H*2266 Session 104 (1981-1982)
H*2266(Rat #0184, Act #0132 of 1981) General Bill, By H.L. Barksdale,
J.D. Bradley and D.F. McInnis
Similar(S 147)
A Bill to amend Section 38-51-150, Code of Laws of South Carolina, 1976, as
amended, relating to the revocation or refusal to reissue an insurance agent's
license, so as to provide that the Chief Insurance Commissioner may suspend
such license and to limit the crimes for which such licenses may be revoked,
suspended or not issued, to crimes involving moral turpitude; to impose time
limitations on periods of suspension and application for a new license after
revocation; to provide for administrative penalties in lieu of revocation,
suspension or refusal to reissue; and to provide that if the penalty is not
paid within thirty days of its imposition, the suspension, revocation or
renewal refusal shall become effective without further proceedings.
01/28/81 House Introduced and read first time HJ-350
01/28/81 House Referred to Committee on Labor, Commerce and
Industry HJ-351
03/04/81 House Committee report: Favorable Labor, Commerce and
Industry HJ-896
03/05/81 House Read second time HJ-1038
03/11/81 House Read third time and sent to Senate HJ-1100
03/11/81 Senate Introduced and read first time SJ-7
03/11/81 Senate Referred to Committee on Banking and Insurance SJ-7
06/04/81 Senate Committee report: Favorable with amendment
Banking and Insurance SJ-27
06/10/81 Senate Amended SJ-46
06/10/81 Senate Read second time SJ-46
06/16/81 Senate Read third time SJ-17
06/16/81 Senate Returned SJ-17
06/17/81 House Debate adjourned HJ-3284
06/18/81 House Concurred in Senate amendment and enrolled HJ-3307
06/23/81 House Ratified R 184 HJ-3332
06/26/81 Signed By Governor
06/26/81 Effective date 06/26/81
06/26/81 Act No. 132
07/10/81 Copies available
(A132, R184, H2266)
AN ACT TO AMEND SECTION 38-51-150, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS
AMENDED, RELATING TO THE REVOCATION OR REFUSAL TO REISSUE AN INSURANCE AGENT'S
LICENSE, SO AS TO PROVIDE THAT THE CHIEF INSURANCE COMMISSIONER MAY SUSPEND SUCH
LICENSE AND TO LIMIT THE CRIMES FOR WHICH SUCH LICENSES MAY BE REVOKED, SUSPENDED
OR NOT ISSUED, TO CRIMES INVOLVING MORAL TURPITUDE; TO IMPOSE TIME LIMITATIONS
ON PERIODS OF SUSPENSION AND APPLICATION FOR A NEW LICENSE AFTER REVOCATION; TO
PROVIDE FOR ADMINISTRATIVE PENALTIES IN LIEU OF REVOCATION, SUSPENSION OR REFUSAL
TO REISSUE; AND TO PROVIDE THAT IF THE PENALTY IS NOT PAID WITHIN THIRTY DAYS OF
ITS IMPOSITION, THE SUSPENSION, REVOCATION OR RENEWAL REFUSAL SHALL BECOME
EFFECTIVE WITHOUT FURTHER PROCEEDINGS.
Be it enacted by the General Assembly of the State of South Carolina:
Commissioner may revoke or suspend license
SECTION 1. Section 38-51-150 of the 1976 Code, as last amended by Act 455 of
1976, is further amended to read:
"Section 38-51-150. The Commissioner may revoke or suspend any such
license after ten days' notice or refuse to reissue a license when it shall
appear that an agent has been convicted of a crime involving moral turpitude, has
violated any provision of this title or any regulation promulgated by the
Commissioner, or has wilfully deceived or dealt unjustly with the citizens of
this State. For purposes of this section the word 'convicted' shall include a
plea of guilty or a plea of nolo contendere, and the record of conviction, or a
copy thereof, certified by the clerk of court or by the judge in whose court the
conviction occurred shall be conclusive evidence thereof.
The words 'deceived or dealt unjustly with the citizens of this State' shall
include but not be limited to action or inaction by the agent as follows:
(1) Misstating the facts in an application for insurance or aiding in the
misstatement of such facts;
(2) Failing to inform promptly the customer or insured of the correct premium
or informing him of an incorrect premium based on the information furnished the
agent by the customer or insured;
(3) Failing to transmit promptly or pay all or a portion of the amount of an
insurance premium when the agent or one of his employees has received payment
therefor from a customer or insured or someone on his behalf or when it has been
financed by the agent;
(4) Issuing his check covering all or a portion of an insurance premium which
is not accepted by the bank on which it is written when it is initially submitted
to such bank;
(5) Failing to deliver promptly a policy, endorsement or rider to any insured;
(6) Failing to notify promptly the customer or insured if the agent has been
unable to obtain the requested insurance for him;
(7) Failing to maintain adequate records regarding insurance sought or obtained
from or through the agent which can be examined by the Commissioner or one of his
representatives for and on behalf of a citizen of this State.
When upon investigation the Commissioner finds that an agent has obtained a
license by fraud or misrepresentation, he may immediately suspend such license.
The Commissioner shall, in an order suspending a license, specify the period
during which the suspension is to be in effect, but such period shall not exceed
one year.
No licensee whose license has been revoked or an applicant who has been refused
a license by the Commissioner shall have the right to apply for another license
within two years from the effective date of such revocation or refusal or, if
judicial review of such revocation or refusal is sought, within two years from
the date of a final court order or decree affirming the revocation or refusal.
If, after notice of a hearing or notice of an opportunity for hearing, the
Commissioner finds that one or more grounds exist for the revocation, suspension
or refusal to issue or reissue a license, the Commissioner may, in his
discretion, in lieu of such revocation, suspension or refusal, impose upon the
agent or applicant an administrative penalty of not more than five hundred
dollars for each offense or ground. Upon payment being made, the Commissioner
shall pay the penalty collected into the state's general fund. The Commissioner
may allow the agent or applicant a reasonable period, not to exceed thirty days,
within which to pay to the Commissioner the amount of the penalty imposed. If the
agent or applicant fails to pay the penalty in its entirety to the Commissioner
at his office in Columbia within the period allowed, the license or application
shall stand revoked, suspended or renewal refused, as the case may be, upon
expiration of such period and without any further proceedings. Any action by the
Commissioner taken pursuant to this section shall be subject to judicial review
in accordance with the provisions of Section 38-3-210."
Time effective
SECTION 2. This act shall take effect upon approval by the Governor. |