H*4491(Rat #0412, Act #0368)  General Bill, By J.J. Bailey, R.S. Corning, 
J.T. McElveen, Quinn and Scott

Similar(S 969)
 A Bill 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 premium unearned to the liquidator.

   01/13/94  House  Introduced and read first time HJ-268
   01/13/94  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-268
   02/23/94  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-8
   03/24/94  House  Read second time HJ-34
   03/24/94  House  Unanimous consent for third reading on next
                     legislative day HJ-35
   03/25/94  House  Read third time and sent to Senate HJ-6
   03/29/94  Senate Introduced and read first time SJ-9
   03/29/94  Senate Referred to Committee on Banking and Insurance SJ-9
   04/06/94  Senate Committee report: Favorable Banking and Insurance SJ-9
   04/07/94  Senate Read second time SJ-20
   04/19/94  Senate Read third time and enrolled SJ-12
   04/27/94         Ratified R 412
   05/02/94         Signed By Governor
   05/02/94         Effective date 05/02/94
   05/10/94         Copies available

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.