Despite opposition from the property-casualty insurance sector, the South Carolina House of Representatives voted yesterday to raise minimum auto insurance coverage requirements.

While the Senate has already approved a similar measure, the upper chamber must now approve the change the House added before the bill goes to Gov. Mark Sanford.

The property-casualty industry has opposed the limits as a giveaway to the trial bar.

The current legislation would increase bodily limits from $15,000 to $25,000 for one person and from $30,000 to $50,000 for all persons injured in an accident.

Insurance interests were successful in securing one change in the House legislation. Rather than having the measure effective immediately upon the governor's signature, the bill would not go into law until Jan. 1 of next year.

Robert Herlong, Atlanta-based regional manager for the Property Casualty Insurers Association of America (PCI), said his group has generally believed that motorists should choose the level of coverage they want.

"One of our key concerns about this legislation is that it will cause double-digit price increases for thousands of consumers who are least likely to be able to afford this increase," Mr. Herlong said.

An unintended consequence of this legislation is that the number of uninsured drivers in the state may increase, he added.

Julie Pulliam, Atlanta-based regional representative for the American Insurance Association, said, "There has been absolutely no legitimate interest in increasing the S.C. limits, since it is not a high-cost state for insurers."

Ms. Pulliam said she was not certain when the Senate would take up the amended version.

Both houses are controlled by the Republicans.

Ms. Pulliam said it remains uncertain what Republican Gov. Sanford may do once the bill reaches his desk.

"Some in the industry may ask him to veto, but that is not yet certain," she said.

Special Reports /

S.C. Auto Coverage Hikes OKayed

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