2001-2002 Bill 5: Property, Casualty, Title Insurance; Insurers to Disclose Deductibles

1 BIL: 5 2 TYP: General Bill GB 3 INB: Senate 4 IND: 20010110 5 PSP: Elliott 6 SPO: Elliott, Ford, Reese, Rankin, Branton 7 DDN: l:\s-res\de\008sign.jh.doc 8 RBY: Senate 9 COM: Banking and Insurance Committee 02 SBI 10 SUB: Property, casualty, title insurance; insurers to disclose deductibles in 11 policies and explain them; Insurance 12 13 14 15 HST: 16 17 Body Date Action Description Com Leg Involved 18 ______19 Senate 20010110 Introduced, read first time, 02 SBI 20 referred to Committee 21 22 23 24 Versions of This Bill 25 26 27 28 29 TXT: 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND ARTICLE 5, CHAPTER 75, TITLE 38, SOUTH 12 CAROLINA CODE OF LAWS, 1976, RELATING TO 13 PROPERTY, CASUALTY AND TITLE INSURANCE, BY 14 ADDING SECTION 38-75-415 SO AS TO REQUIRE 15 INSURERS TO DISCLOSE IN WRITING THE NATURE AND 16 SCOPE OF ALL DEDUCTIBLES CONTAINED IN 17 INSURANCE POLICIES SOLD IN THIS STATE, TO OBTAIN 18 THE SIGNATURE OF THE INSURED ON THE WRITTEN 19 EXPLANATION OF THE DEDUCTIBLE AND TO REQUIRE 20 WRITTEN EXPLANATIONS AND SIGNATURES OF 21 INSURED ON ALL CHANGES OR INCREASES IN 22 DEDUCTIBLES AND PERCENTAGE DEDUCTIBLES 23 TRIGGERED BY TROPICAL STORMS, OR HURRICANES, 24 OR OTHER NATURAL DISASTERS. 25 26 Be it enacted by the General Assembly of the State of South 27 Carolina: 28 29 SECTION 1. Article 5, Chapter 75, Title 38 of the 1976 Code is 30 amended by adding: 31 32 “Section 38-75-415. (A) Notwithstanding any other provision 33 of law, on or after the effective date of this section, all insurers 34 offering property and casualty policies in this state must disclose in 35 writing the scope and nature of all deductibles and obtain the 36 signature of the insured on all deductible explanations, including 37 all changes or increases in deductibles and all percentage 38 deductibles triggered by tropical storms or hurricanes. All 39 deductibles, changes or increases in deductibles, or percentage 40 deductibles triggered by tropical storms, or hurricanes, or other 41 natural disasters which do not comply with the provisions of this 42 section are null and void.

1 [5] 1 1 (B) Signatures of insured required by this section may be 2 obtained by requiring that the insured initial the written 3 explanation of the deductible on a space provided at the end of the 4 explanation. The written explanation of the deductible must 5 contain language stating that the insured has read and understands 6 the explanation and that any portions not understood have been 7 fully explained by the insurance agent or broker offering the policy 8 for sale.” 9 10 SECTION 2. This act takes effect upon approval by the 11 Governor. 12 ----XX----

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