Current Status Introducing Body:House Bill Number:4491 Ratification Number:412 Act Number:368 Primary Sponsor:J. Bailey Type of Legislation:GB Subject:Insurance premiums Companion Bill Number:969 Date Bill Passed both Bodies:19940419 Computer Document Number:BBM/10819JM.94 Governor's Action:S Date of Governor's Action:19940502 Introduced Date:19940113 Last History Body:------ Last History Date:19940502 Last History Type:Act No. 368 Scope of Legislation:Statewide All Sponsors:J. Bailey Corning McElveen Quinn Scott Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
4491 ------ 19940502 Act No. 368
4491 ------ 19940502 Signed by Governor
4491 ------ 19940427 Ratified R 412
4491 Senate 19940419 Read third time, enrolled for
ratification
4491 Senate 19940407 Read second time
4491 Senate 19940406 Committee Report: Favorable 02
4491 Senate 19940329 Introduced, read first time, 02
referred to Committee
4491 House 19940325 Read third time, sent to
Senate
4491 House 19940324 Read second time, unanimous
consent for third reading on
next Legislative day
4491 House 19940223 Committee Report: Favorable 26
4491 House 19940113 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
(A368, R412, H4491)
AN ACT TO AMEND SECTION 38-27-520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURERS REHABILITATION AND LIQUIDATION, FORMAL PROCEEDINGS, AND THE RECOVERY OF PREMIUMS OWED, SO AS TO DELETE CERTAIN LANGUAGE, PROVIDE THAT AN AGENT, BROKER, PREMIUM FINANCE COMPANY, OR ANY OTHER PERSON, OTHER THAN THE INSURED, RESPONSIBLE FOR THE PAYMENT OF A PREMIUM IS OBLIGATED TO PAY ANY UNPAID COLLECTED PREMIUM HELD BY SUCH PERSON AT THE TIME OF THE DECLARATION OF INSOLVENCY, WHETHER EARNED OR UNEARNED, AND ANY UNPAID EARNED PREMIUM, ALL AS SHOWN ON THE RECORDS OF THE INSURER, AND PROVIDE THAT AN AGENT, BROKER, PREMIUM FINANCE COMPANY, OR ANY OTHER PERSON HAS NO OBLIGATION TO PAY AN UNCOLLECTED UNPAID UNEARNED PREMIUM TO THE LIQUIDATOR.
Be it enacted by the General Assembly of the State of South Carolina:
No obligation to pay uncollected unpaid unearned premium to liquidator, etc.
SECTION 1. Section 38-27-520(a)(1) of the 1976 Code is amended to read:
"(1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium is obligated to pay any unpaid collected premium held by such person at the time of the declaration of insolvency, whether earned or unearned, and any unpaid earned premium, all as shown on the records of the insurer. An agent, broker, premium finance company, or any other person shall have no obligation to pay an uncollected unpaid unearned premium to the liquidator. The liquidator has the right to recover from that person any part of an unearned premium that represents that person's commission. Credits or setoffs or both are not allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Approved the 2nd day of May, 1994.