Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
March 1, 2000
H. 3914
S. Printed 3/1/00--H. [SEC 3/2/00 4:00 PM]
Read the first time April 14, 1999.
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
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.
Renumber sections to conform.
Amend totals and title to conform.
HARRY F. CATO, for Committee.
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.
This web page was last updated on Friday, June 26, 2009 at 3:02 P.M.