South Carolina General Assembly
115th Session, 2003-2004

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H. 4413

STATUS INFORMATION

General Bill
Sponsors: Reps. Cato, Vaughn, Cotty, Leach and Hinson
Document Path: l:\council\bills\dka\3677dw04.doc
Companion/Similar bill(s): 891

Introduced in the House on January 13, 2004
Introduced in the Senate on March 3, 2004
Last Amended on May 4, 2004
Currently residing in the Senate

Summary: Casualty insurance rate changes

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   12/3/2003  House   Prefiled
   12/3/2003  House   Referred to Committee on Labor, Commerce and Industry
   1/13/2004  House   Introduced and read first time HJ-65
   1/13/2004  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-65
   1/22/2004  House   Member(s) request name added as sponsor: Hinson
   2/25/2004  House   Committee report: Favorable Labor, Commerce and Industry 
                        HJ-2
    3/2/2004  House   Read second time HJ-19
    3/3/2004  House   Read third time and sent to Senate HJ-12
    3/3/2004  Senate  Introduced and read first time SJ-18
    3/3/2004  Senate  Referred to Committee on Banking and Insurance SJ-18
   4/29/2004  Senate  Committee report: Favorable with amendment Banking and 
                        Insurance SJ-19
    5/4/2004  Senate  Amended SJ-15
    5/6/2004  Senate  Read second time SJ-22
    5/6/2004  Senate  Ordered to third reading with notice of amendments SJ-22

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/3/2003
2/25/2004
4/29/2004
5/4/2004

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 4, 2004

H. 4413

Introduced by Reps. Cato, Vaughn, Cotty, Leach and Hinson

S. Printed 5/04/04--S.

Read the first time March 3, 2004.

            

A BILL

TO AMEND SECTION 38-73-430, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAKING OF RATES FOR CASUALTY INSURANCE, SO AS TO ADD TO THE CRITERIA THAT CONSIDERATION MUST BE GIVEN TO ASSESSMENTS, SUCH AS THE GUARANTY FUND, WIND AND HAIL JOINT UNDERWRITING ASSOCIATION, AND SIMILAR MECHANISMS WHEN MAKING THE RATES; AND TO AMEND SECTION 38-73-920, RELATING TO THE REQUIREMENT THAT THE INSURER MAY MAKE OR ISSUE A CONTRACT OR POLICY ONLY ON RATES WHICH ARE IN EFFECT, SO AS TO PROVIDE THAT PROPOSED RATES CHANGES WHERE THE SOLE FACTOR FOR THE CHANGE IS THE IMPACT OF A REVISED ASSESSMENT DOES NOT CONSTITUTE A RATE INCREASE FOR PURPOSES OF THIS SECTION.

Amend Title To Conform

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

SECTION    1.    The first paragraph of Section 38-73-430 of the 1976 Code is amended by adding at the end:

"(5)    Due consideration must be given to assessments for purposes such as the guaranty fund, wind and hail joint underwriting association, and similar mechanisms."

SECTION    2.    The first paragraph of Section 38-73-920 of the 1976 Code is amended to read:

"No An insurer may not make or issue a contract or policy except in accordance with the filings which are in effect for the insurer as provided in this chapter or in accordance with Section 38-73-1060. Notwithstanding Section 38-73-10, item (2) of Section 38-73-330, and item (4) of Section 38-73-430, filings for property and casualty rate increases may not be approved for any insurer or rating organization for any line, sub-line, or otherwise identifiable property and casualty insurance coverage for which a rate increase has previously been granted within the immediately preceding twelve months. However, if satisfactory evidence is presented to the director or his designee by an insurer or rating organization that the continued use of the previously approved rates for the line, sub-line, or otherwise identifiable property and casualty insurance coverage may result in the insolvency of an insurer, more frequent rate increases may be approved. Rate changes proposed where the sole factor for the change is the impact of a revised assessment does not constitute a rate increase for purposes of this section. No rate increase based upon an assessment may become effective unless the assessment has been paid. This section does not apply to contracts or policies for inland marine risks as to which filings are not required."

SECTION    3.    This act takes effect upon approval by the Governor.

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