S 1113 Resolution, By Malloy, Williams, Scott, Sheheen, Knotts, Short, Reese, 
Anderson, Elliott, Ford, Jackson, Pinckney, Rankin, Land, Hutto, McGill, 
Hawkins, Matthews and Patterson
 A SENATE RESOLUTION REQUESTING THE SENATE BANKING AND INSURANCE COMMITTEE TO
 CONDUCT OVERSIGHT HEARINGS WITH RESPECT TO THE OPERATIONS AND MANAGEMENT OF
 THE SOUTH CAROLINA DEPARTMENT OF INSURANCE AND REPORT TO THE SENATE ITS
 FINDINGS AND ANY RECOMMENDATIONS RESULTING FROM THESE OVERSIGHT HEARINGS.

   02/02/06  Senate Introduced SJ-1
   02/02/06  Senate Referred to Committee on Banking and Insurance SJ-1
   03/09/06  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-10
   03/10/06         Scrivener's error corrected

COMMITTEE REPORT

March 9, 2006

S. 1113

Introduced by Senators Malloy, Williams, Scott, Sheheen, Knotts, Cleary, Short, Reese, Anderson, Elliott, Ford, Jackson, Pinckney, Rankin, Land, Hutto, McGill, Hawkins, Matthews and Patterson

S. Printed 3/9/06--S.    [SEC 3/10/06 3:43 PM]

Read the first time February 2, 2006.

To whom was referred a Senate Resolution (S. 1113) requesting the Senate Banking and Insurance Committee to conduct oversight hearings with respect to the operations and management of the South Carolina Department of Insurance, etc., respectfully

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the Senate resolution, as and if amended, page 1, by adding after line 34 the following:

The hearings shall primarily focus on, but in no way be limited to, the following subjects:

1)        all data collection methods currently employed by the department, including a description of the data companies are required to report, as well as the department's review process for said data;

2)        the reliability of data collected and the department's method for ensuring the reliability of said data;

3)        the department's review process with respect to rate requests or filings for any and all lines of insurance;

4)        "turn-around" time with respect to the department's review of rate requests or filings for any and all lines of insurance;

5)        the role of the department in the rate-making process for any and all lines of insurance;

6)        the frequency of audits and examinations performed by the department with respect to all insurers, including captive insurers and domestic insurers and a thorough review of each process;

7)        the department's process for maintaining accreditation standards;

8)        recent personnel decisions as they relate to the on-going management of the department as well as details related to non-personnel expenditures;

9)        the department's process for monitoring and ensuring the solvency of insurers operating in the State of South Carolina;

10)    department oversight relative to reliability, accuracy, and focus of data presented by associations in rate-making processes and filings; and

11)    department analysis of overhead components in loss cost multipliers and reimbursement credits from subrogation and Second Injury Fund to include effect on rates and rate filings.

Renumber sections to conform.

Amend title to conform.

DAVID L. THOMAS for Committee.

REQUESTING THE SENATE BANKING AND INSURANCE COMMITTEE TO CONDUCT OVERSIGHT HEARINGS WITH RESPECT TO THE OPERATIONS AND MANAGEMENT OF THE SOUTH CAROLINA DEPARTMENT OF INSURANCE AND REPORT TO THE SENATE ITS FINDINGS AND ANY RECOMMENDATIONS RESULTING FROM THESE OVERSIGHT HEARINGS.

Whereas, the protection of the public interest, the interests of insurance consumers, and the insurance marketplace requires efficient state regulation of the insurance business; and

Whereas, in this State insurance regulation is the responsibility of the South Carolina Department of Insurance. Now, therefore,

Be it resolved by the Senate:

That the Senate Banking and Insurance Committee is requested to organize and conduct oversight hearings with respect to the operation of the South Carolina Department of Insurance for the purposes of insuring that the department is operating efficiently and succeeding in its mission of protecting the public interest, the interests of insurance consumers, and the insurance marketplace through its regulation of the insurance business in this State.

Be it further resolved that on completion of these oversight hearings that the committee report to the Senate its findings and any recommendations with respect to the oversight hearings.