H*4137 Session 109 (1991-1992)
H*4137(Rat #0385, Act #0342 of 1992) General Bill, By J.J. Bailey,
R.S. Corning, J.T. McElveen, Quinn and Scott
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
38-75-375 so as to provide for payments of assessments or interest by member
companies to the Windstorm and Hail Underwriting Association and for
penalties; to amend Section 38-75-370, relating to duties of association
members and limitation on liability, so as to authorize the Association to
rely on a member company's annual statement in determining participation in
profits and losses and provide requirements to receive credit for essential
property voluntarily written in the coastal area; and to amend Section
38-75-410, relating to appeals from acts, rulings, or decisions of the
Association, so as to provide for the time of appeals for certain acts.
01/14/92 House Introduced and read first time HJ-192
01/14/92 House Referred to Committee on Labor, Commerce and
Industry HJ-193
02/19/92 House Committee report: Favorable Labor, Commerce and
Industry HJ-5
02/20/92 House Read second time HJ-18
02/25/92 House Read third time and sent to Senate HJ-17
02/26/92 Senate Introduced and read first time SJ-6
02/26/92 Senate Referred to Committee on Banking and Insurance
03/26/92 Senate Committee report: Favorable Banking and Insurance SJ-18
03/31/92 Senate Read second time SJ-46
04/06/92 Senate Read third time and enrolled SJ-19
04/28/92 Ratified R 385
05/04/92 Signed By Governor
05/04/92 Effective date 05/04/92
05/04/92 Act No. 342
05/26/92 Copies available
(A342, R385, H4137)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING SECTION 38-75-375 SO AS
TO PROVIDE FOR PAYMENTS OF ASSESSMENTS OR
INTEREST BY MEMBER COMPANIES TO THE
WINDSTORM AND HAIL UNDERWRITING ASSOCIATION
AND FOR PENALTIES; TO AMEND SECTION 38-75-370,
RELATING TO DUTIES OF ASSOCIATION MEMBERS AND
LIMITATION ON LIABILITY, SO AS TO AUTHORIZE THE
ASSOCIATION TO RELY ON A MEMBER COMPANY'S
ANNUAL STATEMENT IN DETERMINING PARTICIPATION
IN PROFITS AND LOSSES AND PROVIDE REQUIREMENTS
TO RECEIVE CREDIT FOR ESSENTIAL PROPERTY
VOLUNTARILY WRITTEN IN THE COASTAL AREA; AND
TO AMEND SECTION 38-75-410, RELATING TO APPEALS
FROM ACTS, RULINGS, OR DECISIONS OF THE
ASSOCIATION, SO AS TO PROVIDE FOR THE TIME OF
APPEALS FOR CERTAIN ACTS.
Be it enacted by the General Assembly of the State of South
Carolina:
Payments of assessments or interest by member companies to
the Windstorm and Hail Underwriting Association;
penalties
SECTION 1. The 1976 Code is amended by adding:
"Section 38-75-375. (A) If a member company
perceives an assessment or interest levied by the association to be
unjust or illegal, the company shall pay the assessment or interest
under protest in writing within thirty days of the assessment or
interest charge. Upon receiving this payment, the association
shall pay the money collected into the association account and
designate the money as having been paid under protest.
(B) A member company paying an assessment or interest
under protest shall appeal to the association within thirty days
after making the payment. If it is determined in that appeal that
the assessment or interest was collected unjustly or illegally, the
association shall refund the assessment or interest to the
payor.
(C) If a member company fails to pay an assessment or interest
within thirty days of the assessment or interest charge by the
association, the company is subject to disciplinary procedures
pursuant to Section 38-5-120 or 38-5-130."
Determination of participation in profits and losses; credit for
essential property voluntarily written in the coastal area
SECTION 2. Section 38-75-370 of the 1976 Code is amended to
read:
"Section 38-75-370. All members of the association shall
participate in its writings, expenses, profits, and losses in the
proportion that the net direct premium of the member written in
this State during the preceding calendar year bears to the
aggregate net direct premiums written in this State by all members
of the association, as certified to the association by the department
after review of annual statements, other reports, and other
statistics which the department considers necessary to provide the
information required and which the department is authorized to
obtain from a member of the association. After certification by
the department, the association may rely on the member
company's annual statement in determining the company's
participation in profits and losses for each year.
Each member's participation in the association must be
determined annually in the same manner as the initial
determination. An insurer authorized to write and engage in
writing insurance, the writing of which requires the insurer to be a
member of the association pursuant to Section 38-75-330,
becomes a member of the association on January first immediately
following the authorization. The determination of the insurer's
participation in the association must be made as of the date of the
membership in the same manner as for all other members of the
association. Member insurers shall receive credit annually for
essential property insurance voluntarily written in the coastal area
and their participation in the writings of the association must be
reduced accordingly. The board of directors shall authorize the
method of determining the credit. In order to receive credit for
essential property voluntarily written in the coastal area, each
member company shall submit its requests by March thirty-first of
the year for which credit is sought.
The assessment of a member insurer after hearing may be
ordered deferred in whole or in part upon application by the
insurer if, in the opinion of the commissioner, payment of the
assessment would render the insurer insolvent or in danger of
insolvency or would otherwise leave the insurer in a condition so
that further transaction of the insurer's business would be
hazardous to its policyholders, creditors, members, subscribers,
stockholders, or the public. If payment of an assessment against a
member insurer is deferred by order of the commissioner in whole
or in part, the amount by which the assessment is deferred must be
assessed against other member insurers in the same manner as
provided in this section. In its order of deferral, or in necessary
subsequent orders, the commissioner shall prescribe a plan by
which the assessment so deferred must be repaid to the association
by the impaired insurer with interest at the six-month treasury bill
rate adjusted semiannually. Profits, dividends, or other funds of
the association to which the insurer is otherwise entitled must not
be distributed to the impaired insurer but must be applied toward
repayment of an assessment until the obligation has been satisfied.
The association shall distribute the repayments, including interest,
to the other member insurers on the basis at which assessments
were made."
Appeals
SECTION 3. Section 38-75-410 of the 1976 Code is amended to
read:
"Section 38-75-410. (A) A person insured pursuant to
this article or his representative or a member company who is
aggrieved by an act, ruling, or decision of the association:
(1) regarding rates, classification of risks, assessments,
voluntary credits, cancellation or termination of policies, or
underwriting shall appeal to the commissioner within sixty days
after the act, ruling, or decision;
(2) other than those specified in item (1), may appeal to
the commissioner within thirty days after the act, ruling, or
decision.
(B) Hearings held by the commissioner pursuant to this section
must be in accordance with the procedures set forth in Chapter 3,
Title 38 and Article 3, Chapter 23, Title 1, `Administrative
Procedures'."
Time effective
SECTION 4. This act takes effect upon approval by the
Governor.
Approved the 4th day of May, 1992. |