South Carolina Code of Laws
Chapter 75 - Property, Casualty, And Title Insurance Generally
Section 38-75-755. Notification to applicants or renewing policyholders.

(A) All insurers, at the issuance of a new policy and at each renewal, clearly shall notify the applicant or policyholder of a personal lines residential property insurance policy of the availability and the range of each premium discount, credit, other rate differential, or reduction in deductibles for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented, including information related to catastrophe savings accounts. The notice must describe generally what measures the policyholders may take to reduce their windstorm premium.
(B)(1) All insurers, at the issuance of a new policy and at each renewal, shall notify the applicant or policyholder of a personal lines residential property insurance policy of the following:
(a) whether or not the insured has coverage for flood or mold. The disclosure also shall state that insurance is available through the National Flood Insurance Program and that excess flood insurance may be available through an additional policy;
(b) a distinction between replacement cost for losses and actual cash value, the use of depreciation in determining payment for losses, and that the policy may contain time limitations for repairs to be completed in order to receive full replacement cost for the losses;
(c) that the policy determines the process for providing the insurer with a notification of a loss and the requirements of Section 38-59-10;
(d) that the insured may have the option to increase the deductible and thus lower the potential premium cost paid;
(e) whether a separate deductible is required for hurricane, wind, or named storm damage, as opposed to some other type of loss, and if so, include an example which illustrates how the deductible functions for a policy valued at one hundred thousand dollars and this illustration will include a clear explanation of the event which will trigger the deductible to the requirements of South Carolina Code of Regulations 69-56.
(2) The director or his designee shall prescribe the form and manner for insurer notices or disclosures issued pursuant to this subsection.
(3) Any disclosure provided pursuant to this section shall be for informational purposes only and shall not amend, extend, or alter coverage provided in a policy. Any notice or disclosure provided shall not be admissible in any action brought concerning a policy except for the sole purpose of showing that the notice was or was not provided pursuant to this section.
(C) All insurers, at the issuance of a new policy and at each renewal of a commercial property insurance policy, shall include a notice that advises the policyholder that a reduction in premium may be available if the policyholder has taken steps to prevent or reduce damage from windstorm and that the policyholder may contact its agent, broker, or insurer for additional information.
HISTORY: 2007 Act No. 78, Section 6, eff June 11, 2007, applicable to taxable years beginning after December 31, 2006; 2014 Act No. 191 (S.569), Section 3.A, eff June 2, 2014.

Editor's Note
2014 Act No. 191, Section 4.B, provides as follows:
"3.A. The provisions of this section apply to policies issued or renewed after December 31, 2014."
Effect of Amendment
2014 Act No. 191, Section 3, in subsection (A), inserted "implemented, including information related to catastrophe savings accounts" at the end of the first sentence; added subsection (B) redesignated former subsection (B) as subsection (C); and deleted former subsection (C), relating to application of the section.

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