South Carolina General Assembly
115th Session, 2003-2004

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H. 4080

STATUS INFORMATION

General Bill
Sponsors: Rep. Tripp
Document Path: l:\council\bills\dka\3433dw03.doc
Companion/Similar bill(s): 655

Introduced in the House on April 24, 2003
Currently residing in the House Committee on Labor, Commerce and Industry

Summary: Department of Insurance matters

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   4/24/2003  House   Introduced and read first time HJ-74
   4/24/2003  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-74

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

4/24/2003

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

A BILL

TO AMEND SECTION 15-9-270, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SERVICE OF LEGAL PROCESS ON AN INSURANCE COMPANY, SO AS TO INCREASE THE FEES CHARGED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE FOR COSTS INCURRED BY HIM; TO AMEND SECTION 15-9-285, AS AMENDED, RELATING TO SERVICE OF LEGAL PROCESS ON AN INSURER NOT LICENSED IN THIS STATE, SO AS TO INCREASE THE FEES CHARGED BY THE DIRECTOR FOR COSTS INCURRED BY HIM; TO AMEND SECTION 38-87-30, RELATING TO CHARTERING RISK RETENTION GROUPS, SO AS TO REQUIRE ADDITIONAL INFORMATION AT THE TIME THE GROUP FILES ITS APPLICATION; AND TO AMEND SECTION 38-87-80, RELATING TO INFORMATION FURNISHED THE DEPARTMENT OF INSURANCE BY A PURCHASING GROUP, SO AS TO REQUIRE AN INITIAL REGISTRATION FEE OF TWO HUNDRED DOLLARS AND AN ANNUAL FEE OF ONE HUNDRED DOLLARS.

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

SECTION    1.    Section 15-9-270 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 15-9-270.    The summons and any other legal process in any action or proceeding against it must be served on an insurance company as defined in Section 38-1-20, including fraternal benefit associations, by delivering two copies of the summons or any other legal process to the Director of the Department of Insurance, as attorney of the company with a fee of ten forty dollars, of which five twenty dollars must be retained by the director to offset the costs he incurs in service of process and of which five twenty dollars must be deposited to the credit of the general fund of the State. A company shall appoint the director as its attorney pursuant to the provisions of Section 38-5-70. This service is considered sufficient service upon the company. When legal process against any a company with the fee provided in this section is served upon the director, he shall immediately shall forward by registered or certified mail one of the duplicate copies prepaid directed toward the company at its home office or, in the case of a fraternal benefit association, to its secretary or corresponding officer at the head of the association."

SECTION    2.    Section 15-9-285 of the 1976 Code, as last amended by Act 366 of 1988, is further amended to read:

"Section 15-9-285.    (a)    The issuance and delivery of a policy of insurance or contract of insurance or indemnity to any a person in this State or the collection of a premium thereon on it by an insurer not licensed in this State, as required, irrevocably constitutes the Chief Insurance Commissioner Director of the Department of Insurance, and his successors in office, the true and lawful attorney in fact upon whom service of any and all processes, pleadings, actions, or suits arising out of the policy or contract in behalf of the insured may be made.

(b)    Service of process in the action is made by delivering to and leaving with the Chief Insurance Commissioner Director of the Department of Insurance or some person in apparent charge of his office two copies of it and by payment to the Chief Insurance Commissioner Director of the Department of Insurance of a fee of ten forty dollars, of which five twenty dollars must be retained by the Chief Insurance Commissioner Director of the Department of Insurance to offset the costs he incurs in service of process and of which five twenty dollars must be deposited to the credit of the general fund of the State.

(c)    The Chief Insurance Commissioner shall Director of the Department of Insurance immediately shall mail by registered mail one of the copies of the process to the defendant at its last known principal place of business and shall keep a record of all process serviced upon him. The service of process is sufficient if:

(1)    within ten days after receipt by the Director of the Department of Insurance, notice of the service and a copy of the process are sent within ten days thereafter by registered mail by the plaintiff's attorney to the defendant at its last known principal place of business; and

(2)    the defendant's receipt or a receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the plaintiff's attorney showing compliance herewith with this section are filed with the clerk of court in which the action is pending by the date the defendant is required to appear or within such further time as the court may allow.

(d)    No A plaintiff is not entitled to a judgment by default, a judgment with leave to prove damages, or a judgment pro confesso under provided by this section until the expiration of thirty days from the date of filing of the affidavit of compliance.

(e)    Nothing in this section limits or abridges the right to serve any process, notice, order, or demand upon any person or insurer in any other manner permitted by law."

SECTION    3.    Section 38-87-30(C) of the 1976 Code is amended to read:

"(C)    At the time of filing its application for charter, the risk retention group shall provide to the director or his designee in summary form the following information:

(1)    an initial registration fee of five hundred dollars and pay annually a fee of two hundred fifty dollars by March first to continue its registration in this State;

(2)    the identity of the initial members of the group,;

(3)    the identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group,;

(4)    the amount and nature of initial capitalization,;

(5)    the coverages to be afforded,; and

(6)    the states in which the group intends to operate.

Upon receipt of this information, the director or his designee may forward such this information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition to, and is not sufficient to satisfy, the requirements of Section 38-87-40 or any other provision of this chapter."

SECTION    4.    Section 38-87-80(A) of the 1976 Code is amended to read:

"(A)    A purchasing group prior to before doing business in this State shall furnish notice to the department, on forms prescribed or approved by it, which shall:

(1)    identify the state in which the group is domiciled;

(2)    identify all other states in which the group intends to do business;

(3)    specify the lines and classifications of liability insurance which the purchasing group intends to purchase;

(4)    identify the insurance company from which the group intends to purchase its insurance and the domicile of such company;

(5)    specify the method by which, and the person, if any, through whom insurance will may be offered to its members whose risks are resident or located in this State;

(6)    identify the principal place of business of the group;

(7)    provide other information as may be required by the director or his designee to verify that the purchasing group is qualified under pursuant to the provisions of Section 38-87-20(10).;

(8)    include an initial registration fee of two hundred dollars and pay annually by March first of each year a fee of one hundred dollars to continue its registration."

SECTION    5.    This act takes effect upon approval by the Governor.

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