Current Status Introducing Body:Senate Bill Number:1264 Ratification Number:293 Act Number:277 Primary Sponsor:Committee (02) Type of Legislation:GB Subject:Insurers, certificates of authority Companion Bill Number:1146 4143 Date Bill Passed both Bodies:Feb 28, 1992 Computer Document Number:BBM/9711.BD Governor's Action:S Date of Governor's Action:Mar 10, 1992 Introduced Date:Feb 04, 1992 Last History Body:------ Last History Date:Mar 10, 1992 Last History Type:Act No. 277 Scope of Legislation:Statewide Sponsor Committee:Banking and Insurance Sponsor Committee Number:02 Type of Legislation:General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 1264 ------ Mar 10, 1992 Act No. 277 1264 ------ Mar 10, 1992 Signed by Governor 1264 ------ Mar 04, 1992 Ratified R 293 1264 House Feb 28, 1992 Read third time, enrolled for ratification 1264 House Feb 27, 1992 Unanimous consent for third reading on next Legislative day 1264 House Feb 27, 1992 Read second time 1264 House Feb 26, 1992 Committee Report: Favorable 26 1264 House Feb 11, 1992 Introduced, read first time, 26 referred to Committee 1264 Senate Feb 06, 1992 Read third time, sent to House 1264 Senate Feb 05, 1992 Read second time, unanimous consent for third reading on Thursday, February 6, 1992 1264 Senate Feb 04, 1992 Introduced, read first time, placed on Calendar without referenceView additional legislative information at the LPITS web site.
(A277, R293, S1264)
AN ACT 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:
Conditions under which the Insurance Commissioner may issue orders
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), 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."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Approved the 10th day of March, 1992.