S 902 Session 107 (1987-1988)
S 0902 General Bill, By Saleeby, McConnell and T.H. Pope
Similar(S 1090, H 3331)
A Bill to amend Article 9, Chapter 19, Title 38, Code of Laws of South
Carolina, 1976, relating to operations generally of a domestic mutual insurer,
by adding Sections 38-19-815 and 38-19-825 so as to define "bulk reinsurance
and assumption", "merger", and "conversion of a mutual insurer to a stock
insurer", and provide for a procedure for bulk reinsurance and assumption,
merger, and conversion; to amend Section 38-19-20, relating to contracts
issued by domestic mutual insurers, so as to provide that the employer whose
name is on the master contract is a member of the insurer when the contract is
a group annuity contract or a contract of group insurance and the holder of an
individual or group annuity contract or an individual or group contract of
insurance instead of a holder of one or more insurance contracts issued by an
insurer; to amend Section 38-19-40, relating to notice of the time and place
of the annual meeting of members required to be given by a domestic mutual
insurer, so as to require a procedure for changing the time instead of the
date of the annual meeting; to amend Section 38-19-50, relating to the use of
a proxy by a member of a domestic mutual insurer, so as to delete the
authority of a member of the insurer to give his proxy to another member, the
prohibition of an officer of the insurer holding or voting the proxy of any
member, and the conditions under which a proxy is no longer valid, to provide
when the appointment of the proxy is effective, and to add conditions under
which a member's vote upon a proposal may be registered, provide conditions
under which a proxy only may be used; to amend Section 38-19-60, relating to
the conduct of business at an annual meeting of a domestic mutual insurer, so
as to delete the provisions governing the utilization of a proxy; to amend
Section 38-19-610, relating to the borrowing of money by a domestic mutual
insurer, so as to delete the maximum percentage rate of eight percent a year
at which the money may be borrowed; to amend Section 38-27-610, relating to
the priority of distribution of claims from the insurer's estate, so as to
delete the provisions in Class 7 which authorize payments to members of
domestic mutual insurance companies limited in accordance with law and create
a new Class 8 authorizing payments to members of domestic mutual insurance
companies; and to repeal Sections 38-19-210 through 38-19-260 relating to
operations generally of domestic mutual insurers, and Sections 38-19-810,
38-19-820, 38-19-830, 38-19-840, 38-19-850, 38-19-860, 38-19-870, 38-19-880,
38-19-890 relating to conversion of reinsurance, liquidation, and merger of a
domestic mutual insurer.
10/12/87 Senate Prefiled
10/12/87 Senate Referred to Committee on Banking and Insurance
01/12/88 Senate Introduced and read first time SJ-215
01/12/88 Senate Referred to Committee on Banking and Insurance SJ-21
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