South Carolina § 38-55-50 - Discrimination prohibited.

§ 38-55-50. Discrimination prohibited.

An insurer, its agent, or an insurance broker doing business in this State may not make or permit any discrimination in favor of individuals between insureds of the same class and risk involving the same hazards in the amount of the payment of premiums or rates charged for policies of insurance except as provided in Sections 38-57-140, 38-65-310, and 38-71-1110, in the dividends or other benefits payable, or in any other of the terms and conditions of the contracts it makes. An insurer, its agent, or an insurance broker may not make a contract of insurance or agreement as to a contract other than as plainly expressed in the policy issued. An insurer or its officer, agent, solicitor, or representative or an insurance broker may not pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the taking of insurance any rebate of premium payable on the policy, any special favor or advantage in the dividends or other benefits to accrue from the policy, any paid employment or contract for services of any kind, or any valuable consideration or inducement not specified in the policy contract of insurance, or give, sell, or purchase or offer to give, sell, or purchase, as inducement to the taking of insurance or in connection therewith, any stocks, bonds, or other securities of an insurer or other corporation, association, or partnership, any dividends or profits to accrue from them, or anything of value not specified in the policy. This section does not prohibit a licensed agent or broker from charging administrative fees, as promulgated by the Department of Insurance by regulation, for incidental services associated with uninsured motorist related transactions and the electronic reporting of information to the Department of Motor Vehicles. However, fees for uninsured motorist related transactions may be charged only to consumers who have had a lapse in their automobile coverage. Notice of these fees must be posted prominently in the agent's or broker's office.

This section does not prohibit the payment of a fee to a trade or professional association exempt from income tax under Section 501(c) of the Internal Revenue Code.

Further, this section does not prohibit the rebating of any commission to the insured on an automobile insurance policy collected by, or on behalf of, a licensed insurance agent.

HISTORY: Former 1976 Code SECTION 38-55-50 [1947 (45) 322; 1952 Code SECTION 37-1202; 1962 Code SECTION 37-1205; 1964 (53) 2293] recodified as SECTION 38-57-50 by 1987 Act No. 155, SECTION 1; Former 1976 Code SECTION 38-9-80 [1947 (45) 322; 1949 (46) 600; 1952 Code SECTION 37-147; 1962 Code SECTION 37-147] recodified as SECTION 38-55-50 by 1987 Act No. 155, SECTION 1; 1988 Act No. 394, SECTION 14; 1990 Act No. 465, SECTION 2; 1997 Act No. 154, SECTION 26; 2004 Act No. 241, SECTION 7, eff January 1, 2005.