(A) Before placing a personal lines private flood insurance policy with an admitted or surplus lines insurer, an insurance producer, broker, or the insurer shall provide a written notice to the applicant advising that if the applicant discontinues coverage under the NFIP, which is provided at a subsidized rate, the full risk rate for flood insurance may apply to the property if the applicant later seeks to reinstate coverage under the program.
(B) This section only applies if the applicant lives in a special flood hazard area. The producer, broker, or insurer shall retain this notice for three years. This section automatically sunsets if there is federal legislation that allows the insured to switch between private flood insurance and NFIP coverage without penalty.
HISTORY: 2020 Act No. 166 (S.882), Section 2, eff November 27, 2020.
Editor's Note
2020 Act No. 166, Section 3, provides as follows:
"SECTION 3. This act becomes effective sixty days following approval by the Governor. Insurers that are writing private flood insurance at the time of enactment have an additional one hundred twenty days to come into compliance with the requirements of this act."
Structure South Carolina Code of Laws
Chapter 101 - Private Flood Insurance Act
Section 38-101-10. Intent of chapter.
Section 38-101-20. Definitions.
Section 38-101-30. Issuance of policies.
Section 38-101-40. Private flood insurance policies; deductibles and policy limits.
Section 38-101-60. Required filings with director; review of filings; filing on behalf of insurers.
Section 38-101-100. Controlling law.
Section 38-101-120. Written notice of cancellation or nonrenewal; requirements.
Section 38-101-130. Renewal of policy.
Section 38-101-140. Authorization to promulgate bulletins, orders, or regulations.