Current Status Introducing Body:Senate Bill Number:1146 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Insurers, certificates of authority Residing Body:Senate Current Committee:Banking and Insurance Companion Bill Number:4143 1264 Computer Document Number:NO5/7922.BD Introduced Date:Jan 15, 1992 Last History Body:Senate Last History Date:Jan 15, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Saleeby Land McConnell Mullinax Pope Type of Legislation:General Bill
Bill Body Date Action Description CMN
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1146 Senate Jan 15, 1992 Introduced, read first time, 02
referred to Committee
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TO AMEND SECTION 38-5-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REVOCATION AND SUSPENSION OF CERTIFICATES OF AUTHORITY GRANTED TO INSURERS, SO AS TO REVISE THE CONDITIONS UNDER WHICH THE COMMISSIONER MAY ISSUE CERTAIN ORDERS WHEN AN INSURER IS IN AN UNSOUND OR HAZARDOUS CONDITION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-5-120(C) of the 1976 Code, as added by Act 13 of 1991, is amended to read:
"(C) Notwithstanding the provisions of subsection (A)(6), if the commissioner determines that an insurer is in an unsound condition or in a hazardous condition provided in subsection (A)(1) and (3), he may issue an order requiring the insurer to:
(1) reduce the total amount of present and potential liability for policy benefits by reinsurance;
(2) reduce, suspend, or limit the volume of business being accepted or renewed;
(3) reduce general insurance and commission expenses by specified methods;
(4) increase the insurer's capital and surplus;
(5) suspend or limit the declaration and payment of dividends by an insurer to its stockholders or to its policyholders;
(6) file reports in a form acceptable to the commissioner concerning the market value of an insurer's assets;
(7) limit or withdraw from certain investments or discontinue certain investment practices to the extent the commissioner considers necessary;
(8) document the adequacy of premium rates in relation to the risks insured;
(9) file, in addition to regular annual statements, interim financial reports on the form adopted by the National Association of Insurance Commissioners or on a format approved by the commissioner;
(10) disregard credit or an amount receivable resulting from transactions with a reinsurer which is insolvent, impaired, or otherwise subject to a delinquency proceeding;
(11) make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;
(12) refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor;
(13) increase the insurer's liability in an amount equal to a contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve months; or
(14) take other action he considers appropriate."
SECTION 2. This act takes effect upon approval by the Governor.