South Carolina General Assembly
107th Session, 1987-1988

Bill 3306

                    Current Status

Bill Number:               3306
Ratification Number:       339
Act Number                 326
Introducing Body:          House
Subject:                   S.C. Life and Accident and Health
                           Insurance Guaranty Association
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A326, R339, H3306)

AN ACT TO AMEND SECTION 38-29-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS AND DUTIES OF THE SOUTH CAROLINA LIFE AND ACCIDENT AND HEALTH INSURANCE GUARANTY ASSOCIATION, SO AS TO PROVIDE THAT THE ASSOCIATION HAS NO LIABILITY UNDER CHAPTER 29, TITLE 38, FOR COVERED POLICIES OF A DOMESTIC INSURER FOR RESIDENTS OF ANOTHER STATE EXCEPT UNDER CERTAIN CONDITIONS; AND TO AMEND SECTION 38-29-80, RELATING TO THE ASSOCIATION AND ASSESSMENTS, SO AS TO PROVIDE THAT IN THE EVENT AN ASSESSMENT AGAINST A MEMBER INSURER IS ABATED OR DEFERRED, IN WHOLE OR IN PART, BECAUSE OF CERTAIN LIMITATIONS, THE AMOUNT BY WHICH THE ASSESSMENT IS ABATED OR DEFERRED MAY, RATHER THAN MUST, BE ASSESSED AGAINST THE OTHER MEMBER INSURERS IN A MANNER CONSISTENT WITH THE BASIS FOR ASSESSMENTS SET FORTH IN SECTION 38-29-80.

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

South Carolina Life and Accident and Health Insurance Guaranty Association; no liability; exception

SECTION 1. Section 38-29-70(6) of the 1976 Code is amended to read:

"(6) The Association has no liability under this section for any covered policy of a foreign or alien insurer whose domiciliary jurisdiction or state of entry provides by statute or regulation for residents of this State protection substantially similar to that provided by this chapter for residents of other states. In addition, the Association has no liability under this chapter for covered policies of a domestic insurer for residents of another state unless the other state has a guaranty association that provides protection to South Carolina residents substantially similar to that provided by this chapter for residents of other states."

South Carolina Life and Accident and Health Insurance Guaranty Association; assessments, abatement, or deferral

SECTION 2. Section 38-29-80(5) of the 1976 Code is amended to read:

"(5) In the event an assessment against a member insurer is abated or deferred, in whole or in part, because of the limitations set forth in subsection (4) of this section, the amount by which the assessment is abated or deferred may be assessed against the other member insurers in a manner consistent with the basis for assessments set forth in this section. If the maximum assessment, together with the other assets of the Association in either account, does not provide in any one year in either account an amount sufficient to carry out the responsibilities of the Association, the necessary additional funds must be assessed as soon thereafter as permitted by this chapter."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.