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COMMITTEE REPORT
March 23, 2000
S. 1159
Introduced by Senators Matthews, Holland, Passailaigue, Courtney, Patterson, Ford, Elliott, McGill, McConnell, Courson, Wilson and Russell
S. Printed 3/23/00--S. [SEC 3/27/00 3:12 PM]
Read the first time February 16, 2000.
To whom was referred a Bill (S. 1159), to amend the Code of Laws of South Carolina, 1976, by adding Section 39-5-170 so as to provide that the knowing acceptance of payment for an insurance referral from a service provider, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking the Bill in its entirety and inserting in lieu thereof the following:
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-5-170 SO AS TO DEFINE UNFAIR TRADE PRACTICES AND MAKE UNLAWFUL CERTAIN CONDUCT RELATING TO MOTOR VEHICLE BODY REPAIR OR MOTOR VEHICLE REPAIR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 39-5-170. It is declared an unfair trade practice and unlawful for any person who is engaged in the motor vehicle body or other motor vehicle repair business (a) to offer or make any payment to any third person for such third person's referral of an insurance claimant to the motor vehicle body or other motor vehicle repair business for motor vehicle repairs; or (b) to waive, rebate, give, or pay all or part of an insurance claimant's casualty or property insurance deductible as consideration for selecting the motor vehicle body or other motor vehicle repair business."
SECTION 2. This act takes effect upon approval by the Governor.
Renumber sections to conform.
Amend title to conform.
EDWARD E. SALEEBY, for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-5-170 SO AS TO PROVIDE THAT THE KNOWING ACCEPTANCE OF PAYMENT FOR AN INSURANCE REFERRAL FROM A SERVICE PROVIDER, THE KNOWING PAYMENT BY A SERVICE PROVIDER FOR A REFERRAL, AND THE REGULAR PRACTICE BY A SERVICE PROVIDER OF WAIVING OR REBATING ALL OR PART OF A CLAIMANT'S CASUALTY OR PROPERTY INSURANCE DEDUCTIBLE ARE UNFAIR TRADE PRACTICES; AND TO AMEND SECTION 39-5-40, RELATING TO THE PRACTICES TO WHICH THIS ARTICLE DOES NOT APPLY, SO AS TO PROVIDE AN EXCEPTION THAT THE PRACTICES DESCRIBED IN SECTION 39-5-170 MAY BE REGULATED BY CHAPTER 57 OF TITLE 38 AND THIS ARTICLE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 39-5-170. (A) Notwithstanding any other provision of law, it is an unfair trade practice under Section 39-5-20 for a person:
(1) knowing that a payment is for the referral of a claimant to a service provider to accept payment from the service provider;
(2) who is a service provider to pay another knowing that the payment is for the referral of a claimant to him; or
(3) to provide, claim, or represent to have provided services to a claimant knowing that the claimant was referred in violation of item (a).
(B) Notwithstanding any other provision of law, it is an unfair trade practice under Section 39-5-20 for a service provider to engage in a regular practice of waiving, rebating, giving, paying, or offering to waive, rebate, give, or pay all or part of a claimant's casualty or property insurance deductible.
(C) For purposes of this section:
(1) 'Claimant' means a person who has or is believed to have an insurance claim.
(2) 'Insurance claim' means a claim for payment, benefits, or damages under a contract, plan, or policy of casualty or property insurance.
(3) 'Service provider' means a person who directly or indirectly provides, advertises, or otherwise claims to provide services.
(4) 'Services' means motor vehicle body or other motor vehicle repair, or preparing, processing, presenting, or negotiating an insurance claim relating to motor vehicle body or other motor vehicle repair."
SECTION 2. Section 39-5-40 of the 1976 Code is amended to read:
"Section 39-5-40. Nothing in This article shall does not apply to:
(a) actions or transactions permitted under laws administered by any a regulatory body or an officer acting under statutory authority of this State or the United States or actions or transactions permitted by any other South Carolina State law.;
(b) acts done by the publisher, owner, agent, or employee of a newspaper, periodical, or radio or television station in the publication or dissemination of an advertisement, when the owner, agent, or employee did not have knowledge of the false, misleading, or deceptive character of the advertisement and did not have a direct financial interest in the sale or distribution of the advertised product or service.;
(c) this article does not or supersede or apply to unfair trade practices covered and regulated under Title 38, Chapter 55, SECTIONS 38-55-10 through 38-55-410 57; provided, however, practices covered by Section 39-5-170 also may be regulated under Chapter 57 of Title 38.; and
(d) Any challenged practices that are subject to, and comply with, statutes administered by the Federal Trade Commission and the rules, regulations, and decisions interpreting such these statutes.
For the purpose of this section, the burden of proving exemption from the provisions of this article shall be upon is on the person claiming the exemption."
SECTION 3. This act takes effect upon approval by the Governor.
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