South Carolina General Assembly
110th Session, 1993-1994

Bill 4491


                    Current Status
Introducing Body:               House
Bill Number:                    4491
Ratification Number:            412
Act Number:                     368
Primary Sponsor:                J. Bailey
Type of Legislation:            GB
Subject:                        Insurance premiums
Companion Bill Number:          969
Date Bill Passed both Bodies:   19940419
Computer Document Number:       BBM/10819JM.94
Governor's Action:              S
Date of Governor's Action:      19940502
Introduced Date:                19940113
Last History Body:              ------
Last History Date:              19940502
Last History Type:              Act No. 368
Scope of Legislation:           Statewide
All Sponsors:                   J. Bailey
                                Corning
                                McElveen
                                Quinn
                                Scott
Type of Legislation:            General Bill

History

Bill   Body    Date          Action Description              CMN  Leg Involved
----   ------  ------------  ------------------------------  ---  ------------
4491   ------  19940502      Act No. 368
4491   ------  19940502      Signed by Governor
4491   ------  19940427      Ratified R 412
4491   Senate  19940419      Read third time, enrolled for
                             ratification
4491   Senate  19940407      Read second time
4491   Senate  19940406      Committee Report: Favorable     02
4491   Senate  19940329      Introduced, read first time,    02
                             referred to Committee
4491   House   19940325      Read third time, sent to
                             Senate
4491   House    19940324     Read second time, unanimous
                             consent for third reading on
                             next Legislative day
4491   House   19940223      Committee Report: Favorable     26
4491   House   19940113      Introduced, read first time,    26
                             referred to Committee
View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A368, R412, H4491)

AN ACT TO AMEND SECTION 38-27-520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURERS REHABILITATION AND LIQUIDATION, FORMAL PROCEEDINGS, AND THE RECOVERY OF PREMIUMS OWED, SO AS TO DELETE CERTAIN LANGUAGE, PROVIDE THAT AN AGENT, BROKER, PREMIUM FINANCE COMPANY, OR ANY OTHER PERSON, OTHER THAN THE INSURED, RESPONSIBLE FOR THE PAYMENT OF A PREMIUM IS OBLIGATED TO PAY ANY UNPAID COLLECTED PREMIUM HELD BY SUCH PERSON AT THE TIME OF THE DECLARATION OF INSOLVENCY, WHETHER EARNED OR UNEARNED, AND ANY UNPAID EARNED PREMIUM, ALL AS SHOWN ON THE RECORDS OF THE INSURER, AND PROVIDE THAT AN AGENT, BROKER, PREMIUM FINANCE COMPANY, OR ANY OTHER PERSON HAS NO OBLIGATION TO PAY AN UNCOLLECTED UNPAID UNEARNED PREMIUM TO THE LIQUIDATOR.

Be it enacted by the General Assembly of the State of South Carolina:

No obligation to pay uncollected unpaid unearned premium to liquidator, etc.

SECTION 1. Section 38-27-520(a)(1) of the 1976 Code is amended to read:

"(1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium is obligated to pay any unpaid collected premium held by such person at the time of the declaration of insolvency, whether earned or unearned, and any unpaid earned premium, all as shown on the records of the insurer. An agent, broker, premium finance company, or any other person shall have no obligation to pay an uncollected unpaid unearned premium to the liquidator. The liquidator has the right to recover from that person any part of an unearned premium that represents that person's commission. Credits or setoffs or both are not allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Approved the 2nd day of May, 1994.