Unfair trade practices in the business of insurance

What this document is

S.C. Code Ann. ch. 38-57: Unfair trade practices in the business of insurance is a state statute published by South Carolina Legislature (scstatehouse.gov). It is one of the South Carolina documents that insurance license exam questions are written from, including south carolina life & health, south carolina property & casualty, south carolina personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• S.C. Code Ann. § 38-57-100 (Boycotts, intimidation, and coercion prohibited)

  “No person may enter into an agreement to commit, or by any concerted action commit, any act of boycott, coercion, or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.”

• S.C. Code Ann. § 38-57-90 (Defamation prohibited)

  “No person may make, publish, circulate, or disseminate, directly or indirectly, or aid, abet, or encourage the making, publishing, circulating, or disseminating of any oral or written statement or any pamphlet, circular, article, or literature which is false or maliciously critical of or derogatory...”

• S.C. Code Ann. § 38-57-50 (False Advertising of Insurance Business)

  “No person may make, publish, disseminate, circulate, or place before the public or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or...”

• S.C. Code Ann. § 38-57-40 (Misrepresentation of Policy Benefits)

  “No person may make, issue, circulate, or cause to be made, issued, or circulated any estimate, proposal, circular, or statement misrepresenting the terms of a policy issued or to be issued or the benefits or advantages represented thereby or the dividends or share of the surplus to be received...”

• S.C. Code Ann. § 38-57-60 (Fraudulently inducing insured to change, alter, or retain insurance prohibited)

  “No person may make a false, misleading, fraudulent, or incomplete representation or comparison of insurance policies or insurers for the purpose of inducing or intending to induce any person to lapse, forfeit, surrender, terminate, retain, or convert an insurance policy or to take out a policy in another insurer.”

• S.C. Code Ann. § 38-57-120 (Unfair discrimination in life insurance, annuities, and disability insurance prohibited)

  “No person may make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon or in any other of the terms and conditions of the contract.”

• S.C. Code Ann. § 38-57-200 (Findings and order)

  “If, after a hearing, the director or his designee determines that a method of competition or an act or practice is unfair or deceptive as defined in this title and that the person complained of has engaged in the method of competition, act, or practice in violation of this title, he shall reduce...”

• S.C. Code Ann. § 38-57-140(1) (Discrimination and rebating permitted in life insurance, annuities, and disability insurance)

  “Nothing in SECTIONS 38-57-120 and 38-57-130 may be construed as including within the definition of discrimination or rebates any of the following practices: (1) In the case of any contract of life insurance, life annuity, or disability insurance, paying bonuses to policyholders or otherwise abating...”

• S.C. Code Ann. § 38-57-120(1) (Unfair discrimination in life insurance and annuities prohibited)

  “No person may make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon or in any other of the terms and conditions of the contract.”

• S.C. Code Ann. § 38-57-110(2) (Coercion of business by sellers or lenders prohibited)

  “This section does not prevent a mortgagee, real or chattel, of the right to designate reasonable financial requirements of the insurer and adequacy of the terms and provisions of the coverage with respect to the property pledged or mortgaged. A requirement that the insurer providing coverage be a...”

• S.C. Code Ann. § 38-57-75(E)(3) (Vehicle glass repair procedures)

  “(3) must not make statements regarding the warranty offered by the provider of choice. If an insured asks the insurer or third party administrator questions regarding a provider's warranty, the insurer or third party administrator must refer the insured to the provider for clarification.”

• S.C. Code Ann. § 38-57-160 (Advertising gifts permitted)

  “Sections 38-57-130, 38-57-140, and 38-57-150 do not prohibit a licensed agent from giving to insureds, prospective insureds, and to others, for the purpose of advertising, an article of merchandise having a value of not more than twenty-five dollars and having an advertisement for the insurer or...”

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More South Carolina sources

• S.C. Code Ann. ch. 38-43: Producers (licensing, appointment, discipline)State statute
• S.C. Code Ann. ch. 38-63: Life insurance policy provisionsState statute
• S.C. Code Ann. ch. 38-71: Accident and health insurance policy provisionsState statute
• South Carolina Code of Laws Title 38, Chapters 5, 43 and part of 55 (first third)State statute
• South Carolina Code of Laws Title 38, Chapters 55, 57, 59, 63 and part of 65 (second third)State statute
• South Carolina Code of Laws Title 38, Chapters 65, 71 and 72 (final third)State statute
• South Carolina Insurance Content OutlinesCandidate handbook or exam outline
• South Carolina Insurance Licensing Candidate HandbookCandidate handbook or exam outline