Current Status Introducing Body:House Bill Number:3240 Ratification Number:23 Act Number:5 Primary Sponsor:Boan Type of Legislation:GB Subject:Property and casualty insurance guaranty members Companion Bill Number:399 Date Bill Passed both Bodies:Mar 01, 1991 Computer Document Number:NO5/7129.BD Governor's Action:S Date of Governor's Action:Mar 15, 1991 Introduced Date:Jan 17, 1991 Date of Last Amendment:Feb 14, 1991 Last History Body:------ Last History Date:Mar 15, 1991 Last History Type:Act No. 5 Scope of Legislation:Statewide All Sponsors:Boan McElveen Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3240 ------ Mar 15, 1991 Act No. 5
3240 ------ Mar 15, 1991 Signed by Governor
3240 ------ Mar 12, 1991 Ratified R 23
3240 Senate Mar 01, 1991 Read third time, enrolled for
ratification
3240 Senate Feb 28, 1991 Read second time, unanimous
consent for third reading on
Friday, March 1
3240 Senate Feb 20, 1991 Introduced, read first time,
placed on Calendar without
reference
3240 House Feb 19, 1991 Read third time, sent to
Senate
3240 House Feb 14, 1991 Amended, read second time
3240 House Feb 13, 1991 Committee Report: Favorable 26
with amendment
3240 House Jan 17, 1991 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
(A5, R23, H3240)
AN ACT TO AMEND SECTION 38-31-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES AND POWERS OF THE CHIEF INSURANCE COMMISSIONER, SO AS TO PROVIDE ADDITIONAL POWERS PERTAINING TO MAXIMUM ASSESSMENTS ON ACCOUNTS OF PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION MEMBERS AND TO INSURANCE EMERGENCIES OR CATASTROPHES.
Be it enacted by the General Assembly of the State of South Carolina:
Additional powers
SECTION 1. Section 38-31-80 of the 1976 Code is amended to read:
"Section 38-31-80. (A) The commissioner shall:
(1) notify the association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency;
(2) upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(B) The commissioner may:
(1) require that the association notify the insureds of the insolvent insurer and other interested parties of the determination of insolvency and of their rights under this chapter. The notification must be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation is sufficient;
(2) suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this State of a member insurer who fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may impose the penalties provided in Section 38-2-10;
(3) revoke the designation of a servicing facility if he finds claims are being handled unsatisfactorily;
(4) upon request of the board of directors, notwithstanding the limitation on assessments contained in Section 38-31-60(c)(iii), increase the maximum assessment in a year in an account in order for that assessment to provide an amount sufficient to make all necessary payments by the association from that account. However, no member insurer may be assessed in a year on an account under this provision an amount greater than two percent of the member insurer's net direct written premiums for the calendar year preceding the insolvency on the kinds of insurance in the account;
(5) after determining that an insurance emergency or catastrophe exists in this State pursuant to Insurance Department Regulation 69-1(2), direct the association to pay the first one hundred dollars of each unearned premium claim and the first two hundred fifty dollars of each covered claim, notwithstanding the provisions of Section 38-31-60(a)."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Approved the 15th day of March, 1991.