Current Status Introducing Body:Senate Bill Number:971 Primary Sponsor:Saleeby Committee Number:02 Type of Legislation:GB Subject:Insurance, incorporated members of group Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:BBM/10783JM.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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971 Senate 19940111 Introduced, read first time, 02
referred to Committee
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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:
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 of 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."
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.