Current Status Bill Number:755 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970514 Primary Sponsor:Courtney All Sponsors:Courtney and McConnell Drafted Document Number:s-jud\courtney\jud\6044.ctc Companion Bill Number: 3792 Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Insurance, casualty and surety rates, assigned risks; provisions for insurers participating in voluntary market
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970514 Introduced, read first time, 02 SBI
referred to Committee
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TO AMEND SECTION 38-73-540, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, CASUALTY AND SURETY RATES, AND ASSIGNED RISKS, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT INSURERS THAT PARTICIPATE IN THE VOLUNTARY MARKET SHALL PARTICIPATE IN CERTAIN MECHANISMS PROVIDED FOR IN THIS SECTION AND SHALL PAY THEIR ASSESSMENTS, IF ANY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-73-540 of the 1976 Code, as last amended by Act. No. 451 of 1996, 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 This residual market agreement and any mechanism designed to implement such the 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. Insurers that participate in the voluntary market shall participate in these mechanisms and shall pay their assessments, if any.
(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 the activity or practice is unfair, unreasonable, or otherwise inconsistent with the provisions of this title and require the discontinuance of such the activity or practice. The director or his designee may establish, by written order, an Assigned Risk Plan or mechanism if he finds that insurers have failed to agree pursuant to subsection (A)(1), or 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 the insurer participates in the voluntary market for workers' compensation insurance in this State."
SECTION 2. This act takes effect upon approval by the Governor.