In this dеclaratory judgment action arising out of a dispute over underinsured motorist coverage, Virgie A. Butler appeals the circuit court’s grant of summary judgment to Unisun Insurance Company. We reverse and remand.
FACTUAL/PROCEDURAL BACKGROUND
Butlеr purchased an automobile insurance policy from Unisun Insurance Company (“Insurance Company”) in November 1992. In April 1993, she was injured in an automobile accident. The other party involved in the accident did not have sufficient liability coverage to fully compensate Butler.
*404 Butler filed this declaratory judgment action, praying for a declaration that underinsured motorist (“UIM”) coverage was part of her automobile insurance policy, because Insurance Company was required under S.C. Code Ann. § 38-77-160 (Supp. 1995) to offer UIM coverage below the minimum liability limits. The parties have stipulated that Butler rejected UIM coverage on a form prescribed by, and in compliance with, S.C. Code Ann. § 38-77-350 (Supp. 1995). The statutory form signed by Butler did not offer UIM coverage below the minimum limits of $15,000 per person and $30,000 per accident.
The parties moved for summary judgment. The circuit court granted Insurance Company’s motion and found the company had complied with section 38-77-350 by using a form approved by the Chief Insurance Commissioner; therefore, Butler was not entitled to a reformation of her policy to include UIM coverage.
Butler has appealed, contending the court erred in finding that Insurance Company need not afford her UIM coverage and that it made a meaningful offer of coverage. We agree.
LAW/ANALYSIS
S.C. Code Ann. § 38-77-160 provides that automobile insurance carriers “shall... offer, at the option of the insured, underinsured motorist coverage up to the limits of the insured liability coverage.” This Court and the Court of Appeals have issued a number of opinions interpreting and applying this statutory provision and its predecessors.
Garris v. Cincinnati Ins. Co.,
In
Hanover Ins. Co. v. Horace Mann Ins. Co.,
The Court of Appeals, in
Jackson v. State Farm Mut. Auto. Ins. Co.,
Decisions have also stated that the insurer has the initial burden of proving that a meaningful offer of optional coverage hаd been made to the insured.
Jackson v. State Farm Mut. Auto. Ins. Co.,
The preceding constitutes the legal backdrop for the issues in dispute in the present case. In 1989 the Legislature passed an act, which came to be codified as seсtion 38-77-350, specifying the form to be used when optional coverages are offered. Until July 1,1995, 1 the provision stated *406 in relevant part:
(A). .. [T]he Chief Insurance Commissioner shall approve a form which automobile insurers shall use in offering optional coverages required to be offered pursuant to law to applicants for automobile insurance policies. This form must be used by insurers for all new applicants____The form, at a minimum, must provide for each оptional coverage required to be offered:
(1) a brief and concise explanation of the coverage,
(2) a list of available limits and the range of premiums for the limits,
(3) a space for the insured to mark whether the insured chooses to accept or rеject the coverage and a space for the insured to select the limits of coverage he desires,
(4) a space for the insured to sign the form which acknowledges that he has been offered the optional coverages,
(5) the mailing address and telephone number of the Insurance Department which the applicant may contact if the applicant has any questions that the insuranсe agent is unable to answer.
(B) If this form is properly completed and executed by the named insured it is conclusively presumed that there was an informed, knowing selection of coverage and neither the insurance company nor any insurance agent has any liability to the named insured or any other insured under the policy for the insured’s failure to purchase any optional coverage or higher limits.
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(D) Compliance with this section satisfies the insurer and agent’s duty to explain and offer optional coverages and higher limits and no person, including, but not limited to, an insurer and insurance agent is liable in an action for dаmages on account of the selection or rejection made by the named insured.
S.C. Code Ann. § 38-77-350 (Emphasis added).
The circuit court in the present case found this statute applicable and held that Insurance Company had satisfied its *407 provisions; therefore, Insurance Company was not liable for the insured’s failure to purchase UIM coverage. On appeal, Butler argues that section 38-77-350 does not control, because Insurance Company failed to offer UIM coverage in amounts less than the minimum liability limits of the policy, as required by section 38-77-160.
The precise issue in this case was decided by the Court of Appeals in
Osborne v. Allstate Ins. Co.,
— S.C. —,
We are essentially faced with the decision of choosing between the approaches of
Osborne
or
Holt.
The primary argument in favor of
Osborne
is that when enacting section 38-77-350, the Legislature did not intend to repeal section 38-77-160. We are persuaded by this argument. Section 38-77-160 was first enacted in 1978 and was amended in 1989 and 1994. Section 38-77-350 was enacted in 1989 and amended in 1993 and 1994. The enactment of section 38-77-350 in 1989 and the amendment of section 38-77-160 in the same year provide evidence that the Legislature was aware of the existence of both provisions. The Legislature could easily have amended or repеaled section 38-77-160’s requirement of the offering of UIM coverage “up to the limits of the insured liability coverage.” It did not do so. Because the law does not favor implied repeal of statutes, section 38-77-160 must be construed as continuing to be effective.
See Lewis v. Gaddy,
*408
Statutes dealing with same subject matter must be reconciled, if possible, so as to render both operative.
Greene v. South Carolina Election Comm’n,
For example, in Osborne, the Court of Appeals found thаt the requirements of section 38-77-350, as they interact with section 38-77-160, were satisfied by the following provision in the Insurance Commissioner’s form:
Some of the more commonly sold limits of underinsured motorist coverage, together with the additional premiums you will be charged, are shown upon this Form. If there are other limits in which you are interested, but which are not shown upon this Form, then fill in those limits. If your insurance company is allowed to markеt those limits within this State, your insurance agent will fill-in the amount of increased premium.
Osborne,
— S.C. at —,
CONCLUSION
Section 38-77-350 does not modify the requirement of section 38-77-160 that insurance companies offer UIM coverage *409 up to the limits of the insured liability coverage. Because Insurance Company failed to offer UIM coverage up to the limits of the liability coverage, Butler is entitled to a reformation of her policy. Based on the foregoing, the circuit court’s order is REVERSED, and the case is REMANDED for further proceedings in accordance with this opinion.
Notes
The major difference between the provision before and after July 1,1995 is that in the letter, the director or his designee, rather than the Chief Insurance Commissiоner, “shall approve a form.”
Insurance Company filed, under Rules 217, 224, SCACR, a motion to argue against precedent.
This addresses one of the primary objections raised in the Holt decision, wherein the District Court argued that the requirements of section 38-77-160 should be rejected on the basis of the enactment of section 38-77-350, because the requirements were cumbersome and commercially unreasonable.