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A193, R223, H4759
STATUS INFORMATION
General Bill
Sponsors: Labor, Commerce and Industry Committee
Document Path: l:\council\bills\dka\3817dw08.doc
Companion/Similar bill(s): 4674
Introduced in the House on February 27, 2008
Introduced in the Senate on March 4, 2008
Passed by the General Assembly on March 18, 2008
Governor's Action: April 2, 2008, Signed
Summary: Insurers Rehabilitation and Liquidation Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
2/27/2008 House Introduced, read first time, placed on calendar without
reference HJ-11
2/28/2008 House Read second time HJ-28
2/28/2008 House Roll call Yeas-108 Nays-0 HJ-30
2/28/2008 House Unanimous consent for third reading on next legislative
day HJ-30
2/29/2008 House Read third time and sent to Senate HJ-3
3/4/2008 Senate Introduced and read first time SJ-11
3/4/2008 Senate Referred to Committee on Banking and Insurance SJ-11
3/13/2008 Senate Committee report: Favorable Banking and Insurance SJ-10
3/13/2008 Senate Read second time SJ-10
3/18/2008 Senate Read third time and enrolled SJ-23
3/27/2008 Ratified R 223
4/2/2008 Signed By Governor
4/8/2008 Copies available
4/8/2008 Effective date 04/02/08
4/15/2008 Act No. 193
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
2/27/2008
2/27/2008-A
3/12/2008
(A193, R223, H4759)
AN ACT TO AMEND SECTION 38-27-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PERSONS COVERED UNDER THE PROVISIONS OF THE "INSURERS REHABILITATION AND LIQUIDATION ACT", SO AS TO PROVIDE THAT CHAPTER 27, TITLE 38 DOES NOT APPLY TO CERTAIN ASSOCIATIONS DEFINED IN SECTION 38-38-730; TO AMEND SECTION 38-38-430, RELATING TO THE GOVERNANCE OF FRATERNAL BENEFIT SOCIETIES BY CHAPTER 38, TITLE 38, SO AS TO PROVIDE THAT CERTAIN ASSOCIATIONS IN WHICH MEMBERS ARE ACTIVE OR RETIRED MILITARY OFFICERS OR ENLISTED PERSONNEL ARE EXEMPTED FROM THE PROVISIONS OF CHAPTER 38; AND TO AMEND SECTION 38-38-730, RELATING TO EXEMPTION FROM THE REGULATION OF CERTAIN ASSOCIATIONS AND SOCIETIES BY THE DEPARTMENT OF INSURANCE, SO AS TO ADD A CERTAIN ASSOCIATION IN WHICH MEMBERS ARE ACTIVE OR RETIRED MILITARY OFFICERS OR ENLISTED PERSONNEL.
Be it enacted by the General Assembly of the State of South Carolina:
Associations exempted
SECTION 1. Section 38-27-40 of the 1976 Code is amended to read:
"Section 38-27-40. The proceedings authorized by this chapter may be applied to:
(1) insurers who are doing, or have done, an insurance business in this State and against whom claims arising from that business may exist now or in the future;
(2) insurers who purport to do an insurance business in this State;
(3) insurers who have insureds resident in this State;
(4) other persons organized or in the process of organizing with the intent to do an insurance business in this State;
(5) nonprofit service plans, fraternal benefit societies, and beneficial societies; however, this chapter does not apply to associations as defined in Section 38-38-730(A)(8);
(6) title insurance companies;
(7) surety companies subject to Chapter 15 of Title 38;
(8) multiple employer self-insured health plans defined in Chapter 41 of Title 38;
(9) prepaid health care delivery plans."
Certain associations added
SECTION 2. Section 38-38-430 of the 1976 Code is amended to read:
"Section 38-38-430. Societies and associations described in Section 38-38-730(A)(8) are governed by this chapter and are exempt from all other provisions of the insurance laws of this State, unless expressly designated or specifically made applicable by this chapter."
Military-affiliated associations exempted
SECTION 3. Section 38-38-730 of the 1976 Code is amended to read:
"Section 38-38-730. (A) This chapter does not apply to the following:
(1) Associations which limit their memberships to one hazardous occupation.
(2) Similar societies which do not issue insurance certificates.
(3) An association of local lodges of an association.
(4) The ladies' societies or ladies' auxiliaries to these societies or associations, doing business in this State on May 12, 1947, which provide death benefits not exceeding five hundred dollars to a person or disability benefits not exceeding three hundred dollars in one year to one person, or both.
(5) Contracts or reinsurance business on these plans in this State.
(6) Domestic associations which limit their memberships to the employees of a particular city or town or designated firm, business, house, or corporation.
(7) Domestic lodges, orders, or associations of a purely religious, charitable, and benevolent description which do not provide for a death benefit of more than one hundred dollars or for disability benefits of more than one hundred fifty dollars to one person in one year.
(8) An association, whether a fraternal benefit society or not, which was organized before 1880 and whose members are officers or enlisted, regular or reserve, active, retired, or honorably discharged members of the Armed Forces or Sea Services of the United States, and a principal purpose of which is to provide insurance and other benefits to its members and their dependents or beneficiaries.
(B) The director or his designee may require from a society or an association, by examination or otherwise, information that will enable the director or his designee to determine whether the society or association is exempt from the provisions of this chapter."
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Ratified the 27th day of March, 2008.
Approved the 2nd day of April, 2008.
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