  Introduced, read first time,             02 SBI
                  referred to Committee
House   19950511  Read third time, sent to Senate
House   19950510  Read second time
House   19950502  Debate adjourned until
                  Wednesday, 19950510
House   19950426  Committee report: Favorable              26 HLCI
House   19950411  Introduced, read first time,             26 HLCI
                  referred to Committee

(A300, R337, H3985)

AN ACT TO AMEND SECTION 38-73-910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE RATES, RATE-MAKING, AND RATE FILING AND NOTICE OF HEARING AS A PREREQUISITE TO THE GRANTING OF A RATE INCREASE AND EXCEPTIONS, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND TO PROVIDE, AMONG OTHER THINGS, THAT 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.

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

Notice of hearing; copy to Consumer Advocate; etc.

SECTION 1. Section 38-73-910 of the 1976 Code, as amended by Section 783 of Act 181 of 1993, is further amended to read:

"Section 38-73-910. 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."

SECTION 2. This act takes effect upon approval by the Governor.

Became law without the signature of the Governor -- 5/7/96.