South Carolina General Assembly
115th Session, 2003-2004
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
DateBodyAction Description with journal page number
12/3/2003HousePrefiled
12/3/2003HouseReferred to Committee on Labor, Commerce and Industry
1/13/2004HouseIntroduced and read first time HJ65
1/13/2004HouseReferred to Committee on Labor, Commerce and IndustryHJ65
1/22/2004HouseMember(s) request name added as sponsor: Hinson
2/25/2004HouseCommittee report: Favorable Labor, Commerce and IndustryHJ2
3/2/2004HouseRead second time HJ19
3/3/2004HouseRead third time and sent to Senate HJ12
3/3/2004SenateIntroduced and read first time SJ18
3/3/2004SenateReferred to Committee on Banking and InsuranceSJ18
4/29/2004SenateCommittee report: Favorable with amendment Banking and InsuranceSJ19
5/4/2004SenateAmended SJ15
5/6/2004SenateRead second time SJ22
5/6/2004SenateOrdered to third reading with notice of amendments SJ22
VERSIONS OF THIS BILL
12/3/2003
2/25/2004
4/29/2004
5/4/2004
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.
[4413-1]
A BILL
TO AMEND SECTION 3873430, 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 3873920, 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:
SECTION1.The first paragraph of Section 3873430 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.”
SECTION2.The first paragraph of Section 3873920 of the 1976 Code is amended to read:
“NoAn 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 38731060. Notwithstanding Section 387310, item (2) of Section 3873330, and item (4) of Section 3873430, 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.”
SECTION3.This act takes effect upon approval by the Governor.
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