Nothing in Sections 38-57-120 and 38-57-130 may be construed as including within the definition of discrimination or rebates any of the following practices:
(1) In the case of any contract of life insurance, life annuity, or disability insurance, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance. However, these bonuses or abatement of premiums must be fair and equitable to policyholders and for the best interests of the insurer and its policyholders.
(2) In the case of life insurance and disability policies issued on the debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expense.
(3) Readjustment of the rate of premium for a group insurance policy based on the loss or expense experience thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for the policy year.
(4) Issuing life or disability insurance policies on a salary savings, bank draft, preauthorized check, or payroll deduction plan or other similar plan at a reduced rate reasonably related to the savings made by the use of the plan.
(5) Nothing in this section may be construed to:
(a) permit an unfair method of competition or an unfair or deceptive act or practice; or
(b) prohibit an insurer from offering or giving an insured, for free or at a discounted price, services or other offerings that directly and reasonably relate to the loss control of the risks covered under the policy.
HISTORY: Former 1976 Code Section 38-57-140 [1947 (45) 322; 1952 Code Section 37-1162; 1962 Code Section 37-1162] recodified as Section 38-7-80 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-55-140 [1947 (45) 322; 1952 Code Section 37-1203; 1962 Code Section 37-1214; 1964 (53) 2293] recodified as Section 38-57-140 by 1987 Act No. 155, Section 1; 2019 Act No. 6 (S.360), Section 8.B, eff July 1, 2019.
Effect of Amendment
2019 Act No. 6, Section 8.B, added (5), clarifying that certain practices are prohibited.
Structure South Carolina Code of Laws
Section 38-57-10. Declaration of purpose.
Section 38-57-20. "Person" defined.
Section 38-57-30. Unfair methods and deceptive acts prohibited.
Section 38-57-40. Misrepresentation or false advertising of policies prohibited.
Section 38-57-50. False information or advertising as to insurance business prohibited.
Section 38-57-60. Fraudulently inducing insured to change, alter, or retain insurance prohibited.
Section 38-57-70. Misrepresentations in adjustment of claims prohibited.
Section 38-57-75. Vehicle glass repair procedures.
Section 38-57-80. False financial statements prohibited.
Section 38-57-90. Defamation prohibited.
Section 38-57-100. Boycotts, intimidation, and coercion prohibited.
Section 38-57-110. Coercion of business by sellers or lenders prohibited.
Section 38-57-150. Inducements prohibited; exception.
Section 38-57-160. Advertising gifts permitted.
Section 38-57-170. Free insurance or advertisement prohibited; exceptions.
Section 38-57-180. Insurance cost must be specified in sales and loans.
Section 38-57-200. Findings and order.
Section 38-57-210. Intervenor at hearing; judicial review at instance of intervenor.
Section 38-57-220. Immunity from prosecution.
Section 38-57-230. Violation of cease and desist order.
Section 38-57-240. Notice of levy and proceedings for collection.
Section 38-57-250. Filing order with clerk of court.
Section 38-57-260. Levy of execution; sheriff's fees.
Section 38-57-270. Remedies when fine not satisfied in full.
Section 38-57-280. Payment of fine under protest.
Section 38-57-290. Action for recovery of fine paid under protest.
Section 38-57-310. Limit of recovery against director or designee.