The 2002 session of the South Carolina legislature wrapped up last week on a positive note for the insurance industry, which saw victories on issues including credit scoring, commercial modernization, and producer licensing, according to the National Association of Independent Insurers (NAII).
“South Carolina’s 2002 legislative session was a very positive session for property casualty insurers,” Greg LaCost, counsel for the NAII, said. “Membership support, strong advocacy by effective lobbying, pro-business legislative leadership, and a strong Department of Insurance that utilizes competition as a regulatory tool worked together to provide very positive legislation this year and making South Carolina one of the industry’s choices of states to do business.”
Several bills that would have restricted or prohibited insurers from using credit scores in rating or underwriting insurance died at the end of session, including HB 4734, SB 545, SB 798, and SB 1032. The Department of Insurance responded with a regulation that will allow insurers to continue the use of credit scoring as an underwriting and rating tool. “NAII and its members took a leadership role and spent many hours in conversation and drafting to change the proposed regulation into something that would not tie the industry’s hands,” LaCost said.
Successful bills supported by the industry include:
• HB 4852, which will allow the Department of Insurance to exempt all commercial policies from regulatory oversight by future regulation by defining “commercial policies.”
• HB 5105, which requires motorist insurance identification data to be
compiled in a database to be transmitted by insurers to the Division of Motor Vehicles. The database bill received strong NAII membership support and several members worked closely with NAII local counsel to make the bill more business-friendly.
• HB 3598, which makes it an unfair trade practice for a motor vehicle repair
person to give money or consideration to a third party or claimant in exchange for automobile glass repair. This fraud preventative legislation will allow companies to keep their costs low and allow more competitive pricing to the consumer.
• HB 4096, a producer licensing law which exempts insurance company
clerical workers from the state’s producer licensing requirements.
Topics Carriers Legislation South Carolina
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