§ 1.13 Modification

• Library: Guide to South Carolina Liability and Property Insurance Law (SCBar) (2019 Ed.)

§ 1.13 Modification

The South Carolina Supreme Court determined that the insurer's attempt to charge a surcharge for the policy constituted a modification in Anderson v. Pennsylvania National Mutual Insurance Co.¹³¹ The insurer issued an automobile insurance policy to the insured for the policy period of February 1978 to February 1979. The insured suffered a loss and made a claim and the insurer denied the claim contending that the policy had been cancelled in December 1978 for nonpayment of premiums.¹³² The insured brought suit contending that the cancellation was improper because "the premium at issue was not an element of the insurance contract made in February 1978, but rather a modification thereafter attempted by the [insurer]."¹³³

The Court agreed with the insured. The Court noted that while the insurer...