H*4755(Rat #0525, Act #0451 of 1996)  General Bill, By 
 House Labor, Commerce and Industry

Similar(H 4574)
 A Bill to amend Section 38-73-540, as amended, Code of Laws of South Carolina,
 1976, relating to insurance, casualty and surety rates, and assigned risk, so
 as to, among other things, authorize the making of assigned risk agreements
 among insurers and delete certain language and provisions; to amend Section
 42-1-130, relating to the definition of "employee" under the Workers'
 Compensation Law, so as to insert an internal reference to Title 32 of the
 United States Code; to amend Section 42-7-67, as amended, relating to the
 state accident fund and benefits for State and National Guard members, so as
 to delete provisions regarding, among other things, the reduction of workers'
 compensation benefits for the purpose of coordinating benefits payable by the
 federal and state governments for the death or injury of a member of the South
 Carolina National Guard; and to provide for the severability of the provisions
 of this act.-amended title

   03/14/96  House  Introduced, read first time, placed on calendar
                     without reference HJ-9
   03/20/96  House  Read second time HJ-22
   03/21/96  House  Read third time and sent to Senate HJ-24
   03/21/96  Senate Introduced and read first time SJ-14
   03/21/96  Senate Referred to Committee on Banking and Insurance SJ-14
   04/16/96  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-19
   05/23/96  Senate Read second time SJ-107
   05/23/96  Senate Ordered to third reading with notice of
                     amendments SJ-107
   05/28/96  Senate Amended SJ-45
   05/28/96  Senate Read third time and returned to House with
                     amendments SJ-45
   05/29/96  Senate Recalled from House SJ-56
   05/29/96  House  Returned HJ-122
   05/29/96  Senate Reconsidered SJ-57
   05/29/96  Senate Amended SJ-57
   05/29/96  Senate Read third time and returned to House with
                     amendments SJ-57
   06/12/96  House  Senate amendment amended HJ-42
   06/12/96  House  Returned to Senate with amendments HJ-42
   06/12/96  Senate Concurred in House amendment and enrolled SJ-28
   06/13/96         Ratified R 525
   06/18/96         Signed By Governor
   06/18/96         Effective date 06/18/96
   07/09/96         Copies available
   07/09/96         Act No. 451

AN ACT TO AMEND SECTION 38-73-540, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, CASUALTY AND SURETY RATES, AND ASSIGNED RISK, SO AS TO, AMONG OTHER THINGS, AUTHORIZE THE MAKING OF ASSIGNED RISK AGREEMENTS AMONG INSURERS AND DELETE CERTAIN LANGUAGE AND PROVISIONS; TO AMEND SECTION 42-1-130, RELATING TO THE DEFINITION OF "EMPLOYEE" UNDER THE WORKERS' COMPENSATION LAW, SO AS TO INSERT AN INTERNAL REFERENCE TO TITLE 32 OF THE UNITED STATES CODE; TO AMEND SECTION 42-7-67, AS AMENDED, RELATING TO THE STATE ACCIDENT FUND AND BENEFITS FOR STATE AND NATIONAL GUARD MEMBERS, SO AS TO DELETE PROVISIONS REGARDING, AMONG OTHER THINGS, THE REDUCTION OF WORKERS' COMPENSATION BENEFITS FOR THE PURPOSE OF COORDINATING BENEFITS PAYABLE BY THE FEDERAL AND STATE GOVERNMENTS FOR THE DEATH OR INJURY OF A MEMBER OF THE SOUTH CAROLINA NATIONAL GUARD; AND TO PROVIDE FOR THE SEVERABILITY OF THE PROVISIONS OF THIS ACT.

Be it enacted by the General Assembly of the State of South Carolina:

Assigned risk agreements authorized; etc.

SECTION 1. Section 38-73-540 of the 1976 Code, as last amended by Section 783 of Act 181 of 1993, is further amended to read:

"Section 38-73-540. (A)(1) Assigned risk agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to, but who are unable to procure, insurance through ordinary methods, and the insurers may agree among themselves on the use of reasonable rate modifications for this insurance. Such residual market agreement and any mechanism designed to implement such agreement, and any amendments thereto, must be submitted in writing to the director or his designee for approval prior to use, together with such additional information as the director or his designee may reasonably require.

(2) If, after a hearing, the director or his designee finds that any activity or practice of insurers participating in the residual market mechanism is unfair, unreasonable, or otherwise inconsistent with the provisions of this title, the director or his designee must issue a written order specifying in what respects such activity or practice is unfair, unreasonable, or otherwise inconsistent with the provisions of this title and require the discontinuance of such activity or practice. The director or his designee may establish an Assigned Risk Plan or mechanism to implement assigned risk agreements by written order if the director or his designee finds that the existing residual market mechanism is unfair, unreasonable, or inconsistent with the provisions of this chapter.

(3) The servicing carriers for the workers' compensation assigned risk pool may be competitively bid as provided for in this subsection. If the workers' compensation assigned risk pool is competitively bid, then the director or his designee must appoint a committee or committees of individuals as he considers qualified to establish standards and procedures for the consideration and evaluation of bids. Insurers, or other vendors in conjunction with a licensed workers' compensation insurer, may submit bids. The committee or committees must evaluate and award contracts pursuant to the bidding process established by the committee or committees, subject to the final approval of the director or his designee. The director may require a bid fee to cover the expenses of implementing this section.

(4) Notwithstanding any other provision of this section or of this article, assigned risk pools must accept a policy of workers' compensation insurance on the basis that it provides coverage to a vendor who provides logging services to a named insured or on the basis that the policy provides coverage to an association of these vendors.

(B) Notwithstanding the provisions of subsection (A), no insurer may act as a servicing carrier for any assigned risk pool for workers' compensation insurance authorized pursuant to subsection (A) unless such insurer participates in the voluntary market for workers' compensation insurance in this State."

Reference to federal law added

SECTION 2. Section 42-1-130 of the 1976 Code is amended to read:

"Section 42-1-130. The term `employee' means every person engaged in an employment under any appointment, contract of hire, or apprenticeship, expressed or implied, oral or written, including aliens and also including minors, whether lawfully or unlawfully employed, but excluding a person whose employment is both casual and not in the course of the trade, business, profession, or occupation of his employer; and as relating to those employed by the State; the term `employee' includes all members of the South Carolina State and National Guard while performing duties in connection with the membership except duty performed pursuant to Title 10 and Title 32 of the United States Code, and all officers and employees of the State, except those elected by the people, or by the General Assembly, or appointed by the Governor, either with or without the confirmation of the Senate; and as relating to municipal corporations and political subdivisions of the State; the term `employee' includes all officers and employees of municipal corporations and political subdivisions, except those elected by the people or elected by the council or other governing body of any municipal corporation or political subdivision, who act in purely administrative capacities and are to serve for a definite term of office. Any reference to an employee who has been injured, when the employee is dead, includes also his legal representative, dependents, and other persons to whom compensation may be payable.

Any sole proprietor or partner of a business whose employees are eligible for benefits under this title may elect to be included as employees under the workers' compensation coverage of the business if they are actively engaged in the operation of the business and if the insurer is notified of their election to be included. Any sole proprietor or partner, upon such election, is entitled to employee benefits and is subject to employee responsibilities prescribed in this title."

Provisions deleted

SECTION 3. Section 42-7-67 of the 1976 Code, as last amended by Part II, Section 15A of Act 612 of 1990, is further amended to read:

"Section 42-7-67. For members of the South Carolina State and National Guard injured while so employed, the extent, duration, and termination of disability and medical benefits under this title must be determined by reference to the member's civilian employment, if any, without considering the member's military position. If the member does not have civilian employment, reference may be made to the member's military position."

Severability clause

SECTION 4. If any provision of this act or the application of a provision thereof either to any person or under any circumstances, is held to be invalid, then that determination does not affect provisions or applications of this act which can be given effect without the invalid provision or application. To that end the provisions of this act are severable.

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

In the Senate House June 13, 1996.

Robert L. Peeler,

President of the Senate

David H. Wilkins,

Speaker of the House of

Representatives

Approved the 18th day of June, 1996.

David M. Beasley,

Governor

Printer's Date -- June 27, 1996 -- S.