South Carolina General Assembly
112th Session, 1997-1998

Bill 3899

Indicates Matter Stricken
Indicates New Matter 

                    Current Status

Bill Number:                    3899
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19970410
Primary Sponsor:                Kirsh 
All Sponsors:                   Kirsh 
Drafted Document Number:        BBM\9042JM.97
Residing Body:                  House
Date Tabled:                    19980324
Current Committee:              Labor, Commerce and Industry
                                Committee 26 HLCI
Subject:                        Insurer's Rehabilitation and
                                Liquidation Act, counterclaims, delete
                                restrictions against; Insurance
History

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

House   19980324  Tabled in Committee                      26 HLCI
House   19970410  Introduced, read first time,             26 HLCI
                  referred to Committee
View additional legislative information at the LPITS web site.

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 38-27-490, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REHABILITATION AND LIQUIDATION OF INSURERS, FORMAL PROCEEDINGS, AND SETOFFS AND COUNTERCLAIMS, SO AS TO DELETE THE RESTRICTIONS AGAINST COUNTERCLAIMS AND TO DELETE THE PROVISION THAT NO SETOFF IS ALLOWED IN FAVOR OF ANY PERSON WHERE THE OBLIGATION OF THE PERSON IS TO PAY PREMIUMS WHETHER EARNED OR UNEARNED TO THE INSURER.

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

SECTION 1. Section 38-27-490(b) of the 1976 Code is amended to read:

"(b) No setoff or counterclaim is allowed in favor of any person where:

(1) the obligation of the insurer to the person would not at the date of the filing of a petition for liquidation entitle the person to share as a claimant in the assets of the insurer;

(2) the obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a setoff; or

(3) the obligation of the person is to pay an assessment levied against the members or subscribers of the insurer or is to pay a balance upon a subscription to the capital stock of the insurer or is in any other way in the nature of a capital contribution; or.

(4) the obligation of the person is to pay premiums whether earned or unearned to the insurer."

SECTION 2. This act takes effect upon approval by the Governor.

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