(1) Except as provided in subsection (2), if a creditor contracts for or receives a separate charge for insurance, the amount charged to the debtor for the insurance may not exceed the premium to be charged by the insurer, as computed at the time the charge to the debtor is determined, conforming to any rate filings required by law and made by the insurer with the Director of the Department of Insurance.
(2) A creditor who provides consumer credit insurance in relation to a revolving charge account (Section 37-2-108) or revolving loan account (Section 37-3-108) may calculate the charge to the debtor in each billing cycle by applying the current premium rate to
(a) the average daily unpaid balance of the debt in the cycle;
(b) the unpaid balance of the debt or a median amount within a specified range of unpaid balances of debt on approximately the same day of the cycle. The day of the cycle need not be the day used in calculating the credit service charge (Section 37-2-207) or loan finance charge (Section 37-3-201, Section 37-3-508 and Section 37-3-515), but the specified range shall be the range used for that purpose; or
(c) the unpaid balances of principal calculated according to the actuarial method.
HISTORY: 1962 Code Section 8-800.297; 1974 (58) 2879; 1976 Act No. 686 Section 33.
Structure South Carolina Code of Laws
Title 37 - Consumer Protection Code
Section 37-4-101. Short title.
Section 37-4-103. "Consumer credit insurance" defined.
Section 37-4-104. Creditor's provision of and charge for insurance; excess amount of charge.
Section 37-4-105. Conditions applying to insurance to be provided by creditor.
Section 37-4-106. Unconscionability.
Section 37-4-107. Maximum charge by creditor for insurance.
Section 37-4-108. Refund or credit required; amount.
Section 37-4-109. Existing insurance; choice of insurer.
Section 37-4-111. Cooperation between administrator and the Director of the Department of Insurance.
Section 37-4-112. Administrative action of Director of the Department of Insurance.
Section 37-4-201. Term of insurance; medical evidence of insurability disclosure requirements.
Section 37-4-202. Amount of insurance.
Section 37-4-203. Filing and approval of rates and forms.
Section 37-4-204. Minimum charges and retentions.
Section 37-4-205. Payment on legitimate insurance claim; damages; fees; costs.
Section 37-4-206. Required disclosures; need for debtor to sign.
Section 37-4-207. Misrepresentation of medical condition as basis for voiding insurance.
Section 37-4-208. Amount charged for nonfiling insurance coverage.
Section 37-4-209. Combining disclosures.
Section 37-4-210. What constitutes disability.
Section 37-4-301. Property insurance.
Section 37-4-302. Insurance on creditor's interest only.