Bill 1171

                    Current Status

Bill Number:               1171
Ratification Number:       403
Act Number                 365
Introducing Body:          Senate
Subject:                   Definitions pertaining to
                           insurance

(A365, R403, S1171)

AN ACT TO AMEND SECTION 38-1-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITIONS PERTAINING TO INSURANCE, SO AS TO DEFINE "BY"; AND SECTION 38-39-30, RELATING TO THE INVESTIGATION OF AND ISSUANCE OF A LICENSE TO A PERSON TO ENGAGE IN THE BUSINESS OF SERVICING INSURANCE PREMIUMS, SO AS TO REQUIRE THAT BEFORE A FOREIGN CORPORATION MAY BE LICENSED, IT MUST BE REGULATED AND EXAMINED BY THE APPROPRIATE DEPARTMENT IN ITS STATE OF DOMICILE.

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

Definition

SECTION 1. Section 38-1-20 of the 1976 Code is amended by adding:

"(8.5) 'By' means on or before."

Licensing of a foreign corporation servicing insurance premiums

SECTION 2. Section 38-39-30(b) of the 1976 Code is amended to read:

"(b) The commissioner shall issue a license when he is satisfied that the person to be licensed:

(1) is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for;

(2) has a good business reputation and has had experience, training, or education so as to be qualified in the business for which the license is applied for;

(3) if a corporation, is a corporation incorporated under the laws of this State or a foreign corporation authorized to transact business in this State;

(4) has on deposit with the commissioner a surety bond of fifty thousand dollars or has proven financial responsibility by depositing with the commissioner acceptable securities of fifty thousand dollars. The bond or the deposit of securities must be held for the reimbursement of parties damaged through the acts, neglects, defaults, or insolvency of the premium service company;

(5) if directly or indirectly owned or controlled by, or affiliated with, an insurer, will not use the license to restrain trade or to secure an unfair competitive advantage or to falsify the insurer's financial condition or to render deceptive or misleading a financial statement of the insurer or, in any other way, to aid or assist the insurer in evading insurance laws or regulations;

(6) if a foreign corporation is regulated and examined by the appropriate department in its state of domicile."

Time effective

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

Approved the 19th day of March, 1990.