Bill would close domestic violence loophole

COLUMBIA --- A loophole that would allow insurance companies to consider domestic violence a pre-existing condition in South Carolina might soon be closed.

Rep. Shannon Erickson, R-Beaufort, hopes her bill, which would penalize insurance companies if they discriminate against domestic abuse victims, gains traction when the South Carolina General Assembly returns to session in January.

Under the bill, H. 4198, an insurer could be fined $200,000 for refusing coverage, increasing premiums or limiting a claim on the basis of past or assumed domestic abuse.

"It shouldn't have anything to do with how their insurance eligibility should be perceived," said Ms. Erickson, who worked on the bill with Scott Richardson, the director of the South Carolina Department of Insurance.

Ms. Erickson and Vicki Bourus, the executive director of the South Carolina Coalition Against Domestic Violence and Sexual Assault, say they're not aware of any cases in which an insurer factored a victim's abuse into its risk assessment.

"I do not mean to imply they (insurers) are actually doing this," said Ms. Erickson. "The point is we don't address it in our South Carolina laws."

Advocates of the change say the loophole needs to be closed to prevent anyone from being victimized a second time.

The bill would prohibit, for instance, an insurer from including in its risk-evaluation questionnaire whether the person seeking coverage has ever suffered domestic violence.

"We are confident that we will be able to effectively enforce the requirements of this legislation to the benefit of South Carolina's consumers," said Ann Roberson, the spokeswoman for the Department of Insurance.

Ms. Erickson's bill, co-sponsored by Rep. Bill Herbkersman, R-Bluffton, and others, is modeled on the National Association of Insurance Commissioners' recommendations.

They have already been adopted in some form by most states, according to Cynthia Depew, the media relations manager for America's Health Insurance Plans, which represents 1,300 insurance companies, and which supports the association's bill.

Reach Sarita Chourey at (803) 727-4257 or sarita.chourey@morris.com.