Current Status Introducing Body:
HouseBill Number: 4137Ratification Number: 385Act Number: 342Primary Sponsor: J. BaileyType of Legislation: GBSubject: Windstorm and hail insuranceCompanion Bill Number: 1156Date Bill Passed both Bodies: Apr 06, 1992Computer Document Number: BR1/1975.BDGovernor's Action: SDate of Governor's Action: May 04, 1992Introduced Date: Jan 14, 1992Last History Body: ------Last History Date: May 04, 1992Last History Type: Act No. 342Scope of Legislation: StatewideAll Sponsors: J. Bailey Corning McElveen Quinn ScottType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 4137 ------ May 04, 1992 Act No. 342 4137 ------ May 04, 1992 Signed by Governor 4137 ------ Apr 28, 1992 Ratified R 385 4137 Senate Apr 06, 1992 Read third time, enrolled for ratification 4137 Senate Mar 31, 1992 Read second time 4137 Senate Mar 26, 1992 Committee Report: Favorable 02 4137 Senate Feb 26, 1992 Introduced, read first time, 02 referred to Committee 4137 House Feb 25, 1992 Read third time, sent to Senate 4137 House Feb 20, 1992 Read second time 4137 House Feb 19, 1992 Committee Report: Favorable 26 4137 House Jan 14, 1992 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
(A342, R385, H4137)
AN ACT 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:
Payments of assessments or interest by member companies to the Windstorm and Hail Underwriting Association; penalties
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."
Determination of participation in profits and losses; credit for essential property voluntarily written in the coastal area
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 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 required and which the department is authorized to obtain from 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. An insurer authorized to write and engage in writing insurance, the writing of which requires the insurer to be a member of the association pursuant to Section 38-75-330, 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 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 a condition so that further transaction of the insurer's business would be hazardous to its policyholders, creditors, members, subscribers, stockholders, or the public. 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 necessary subsequent orders, 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. Profits, dividends, or other funds of the association to which the insurer is otherwise entitled must not be distributed to the impaired insurer but must be applied toward repayment of an assessment until the obligation has been satisfied. The association shall distribute the repayments, including interest, 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) A person insured pursuant to this article or his representative or a member company who is aggrieved by an act, ruling, or decision of the association:
(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) Hearings held by the commissioner pursuant to this section must be in accordance with the procedures set forth in Chapter 3, Title 38 and Article 3, Chapter 23, Title 1, `Administrative Procedures'."
SECTION 4. This act takes effect upon approval by the Governor.
Approved the 4th day of May, 1992.