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Subcommittee gives favorable report to bill letting insurers limit auto policies to nonprofit members
Summary
S830, which would allow insurers to limit issuance of automobile insurance to members of certain nonprofit member organizations (e.g., AAA affiliates), received a favorable unanimous report after AAA testimony explaining the statutory inconsistency the bill corrects.
The subcommittee gave a favorable report to S830, a bill to let insurers limit the issuance of automobile insurance to members of nonprofit member organizations.
Michael Covington told the panel S830 would harmonize South Carolina law with other states where the Auto Club Group and AAA affiliates operate, noting South Carolina currently requires member-only insurance to be tied to occupational or religious organizations. He said AAA Carolinas has roughly 600,000 members statewide and fewer than 20,000 auto insurance policies; he estimated about 1,700 policyholders in South Carolina might receive a notice to become members when the change takes effect.
Committee members asked about how AAA currently markets and administers policies across state lines; Covington said much of the communications and policy servicing for the Carolinas operates from Charlotte. The panel voted unanimously to send the bill to the full committee.
