reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 71 - Accident And Health Insurance › Section 38-71-2340. Enforcement of article; examination or audit of books and records; penalties for violations.

Section effective January 1, 2024.
(A) The director shall enforce this article.
(B)(1) As often as the director deems appropriate, but not less frequently than once every five years, the director may examine or audit the books and records of a pharmacy services administrative organization providing prescription drug coverage or benefits on behalf of pharmacies or pharmacy benefits managers that are relevant to determining if the pharmacy services administrative organization is in compliance with this act. The pharmacy services administrative organization must pay the charges incurred in the examination, including the expenses of the director or his designee and the expenses and compensation of his examiners and assistants. The director or his designee promptly must institute a civil action to recover the expenses of examination against a pharmacy services administrative organization which refuses or fails to pay.
(2) The information or data acquired during an examination pursuant to this section is considered proprietary and confidential and is not subject to the South Carolina Freedom of Information Act.
(C) Violations of this article are subject to the penalties provided in Sections 38-2-10 through 38-2-30.
(D) The director may promulgate regulations regarding pharmacy services administrative organizations that are not inconsistent with this article.
HISTORY: 2023 Act No. 30 (S.520), Section 3, eff January 1, 2024.
Editor's Note
2023 Act No. 30, Section 7, provides as follows:
"SECTION 7. This act takes effect January 1, 2024, but the recurring examinations by the Department of Insurance provided for in Sections 38-71-2250(B)(1) and 38-71-2340(B)(1) must not begin before January 1, 2025."
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 71 - Accident And Health Insurance › Section 38-71-2350. Construction with relevant federal law; application exceptions.

Section effective January 1, 2024.
(A) Nothing in this act is intended or may be construed to be in conflict with existing relevant federal law.
(B) This article does not apply to the South Carolina Department of Health and Human Services in the performance of its duties in administering Medicaid under Titles XIX and XXI of the Social Security Act or to the Medicaid-managed care organizations under contract with the South Carolina Department of Health and Human Services.
HISTORY: 2023 Act No. 30 (S.520), Section 3, eff January 1, 2024.
Editor's Note
2023 Act No. 30, Section 7, provides as follows:
"SECTION 7. This act takes effect January 1, 2024, but the recurring examinations by the Department of Insurance provided for in Sections 38-71-2250(B)(1) and 38-71-2340(B)(1) must not begin before January 1, 2025."
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-10. Purpose

The purpose of this chapter is to promote the public interest, to promote the availability of long term care insurance policies, to protect applicants for long term care insurance as defined from unfair or deceptive sales or enrollment practices, to establish standards for long term care insurance, to facilitate public understanding and comparison of long term care insurance policies, and to facilitate flexibility and innovation in the development of long term care insurance coverage.
HISTORY: 1988 Act No. 466, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-20. Chapter not to supersede other insurance laws; exceptions; applications.

This chapter is not intended to supersede the obligations of entities subject to this chapter to comply with the substance of other applicable insurance laws insofar as they do not conflict with this chapter, except that laws and regulations designed and intended to apply to medicare supplement insurance policies must not be applied to long term care insurance.
HISTORY: 1988 Act No. 466, Section 2; 1990 Act No. 409, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-50. Group long term care insurance policy must meet requirements of chapter to be offered in state.

No group long term care insurance coverage may be offered to a resident of this State under a group policy issued in another state to a group described in Section 38-72-40(5)(d) unless this State or another state having statutory and regulatory long term care insurance requirements substantially similar to those adopted in this State has made a determination that the requirements have been met.
HISTORY: 1988 Act No. 466, Section 5.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-65. Recision of policy or denial of claim upon showing of misrepresentation; policy may be field issued; recovery of benefit payments; applicability to life policy provisions accelerating benefits for long term care.

(A) For a policy or certificate that has been in force for less than six months, an insurer may rescind a long term care insurance policy or certificate or deny an otherwise valid long term care insurance claim upon a showing of misrepresentation that is material to the acceptance of coverage.
(B) For a policy or certificate that has been in force for at least six months but less than two years, an insurer may rescind a long term care insurance policy or certificate or deny an otherwise valid long term care insurance claim upon a showing of misrepresentation that is both material to the acceptance for coverage and which pertains to the condition for which benefits are sought.
(C) After a policy or certificate has been in force for two years, it is not contestable upon the grounds of misrepresentation alone; this policy or certificate may be contested only upon a showing that the insured knowingly and intentionally misrepresented relevant facts relating to the insured's health.
(D)(1) A long term care insurance policy or certificate may be field issued if the compensation to the field issuer is not based on the number of policies or certificates issued.
(2) For purposes of this section, "field issued" means a policy or certificate issued by a producer or a third party administrator pursuant to the underwriting authority granted to the producer or third party administrator by an insurer and using the insurer's underwriting guidelines.
(E) If an insurer has paid benefits under the long term care insurance policy or certificate, the benefit payments may not be recovered by the insurer if the policy or certificate is rescinded.
(F) If the insured dies, this section does not apply to the remaining death benefit of a life insurance policy that accelerates benefits for long term care. In this situation, the remaining death benefits under these policies are as provided by Section 38-63-220(d). In all other situations, this section applies to life insurance policies that accelerate benefits for long term care.
HISTORY: 2008 Act No. 274, Section 1, eff June 4, 2008.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-67. Offer of a nonforfeiture benefit; group long term care policies; promulgation regulations.

(A) Except as provided in subsection (B), a long term care insurance policy may not be delivered or issued for delivery in this State unless the policyholder or certificate holder has been offered the option of purchasing a policy or certificate including a nonforfeiture benefit. The offer of a nonforfeiture benefit may be in the form of a rider that is attached to the policy. If the policyholder or certificate holder declines the nonforfeiture benefit, the insurer shall provide a contingent benefit upon lapse that must be available for a specified period of time following a substantial increase in premium rates.
(B) When a group long term care insurance policy is issued, the offer required in subsection (A) must be made to the group policyholder. However, if the policy is issued as group long term care insurance as defined in Section 39-72-40(5)(d) other than to a continuing care retirement community or other similar entity, the offering must be made to each proposed certificate holder.
(C) The director may promulgate regulations specifying the type or types of nonforfeiture benefits to be offered as part of long term care insurance policies and certificates, the standards for nonforfeiture benefits, and the rules regarding contingent benefit upon lapse, including a determination of the specified period of time during which a contingent benefit upon lapse will be available and the substantial premium rate increase that triggers a contingent benefit upon lapse as described in subsection (A).
HISTORY: 2008 Act No. 274, Section 1, eff June 4, 2008.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-69. License requirements; training.

(A)(1) An individual may not sell, solicit, or negotiate long term care insurance unless the individual is licensed as an insurance producer for accident and health or life and has completed a one-time training course by July 1, 2009, and ongoing training every twenty-four months after that time. The training must meet the requirements provided in subsection (B).
(2) The training requirements of subsection (B) may be approved as continuing education courses under Section 38-43-106.
(B)(1) The one-time training required by this section must be no less than eight hours and the ongoing training required by this section must be no less than four hours.
(2) The training required under item (1) consists of topics related to long term care insurance, long term care services, and, if applicable, qualified state long term care insurance partnership programs including, but not limited to:
(a) state and federal regulations and requirements and the relationship between qualified state long term care insurance partnership programs and other public and private coverage of long term care services including Medicaid;
(b) available long term care services and providers;
(c) changes or improvements in long term care services or providers;
(d) alternatives to the purchase of private long term care insurance;
(e) the effect of inflation on benefits and the importance of inflation protection; and
(f) consumer suitability standards and guidelines.
(3) The training required by this section does not include training that is insurer or company product specific or that includes any sales or marketing information, materials, or training, other than those required by state or federal law.
(C)(1) An insurer subject to the provisions of this chapter shall obtain verification that a producer receives training required by subsection (A)(1) before a producer is permitted to sell, solicit, or negotiate the insurer's long term care insurance products, maintain records subject to the state's record retention requirements, and make that verification available to the director upon request.
(2) An insurer subject to the provisions of this chapter shall maintain records with respect to the training of its partnership policies that allows the Department of Insurance to provide assurance to the state Medicaid agency that producers have received the training contained in subsection (B)(2)(a) as required by subsection (A)(1) and that producers have demonstrated an understanding of the partnership policies and their relationship to public and private coverage of long term care, including Medicaid, in this State. These records must be maintained in accordance with the state's record retention requirements and must be made available to the director upon request.
(D) The satisfaction of these training requirements in any state are considered to satisfy the training requirements in this State.
HISTORY: 2008 Act No. 274, Section 1, eff June 4, 2008.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-70. Regulations.

(A) The director may issue reasonable regulations to promote premium adequacy and to protect the policyholder if there is a substantial rate increase, and to establish minimum standards for producer education, marketing practices, producer compensation, producer testing, penalties, and reporting practices for long term care.
(B) Regulations adopted pursuant to this chapter must be in accordance with the provisions of Chapter 23, Title 1.
HISTORY: 1988 Act No. 466, Section 7; 2008 Act No. 274, Section 5, eff June 4, 2008.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-78. Required notice for proposed premium rate increases.

(A) An insurer must notify a policyholder of a long-term care insurance policy issued in accordance with this chapter of a proposed premium rate increase that affects policyholders no later than thirty days after the filing by the insurer of the premium rate increase with the Department of Insurance. An insurer must provide written notice by first class mail to the last known mailing address of all affected individual and group policyholders and others who are directly billed for group coverage. The notice must:
(1) show the proposed rate;
(2) state that the rate is subject to regulatory approval;
(3) direct policyholders to present their concerns or objections to the Department of Insurance; and
(4) include contact information for the Department of Insurance.
(B) An increase in premium rate may not be implemented until approved by the Department of Insurance pursuant to Section 38-72-75 or until the effective date of the premium rate increase, whichever is later.
HISTORY: 2022 Act No. 195 (H.4832), Section 2, eff May 16, 2022.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-80. Severability; application of chapter.

(A) If a provision of this chapter or the application of it to a person or circumstance is for any reason held to be invalid, the remainder of the chapter and the application of the provisions to other persons or circumstances is not affected.
(B) The requirements of this chapter apply to policies delivered or issued for delivery in this State on or after its effective date.
HISTORY: 1988 Act No. 466, Section 8; 2008 Act No. 274, Section 6, eff June 4, 2008.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 72 - Long Term Care Insurance Act › Section 38-72-100. Long term care premiums excluded in determining contribution to cost of Medicaid services.

Any premiums paid for long term care insurance must be excluded in determining the amount an individual must contribute towards the cost of any Medicaid services he receives.
HISTORY: 1988 Act No. 466, Section 10.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-10. Declaration of purpose; construction.

(a) The purposes of this chapter are to:
(1) promote the public welfare by regulating insurance rates to the end that they may not be excessive, inadequate, or unfairly discriminatory and to authorize and regulate cooperative action among insurers in rate making and in other matters within the scope of this chapter;
(2) empower the director or his designee to fix, establish, and promulgate any uniform statistical plan necessary or appropriate to obtain all automobile insurance loss and loss adjustment expense experience, other expense experience, and all other appropriate statistical and financial data from insurers, rating organizations, and advisory organizations engaged in an automobile insurance business in this State to the end that the department shall promulgate the risk classification and territorial plans to be used by all insurers of automobile insurance in this State and in order that the director or his designee may test the risk and territorial differentials previously established against the most recently available loss experience;
(3) provide that investment income accruing to automobile insurers is taken into consideration in the approval of rates or premium charges and in the determination of any net loss incurred by the South Carolina Reinsurance Facility and to make provision for the securing by the department of all necessary or appropriate financial data for purposes of ascertaining and determining the investment income and the profits from realized and unrealized capital gains of each automobile insurer doing business in this State;
(4) provide for reasonable competition for commercial property and casualty insurers of insureds who make large purchases of insurance.
Nothing in this chapter is intended to prohibit or discourage reasonable competition.
(b) This chapter must be liberally interpreted to carry into effect the purposes of this chapter.
HISTORY: Former 1976 Code Section 38-43-10 [1947 (45) 322; 1952 Code Section 37-651; 1962 Code Section 37-651] recodified as Section 38-73-10 by 1987 Act No. 155, Section 1; 1989 Act No. 148, Section 6; 1993 Act No. 181, Section 783; 2000 Act No. 235, Section 5.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-20. Scope of chapter.

(a) This chapter applies to (1) fire and allied lines and inland marine insurance, as defined in Section 38-73-310 and (2) casualty insurance, including fidelity, surety, and guaranty bonds, and to all other forms of automobile insurance, in either case on risks located or operations in this State. However, Article 3 and Article 5 of this chapter apply only to the respective classes of insurance as stated in Sections 38-73-310 and 38-73-410.
(b) This chapter does not apply to:
(1) reinsurance, other than joint reinsurance to the extent stated in Article 15 of this chapter;
(2) insurance of vessels or craft or their cargoes, marine builders' risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from inland marine, insurance policies;
(3) accident and health insurance;
(4) insurance against loss of or damage to aircraft or against liability arising out of the ownership, maintenance, or use of aircraft; or
(5) life insurance.
HISTORY: Former 1976 Code Sections 38-43-20 [1947 (45) 322; 1952 Code Section 37-652; 1962 Code Section 37-652] and 38-43-30 [1947 (45) 322; 1952 Code Section 37-653; 1962 Code Section 37-653] recodified as Section 38-73-20 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-30. Insurance subject to dual regulation.

If any kind of insurance, subdivision, or combination thereof or type of coverage subject to this chapter is also subject to regulation by another rate regulatory act of this State or other law of this State, an insurer to which the other act or law and this chapter are otherwise applicable shall file with the department a designation as to which rate regulatory chapter or act or law is applicable to it with respect to that kind of insurance, subdivision, or combination thereof or type of coverage.
HISTORY: Former 1976 Code Section 38-43-40 [1947 (45) 322; 1952 Code Section 37-654; 1962 Code Section 37-654] recodified as Section 38-73-30 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-40. Recording and reporting of loss and expense experience.

The department may promulgate statistical plans, reasonably adapted to each of the rating systems on file with the department, which may be modified from time to time and which must be used thereafter by each insurer in the recording and reporting of its loss and countrywide expense experience, in order that the experience of all insurers may be made available at least annually in such form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set forth in Sections 38-73-330 and 38-73-430, as the case may be. The plans may also provide for the recording and reporting of expense experience items which are specially applicable to this State and are not susceptible of determination by a prorating of countrywide expense experience. In promulgating these plans, the department shall give due consideration to the rating systems on file with it and, in order that such plans may be as uniform as is practicable among the several states, to the form of the plans used for rating systems in other states. The department may designate one or more rating organizations or other agencies to assist him in gathering the experience and making compilations thereof. These compilations must be made available, subject to plans promulgated by the department, to insurers and rating organizations.
HISTORY: Former 1976 Code Section 38-43-50 [1947 (45) 322; 1952 Code Section 37-655; 1962 Code Section 37-655; 1974 (58) 2718] recodified as Section 38-73-40 by 1987 Act No. 155, Section 1; 1989 Act No. 148, Section 7; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-50. Interchange of rating plan data.

Reasonable regulations and plans may be promulgated by the department for the interchange of data necessary for the application of rating plans.
HISTORY: Former 1976 Code Section 38-43-60 [1947 (45) 322; 1952 Code Section 37-656; 1962 Code Section 37-656] recodified as Section 38-73-50 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-60. Consultation with other states.

In order to further uniform administration of rate regulatory laws, the director or his designee and every insurer and rating organization may exchange information and experience data with insurance supervisory officials, insurers, and rating organizations in other states and may consult with them with respect to rate making and the application of rating systems.
HISTORY: Former 1976 Code Section 38-43-70 [1947 (45) 322; 1952 Code Section 37-657; 1962 Code Section 37-657] recodified as Section 38-73-60 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-70. Regulations.

The department may make reasonable regulations necessary to effect the purposes of this chapter.
HISTORY: Former 1976 Code Section 38-43-80 [1947 (45) 322; 1952 Code Section 37-658; 1962 Code Section 37-658]; Section 38-43-90 [1960 (51) 1646; 1962 Code Section 37-658.1; 1969 (56) 239; 1972 (57) 2750] recodified as Section 38-73-70 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-80. Withholding or giving false or misleading information.

No person or organization may wilfully withhold information from or knowingly give false or misleading information to the director or his designee, any statistical agency designated by the director or his designee, any rating organization, or any insurer which will affect the rates or premiums chargeable under this chapter. A violation of this section subjects the one guilty of the violation to the penalties provided in Chapter 2 of this title.
HISTORY: Former 1976 Code Section 38-43-100 [1947 (45) 322; 1952 Code Section 37-659; 1962 Code Section 37-659] recodified as Section 38-73-80 by 1987 Act No. 155, Section 1; 1988 Act No. 374, Section 40; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-90. Examinations of rating organizations, advisory groups, and other organizations.

The director or his designee shall, at least once in five years, make or cause to be made an examination of each rating organization licensed in this State as provided in Section 38-73-1230. The director or his designee may, as often as he considers advisable, make or cause to be made an examination of each advisory organization referred to in Section 38-73-1510 and of each group, association, or other organization referred to in Section 38-73-1710. The reasonable costs of the examination must be paid by the rating organization, advisory organization, or group, association, or other organization examined upon presentation to it of a detailed account of the costs. The officers, manager, agents, and employees of these rating organizations, advisory organizations, or groups, associations, or other organizations may be examined at any time under oath and shall exhibit all books, records, accounts, documents or agreements governing their method of operation. These examinations are subject to the provisions of Sections 38-13-40 to 38-13-60. In lieu of an examination the director or his designee may accept the report of an examination made by the insurance supervisory official of another state pursuant to the laws of that state.
HISTORY: Former 1976 Code Section 38-43-110 [1947 (45) 322; 1952 Code Section 37-660; 1962 Code Section 37-660] recodified as Section 38-73-90 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-110. Suspension of license.

The director or his designee may suspend the license of any rating organization or insurer which fails to comply with an order of the director or his designee within the time limited by the order or any extension thereof which the director or his designee may grant. The director or his designee may not suspend the license of any rating organization or insurer for failure to comply with an order until the time prescribed for an appeal therefrom has expired or, if an appeal has been taken, until the order has been affirmed. The director or his designee may determine when a suspension of license becomes effective and it remains in effect for the period fixed by him unless he modifies or rescinds the suspension or until the order upon which the suspension is based is modified, rescinded, or reversed.
HISTORY: Former 1976 Code Section 38-43-130 [1947 (45) 322; 1952 Code Section 37-662; 1962 Code Section 37-662] recodified as Section 38-73-110 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-120. Hearing as prerequisite to imposition of penalty or suspension of license.

No penalty may be imposed and no license may be suspended or revoked except upon a written order of the director or his designee, stating his findings, made after a hearing held upon not less than thirty days' written notice to the person or organization specifying the alleged violation.
HISTORY: Former 1976 Code Section 38-43-140 [1947 (45) 322; 1952 Code Section 37-663; 1962 Code Section 37-663] recodified as Section 38-73-120 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-130. Hearing procedure; judicial review.

Any insurer or rating organization aggrieved by any order or decision of the director or his designee made without a hearing may, within thirty days after notice of the order to the insurer or organization, make written request to the Administrative Law Court for a hearing. The Administrative Law Court shall hear the party or parties within twenty days after receipt of the request and shall give not less than ten days' written notice of the time and place of the hearing. Within fifteen days after the hearing the Administrative Law Court shall affirm, reverse, or modify the previous action, specifying his reasons therefor. Pending the hearing and decision thereon the director or his designee may suspend or postpone the effective date of his previous action.
HISTORY: Former 1976 Code Section 38-43-150 [1947 (45) 322; 1952 Code Section 37-664; 1962 Code Section 37-664] recodified as Section 38-73-130 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-210. Article title and application.

This article is known as the "Property and Casualty Insurance Personal Lines Modernization Act" and applies only to personal lines insurance.
HISTORY: 2004 Act No. 290, Section 1, eff July 29, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-220. Approval process for rate level changes.

(A) Except as provided in subsection (B), overall average rate-level increases or decreases, for all coverages combined, of seven percent above or below the insurer's rates then in effect may take effect without prior approval on a file and use basis with respect to rates for fire, allied lines, and homeowner's insurance policies. The seven percent cap does not apply on an individual insured basis.
(B) Notwithstanding another provision of this chapter, for any policies governed by this section, filings that produce rate-level changes within the limitation specified in subsection (A) become effective without prior approval. No more than two rate increases within the limitation specified in subsection (A) may be implemented during any twelve-month period and the second rate-increase filing in the twelve-month period is subject to prior approval.
(C) A rate increase or decrease falling within the limitation in subsection (B) may become effective not less than thirty days after the date of the filing with the director. The filing is considered to meet the requirements of this chapter. If the director finds that this filing is not in compliance with this chapter, he shall issue a written order specifying in detail the provisions with which the insurer has not complied and state a reasonable period in which the filing is considered no longer effective. An order by the director pursuant to this section that is issued more than thirty days from the date on which the director received the rate filing is on a prospective basis only and does not affect any contract issued or made before the effective date of the order.
(D) Rate filings falling outside the limitation specified in subsection (B) are subject to the prior approval of the director. The director shall approve or disapprove these filings in accordance with the provisions of Sections 38-73-960 and 38-73-990.
HISTORY: 2004 Act No. 290, Section 1, eff July 29, 2004; 2006 Act No. 332, Section 8, eff June 1, 2006.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-230. Declaration of competitive line; factors considered; hearings before Administrative Law Court.

(A) The director may declare a line of insurance competitive by providing public notice on the department website and in major newspapers in South Carolina of the intention of declaring a market competitive in sixty days. A separate notice must be sent to the Consumer Advocate. A report that provides the support for that declaration must be available upon request and posted on the department's website. A party may send a request to the department requesting a public hearing before the Administrative Law Court. If a public hearing is requested, the department shall cooperate in establishing a hearing.
(B) The following factors must be considered by the director for purposes of determining if a reasonable degree of competition exists in a particular line of insurance:
(1) the number of insurers or groups of affiliated insurers providing coverage in the market;
(2) measures of market concentration and changes of market concentration over time;
(3) ease of entry and the existence of financial or economic barriers that could prevent new firms from entering the market;
(4) the extent to which any insurer or group of affiliated insurers controls all or a portion of the market;
(5) whether the total number of companies writing the line of insurance in this State is sufficient to provide multiple options;
(6) the availability of insurance coverage to consumers in the markets by specific geographic area, by line of insurance, and by class of risk; and
(7) the opportunities available to consumers in the market to acquire pricing and other consumer information.
Each factor must indicate a competitive market in order for a determination that there is a competitive market to be made.
(C) The director shall monitor the degree and continued existence of competition in this State on an on-going basis. The director may utilize existing relevant information, analytical systems, and other sources, or rely on a combination of them. Activities may be conducted internally within the insurance department, in cooperation with other state insurance departments, through outside contractors, or in any other appropriate manner.
(D) An affected person or organization may make a written request to the director or his designee to initiate a hearing to determine whether a particular line of insurance continues to be competitive. The request for hearing must specify the grounds to be relied upon by the applicant. Within thirty days after the receipt of the request, the director or his designee shall transmit the request for hearing to the Administrative Law Court.
HISTORY: 2004 Act No. 290, Section 1, eff July 29, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-250. Rate filings where line declared noncompetitive.

(A) If the director or his designee determines that competition does not exist in a line of insurance and issues a ruling to that effect pursuant to Section 38-73-230, the rates applicable to insurance sold in that market must be regulated pursuant to Section 38-73-260. The director may simply declare a line of insurance noncompetitive and release a report providing the support for that decision. The decision may be appealed to the Administrative Law Court. The market is considered not competitive during the appeal process.
(B) A rate filing in effect at the time the director or his designee determines that competition does not exist pursuant to Section 38-73-230 must be considered to be in compliance with the laws of this State unless disapproved pursuant to the procedures and rating standards contained in Section 38-73-260 applicable to noncompetitive markets.
(C) An insurer having a rate filing in effect at the time the director determines that competition does not exist pursuant to Section 38-73-240 may be required to furnish supporting information within thirty days of a written request by the director or his designee.
HISTORY: 2004 Act No. 290, Section 1, eff July 29, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-270. Consumer information system.

The director shall utilize, develop, or cause to be developed, a consumer information system which provides and disseminates price and other relevant information on a readily available basis to purchasers of homeowner's, private passenger nonfleet automobile, or property insurance for personal, family, or household needs. The director may utilize, develop, or cause to be developed, a consumer information system which provides and disseminates price and other relevant information on a readily available basis to purchasers of insurance for commercial risks and personal risks not otherwise specified. The activity may be conducted internally within the insurance department, in cooperation with other state insurance departments, through outside contractors, or in another appropriate manner. As necessary and appropriate, the director, insurers, advisory organizations, statistical agents, and other persons or organizations involved in conducting the business of insurance in this State, pursuant to the provisions of this chapter, shall cooperate in the development and utilization of a consumer information system.
HISTORY: 2004 Act No. 290, Section 1, eff July 29, 2004; 2006 Act No. 332, Section 11, eff June 1, 2006.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-310. Scope of article.

This article applies only to fire and allied lines and inland marine insurance, on risks located in this State. Inland marine insurance includes insurance (a) defined by statute or by interpretation thereof, (b) if not so defined or interpreted, defined by ruling of the director or his designee, or (c) as established by general custom of the business as inland marine insurance. This article does not apply to automobile insurance nor to insurance against liability arising out of the ownership, maintenance, or use of motor vehicles.
HISTORY: Former 1976 Code Section 38-43-310 [1947 (45) 322; 1952 Code Section 37-671; 1962 Code Section 37-671] recodified as Section 38-73-310 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-320. Insurance subject to both this article and Article 5.

If any kind of insurance, subdivision, or combination thereof or type of coverage subject to this article is also subject to regulation under Article 5 of this chapter, an insurer to which both articles are otherwise applicable shall file with the department a designation as to which regulatory article shall be applicable to it with respect to that kind of insurance, subdivision, or combination thereof or type of coverage.
HISTORY: Former 1976 Code Section 38-43-320 [1947 (45) 322; 1952 Code Section 37-672; 1962 Code Section 37-672] recodified as Section 38-73-320 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-325. Absence of credit information.

Absence of credit information may be used by an insurer for underwriting purposes only if the insurer presents information satisfactory to the director that the absence is related to the risk.
HISTORY: 2004 Act No. 290, Section 5, eff July 29, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-330. Making of rates.

Rates must be made in accordance with the following provisions:
(1) Manual, minimum, and class rates, rating schedules, or rating plans must be made and adopted, except in the case of specific inland marine rates on risks specially rated.
(2) Rates may not be excessive, inadequate, or unfairly discriminatory. Due consideration must be given for installation and maintenance of nationally recognized hazard reducing systems.
(3) Due consideration must be given to past and prospective loss experience within and outside this State, to the conflagration and catastrophe hazards, to a reasonable margin for underwriting profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers, to past and prospective expenses, both countrywide and those specially applicable to this State, and to all other relevant factors within and outside this State, and in the case of fire insurance rates consideration must be given to the experience of the fire insurance business during a period of not less than the most recent five-year period for which the experience is available.
Except to the extent necessary to meet the provisions of item (2) of this section, uniformity among insurers in any matters within the scope of this section is neither required nor prohibited. Rates made in accordance with this section may be used subject to the provisions of this chapter.
HISTORY: Former 1976 Code Section 38-43-330 [1947 (45) 322; 1952 Code Section 37-673; 1962 Code Section 37-673; 1975 (59) 192] recodified as Section 38-73-330 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-340. Rate filings required.

Every insurer shall file with the department, except as to inland marine risks which by general custom of the business are not written according to manual rates or rating plans and except as to exempt commercial policies, every manual, minimum, or class rate, rating schedule or rating plan, and every other rating rule and every modification of any of these which it proposes to use. The filing exemption shall not apply to loss cost filings by advisory or rating organizations. Every filing shall state the proposed effective date and shall indicate the character and extent of coverage contemplated. Specific inland marine rates on risks specially rated, made by a rating organization, must be filed with the department.
HISTORY: Former 1976 Code Section 38-43-340 [1947 (45) 322; 1952 Code Section 37-674; 1962 Code Section 37-674] recodified as Section 38-73-340 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783; 2000 Act No. 235, Section 6; 2002 Act No. 300, Section 2, eff January 1, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-410. Scope of article.

This article applies only to casualty insurance, including fidelity, surety, and guaranty bonds, and to all other forms of automobile insurance, on risks or operations in this State.
HISTORY: Former 1976 Code Section 38-43-410 [1947 (45) 322; 1952 Code Section 37-681; 1962 Code Section 37-681] recodified as Section 38-73-410 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-420. Insurance subject to both this article and Article 3.

If any kind of insurance, subdivision, or combination thereof or type of coverage subject to this article is also subject to regulation under Article 3 of this chapter, an insurer to which both articles are otherwise applicable shall file with the department a designation as to which regulatory article shall be applicable to it with respect to that kind of insurance, subdivision, or combination thereof or type of coverage.
HISTORY: Former 1976 Code Section 38-43-420 [1947 (45) 322; 1952 Code Section 37-682; 1962 Code Section 37-682] recodified as Section 38-73-420 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-425. Absence of credit information.

Absence of credit information may be used by an insurer for underwriting purposes only if the insurer presents information satisfactory to the director that the absence is related to the risk.
HISTORY: 2004 Act No. 290, Section 6, eff July 29, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-430. Making of rates.

Rates must be made in accordance with the following provisions:
(1) Due consideration must be given to past and prospective loss experience within and outside this State, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers, to past and prospective expenses, both countrywide and those specially applicable to this State, and to all other relevant factors within and outside of this State.
(2) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of the insurer or group with respect to any kind of insurance or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable.
(3) Risks may be grouped by classifications for the establishment of rates and minimum premiums, and classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring any variations in hazards or expense provisions, or both, that can be demonstrated to have a probable effect upon losses or expenses.
(4) Rates may not be excessive, inadequate, or unfairly discriminatory.
(5) Due consideration must be given to assessments for purposes such as the guaranty fund, wind and hail joint underwriting association, and similar mechanisms.
Except to the extent necessary to meet the provisions of item (4) of this section, uniformity among insurers in any matters within the scope of this section is neither required nor prohibited.
HISTORY: Former 1976 Code Section 38-43-430 [1947 (45) 322; 1952 Code Section 37-683; 1962 Code Section 37-683] recodified as Section 38-73-430 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783; 2004 Act No. 315, Section 1, eff October 12, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-440. Certain factors may not be considered in determining automobile insurance rates.

In determining the premium rates to be charged on automobile insurance, it is unlawful to consider race, religion, national origin, or economic status.
HISTORY: Former 1976 Code Section 38-37-360 [1962 Code Section 37-591.16; 1974 (58) 2718] recodified as Section 38-73-440 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.