H*3283(Rat #0392, Act #0370 of 1988)  General Bill, By J.D. Bradley
 A Bill to amend Section 38-21-270, Code of Laws of South Carolina, 1976,
 relating to notice and approval of extraordinary dividends or distributions by
 domestic insurers being required, so as to revise what constitutes an
 extraordinary dividend or distribution and the manner in which an
 extraordinary dividend or distribution is determined for purposes of this
 Section.-amended title

   08/17/87  House  Prefiled
   08/17/87  House  Referred to Committee on Labor, Commerce and Industry
   01/12/88  House  Introduced and read first time HJ-236
   01/12/88  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-236
   01/13/88  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-324
   01/14/88  House  Amended HJ-424
   01/14/88  House  Read second time HJ-425
   01/14/88  House  Unanimous consent for third reading on next
                     legislative day HJ-425
   01/15/88  House  Read third time and sent to Senate HJ-349
   01/19/88  Senate Introduced and read first time SJ-14
   01/19/88  Senate Referred to Committee on Banking and Insurance SJ-1
   02/23/88  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-11
   02/25/88  Senate Amended SJ-38
   02/25/88  Senate Read second time SJ-38
   03/01/88  Senate  Read third time SJ-23
   03/01/88  Senate Returned SJ-23
   03/03/88  House  Concurred in Senate amendment and enrolled HJ-1725
   03/08/88         Ratified R 392
   03/14/88         Signed By Governor
   03/14/88         Effective date 03/14/88
   03/14/88         Act No. 370
   03/22/88         Copies available

AN ACT TO AMEND SECTION 38-21-270, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NOTICE AND APPROVAL OF EXTRAORDINARY DIVIDENDS OR DISTRIBUTIONS BY DOMESTIC INSURERS BEING REQUIRED, SO AS TO REVISE WHAT CONSTITUTES AN EXTRAORDINARY DIVIDEND OR DISTRIBUTION AND THE MANNER IN WHICH AN EXTRAORDINARY DIVIDEND OR DISTRIBUTION IS DETERMINED FOR PURPOSES OF THIS SECTION.

Be it enacted by the General Assembly of the St,ate of South Carolina:

Determination of extraordinary dividend or distributions

SECTION 1. Section 38-21-270 of the 1976 Code is amended to read:

"Section 38-21-270. No domestic insurer shall pay any extraordinary dividend or make any other extraordinary distribution to its shareholders until (i) the Commissioner has approved the payment or (ii) the Commissioner has not disapproved the payment within thirty days after receiving notice of the declaration.

For purposes of this section, an extraordinary dividend or distribution includes any dividend or distribution of cash or other property, whose fair market value together with that of other dividends or distributions made within the preceding twelve months exceeds the greater of (a) ten perCent of the insurer's surplus as regards policyholders as of the previous December thirty-first, or (b) the net gain from operations of the insurer, if the insurer is a life insurer, or the net investment income, the insurer is not a life insurer not including realized capital gains, for the year ending the previous December thirty-first but does not include pro rata distributions of any class of the insurer's own securities.

An insurer may declare an extraordinary dividend or distribution which is conditional upon the Commissioner's approval. The declaration confers no rights upon shareholders until (1) the Commissioner has approved the payment of the dividend or distribution or (2) the Commissioner has not disapproved the payment within thirty days after receiving notice of the declaration."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.