South Carolina General Assembly
113th Session, 1999-2000

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Bill 3914


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

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COMMITTEE REPORT

March 1, 2000

H. 3914

Introduced by Reps. Cato, Hayes and Mason

S. Printed 3/1/00--H.

Read the first time April 14, 1999.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (H. 3914), to amend Section 38-39-90, as amended, Code of Laws of South Carolina, 1976, relating to insurance premium service companies and cancellation of insurance contracts, etc., respectfully

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 38-39-90(e) as amended by Act 181 of 1993, is further amended to read:

"(e) Whenever an insurance contract is canceled, the insurer shall return whatever gross unearned premiums are due under the insurance contract to the premium service company which financed the premium for the account of the insured. The gross unearned premiums due on personal lines insurance contracts financed by premium service companies must be computed on a pro rata basis."

SECTION 2. This act takes effect on January 1, 2001.

HARRY F. CATO, for Committee.

A BILL

TO AMEND SECTION 38-39-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE PREMIUM SERVICE COMPANIES AND CANCELLATION OF INSURANCE CONTRACTS, SO AS TO PROVIDE FOR A PRO-RATA COMPUTATION OF THE GROSS UNEARNED PREMIUM TO BE RETURNED, AND PROVIDE THAT, IN THE EVENT A PREMIUM IS SUBJECT TO AN AUDIT TO DETERMINE THE FINAL PREMIUM AMOUNT, THE GROSS UNEARNED PREMIUM MUST BE CALCULATED UPON THE DEPOSIT PREMIUM AND THE INSURER SHALL RETURN TO THE PREMIUM SERVICE COMPANY, FOR THE INSURED'S ACCOUNT, THE GROSS UNEARNED PREMIUM BASED UPON THE DEPOSIT PREMIUM AMOUNT.

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

SECTION 1. Section 38-39-90(e) of the 1976 code is amended to read:

"(e) Whenever an insurance contract is canceled, the insurer shall return whatever gross unearned premiums are due under the insurance contract, computed pro-rata, to the premium service company which financed the premium for the account of the insured. In the event that a premium is subject to an audit to determine the final premium amount, the gross unearned premium must be calculated upon the deposit premium, and the insurer shall return to the premium service company, for the account of the insured, the gross unearned premium based upon the deposit premium amount."

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

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