Current Status Introducing Body:Senate Bill Number:684 Primary Sponsor:Committee (02) Type of Legislation:GB Subject:Chief Insurance Commissioner, powers of Companion Bill Number:399 Date Tabled:Feb 26, 1991 Computer Document Number:BBM/9200.BD Introduced Date:Feb 19, 1991 Last History Body:Senate Last History Date:Feb 26, 1991 Last History Type:Tabled Scope of Legislation:Statewide Sponsor Committee:Banking and Insurance Sponsor Committee Number:02 Type of Legislation:General Bill
Bill Body Date Action Description CMN
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684 Senate Feb 26, 1991 Tabled
684 Senate Feb 19, 1991 Placed on Calendar without
reference
684 Senate Feb 19, 1991 Introduced, read first time
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Indicates Matter Stricken
Indicates New Matter
INTRODUCED
February 19, 1991
S. 684
Introduced by Banking and Insurance Committee
S. Printed 2/19/91--S.
Read the first time February 19, 1991.
TO AMEND SECTION 38-31-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES AND POWERS OF THE CHIEF INSURANCE COMMISSIONER, SO AS TO PROVIDE ADDITIONAL POWERS PERTAINING TO MAXIMUM ASSESSMENTS ON ACCOUNTS OF PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION MEMBERS AND TO INSURANCE EMERGENCIES OR CATASTROPHES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-31-80 of the 1976 Code is amended to read:
"Section 38-31-80. (1)(A) The commissioner shall:
(a)(1) notify the association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency.;
(b)(2) upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(2)(B) The commissioner may:
(a)(1) require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter. The notification must be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation is sufficient.;
(b)(2) suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this State of any a member insurer which who fails to pay an assessment when due or which fails to comply with the plan of operation. As an alternative, the commissioner may impose the penalties provided in Section 38-2-10.;
(c)(3) revoke the designation of any a servicing facility if he finds claims are being handled unsatisfactorily.;
(4) upon request of the board of directors, notwithstanding the limitation on assessments contained in Section 38-31-60(c)(iii), increase the maximum assessment in a year in an account in order for that assessment to provide an amount sufficient to make all necessary payments by the association from that account. However, no member insurer may be assessed in a year on an account under this provision an amount greater than two percent of the member insurer's net direct written premiums for the calendar year preceding the insolvency on the kinds of insurance in the account;
(5) after determining that an insurance emergency or catastrophe exists in this State pursuant to Insurance Department Regulation 69-1(2), direct the association to pay the first one hundred dollars of each unearned premium claim and the first two hundred fifty dollars of each covered claim, notwithstanding the provisions of Section 38-31-60(a)."
SECTION 2. This act takes effect upon approval by the Governor.