Current Status Bill Number:495 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950214 Primary Sponsor:Saleeby All Sponsors:Saleeby Drafted Document Number:BBM\9830JM.95 Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Property and casualty insurance
Body Date Action Description Com Leg Involved
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Senate 19950214 Introduced, read first time, 02 SBI
referred to Committee
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TO AMEND SECTION 38-31-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE "SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACT", SO AS TO CHANGE THE DEFINITION OF "COVERED CLAIM"; AND TO AMEND SECTION 38-31-100, RELATING TO THE SAME ACT, THE REQUIREMENT THAT CLAIMANTS EXHAUST RIGHTS UNDER OTHER POLICIES, AND CLAIMS RECOVERABLE FROM MORE THAN ONE ASSOCIATION, SO AS TO DELETE CERTAIN LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT ANY RECOVERY UNDER THIS ACT MUST BE REDUCED BY THE STATUTORY CAP APPLICABLE TO THE OTHER INSURANCE GUARANTY ASSOCIATION OR ITS EQUIVALENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-31-20(6) of the 1976 Code is amended to read:
"(6) `Covered claim' means an unpaid claim, including one of unearned premiums, which arises out of and is within the coverage and is subject to the applicable limits of an insurance policy to which this chapter applies issued by an insurer, if the insurer is an insolvent insurer and (a) the claimant or insured is a resident of this State at the time of the insured event, if for entities other than an individual, the residence of a claimant or insured is the state in which its principal place of business is located at the time of the insured event or (b) the claim is for first-party benefits for damage to property from which the claim arises is permanently located in this State. `Covered claim' does not include any amount awarded as extracontractual damages unless awarded against the association; sought as a return of premium under any retrospective rating plan; or due any reinsurer, insurer, insurance pool, or underwriting association as subrogation recoveries or otherwise."
SECTION 2. Section 38-31-100(2) of the 1976 Code is amended to read:
"(2) Any person or entity having a claim which may be recovered under more than one insurance guaranty association or its equivalent first shall seek recovery first from exhaust its remedies against the association of the place of residence of the insured except that, if it is a first-party claim for damage to property with a permanent location, he shall seek recovery first from the association of the location of the property, and, if it is a workers' compensation claim, he shall seek recovery first from the association of the residence of the claimant. Any recovery under this chapter must be reduced by the amount of recovery from any statutory cap applicable to the other insurance guaranty association or its equivalent."
SECTION 3. This act takes effect upon approval by the Governor.