Current Status Introducing Body:Senate Bill Number:591 Primary Sponsor:Committee (02) Committee Number:26 Type of Legislation:GB Subject:Insurance risk retention groups Residing Body:House Current Committee:Labor, Commerce and Industry Companion Bill Number:401 3245 Computer Document Number:591 Introduced Date:Feb 05, 1991 Last History Body:House Last History Date:Feb 12, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide Sponsor Committee:Banking and Insurance Sponsor Committee Number:02 Type of Legislation:General Bill
Bill Body Date Action Description CMN
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591 House Feb 12, 1991 Introduced, read first time, 26
referred to Committee
591 Senate Feb 08, 1991 Read third time, sent to House
591 Senate Feb 07, 1991 Read second time, unanimous
consent for third reading on
Friday, February 8
591 Senate Feb 05, 1991 Placed on Calendar without
reference
591 Senate Feb 05, 1991 Introduced, read first time
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Indicates Matter Stricken
Indicates New Matter
INTRODUCED
February 5, 1991
S. 591
S. Printed 2/5/91--S.
Read the first time February 5, 1991.
TO AMEND SECTION 38-87-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OUT-OF-STATE CHARTERED RISK RETENTION GROUPS, SO AS TO PROVIDE FOR THE EXAMINATION REGARDING FINANCIAL CONDITION TO BE CONDUCTED IN ACCORDANCE WITH THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS' EXAMINER'S HANDBOOK INSTEAD OF THE STANDARDS AND PROCEDURES APPLICABLE TO EXAMINATIONS OF ADMITTED INSURERS; AND TO AMEND SECTION 38-87-90, RELATING TO THE PURCHASE OF LIABILITY INSURANCE FROM A NONSTATE APPROVED SURPLUS LINES INSURER, SO AS TO PROVIDE THE CONDITIONS UNDER WHICH INSURANCE MAY BE PURCHASED FROM A RISK RETENTION GROUP NOT CHARTERED OR AN INSURER NOT ADMITTED IN THE STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-87-40(6) of the 1976 Code is amended to read:
"(6) Examination Regarding Financial Condition. Any A risk retention group shall submit to an examination by the Chief Insurance Commissioner to determine its financial condition if the commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination or does not initiate an examination within sixty days after a request by the Chief Insurance Commissioner of this State. Any such The examination must be coordinated to avoid unjustified repetition and must be conducted in an expeditious manner and in accordance with the standards and procedures applicable to examinations of admitted insurers National Association of Insurance Commissioners' Examiner's Handbook."
SECTION 2. Section 38-87-90 of the 1976 Code is amended to read:
"Section 38-87-90. (A) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of that state.
(A)(B) A purchasing group which obtains liability insurance from an approved surplus lines insurer not admitted in this State or a risk retention group shall inform each of the members of the group which have a risk resident or located in this State that the risk is not protected by an insurance insolvency guaranty fund in this State and that such the risk retention group or
such the insurer may not be subject to all insurance laws and regulations of this State.
(B)(C) No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole; however. However, coverage may provide for a deductible or self-insured retention applicable to individual members.
(C)(D) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance."
SECTION 3. This act takes effect upon approval by the Governor.