S0727 amends South Carolina’s uninsured motorist statute to prohibit an insurer from raising an insured’s premium solely because the insured filed a claim under uninsured motorist (UM) or underinsured motorist (UIM) coverage, so long as the insured was not at fault in the accident that led to the claim. The bill is narrowly focused on premium-setting practices after a no-fault claim under UM/UIM coverage.
The measure would add a new subsection to Section 38-77-150 of the South Carolina Code of Laws. In practical terms, it limits one basis on which insurers may adjust premiums and provides a statutory protection for drivers who are not responsible for the crash but must use UM/UIM benefits to recover damages. The bill takes effect upon approval by the Governor.
Impact
The bill would directly amend South Carolina insurance law by adding a new restriction to Section 38-77-150 governing uninsured and underinsured motorist coverage. It would prevent insurers from using a qualifying UM/UIM claim, by itself, as a reason to increase premiums when the insured was not at fault, thereby affecting underwriting and rate-setting practices for auto insurers and providing additional consumer protection for policyholders.
Sentiment
No committee transcripts or recorded votes were provided, so there is no documented debate or formal vote history to gauge legislative sentiment. Based on the bill text and caption, the measure appears consumer-protective and aimed at preventing premium penalties for innocent drivers who rely on UM/UIM coverage after accidents caused by others.
Contention
The main policy issue is whether insurers should be barred from treating a UM/UIM claim as a rating factor when the insured was not at fault. Supporters would likely view the bill as preventing unfair premium increases for innocent motorists, while potential opponents from the insurance industry may argue it limits actuarial discretion and could affect pricing models or claims costs. Because no discussion transcripts are available, specific objections or sponsors’ arguments are not documented.