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A315, R349, S891
STATUS INFORMATION
General Bill
Sponsors: Senator Richardson
Document Path: l:\council\bills\pt\1834sd04.doc
Companion/Similar bill(s): 4413
Introduced in the Senate on February 3, 2004
Introduced in the House on March 4, 2004
Last Amended on February 26, 2004
Passed by the General Assembly on June 2, 2004
Governor's Action: October 12, 2004, Signed
Summary: Rates for casualty insurance
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/3/2004 Senate Introduced and read first time SJ-13 2/3/2004 Senate Referred to Committee on Banking and Insurance SJ-13 2/25/2004 Senate Committee report: Favorable Banking and Insurance SJ-11 2/26/2004 Senate Amended SJ-25 3/2/2004 Senate Read second time SJ-15 3/3/2004 Senate Read third time and sent to House SJ-25 3/4/2004 House Introduced and read first time HJ-9 3/4/2004 House Referred to Committee on Labor, Commerce and Industry HJ-10 5/27/2004 House Committee report: Favorable Labor, Commerce and Industry 6/1/2004 House Read second time HJ-27 6/2/2004 House Read third time and enrolled HJ-6 6/2/2004 Ratified R 349 10/12/2004 Signed By Governor 10/14/2004 Copies available 10/14/2004 Effective date 10/12/04 10/15/2004 Act No. 315
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
2/3/2004
2/25/2004
2/26/2004
2/26/2004-A
5/27/2004
(A315, R349, S891)
AN ACT 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 RATE 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, AND TO PROVIDE THAT NO RATE INCREASE BASED UPON AN ASSESSMENT MAY BECOME EFFECTIVE UNLESS THE ASSESSMENT HAS BEEN PAID.
Be it enacted by the General Assembly of the State of South Carolina:
Consideration must be given
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."
Rate changes; rate increases
SECTION 2. The first paragraph of Section 38-73-920 of the 1976 Code is amended to read:
"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, subline, 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, subline, 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."
Time effective
SECTION 3. This act takes effect upon approval by the Governor.
Ratified the 2nd day of June, 2004.
Approved the 12th day of October, 2004.
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