Current Status Bill Number:3960 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970410 Primary Sponsor:Cato All Sponsors:Cato Drafted Document Number:dka\4311jm.97 Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Insurance premium finance companies, installment plans; insurer not to require person to use certain company
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ House 19970410 Introduced, read first time, 26 HLCI referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-5-200 SO AS TO PROVIDE THAT AN INSURER, ITS AGENT, OR AN INSURANCE BROKER DOING BUSINESS IN THIS STATE MAY NOT REQUIRE A PERSON TO USE A PARTICULAR INSURANCE PREMIUM FINANCE COMPANY OR OTHER INSTALLMENT PLAN FOR WHICH A FINANCE CHARGE OR OTHER FEE IN CONNECTION WITH AN INSTALLMENT PAYMENT HAS BEEN OR WILL BE IMPOSED, AND PROVIDE FOR RELATED MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-5-200. (A) An insurer, its agent, or an insurance broker doing business in this State may not require a person to use a particular insurance premium finance company or other installment plan for which a finance charge or other fee in connection with an installment payment has been or will be imposed.
(B) An insurer, its agent, or an insurance broker doing business in this State may not refuse to issue a policy of insurance solely because the premiums for the policy have been advanced by a premium finance company licensed in this State.
(C) An insurer or its agent doing business in this State shall not reduce commissions or intimidate or retaliate against a producer, agent, broker, or insured who uses premium financing by denying the producer, agent, broker, or insured the same rights accorded producers, agents, brokers, or insureds who pay premiums in a different manner."
SECTION 2. This act takes effect upon approval by the Governor.