Current Status Introducing Body:Senate Bill Number:1156 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Windstorm and hail insurance Residing Body:Senate Current Committee:Banking and Insurance Companion Bill Number:4137 Computer Document Number:NO5/7943.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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1156 Senate Jan 15, 1992 Introduced, read first time, 02
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-75-375 SO AS TO PROVIDE FOR PAYMENTS OF ASSESSMENTS OR INTEREST BY MEMBER COMPANIES TO THE WINDSTORM AND HAIL UNDERWRITING ASSOCIATION AND FOR PENALTIES; TO AMEND SECTION 38-75-370, RELATING TO DUTIES OF ASSOCIATION MEMBERS AND LIMITATION ON LIABILITY, SO AS TO AUTHORIZE THE ASSOCIATION TO RELY ON A MEMBER COMPANY'S ANNUAL STATEMENT IN DETERMINING PARTICIPATION IN PROFITS AND LOSSES AND PROVIDE REQUIREMENTS TO RECEIVE CREDIT FOR ESSENTIAL PROPERTY VOLUNTARILY WRITTEN IN THE COASTAL AREA; AND TO AMEND SECTION 38-75-410, RELATING TO APPEALS FROM ACTS, RULINGS, OR DECISIONS OF THE ASSOCIATION, SO AS TO PROVIDE FOR THE TIME OF APPEALS FOR CERTAIN ACTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-75-375. (A) If a member company perceives an assessment or interest levied by the association to be unjust or illegal, the company shall pay the assessment or interest under protest in writing within thirty days of the assessment or interest charge. Upon receiving this payment, the association shall pay the money collected into the association account and designate the money as having been paid under protest.
(B) A member company paying an assessment or interest under protest shall appeal to the association within thirty days after making the payment. If it is determined in that appeal that the assessment or interest was collected unjustly or illegally, the association shall refund the assessment or interest to the payor.
(C) If a member company fails to pay an assessment or interest within thirty days of the assessment or interest charge by the association, the company is subject to disciplinary procedures pursuant to Section 38-5-120 or 38-5-130."
SECTION 2. Section 38-75-370 of the 1976 Code is amended to read:
"Section 38-75-370. All members of the association shall participate in its writings, expenses, profits, and losses in the proportion that the net direct premium of such the member written in this State during the preceding calendar year bears to the aggregate net direct premiums written in this State by all members of the association, as certified to the association by the department after review of annual statements, other reports, and other statistics which the department considers necessary to provide the information herein required and which the department is hereby authorized to obtain from any a member of the association. After certification by the department, the association may rely on the member company's annual statement in determining the company's participation in profits and losses for each year.
Each member's participation in the association must be determined annually in the same manner as the initial determination. Any An insurer authorized to write and engage in writing any insurance, the writing of which requires the insurer to be a member of the association pursuant to the provisions of Section 38-75-330, shall become becomes a member of the association on January first immediately following the authorization. The determination of the insurer's participation in the association must be made as of the date of the membership in the same manner as for all other members of the association. Member insurers shall receive credit annually for essential property insurance voluntarily written in the coastal area and their participation in the writings of the association must be reduced accordingly. The board of directors shall authorize the method of determining the credit. In order to receive credit for essential property voluntarily written in the coastal area, each member company shall submit its requests by March thirty-first of the year for which credit is sought.
The assessment of a member insurer may after hearing may be ordered deferred in whole or in part upon application by the insurer if, in the opinion of the commissioner, payment of the assessment would render the insurer insolvent or in danger of insolvency or would otherwise leave the insurer in such a condition so that further transaction of the insurer's business would be hazardous to its policyholders, creditors, members, subscribers, stockholders, or the public. In the event that If payment of an assessment against a member insurer is deferred by order of the commissioner in whole or in part, the amount by which the assessment is deferred must be assessed against other member insurers in the same manner as provided in this section. In its order of deferral, or in such necessary subsequent orders as may be necessary, the commissioner shall prescribe a plan by which the assessment so deferred must be repaid to the association by the impaired insurer with interest at the six-month treasury bill rate adjusted semiannually. Any Profits, dividends, or other funds of the association to which the insurer is otherwise entitled may must not be distributed to the impaired insurer but must be applied toward repayment of any an assessment until the obligation has been satisfied. The association shall distribute the repayments, including any interest thereon, to the other member insurers on the basis at which assessments were made."
SECTION 3. Section 38-75-410 of the 1976 Code is amended to read:
"Section 38-75-410. (A) Any A person insured pursuant to this article or his representative or any affected insurer, a member company who may be is aggrieved by an act, ruling, or decision of the association, may, within thirty days after the ruling,:
(1) regarding rates, classification of risks, assessments, voluntary credits, cancellation or termination of policies, or underwriting shall appeal to the commissioner within sixty days after the act, ruling, or decision;
(2) other than those specified in item (1), may appeal to the commissioner within thirty days after the act, ruling, or decision.
(B) Any Hearings held by the commissioner pursuant to the appeal this section must be in accordance with the procedure procedures set forth in Chapter 3, of Title 38 and Article 3, of Chapter 23, of Title 1, (`Administrative Procedures')."
SECTION 4. This act takes effect upon approval by the Governor.