Current Status Bill Number:261 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950110 Primary Sponsor:McConnell All Sponsors:McConnell, Passailaigue, Rose Drafted Document Number:BBM\9679JM.95 Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Tort liability insurance policy
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19950110 Introduced, read first time, 02 SBI
referred to Committee
Senate 19941114 Prefiled, referred to Committee 02 SBI
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TO AMEND SECTION 1-11-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTHORIZATION OF THE STATE BUDGET AND CONTROL BOARD TO PROVIDE CERTAIN INSURANCE, SO AS TO PROVIDE THAT IN A TORT LIABILITY INSURANCE POLICY OFFERED TO A POLITICAL SUBDIVISION OF THE STATE BY THE BUDGET AND CONTROL BOARD, THE BOARD SHALL ENSURE THAT THE POLICY INCLUDES AN OPTION FOR COVERAGE FOR THE GOVERNING BODY OF THE POLITICAL SUBDIVISION WHERE THE GOVERNING BODY IS HELD LIABLE ON THE BASIS OF AGENCY, EVEN WHEN THE ACT GIVING RISE TO THE LIABILITY IS AN INTENTIONAL ACT BY AN EMPLOYEE OF THE POLITICAL SUBDIVISION, AND ALTERNATIVELY TO ALLOW THE GOVERNING BODY OF A POLITICAL SUBDIVISION TO PROCURE ITS TORT COVERAGE ON THE OPEN MARKET WHILE MAINTAINING ALL OF ITS OTHER INSURANCE THROUGH THE STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 1-11-140 of the 1976 Code, as last amended by Act 380 of 1994, is further amended to read:
"Section 1-11-140. (A) The State Budget and Control Board, through the Office of Insurance Services, is authorized to provide insurance for the State, its departments, agencies, institutions, commissions, boards, and the personnel employed by the State in its departments, agencies, institutions, commissions, and boards so as to protect the State against tort liability and to protect these personnel against tort liability arising in the course of their employment. The insurance also may be provided for physicians or dentists employed by the State, its departments, agencies, institutions, commissions, or boards against any tort liability arising out of the rendering of any professional services as a physician or dentist for which no fee is charged or professional services rendered of any type whatsoever so long as any fees received are directly payable to the employer of a covered physician or dentist, or to any practice plan authorized by the employer whether or not the practice plan is incorporated and registered with the Secretary of State; provided, any insurance coverage provided by the Budget and Control Board may be on the basis of claims made or upon occurrences. The insurance also may be provided for students of high schools, South Carolina technical schools, or state-supported colleges and universities while these students are engaged in work study, distributive education, or apprentice programs on the premises of private companies. Premiums for the insurance must be paid from appropriations to or funds collected by the various entities, except that in the case of the above-referenced students in which case the premiums must be paid from fees paid by students participating in these training programs. The board has the exclusive control over the investigation, settlement, and defense of claims against the various entities and personnel for whom it provided insurance coverage and may promulgate regulations in connection therewith.
(B) Any political subdivision of the State, including, without limitations limitation, municipalities, counties, and school districts, may procure the insurance for itself and for its employees in the same manner provided for the procurement of this insurance for the State, its entities, and its employees; provided, that in any such insurance policy offered to a political subdivision of the State by the Budget and Control Board through the Office of Insurance Services which provides such coverage for the political subdivision and for its employees, the Budget and Control Board shall ensure that the policy includes an option for coverage for the governing body of the political subdivision where the governing body is held liable on the basis of agency, even when the act giving rise to the liability is an intentional act by an employee of the political subdivision. If the State does not offer a political subdivision and its employees the insurance coverage option described in subsection (A), the State shall nevertheless allow the governing body of a political subdivision to procure its tort liability insurance coverage on the open market while maintaining all of its other insurance through the State.
(C) The procurement of tort liability insurance in the manner provided is the exclusive means for the procurement of this insurance, except as provided in subsection (B).
(D) The State Budget and Control Board, through the Office of Insurance Services, also is authorized to offer insurance to governmental hospitals and chartered, nonprofit, eleemosynary hospitals in this State so as to protect these hospitals against tort liability. Notwithstanding any other provision of this section, the procurement of tort liability insurance by a hospital supported wholly or partially by public funds contributed by the State or any of its political subdivisions in the manner herein provided is not the exclusive means by which the hospital may procure tort liability insurance.
(E) The State Budget and Control Board, through the Office of Insurance Services, is authorized to provide insurance for duly appointed members of the boards and employees of health system agencies, and for members of the State Health Coordinating Council which are created pursuant to Public Law 93-641.
(F) The board, through the Office of Insurance Services, is further authorized to provide insurance as prescribed in Sections 10-7-10 through 10-7-40, 59-67-710, and 59-67-790.
(G) Documentary or other material prepared by or for the Office of Insurance Services in providing any insurance coverage authorized by this section or any other provision of law which is contained in any claim file is subject to disclosure to the extent required by the Freedom of Information Act only after the claim is settled or finally concluded by a court of competent jurisdiction."
SECTION 2. This act takes effect upon approval by the Governor.