H*3552(Rat #0595, Act #0488 of 1980)  General Bill, By 
 House Labor, Commerce and Industry
 A Bill to amend Chapter 3 of Title 38, South Carolina Code of Laws, 1976,
 relating to the State Department of Insurance, by amending Sections 38-3-10,
 38-3-20, 38-3-60, 38-3-80, and by adding Sections 38-3-65 and 38-3-85, all so
 as to reconstitute the Insurance Commission, realign and alter the powers and
 duties of the Insurance Commission and the Chief Insurance Commissioner,
 adjust the respective terms of office and qualifications of members of the
 Insurance Commission and of the Chief Insurance Commissioner, adjust certain
 internal administrative procedures and regulatory procedures of the Insurance
 Commission, the Insurance Department and the Chief Insurance Commissioner, and
 to provide for an advisory Committee of Insurance Industry Representatives.-at

   02/26/80  House  Introduced, read first time, placed on calendar
                     without reference HJ-1113
   02/28/80  House  Debate adjourned HJ-1210
   03/04/80  House  Debate adjourned HJ-1232
   03/05/80  House  Debate adjourned until TUESDAY, MARCH 11, 1980 HJ-1250
   03/11/80  House  Amended HJ-1338
   03/11/80  House  Read second time HJ-1343
   03/12/80  House  Read third time and sent to Senate HJ-1364
   03/12/80  Senate Introduced and read first time SJ-11
   03/12/80  Senate Referred to Committee on Banking and Insurance SJ-11
   04/08/80  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-15
   04/16/80  Senate Read second time SJ-19
   04/16/80  Senate Ordered to third reading with notice of
                     amendments SJ-19
   05/07/80  Senate   SPECIAL ORDER SET AFTER ALL OTHER SPECIAL ORDERS SJ-6
   05/13/80  Senate Debate interrupted SJ-29
   05/14/80  Senate Amended SJ-15
   05/14/80  Senate   SPECIAL ORDER SET FOR TUE., MAY 20,1980 SJ-22
   05/21/80  Senate Amended SJ-20
   05/21/80  Senate  READ THIRD TIME SJ-20
   05/21/80  Senate Returned SJ-20
   05/27/80  House  Non-concurrence in Senate amendment HJ-3193
   05/28/80  Senate  Senate insist upon amendment and conference
                     committee appointed SJ-29
   05/28/80  House   Conference committee appointed HJ-3356
   06/03/80  House  Conference report received HJ-3473
   06/03/80  Senate Conference report received SJ-30
   06/03/80  Senate Conference report adopted SJ-30
   06/04/80  House  Conference report adopted HJ-3506
   06/04/80  House  Ordered enrolled for ratification HJ-3506
   06/05/80  House  Ratified R 595 HJ-3672
   06/11/80         Signed By Governor
   06/11/80         Effective date 06/11/80
   06/11/80         Act No. 488
   06/27/80         Copies available

AN ACT TO AMEND CHAPTER 3 OF TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE DEPARTMENT OF INSURANCE, BY AMENDING SECTIONS 38-3-10, 38-3-20, 38-3-60, 38-3-80 AND BY ADDING SECTIONS 38-3-65 AND 38-3-85, ALL SO AS TO RECONSTITUTE THE INSURANCE COMMISSION, REALIGN AND ALTER THE POWERS AND DUTIES OF THE INSURANCE COMMISSION AND THE CHIEF INSURANCE COMMISSIONER, ADJUST THE RESPECTIVE TERMS OF OFFICE AND QUALIFICATIONS OF MEMBERS OF THE INSURANCE COMMISSION AND OF THE CHIEF INSURANCE COMMISSIONER, ADJUST CERTAIN INTERNAL ADMINISTRATIVE PROCEDURES AND REGULATORY PROCEDURES OF THE INSURANCE COMMISSION, THE INSURANCE DEPARTMENT AND THE CHIEF INSURANCE COMMISSIONER AND TO PROVIDE FOR AN ADVISORY COMMITTEE OF INSURANCE INDUSTRY REPRESENTATIVES.

Be it enacted by the General Assembly of the State of South Carolina:

Insurance Commission reauthorized

Section 1. In accordance with the provisions of Section 7 of Act 608 of 1978, the existence of the Insurance Commission is reauthorized as provided in such section.

Insurance Department Established

Section 2. Section 38-3-10 of the 1976 Code is amended to read:

"Section 38-3-10. There is hereby established a separate and distinct department of this State, to be known as the Department of Insurance, which shall be the administrative arm of an Insurance Commission."

Composition of Insurance Commission

Section 3. Section 38-3-20 of the 1976 Code is amended to read:

"Section 38-3-20. Beginning on July 1, 1980, the Insurance Commission shall be composed of seven members, one being selected from each congressional district and one from the State at large, who shall be appointed by the Governor, with the advice and consent of the Senate. Two shall be appointed for a term of two years, two shall be appointed for a term of four years and three shall be appointed for a term of six years; thereafter, the terms shall be for six years and all members of the Commission shall serve until their successors have been appointed and qualify. No member appointed shall have past or present employment in the insurance industry during the four years immediately preceding his appointment but shall be selected from the general public based upon demonstrated objectivity, independence and service in matters of public concern. No members of the Commission shall serve more than one term. Any vacancy in office shall be filled by the Governor by appointment.

The terms of the five members of the Commission serving in office on July 1, 1980, shall expire at which time the seven members of the Commission appointed in the manner prescribed by this chapter shall take office; provided, however, that the five members of the Commission serving in office on July 1, 1980, shall continue to serve after such date if the seven new commissioners have not yet been appointed as of that date and those five commissioners shall continue to serve until such time as the seven new commissioners are appointed and take office."

Selection of Chief Insurance Commissioner

Section 4. Section 38-3-60 of the 1976 Code is amended to read:

"Section 38-3-60. The Commission shall select and employ a Chief Insurance Commissioner and shall issue to him general policies and broad objectives regarding the operation of the insurance industry in this State. The Commission shall review, amend and supplement these policies and objectives as it sees fit, shall require the Chief Insurance Commissioner to forcefully pursue such policies and objectives but shall leave to the Chief Insurance Commissioner the task of developing and implementing specific plans, programs and techniques necessary to further the Commission's policies and objectives."

Governor to appoint committee

Section 5. The 1976 Code is amended by adding:

"Section 38-3-65. The Governor, with the advice and consent of the Senate, shall appoint an advisory committee of five residents of this State to advise and consult with the Commission concerning the policies formulated by the Commission and the operation and administration of this title. The advisory committee shall consist of the following competing segments of the insurance industry: One member from the life insurance field; one member from the accident and health field; one member from the property and casualty field; one member who is an agent primarily engaged in the life, accident and health insurance field; one member who is an agent primarily engaged in the property and casualty field. The advisory committee may be in attendance at each meeting of the Commission, but shall have at least one member in attendance at each meeting of the Commission. The advisory committee members shall serve a period coterminous with the term of the Governor. The members of the advisory committee shall receive no compensation, mileage, subsistence or per diem for their services."

Chief Insurance Commissioner

Section 6. Section 38-3-80 of the 1976 Code is amended to read:

"Section 38-3-80. The Chief Insurance Commissioner shall be selected by the Commission, which may remove or discharge him for good cause. The Chief Insurance Commissioner shall not be subject to the State Employee Grievance Committee nor any internal grievance procedure established at the Insurance Department. His term of employment shall be for four years, unless earlier terminated for good cause, and he shall be eligible for reemployment. He shall receive such annual salary as may be provided by law. The Commissioner shall be hired with special reference to his training, experience, technical knowledge of the insurance industry and demonstrated administrative ability. He shall be at least thirty years of age. He shall hold no other public office while serving as Commissioner, but shall devote all of his working time to the duties of his office. Before taking the oath of office he shall sever all connections, either direct or indirect, except as a policyholder, with any insurance company or agency and shall maintain the severance during his tenure of office. No person shall be eligible to serve as Commissioner who has been a member of the Commission. If he becomes a candidate for public office or becomes a member of a political committee during tenure, his office as Commissioner shall be immediately vacated."

Duties of Chief Insurance Commissioner

Section 7. The 1976 Code is amended by adding:

"Section 38-3-85. The Chief Insurance Commissioner shall have the following duties:

(1) Supervise and regulate the rates and service of every insurance company in this State and fix just and reasonable standards, classifications, regulations, practices and measurements of service to be observed and followed by every insurance company doing business in this State.

Nothing contained in this title shall be construed to authorize or require a review by the Commission of any order of the Chief Insurance Commissioner under the Administrative Procedures Act. The provisions of this item shall not be construed to grant any additional authority to the Chief Insurance Commissioner with regard to insurance rates other than the rate-making authority specifically granted to the Commissioner, the Commission or the Department of Insurance for certain kinds of insurance in other provisions of this title.

(2) See that all laws of this State governing insurance companies or relating to the business of insurance are faithfully executed, and make regulations to carry out the provisions of this title and all other insurance laws of this State, the enforcement or administration of which is not otherwise specifically provided for.

(3) Furnish to companies required by law to report to the Department the necessary blank forms for the reports required, which forms may be changed as necessary to secure full information as to the standing, condition and such other information desired by the Commissioner.

(4) Institute prosecution of criminal violations of any of the laws relative to insurance companies or the business of insurance or of any of the provisions of this title, and report to the Attorney General any violation of the laws relative to insurance companies or the business of insurance or the provisions of this title which he may deem necessary to report. The Attorney General shall institute civil action for such violations, either through his office or through such other attorney as he may select."

Commissioners and Chief Insurance Commissioner shall continue to serve

Section 8. The commissioners and the Chief Insurance Commissioner serving on the effective date of this act shall continue to serve until their successors are appointed and qualify.

Time effective

Section 9. This act shall take effect upon approval by the Governor.