Current Status Introducing Body:House Bill Number:4495 Ratification Number:415 Act Number:370 Primary Sponsor:J. Bailey Type of Legislation:GB Subject:Insurance, incorporated group members Companion Bill Number:971 Date Bill Passed both Bodies:19940419 Computer Document Number:BBM/10784JM.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. 370 Scope of Legislation:Statewide All Sponsors:J. Bailey Corning McElveen Quinn Scott Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved ---- ------ ------------ ------------------------------ --- ------------ 4495 ------ 19940502 Act No. 370 4495 ------ 19940502 Signed by Governor 4495 ------ 19940427 Ratified R 415 4495 Senate 19940419 Read third time, enrolled for ratification 4495 Senate 19940407 Read second time 4495 Senate 19940406 Committee Report: Favorable 02 4495 Senate 19940224 Introduced, read first time, 02 referred to Committee 4495 House 19940223 Read third time, sent to Senate 4495 House 19940222 Read second time 4495 House 19940209 Committee Report: Favorable 26 4495 House 19940113 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
(A370, R415, H4495)
AN ACT TO AMEND SECTION 38-9-200, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE AND CAPITAL, SURPLUS, RESERVES, REINSURANCE CREDITS, AND LIABILITY REDUCTIONS, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT THE INCORPORATED MEMBERS OF THE GROUP DEFINED IN THIS SECTION MUST NOT BE ENGAGED IN ANY BUSINESS OTHER THAN UNDERWRITING AS A MEMBER OF THE GROUP AND ARE SUBJECT TO THE SAME LEVEL OF SOLVENCY REGULATION AND CONTROL BY THE GROUP'S DOMICILIARY REGULATOR AS ARE THE UNINCORPORATED MEMBERS.
Be it enacted by the General Assembly of the State of South Carolina:
Business other than underwriting disallowed; etc.
SECTION 1. Section 38-9-200(E)(1) of the 1976 Code, as added by Act 13 of 1991 and last amended by Act 181 of 1993, is further amended to read:
"(1) Credit must be allowed when the reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified United States financial institution, defined in Section 38-9-220(B), for the payment of the valid claims of its United States policyholders and ceding insurers and their assigns and successors in interest. The assuming insurer shall report annually to the director or designee information substantially the same as that required to be reported on the National Association of Insurance Commissioners annual statement form by licensed insurers to enable the director or designee to determine the sufficiency of the trust fund. For a single assuming insurer, the trust must consist of a trusteed account representing the assuming insurer's liabilities attributable to business written in the United States and, in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars. For a group including incorporated and individual unincorporated underwriters, the trust must consist of a trusteed account representing the group's liabilities attributable to business written in the United States and, in addition, the group shall maintain a trusteed surplus of which one hundred million dollars must be held jointly for the benefit of United States ceding insurers of a member of the group. The incorporated members of the group must not be engaged in any business other than underwriting as a member of the group and are subject to the same level of solvency regulation and control by the group's domiciliary regulator as are the unincorporated members. The group shall make available to the director or designee an annual certification of the solvency of each underwriter by the group's domiciliary regulator and its independent public accountants."
Time effective
SECTION 2. This act takes effect upon approval by the Governor, except "director or designee" which takes effect in accordance with Act 181 of 1993.
Approved the 2nd day of May, 1994.