H*4755 Session 111 (1995-1996)
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
(R525, H4755)
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.
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