Current Status Introducing Body:Senate Bill Number:969 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Insurance, unpaid earned premium Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:BBM/10818JM.94 Introduced Date:19940111 Last History Body:Senate Last History Date:19940111 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Saleeby Land McConnell Courtney Rankin Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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969 Senate 19940111 Introduced, read first time, 02
referred to Committee
View additional legislative information at the LPITS web site.
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:
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 for the full policy term due the insurer 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."
SECTION 2. This act takes effect upon approval by the Governor.