Current Status Introducing Body:Senate Bill Number:327 Primary Sponsor:Richter Committee Number:02 Type of Legislation:GB Subject:Elect Insurance Commissioner Residing Body:Senate Current Committee:Banking and Insurance Introduced Date:19930128 Last History Body:Senate Last History Date:19930128 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Richter Passailaigue Rose Mescher Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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327 Senate 19930128 Introduced, read first time, 02
referred to Committee
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TO AMEND CHAPTER 3, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE INSURANCE COMMISSION AND THE DEPARTMENT OF INSURANCE SO AS TO ABOLISH THE INSURANCE COMMISSION AND TO PROVIDE THAT COMMENCING IN 1994 THE INSURANCE COMMISSIONER MUST BE ELECTED BY THE QUALIFIED ELECTORS OF THE STATE; TO PROVIDE FOR HIS TERM, QUALIFICATIONS, AND FOR THE FILLING OF A VACANCY; TO CHANGE REFERENCES IN THIS CHAPTER RELATING TO THE INSURANCE COMMISSIONER; TO DELETE GENERAL PROVISIONS RELATING TO THE INSURANCE COMMISSION; TO DELETE PROVISIONS RELATING TO THE INSURANCE ADVISORY COMMITTEE; AND TO PROVIDE THAT THE CODE COMMISSIONER CHANGE CERTAIN REFERENCES IN THE 1976 CODE OF LAWS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 3, Title 38 of the 1976 Code is amended to read:
"Section 38-3-10. There is established a separate and distinct department of this State, known as the Department of Insurance, which is the administrative arm of the Insurance Commission.
Section 38-3-20. Beginning on July 1, 1980, the Insurance Commission is composed of seven members, one being selected from each congressional district and one from the State at large, who must be appointed by the Governor, with the advice and consent of the Senate. Two must be appointed for a term of two years, two must be appointed for a term of four years, and three must be appointed for a term of six years. Thereafter, the terms are for six years and all members of the Commission shall serve until their successors are appointed and qualify. No member appointed may have past or present employment in the insurance industry during the four years immediately preceding his appointment but must be selected from the general public based upon demonstrated objectivity, independence, and service in matters of public concern. No members of the Commission may serve more than one term. Any vacancy in office must be filled by the Governor by appointment.
(A) Commencing in 1994 and every four years thereafter, the qualified electors of the State must elect in the general election an Insurance Commissioner who must serve for a term of four years, coterminous with that of the Governor. He may succeed himself in the office.
(B) The Insurance Commissioner must be at least thirty years of age. He may not hold any other public office while serving as Insurance Commissioner but shall devote all of his working time to the duties of his office as provided by law. 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. If he becomes a candidate for any other public office or becomes a member of a political committee during tenure, his office as Insurance Commissioner must be vacated immediately.
(C) In case any vacancy shall occur in the office of Insurance Commissioner by death, resignation, or otherwise, the vacancy thereby created shall be filled by the Governor, by and with the advice and consent of the Senate, for the unexpired portion of the term.
(D) The Insurance Commissioner, if any, serving on the effective date of this act shall continue to serve until his successor is elected and qualifies pursuant to the provisions of this section.
Section 38-3-30. Each member of the Commission shall, before entering upon or continuing to discharge the duties of his office, give bond to the State in the sum of twenty-five thousand dollars with a sufficient surety, to be approved by the State Treasurer, for the faithful performance of all duties required of him under the law during the term of his office. The premium of the bond must be paid by the State.
Section 38-3-40. The Insurance Commissioner Commission members shall receive annual such compensation as may be provided by the General Assembly and official expenses as provided by law for members of state boards, committees, and commissions as established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriation act.
Section 38-3-50. Annually the Commission shall organize itself by electing one of its number as chairman and any other officer it considers necessary. The Commission shall meet as often as necessary for the discharge of its business and shall meet upon the call of the chairman or a majority of the members. The majority of the members constitutes a quorum.
Section 38-3-60. The Commission Insurance Commissioner 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 and shall review, amend, and supplement these policies and objectives as it he sees fit, shall require the Chief Insurance Commissioner to pursue forcefully the 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.
Section 38-3-70. The Commission Insurance Commissioner shall annually submit to the General Assembly, through the Governor, a report of its his official acts and doings, together with a report of all insurers under the Commission Department of Insurance doing business in this State, with condensed statements of their reports made to it, together with a statement of all licenses, taxes, and fees received by it through insurers and paid by it to the State Treasurer. The Commission Insurance Commissioner shall report to the General Assembly any change which in its his opinion should be made in the laws relating to insurance and other subjects pertaining to the Commission. By February first of each year, it he shall make to the Governor the recommendations called for in this section, to be transmitted to the General Assembly with its last the most recent Department of Insurance annual report, including a statement of its receipts and disbursements.
Section 38-3-80. The Commission Insurance Commissioner shall have a adopt an official seal with a suitable inscription, an impression of which must be filed with the Secretary of State.
Section 38-3-90. 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 consists 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 and accident and health insurance field; and one member who is an agent primarily engaged in the property and casualty field. The advisory committee may be in attendance at each public meeting of the Commission but must have at least one member in attendance at each public meeting. The advisory committee may not attend executive sessions of the Commission. The advisory committee members shall serve a period coterminous with the term of the Governor. The members of the advisory committee may receive no compensation, mileage, subsistence, or per diem for their services. Any vacancy in office must be filled by the Governor by appointment.
Section 38-3-100. The Commission shall select the Commissioner and may remove or discharge him for good cause. The Commissioner is not subject to the State Employee Grievance Committee or any internal grievance procedure established at the Insurance Department. His term of employment is for four years, unless earlier terminated for good cause, and he is eligible for reemployment. He shall receive an annual salary as provided by law. The Commissioner must be hired with special reference to his training, experience, technical knowledge of the insurance industry, and demonstrated administrative ability. He must be at least thirty years of age. He may 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 who has been a Commission member may serve as Commissioner. If he becomes a candidate for public office or becomes a member of a political committee during tenure, his office as Commissioner must be immediately vacated.
Section 38-3-110. The Chief Insurance Commissioner has the following duties:
(1) supervise and regulate the rates and service of every insurer in this State and fix just and reasonable standards, classifications, regulations, practices, and measurements of service to be observed and followed by every insurer doing business in this State. Nothing contained in this title authorizes or requires a review by the Insurance Commissioner Commission of any order of the Commissioner under the Administrative Procedures Act. This item does not grant any additional authority to the 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 insurers or relating to the business of insurance are faithfully executed and make regulations to carry out 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 domestic insurers 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 any other information desired by the Commissioner;
(4) report to the Attorney General or other appropriate law enforcement officials criminal violations of the laws relative to the business of insurance or the provisions of this title which he considers necessary to report; and
(5) institute civil actions, either through his office or through the Attorney General, relative to the business of insurance or the provisions of this title which he considers necessary to institute.
Section 38-3-120. The Commissioner shall take the oath of office as prescribed for all state officers. Before entering upon or continuing the discharge of the duties of his office, he shall give bond to the State for the benefit of any person aggrieved by his unlawful or wrongful actions. This bond must be in the sum of fifty thousand dollars, with sufficient surety, to be approved by the State Treasurer, for the faithful performance of all the duties required of him under the law during the term of his office. The premium of the bond must be paid by the State.
Section 38-3-130. The Insurance Commissioner shall appoint or employ actuaries, examiners, clerks, and other employees necessary for the proper execution of the work of the Commission commission.
Section 38-3-140. The failure to do any act required by this title is considered a violation committed in part at the office of the Commissioner commissioner in Columbia.
Section 38-3-150. All examinations or investigations provided by this title, unless otherwise provided by any other insurance laws of this State, may be conducted by the Insurance Commissioner or by one or more of his duly authorized assistants or agents. All hearings must be held by the Insurance Commissioner or by one of his duly authorized assistants or agents when authorized to do so in writing by the Insurance Commissioner. However, in any hearing concerning the adjustment of insurance rates only the Chief Insurance Commissioner or the Deputy Chief Insurance Commissioner may conduct the hearing.
Section 38-3-160. The Insurance Commissioner or his duly appointed assistants or agents shall administer all oaths required in the discharge of his official duties and may also administer oaths and affirmations to persons appearing as witnesses before them, and false testimony in any matter or proceeding is considered perjury and must be punished in accordance with the laws of this State.
Section 38-3-170. All hearings, unless otherwise specifically provided, must be held at the time and place designated in a written notice given by the Insurance Commissioner to the person cited to appear at least thirty days before the designated date. The notice shall state the subject of the inquiry and specific charges, if any. It is sufficient to give notice either by delivering it to the person or by depositing it in the United States mail, postage prepaid, addressed to the last known address of the person and registered with return receipt requested.
Section 38-3-180. The Insurance Commissioner or any assistants or agents appointed to conduct examinations may summon and compel the attendance of witnesses to testify in relation to any matter which is, by the provisions of this title or by any other insurance laws of this State, a subject of inquiry and investigation. The Insurance Commissioner has the power of a circuit judge to punish for contempt any witness failing to answer any summons or failing or refusing to testify when so required. The Commissioner or any assistants or agents appointed to conduct examinations may also administer oaths and affirmations to persons appearing as witnesses before them, and false testimony in any matter or proceeding is considered perjury and must be punished in accordance with the laws of this State.
Section 38-3-190. Any person summoned by the Insurance Department to testify as a witness at any hearing must be paid for his actual mileage at the same rate as provided by law for state boards, committees, and commissions.
Section 38-3-200. No order of the Insurance Commissioner is effective unless made in writing and signed by the Commissioner or by his authority.
Section 38-3-210. Any order or decision made, issued, or executed by the commissioner Insurance Commissioner or his assistants or agents is subject to judicial review in accordance with the appellate procedures of Sections 1-23-380 and 1-23-390. An appeal from an order or decision under this section must be heard in the Court of Common Pleas of Richland County. However, an appeal may be brought in any county and subsequently transferred to Richland County. Notwithstanding the provisions of Section 1-23-380(c), the circuit court may not, under any terms, order a stay of enforcement of any order of the commissioner to make good an impairment of capital or surplus or a deficiency in the amount of admitted assets.
Section 38-3-220. Every certificate or other paper executed by the Insurance Commissioner in pursuance of any authority conferred upon him by law and sealed with the seal of the Commission commission and all copies of papers certified by the Insurance Commissioner and authenticated by the Commission's department's seal may in all cases be used as evidence in any suit or proceeding in any court of this State with the same force and effect as the originals.
Section 38-3-230. In any case or controversy where it is necessary to determine whether any insurance or other company, or agent thereof, is or has been licensed by the Insurance Commissioner to do business in this State, the certificate of the Commissioner commissioner under the seal of the Commission department is admissible in evidence as proof of this authority.
Section 38-3-240. (A) Beginning July 1, 1992, the The Insurance Commissioner of South Carolina shall begin converting certain licenses required by statute or regulation to a biennial license fee collection period. These license fees must be collected as follows:
(1) All insurers transacting business in this State including reciprocals, fraternal benefit associations, mutual insurers doing a property business only in no more than three counties, mutual insurers doing a property business only in a single county, and approved reinsurers shall pay a license fee for two years to the commissioner Insurance Commissioner by March 1, 1994, and every two years after that time by March 1st first every even-numbered year.
(2) An agency transacting the business of insurance in this State shall pay a license fee for two years to the commissioner within thirty days after January 1, 1994, and every two years after that time within thirty days after January 1st first every even-numbered year.
(3) A broker transacting the business of insurance in this State shall pay a license fee for two years to the commissioner within thirty days after May 1, 1994, and every two years after that time within thirty days after May 1st first every even-numbered year.
(4) An adjuster transacting business in this State shall pay a license fee for two years to the commissioner within thirty days after August 1, 1993, and every two years after that time within thirty days after August 1st first every odd-numbered year.
(5) A motor vehicle damage appraiser transacting business in this State shall pay a license fee for two years to the commissioner within thirty days after October 1, 1993, and every two years after that time within thirty days after October 1st first every odd-numbered year.
(6) An agent transacting the business of insurance in this State shall pay a license fee for two years to the commissioner within thirty days after September 1, 1992, and every two years after that time within thirty days after July 1st first every even-numbered year.
(B) The fees described in this section must be earned fully when paid and are not refundable, proratable, or transferable. They must be collected in the amount and manner prescribed by statute or regulation before July 1, 1992, until the dates prescribed in subsection (A) when collections must be made pursuant to that subsection.
SECTION 2. Wherever the term Commission or Insurance Commission appears in the Acts and Joint Resolutions of the General Assembly or the 1976 Code of Laws of South Carolina, it shall mean Insurance Commissioner. The Code Commissioner is directed to change all references at such time and in such a manner as may be timely and cost effective.
SECTION 3. This act takes effect upon approval by the Governor.