South Carolina § 38-101-110 - Certification of policy that equals or exceeds flood coverage offered by NFIP; misrepresentation.

§ 38-101-110. Certification of policy that equals or exceeds flood coverage offered by NFIP; misrepresentation.

(A) An admitted insurer offering flood insurance may certify that a policy, contract, or endorsement provides coverage for the named peril of flood which equals or exceeds the flood coverage offered by the NFIP. To be eligible for certification, the policy, contract, or endorsement must contain a provision stating that it meets the private flood insurance requirements specified in 42 U.S.C. Section 4012a(b) and may not contain provisions that, when taken as a whole, are not in compliance with 42 U.S.C. Section 4012a(b).

(B) The admitted insurer or its agent may reference or include a certification pursuant to subsection (A) in advertising or communications with an agent, a lending institution, an insured, or a potential insured only for a policy, contract, or endorsement that is certified pursuant to this section. The admitted insurer may include a statement that notifies an insured of the certification on the declarations page or other policy documentation related to flood coverage certified pursuant to this section.

(C) An insurer or agency who knowingly:

(1) misrepresents that a flood policy, contract, or endorsement is certified pursuant to this chapter; or

(2) misrepresents the scope of the coverage of the flood insurance policy, contract, or endorsement commits an unfair or deceptive act pursuant to Section 38-57-10, et seq. and is subject to the penalties set forth in this chapter.

HISTORY: 2020 Act No. 166 (S.882), SECTION 2, eff November 27, 2020; 2022 Act No. 195 (H.4832), SECTION 14, eff May 16, 2022.

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."

Effect of Amendment

2022 Act No. 195, SECTION 14, in (A), in the first sentence, substituted "named peril" for "peril".