A BILL TO AMEND SECTION 38-73-736_ CODE OF LAWS OF SOUTH CAROLINA

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 9                              A BILL
10
11   TO AMEND SECTION 38-73-736, CODE OF LAWS OF
12   SOUTH CAROLINA, 1976, RELATING TO CERTAIN
13   REDUCTIONS IN PREMIUM CHARGES, SO AS TO PROVIDE
14   CERTAIN DEFINITIONS, SUBJECT PREMIUM RATES
15   CHARGED FOR LIABILITY AND COLLISION COVERAGE
16   TO CERTAIN DRIVER TRAINING COURSE CREDITS FOR A
17   DRIVER WHO IS NOT A YOUTHFUL OPERATOR, AND
18   PROVIDE OTHER CONDITIONS CONCERNING THE
19   CREDITS; TO AMEND SECTION 38-73-737, RELATING TO
20   DRIVER TRAINING COURSE CREDIT TOWARD LIABILITY
21   AND COLLISION INSURANCE COVERAGE, SO AS TO
22   PROVIDE CERTAIN DEFINITIONS, SUBJECT PREMIUM
23   RATES CHARGED FOR LIABILITY AND COLLISION
24   COVERAGE TO CERTAIN DRIVER TRAINING COURSE
25   CREDITS FOR A DRIVER WHO IS A YOUTHFUL
26   OPERATOR, AND PROVIDE OTHER CONDITIONS
27   CONCERNING THE CREDITS.
28
29   Be it enacted by the General Assembly of the State of South
30   Carolina:
31
32   SECTION 1. Section 38-73-736 of the 1976 Code is amended to
33   read:
34
35      “Section 38-73-736. Any schedule of rates, rate classifications,
36   or rating plans for automobile insurance as defined in Section
37   38-77-30 filed with the Department of Insurance must provide for
38   an appropriate reduction in premium charges for those insured
39   persons who are fifty-five years of age and older and who qualify
40   as provided in Section 38-73-737.
41      (A) As used in this section:


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 1         (1) „Approved driver training course‟ means a driver‟s
 2   training course that:
 3           (a) is approved by the Department of Motor Vehicles or
 4   exempt pursuant to Chapter 23, Title 56;
 5           (b) is administered by a driver‟s training school that is
 6   licensed or approved by the Department of Motor Vehicles or
 7   exempt pursuant to Chapter 23 of Title 56;
 8           (c) is conducted by a person holding a valid driver‟s
 9   instructor permit pursuant to Chapter 23, Title 56; and
10           (d) includes a minimum of six hours of classroom
11   instruction.
12         (2) „Approved driver training refresher course‟ means a
13   driver‟s training course that:
14           (a) is approved by the Department of Motor Vehicles or
15   exempt pursuant to Chapter 23, Title 56;
16           (b) is administered by a driver‟s training school that is
17   licensed or approved by the Department of Motor Vehicles or
18   exempt pursuant to Chapter 23, Title 56;
19           (c) is conducted by a person holding a valid driver‟s
20   instructor permit pursuant to Chapter 23, Title 56;
21           (d) includes a minimum of four hours of classroom
22   instruction; and
23           (e) is taken by a person that has previously completed
24   successfully an approved driver training course, an approved driver
25   training refresher course, or an approved driver‟s education course
26   as defined in Section 38-73-737(A)(1) before the termination of
27   the preceding course‟s effective period.
28         (3) „Satisfactory evidence of course completion‟ means a
29   certificate signed by an official of the licensed driver‟s training
30   school or the Department of Motor Vehicles, which certifies that:
31           (a) the person has successfully completed the course; and
32           (b) the course is an approved driver training course or
33   approved driver training refresher course and meets the
34   requirements of Chapter 23, Title 56.
35         (4) „Youthful operator‟ means a person under the age of
36   twenty-five for which premium rates charged for liability
37   coverages and collision coverage under a private passenger
38   automobile insurance policy are determined by a youthful driver
39   classification.
40      (B) Premium rates charged for liability coverages and collision
41   coverage under a private passenger automobile insurance policy
42   are subject to an appropriate driver training course credit once
43   satisfactory evidence of course completion is presented by an

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 1   applicant for the credit that is the named insured or principal
 2   operator of the vehicle and is not a youthful operator. The amount
 3   of the credit may be determined by each individual insurer based
 4   upon factually or statistically supported data and is subject to prior
 5   approval or review by the director. The credit must be afforded for
 6   a minimum of thirty-six months from the date the approved driver
 7   training course or approved driver training refresher course was
 8   completed. The insurer may require, as a condition of providing
 9   and maintaining the credit, that the applicant not be involved in an
10   accident for which the applicant is at fault for a three-year period
11   after course completion. The credit must be afforded by each
12   insurer in a nondiscriminatory manner to all applicants, other than
13   those considered youthful operators.
14      (C) Only the vehicle driven by an applicant that has completed
15   successfully an approved driver training course or an approved
16   driver training refresher course qualifies for the insurance credit
17   required by this section. Other vehicles under the private
18   passenger automobile insurance policy do not qualify for the
19   insurance credit required by this section unless the named insured
20   or principal operator of the additional vehicle has successfully
21   completed an approved driver training course or an approved
22   driver training refresher course.
23      (D) The insurer must provide the driver training course credit
24   upon receipt of satisfactory evidence of course completion.
25   Nothing in this section may be construed so as to require the
26   insurer to provide the credit for any period of time before the date
27   of receipt of satisfactory evidence of course completion.
28      (E) An applicant qualifying for the insurance credit required by
29   this section may only claim the credit for successful completion of
30   one approved driver training course or one approved driver
31   training refresher course during any private passenger automobile
32   insurance policy period.
33      (F) Only an approved driver training course or an approved
34   driver training refresher course taken on a voluntary basis qualifies
35   for the insurance credit. A driver training course taken as a
36   requirement of a driving offense including, but not limited to,
37   ADSAP or driver training courses taken to reduce the number of
38   traffic violation points against a driver‟s license, do not qualify for
39   the insurance credit provided in this section.
40      (G) A schedule of rates, rate classification, or rating plan for
41   private passenger automobile insurance must provide for an
42   appropriate reduction in premium charges for an insured person


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 1   who is not a youthful operator and who qualifies as provided in
 2   this section.”
 3
 4   SECTION 2. Section 38-73-737 of the 1976 Code is amended to
 5   read:
 6
 7      “Section 38-73-737.        (A) Premium rates charged for liability
 8   coverages and collision coverage under a private passenger
 9   automobile insurance policy are subject to an appropriate driver
10   training course credit once satisfactory evidence is presented that
11   an applicant for the credit, who is not subject to the youthful
12   operator approved driver training course credit mandated by
13   Regulation 69-13.2(C), has completed successfully an approved
14   driver training course. The amount of the credit may be
15   determined by each individual insurer based upon factually or
16   statistically supported data and is subject to prior approval by the
17   commissioner. The credit must be afforded to the operator for
18   thirty-six months from the date the approved driver training course
19   was completed. The insurer may require as a condition of
20   providing and maintaining the credit, that the insured for a
21   three-year period after course completion not be involved in an
22   accident for which the insured is at fault. The credit must be
23   afforded by each insurer in a nondiscriminatory manner to all
24   applicants, other than those considered within Regulation
25   69-13.2(C).
26      (B) „An approved driver training course‟ for purposes of this
27   section is a driver training course which has been approved by the
28   Department of Motor Vehicles and was conducted by:
29         (1) a recognized college or university;
30         (2) instructors certified by the Department of Motor Vehicles;
31   or
32         (3) any other school approved and supervised by the
33   Department of Motor Vehicles.
34      (C) The requirements of the course, in order to qualify for the
35   insurance credit, must include the following minimum criteria:
36         (1) eight hours of classroom instruction;
37         (2) the teaching method must include group discussion,
38   lecture, and visual presentations;
39         (3) the course materials must include age-related physical
40   changes affecting older drivers, accident prevention measures, and
41   a basic review of the rules-of-the-road including, but not limited
42   to, rights of way, backing, entering, and leaving interstate
43   highways; and

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 1         (4) a relevant test on the course material.
 2      (D) For purposes of this section „satisfactory evidence‟ is a
 3   certificate signed by an official of the school or the Department of
 4   Motor Vehicles, which certifies that:
 5         (1) the person achieved a passing grade on a relevant test on
 6   the course material;
 7         (2) the course was approved by and the instructors were
 8   certified by the Department of Motor Vehicles; and
 9         (3) the school was approved and supervised by the
10   Department of Motor Vehicles.
11      (E) Only the vehicle driven by drivers who have completed
12   successfully the driver training course qualifies for the insurance
13   credit. In order for the credit to apply, the certificate must be
14   furnished by the named insured, principal operator of the insured
15   vehicle, and all occasional operators named in the policy as
16   provided in Department of Insurance Regulation 69-13.1(II)(C).
17   Other vehicles which may be operated by other family members
18   who have not completed the driver training course do not qualify
19   for the insurance credit unless the primary driver of the additional
20   vehicle has successfully completed the driver training course.
21      (F) Only driver training courses taken on a voluntary basis
22   qualify for the insurance credit. Driver training courses taken as a
23   requirement of a driving offense including, but not limited to,
24   ADSAP or driver training courses taken to reduce the number of
25   traffic violation points against a driver‟s license, do not qualify for
26   the insurance credit provided in this section.
27      (A) As used in this section:
28         (1) „Approved driver‟s education course‟ means a driver‟s
29   training course that:
30           (a) is approved by the Department of Motor Vehicles
31   pursuant to Chapter 23, Title 56 or is approved by the Department
32   of Education pursuant to Section 59-39-320;
33           (b) is administered by a driver‟s training school that is
34   licensed by the Department of Motor Vehicles or a state institution
35   or duly accredited and approved college, private, parochial, or
36   public high school pursuant to Chapter 23, Title 56; and
37           (c) is conducted by a person holding a valid driver‟s
38   instructor permit pursuant to Chapter 23, Title 56.
39         (2) „Satisfactory evidence of course completion‟ means a
40   certificate signed by an official of the school, the Department of
41   Motor Vehicles, the Department of Education, or other responsible
42   educational entity which certifies that:
43           (a) the person has successfully completed the course; and

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 1           (b) the course is an approved driver‟s education course
 2   and meets the requirements of Chapter 23, Title 56 or Section
 3   59-39-320.
 4         (3) „Youthful operator‟ means a person under the age of
 5   twenty-five for which premium rates charged for liability
 6   coverages and collision coverage under a private passenger
 7   automobile insurance policy are determined by a youthful driver
 8   classification.
 9      (B) Premium rates charged for liability coverages and collision
10   coverage under a private passenger automobile insurance policy
11   are subject to an appropriate driver‟s education course credit once
12   satisfactory evidence of course completion is presented by an
13   applicant for the credit that is the named insured or principal
14   operator of the vehicle and is a youthful operator. The amount of
15   the credit may be determined by each individual insurer based
16   upon factually or statistically supported data and is subject to prior
17   approval or review by the director. The credit must be afforded
18   from the date the approved driver‟s education course was
19   completed for as long as the premium rates continue to be
20   determined by a youthful driver classification. The insurer may
21   require, as a condition of providing and maintaining the credit, that
22   the applicant not be involved in an accident for which the applicant
23   is at fault or be convicted of, plead guilty to, or plead nolo
24   contendere to a violation of the motor vehicle laws for any moving
25   violation. The credit required by this section must be afforded by
26   each insurer in a nondiscriminatory manner to all applicants.
27      (C) Only the vehicle driven by an applicant that has completed
28   successfully an approved driver‟s education course qualifies for
29   the insurance credit required by this section. Other vehicles under
30   the private passenger automobile insurance policy do not qualify
31   for the insurance credit required by this section unless the named
32   insured or principal operator of the additional vehicle has
33   successfully completed an approved driver‟s education course.
34      (D) The insurer must provide the driver‟s education course
35   credit upon receipt of satisfactory evidence of course completion.
36   Nothing in this section may be construed so as to require the
37   insurer to provide the credit for any period of time before the date
38   of receipt of satisfactory evidence of course completion.
39      (E) An applicant qualifying for the insurance credit required by
40   this section may only claim the credit for successful completion of
41   one approved driver‟s education course during any private
42   passenger automobile insurance policy period.


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 1      (F) An approved driver‟s education course taken on a voluntary
 2   basis or taken as a requirement of driver licensing qualifies for the
 3   insurance credit. Driver training courses taken as a requirement of
 4   a driving offense including, but not limited to, ADSAP or driver
 5   training courses taken to reduce the number of traffic violation
 6   points against a driver‟s license, do not qualify for the insurance
 7   credit provided in this section.
 8      (G) A schedule of rates, rate classification, or rating plan for
 9   private passenger automobile insurance must provide for an
10   appropriate reduction in premium charges for an insured person
11   who is not a youthful operator and who qualifies as provided in
12   this section.”
13
14   SECTION 3. Unless otherwise provided, this act takes effect
15   upon approval by the Governor. The provisions of this act
16   amending Section 38-73-736 and Section 38-73-737 take effect
17   December 31, 2011.
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