(1) A creditor may not use a form or a schedule of premium rates or charges, the filing of which is required by this section, if the Director of the Department of Insurance has disapproved the form or schedule and has notified the insurer of his disapproval. A creditor may not use a form or schedule unless:
(a) the form or schedule has been on file with the Director of the Department of Insurance for ninety days, or has earlier been approved by him; and
(b) the insurer has complied with this section with respect to the insurance.
(2) Except as provided in subsection (3), all policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements, and riders relating to consumer credit insurance, delivered or issued for delivery in this State, and the schedule of premium rates or charges pertaining thereto, shall be filed by the insurer with the Director of Insurance. Within ninety days after the filing of any form or schedule, he shall disapprove it if the premium rates or charges are unreasonable in relation to the benefits provided under the form, or if the form contains provisions which are unjust, unfair, inequitable or deceptive, or encourage misrepresentation of the coverage, or are contrary to any provision of the Insurance Code or of any rule or regulation promulgated thereunder.
(3) If a group policy has been delivered in another state, the forms to be filed by the insurer with the Director of the Department of Insurance are the group certificates and notices of proposed insurance. He shall approve them if:
(a) they provide the information that would be required if the group policy were delivered in this State; and
(b) the applicable premium rates or charges do not exceed those established by his rules or regulations.
(4) Premium rates and rate levels shall be calculated to produce and maintain a ratio of losses incurred, or reasonably expected to be incurred, to premiums earned, or reasonably expected to be earned, of approximately fifty percent.
(5) Until January 1, 2001, credit life insurance premiums for each one hundred dollars of indebtedness are considered reasonable and may be charged if they are not greater than the amounts given in the following table times the number of years, or fraction of a year, that the indebtedness covered by insurance is scheduled to continue, subject to a minimum charge of three dollars:
Decreasing Balance Level Balance Individual $ .65 $1.30 Joint Insurance $1.08 $2.16
Effective January 1, 2001, credit life insurance premiums for each one hundred dollars of indebtedness are considered reasonable and may be charged if they are not greater than the amounts given in the following table times the number of years, or fraction of a year, that the indebtedness covered by insurance is scheduled to continue:
Decreasing Balance Level Balance Individual $ .57 $1.14 Joint Insurance $ .95 $1.89
Effective January 1, 2003, credit life insurance premiums for each one hundred dollars of indebtedness are considered reasonable and may be charged if they are not greater than the amounts given in the following table times the number of years, or fraction of a year, that the indebtedness covered by insurance is scheduled to continue:
Decreasing Balance Level Balance Individual $ .55 $1.10 Joint Insurance $ .91 $1.83
HISTORY: 1962 Code Section 8-800.313; 1974 (58) 2879; 1980 Act No. 337, Section 1; 1985 Act No. 139, Section 5; 1991 Act No. 142, Section 16(A); 1994 Act No. 363, Section 1; 1995 Act No. 135, Section 16; 1999 Act No. 66, Sections 13, 14.
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.