Bill 4755

                    Current Status

Bill Number:                    4755
Ratification Number:            525
Act Number:                     451
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19960314
Primary Sponsor:                Labor, Commerce and Industry
                                Committee HLCI 26
All Sponsors:                   Labor, Commerce and Industry
                                Committee
Drafted Document Number:        bbm\10682jm.96
Date Bill Passed both Bodies:   19960612
Date of Last Amendment:         19960612
Governor's Action:              S
Date of Governor's Action:      19960618
Subject:                        Insurance casualty and surety
                                rates, assigned risk

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19960709  Act No. A451
------  19960618  Signed by Governor
------  19960613  Ratified R525
Senate  19960612  Concurred in Senate amendment, 
                  enrolled for ratification
House   19960612  Senate amendments amended,
                  returned to Senate with amendment
Senate  19960529  Amended, read third time, 
                  returned to House with amendment
Senate  19960529  Reconsidered vote whereby read 
                  third time
House   19960529  Returned the Bill to the Senate
Senate  19960529  Requested the House to return
                  the Bill
Senate  19960528  Amended, read third time,
                  returned to House with amendment
Senate  19960523  Read second time, notice of
                  general amendments
Senate  19960416  Committee report: Favorable with         02 SBI
                  amendment
Senate  19960321  Introduced, read first time,             02 SBI
                  referred to Committee
House   19960321  Read third time, sent to Senate
House   19960320  Read second time
House   19960314  Introduced, read first time,
                  placed on Calendar without reference

(R525, H4755)

AN ACT TO AMEND SECTION 38-73-540, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, CASUALTY AND SURETY RATES, AND ASSIGNED RISK, SO AS TO, AMONG OTHER THINGS, AUTHORIZE THE MAKING OF ASSIGNED RISK AGREEMENTS AMONG INSURERS AND DELETE CERTAIN LANGUAGE AND PROVISIONS; TO AMEND SECTION 42-1-130, RELATING TO THE DEFINITION OF "EMPLOYEE" UNDER THE WORKERS' COMPENSATION LAW, SO AS TO INSERT AN INTERNAL REFERENCE TO TITLE 32 OF THE UNITED STATES CODE; TO AMEND SECTION 42-7-67, AS AMENDED, RELATING TO THE STATE ACCIDENT FUND AND BENEFITS FOR STATE AND NATIONAL GUARD MEMBERS, SO AS TO DELETE PROVISIONS REGARDING, AMONG OTHER THINGS, THE REDUCTION OF WORKERS' COMPENSATION BENEFITS FOR THE PURPOSE OF COORDINATING BENEFITS PAYABLE BY THE FEDERAL AND STATE GOVERNMENTS FOR THE DEATH OR INJURY OF A MEMBER OF THE SOUTH CAROLINA NATIONAL GUARD; AND TO PROVIDE FOR THE SEVERABILITY OF THE PROVISIONS OF THIS ACT.

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

Assigned risk agreements authorized; etc.

SECTION 1. Section 38-73-540 of the 1976 Code, as last amended by Section 783 of Act 181 of 1993, is further amended to read:

"Section 38-73-540. (A)(1) Assigned risk agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to, but who are unable to procure, insurance through ordinary methods, and the insurers may agree among themselves on the use of reasonable rate modifications for this insurance. Such residual market agreement and any mechanism designed to implement such agreement, and any amendments thereto, must be submitted in writing to the director or his designee for approval prior to use, together with such additional information as the director or his designee may reasonably require.

(2) If, after a hearing, the director or his designee finds that any activity or practice of insurers participating in the residual market mechanism is unfair, unreasonable, or otherwise inconsistent with the provisions of this title, the director or his designee must issue a written order specifying in what respects such activity or practice is unfair, unreasonable, or otherwise inconsistent with the provisions of this title and require the discontinuance of such activity or practice. The director or his designee may establish an Assigned Risk Plan or mechanism to implement assigned risk agreements by written order if the director or his designee finds that the existing residual market mechanism is unfair, unreasonable, or inconsistent with the provisions of this chapter.

(3) The servicing carriers for the workers' compensation assigned risk pool may be competitively bid as provided for in this subsection. If the workers' compensation assigned risk pool is competitively bid, then the director or his designee must appoint a committee or committees of individuals as he considers qualified to establish standards and procedures for the consideration and evaluation of bids. Insurers, or other vendors in conjunction with a licensed workers' compensation insurer, may submit bids. The committee or committees must evaluate and award contracts pursuant to the bidding process established by the committee or committees, subject to the final approval of the director or his designee. The director may require a bid fee to cover the expenses of implementing this section.

(4) Notwithstanding any other provision of this section or of this article, assigned risk pools must accept a policy of workers' compensation insurance on the basis that it provides coverage to a vendor who provides logging services to a named insured or on the basis that the policy provides coverage to an association of these vendors.

(B) Notwithstanding the provisions of subsection (A), no insurer may act as a servicing carrier for any assigned risk pool for workers' compensation insurance authorized pursuant to subsection (A) unless such insurer participates in the voluntary market for workers' compensation insurance in this State."

Reference to federal law added

SECTION 2. Section 42-1-130 of the 1976 Code is amended to read:

"Section 42-1-130. The term `employee' means every person engaged in an employment under any appointment, contract of hire, or apprenticeship, expressed or implied, oral or written, including aliens and also including minors, whether lawfully or unlawfully employed, but excluding a person whose employment is both casual and not in the course of the trade, business, profession, or occupation of his employer; and as relating to those employed by the State; the term `employee' includes all members of the South Carolina State and National Guard while performing duties in connection with the membership except duty performed pursuant to Title 10 and Title 32 of the United States Code, and all officers and employees of the State, except those elected by the people, or by the General Assembly, or appointed by the Governor, either with or without the confirmation of the Senate; and as relating to municipal corporations and political subdivisions of the State; the term `employee' includes all officers and employees of municipal corporations and political subdivisions, except those elected by the people or elected by the council or other governing body of any municipal corporation or political subdivision, who act in purely administrative capacities and are to serve for a definite term of office. Any reference to an employee who has been injured, when the employee is dead, includes also his legal representative, dependents, and other persons to whom compensation may be payable.

Any sole proprietor or partner of a business whose employees are eligible for benefits under this title may elect to be included as employees under the workers' compensation coverage of the business if they are actively engaged in the operation of the business and if the insurer is notified of their election to be included. Any sole proprietor or partner, upon such election, is entitled to employee benefits and is subject to employee responsibilities prescribed in this title."

Provisions deleted

SECTION 3. Section 42-7-67 of the 1976 Code, as last amended by Part II, Section 15A of Act 612 of 1990, is further amended to read:

"Section 42-7-67. For members of the South Carolina State and National Guard injured while so employed, the extent, duration, and termination of disability and medical benefits under this title must be determined by reference to the member's civilian employment, if any, without considering the member's military position. If the member does not have civilian employment, reference may be made to the member's military position."

Severability clause

SECTION 4. If any provision of this act or the application of a provision thereof either to any person or under any circumstances, is held to be invalid, then that determination does not affect provisions or applications of this act which can be given effect without the invalid provision or application. To that end the provisions of this act are severable.

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

In the Senate House June 13, 1996.

Robert L. Peeler,

President of the Senate

David H. Wilkins,

Speaker of the House of

Representatives

Approved the 18th day of June, 1996.

David M. Beasley,

Governor

Printer's Date -- June 27, 1996 -- S.