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H. 5001
STATUS INFORMATION
General Bill
Sponsors: Rep. Cato
Document Path: l:\council\bills\dka\3855dw04.doc
Companion/Similar bill(s): 1087
Introduced in the House on March 18, 2004
Currently residing in the House Committee on Labor, Commerce and Industry
Summary: Department of Insurance provisions
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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3/18/2004 House Introduced and read first time HJ-30
3/18/2004 House Referred to Committee on Labor, Commerce and Industry
HJ-33
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 38-33-170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXAMINATION OF THE AFFAIRS OF A HEALTH MAINTENANCE ORGANIZATION BY THE DIRECTOR OF INSURANCE, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-39-50, RELATING TO THE REQUIREMENT THAT A LICENSED PREMIUM SERVICE COMPANY IS REQUIRED TO MAINTAIN RECORDS OF ITS TRANSACTIONS, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-41-80, RELATING TO THE REQUIREMENT FOR MULTIPLE EMPLOYER SELF-INSURANCE HEALTH PLANS TO KEEP FULL AND CORRECT RECORDS, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-43-100, AS AMENDED, RELATING TO THE ISSUANCE OF A PRODUCER'S LICENSE, SO AS TO OFFER LICENSE EXAMS ELECTRONICALLY AS WELL AS WRITTEN AND TO AUTHORIZE THE DEPARTMENT TO PURSUE ACTION AGAINST AN APPLICANT OR INSURER'S REPRESENTATIVE FOR FALSE INFORMATION PROVIDED ON AN APPLICATION; TO AMEND SECTION 38-43-101, RELATING TO LICENSING AN INSURANCE PRODUCER WHO WAS PREVIOUSLY LICENSED FOR THE SAME LINES OF INSURANCE IN ANOTHER STATE, SO AS TO AUTHORIZE THE DEPARTMENT TO PURSUE ACTION AGAINST AN APPLICANT OR INSURER'S REPRESENTATIVE FOR PROVIDING FALSE INFORMATION ON AN APPLICATION; TO AMEND SECTION 38-43-105, AS AMENDED, RELATING TO EDUCATIONAL REQUIREMENTS FOR LOCAL AND GENERAL PRODUCERS, SO AS TO STRENGTHEN THE EDUCATIONAL REQUIREMENTS AND DELETE THE REQUIREMENT THAT A COURSE EXAMINATION BE MONITORED BY A PROCTOR; TO AMEND SECTION 38-43-106, AS AMENDED, RELATING TO CONTINUING EDUCATION REQUIREMENTS OF AN APPLICANT OR PRODUCER LICENSED TO SELL PROPERTY AND CASUALTY INSURANCE OR LIFE, ACCIDENT, AND HEALTH INSURANCE, SO AS TO ALLOW THE DEPARTMENT TO BE RECIPROCAL WITH OTHER STATES WITH REGARD TO CONTINUING EDUCATIONAL REQUIREMENTS AND AUTHORIZE THE DIRECTOR TO APPOINT AS MANY REPRESENTATIVES AS NECESSARY TO PERFORM THE RESPONSIBILITIES OF THE ADVISORY BOARD; TO AMEND SECTION 38-43-107, AS AMENDED, RELATING TO THE ADDRESS SUPPLIED BY AN INSURANCE PRODUCER WHEN APPLYING FOR A LICENSE, SO AS TO REQUIRE THE BUSINESS, MAILING, AND RESIDENCE ADDRESSES; TO AMEND SECTION 38-43-200, AS AMENDED, RELATING TO THE PROHIBITION ON SPLITTING COMMISSIONS WITH AN UNLICENSED PERSON BY A LICENSED PRODUCER, SO AS TO DELETE A PROVISION WHICH ALLOWS FEE SPLITTING; TO AMEND SECTION 38-43-250, AS AMENDED, RELATING TO PRODUCER RECORDS KEPT BY PRODUCERS AS AN ACCURATE RECORD OF BUSINESS DONE BY THEM, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-44-20, RELATING TO DEFINITIONS USED IN THE MANAGING GENERAL AGENTS ACT, SO AS TO CLARIFY THE DEFINITION OF A "MANAGING GENERAL AGENT"; TO AMEND SECTION 38-45-20, AS AMENDED, RELATING TO THE REQUIREMENTS FOR A RESIDENT TO BE LICENSED AS AN INSURANCE AGENT, SO AS TO CLARIFY WHAT CONSTITUTES THE LIFE SPAN OF A CERTIFICATE OF COURSE COMPLETION WITH RESPECT TO A BROKER LICENSE; TO AMEND SECTION 38-45-80, RELATING TO THE REQUIREMENT FOR BROKERS TO KEEP RECORDS OF BUSINESS DONE, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-48-120, RELATING TO RECORD RETENTION BY A PUBLIC ADJUSTER, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-51-60, RELATING TO THE REQUIREMENT THAT AN ADMINISTRATOR MAINTAIN FOR THE DURATION OF THE WRITTEN AGREEMENT AND FIVE YEARS AFTER THAT TIME ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS AMONG THE ADMINISTRATOR, INSURERS, AND INSURED PERSONS, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-53-320, RELATING TO THE EXAMINATION BY A PROFESSIONAL OF A SURETY BONDSMAN, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS; TO AMEND SECTION 38-77-155, RELATING TO THE DISTRIBUTION OF MONIES FROM THE UNINSURED MOTORIST'S FUND BY THE DIRECTOR OF INSURANCE, SO AS TO ALLOW THE DIRECTOR TO DISTRIBUTE MONIES BASED ON DATA FROM THE INSURER'S ANNUAL STATEMENT INFORMATION FILED WITH THE DEPARTMENT; AND TO AMEND SECTION 38-78-70, RELATING TO THE REQUIREMENT THAT A PROVIDER MAINTAIN ACCURATE ACCOUNTS, BOOKS, AND RECORDS CONCERNING HIS TRANSACTIONS, SO AS TO CLARIFY THE DEPARTMENT OF INSURANCE'S EXAMINATION AUTHORITY WITH RESPECT TO ENTITIES OR PERSONS OTHER THAN ADMITTED INSURERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-33-170(D) of the 1976 Code is amended to read:
"(D) In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity under examination were an insurer. The expenses of examinations under this section are assessed against the organization being examined and remitted to the director or his designee for whom the examination is being conducted."
SECTION 2. Section 38-39-50(a) of the 1976 Code is amended to read:
"(a) Every Each licensed premium service company shall maintain records of its premium service transactions and the records must be open to examination and investigation by the director or his designee. The director or his designee may at any time require the company to bring any records he directs to his office for examination. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity under examination were an insurer, unless the context requires otherwise."
SECTION 3. Section 38-41-80 of the 1976 Code is amended to read:
"Section 38-41-80. Every Each multiple employer self-insured health plan shall make and keep a full and correct record of its business and affairs and the director or his representative designee shall inspect these records at least every three years. The information from these records must be furnished to the director or his representatives designee on demand and the original books or records must be open to examination by the director or his representatives designee when demanded. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity under examination were an insurer."
SECTION 4. Section 38-43-100(A), (B), (F), and (J) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:
"(A) Business may not be done by the applicant except following issuance of a producer's license, and the license may not be issued until the director or his designee has determined that the applicant is qualified as an insurance producer, generally, and is particularly qualified for the line of business in which the applicant proposes to engage. The department shall promulgate regulations setting forth qualifying standards of producers as to all lines of business and shall require the producer applicant to stand a written examination. For the purpose of interstate reciprocity, the department shall identify by bulletin which limited lines or limited lines credit insurance are approved in South Carolina and which are exempt from examination. The director or his designee may waive the examination with respect to for an applicant who receives a bachelor's degree in insurance within five years of an application for licensure. The director or his designee also may waive the examination for property, casualty, surety, and marine lines of authority for applicants who have achieved the designations of Certified Insurance Counselor (CIC) or Chartered Property and Casualty Underwriter (CPCU) or. The director or his designee also may waive the examination for life, accident, and health lines of authority for applicants who have achieved the designation of or Chartered Life Underwriter (CLU), Fellow, Life Management Institute (FLMI), Life Underwriters Training Council Fellow (LUTCF), Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), or Chartered Financial Consultant (CHFC). A bank, finance company, or other company handling credit transactions operating in this State and utilizing one or more credit life or accident and health or credit property producers in a particular geographical area who are licensed without having taken the written examination is required to have readily available at least one credit life or accident and health or credit property producer to answer customers' questions concerning credit life, credit accident and health insurance, or credit property, or any combination of these.
(B) A resident individual applying for an insurance producer license shall pass a written an examination unless exempt pursuant to subsection (A) of this section. The examination shall must test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, and the insurance laws and regulations of this State. Examinations The examination required by this section must be developed and conducted under rules and regulations prescribed by the director or his designee.
(F) A person applying for a resident insurance producer license or a person applying on behalf of the applicant shall make application to the director or his designee on the Uniform Application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's applicant's knowledge and belief. Before approving the application, the director or his designee shall find that the individual applicant:
(1) is at least eighteen years of age;
(2) has not committed any act is a person of good moral character and has not been convicted of a felony or any crime involving moral turpitude within the last ten years that is a ground for denial, suspension, or revocation set forth as provided for in Section 38-43-130;
(3) has completed a prelicensing course of study for the lines of insurance for which the person has applied;
(4) has paid the fees set forth in Section 38-43-80; and
(5) has successfully passed the examination or examinations for the line or lines of insurance for which the person has applied.
(J) Each insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide to each individual whose duties include selling, soliciting, or negotiating limited line credit insurance a program of instruction that is approved by has been filed with the director or his designee."
SECTION 5. Section 38-43-101 of the 1976 Code, as added by Act 323 of 2002, is amended by adding:
"(C) A person applying for a nonresident insurance producer license or a person applying on behalf of the applicant shall make application to the director or his designee on the uniform application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief."
SECTION 6. Section 38-43-105(A) and (D) of the 1976 Code, as last amended by Act 323 of 2002, is further amended to read:
"(A) No An applicant may not be licensed as a local or general producer unless, within two years immediately preceding the date of his licensing, he has:
(1) successfully completed classroom or correspondence courses in insurance approved by the director or his designee consisting of no less than forty classroom hours, or forty self-study hours; or
(2) had at least one year of insurance underwriting or marketing experience as an employee of a producer, insurer, or their managers or general producers in all lines of insurance for which he is making application to be licensed;
(3) received a bachelor's degree in insurance within five years of an application for licensure;
(4) achieved one of the following designations: Chartered Life Underwriter (CLU), Fellow, Life Management Institute (FLMI), Certified Financial Planner (CFP), Life Underwriter Training Council Fellow (LUTCF), Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), or Chartered Financial Consultant (CHFC) if applying for a Life, Accident, and Health license; or
(5) achieved the designation of Chartered Property and Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC) if applying for a Property, Casualty, Surety, and Marine license.
(D) Any A correspondence course approved by the director or his designee shall qualify for the equivalency of the number of classroom hours assigned thereto to it by the director or his designee. Any An applicant taking a prelicensing education course by correspondence in fulfillment of the forty-hour prelicensing education requirement must successfully shall pass a closed book course examination that is monitored by a state approved proctor successfully."
SECTION 7. Section 38-43-106(A) of the 1976 Code, as last amended by Act 323 of 2002, is further amended by adding:
"(3) However, a licensed resident producer who has obtained one of the following designations may use the credit hours earned to maintain the designation toward the fulfillment of the twenty-four hour requirement: Chartered Life Underwriter (CLU), Fellow, Life Management Institute (FLMI), Certified Financial Planner (CFP), Life Underwriter Training Council Fellow (LUTCF), Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), or Chartered Financial Consultant (CHFC) if applying for a Life, Accident, and Health license, or Chartered Property and Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC) if applying for a Property, Casualty, Surety, and Marine license."
SECTION 8. Section 38-43-106(C) and (H) of the 1976 Code, as last amended by Act 323 of 2002, is further amended to read:
"(C)(1) The director or his designee shall administer these continuing education requirements and shall approve courses of instruction which qualify for these purposes. However, the director may enter into reciprocal agreements with the insurance commissioners of other states regarding the approval of continuing education courses, sponsors, instructors, or proctors if, in his judgment, the arrangements or agreements are in the best interest of the State and if the proposed courses, sponsors, instructors, or proctors submitted meet the minimum statutory requirements of this State for approval. However, the director or his designee may not enter into or continue a reciprocal agreement unless the other state has requirements similar to this State in approving courses, sponsors, instructors, or proctors. In administering this program, the department, in its discretion, may promulgate regulations whereby producers provide to a continuing education administrator established within the Department of Insurance proof of compliance with continuing education requirements as a condition of license renewal or, in the alternative, contract with an outside service provider to provide recordkeeping services as the continuing education administrator. The costs of the continuing education administrator must be paid from the continuing insurance education fees paid by producers in the manner provided by this section, except that course approval responsibilities may not be designated to the continuing education administrator. The continuing education administrator shall compile and maintain, in conjunction with insurers and producers, records reflecting the continuing insurance education status of all licensed or qualified producers subject to the requirements of this section. The continuing education administrator shall furnish to the insurer, as specified by regulation, a report of the continuing insurance education status of all of its producers. All licensed producers shall provide evidence of their continuing insurance education status to the continuing education administrator by May first of the biennially compliance year unless granted an extension. Any continuing insurance education approved courses taken subsequent to this May first deadline must be applied to the following biennial continuing insurance education required period.
(2) The department may promulgate regulations prescribing the overall parameters of continuing education requirements, and these regulations shall must expressly authorize the director or his designee to recognize product-specific training offered by insurers. The director shall appoint an advisory committee to make recommendations with respect to courses offered for approval, but the director or his designee shall retain authority with respect to course approvals. When the advisory committee is approved, it shall meet regularly as needed, but no less than semiannually, to review new course applications. Also, the advisory committee shall review modifications of courses previously approved and review previously promulgated regulations to make recommendations regarding any need for modifications, deletions, or new regulations. The advisory committee must be comprised of sixteen representatives. In making these appointments, the director may accept nominations for qualified individuals from the Professional Insurance Agents of South Carolina; the Independent Insurance Agents of South Carolina; the South Carolina Association of Automobile Insurance Agents; the South Carolina Association of Insurance and Financial Advisers; the Association of South Carolina Life Insurance Companies; the Direct Writers Insurance Companies; insurers that are not members of any national insurance trade association; and any other individual, group, or trade or professional association.
(3) Vacancies A vacancy on the advisory committee must be published in newspapers of general, statewide circulation. Each advisory committee members member must be appointed for a term of two years each and shall serve until their his successors are successor is appointed and have qualified. Any A vacancy must be filled for the unexpired term only.
(H) A licensed producer reaching the age of fifty-five, for any lines of authority for which he has a minimum of twenty years of continuous licensure, is exempted from the requirements of this section as to the line or lines which are otherwise subject to the provisions of this section is required biennially to complete twelve hours of continuing education. A licensed producer, reaching the age of sixty for any lines of authority for which he has a minimum of twenty twenty-five years of active licensure, is exempted from the requirements of this section as to the line or lines which are otherwise subject to the provisions of this section required biennially to complete twelve hours of continuing education. A licensed producer, for any lines of authority for which he has been continuously licensed for ten years and has achieved one of the following designations, is required biennially to complete twelve hours of continuing education: Chartered Life Underwriter (CLU), Fellow, Life Management Institute (FLMI), Certified Financial Planner (CFP), Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), Life Underwriter Training Council Fellow (LUTCF), or Chartered Financial Consultant (CHFC) if applying for a Life, Accident, and Health license, or Chartered Property and Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC) if applying for a Property, Casualty, Surety, and Marine license. A multiline producer shall complete a minimum of six hours of continuing education for each line of authority. A producer who is exempt from continuing education requirements before the effective date of this section, shall maintain the total exemption from continuing education requirements."
SECTION 9. Section 38-43-107(A) of the 1976 Code, as last amended by Act 323 of 2002, is further amended to read:
"(A) When If an individual applies for an insurance producer's license he shall supply the department his business, mailing, and residence street address. The producer shall notify the department within thirty days of any change in legal name or in these addresses."
SECTION 10. Section 38-43-200 of the 1976 Code, as last amended by Act 323 of 2002, is further amended by deleting subsection (I) which reads:
"(I) An insurer or insurance producer may pay or assign commissions, service fees, brokerages, or other valuable consideration to an insurance agency or to persons who do not sell, solicit, or negotiate insurance in this State, unless the payment would violate the procedures as outlined under Chapter 57 of Title 38."
SECTION 11. Section 38-43-250 of the 1976 Code, as last amended by Act 323 of 2002, is further amended to read:
"Section 38-43-250. All producers shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums, and the person to whom issued of every policy or certificate of renewal. The information from these records must be furnished to the director or his designee on demand and the original books or records are open to the inspection of the director or his designee on demand. These records must be kept for a minimum of five years. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity or person under examination were an insurer, unless the context requires otherwise."
SECTION 12. Section 38-44-20(3)(a) of the 1976 Code is amended to read:
"(a) 'Managing general agent', MGA, means a person who:
(i) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; and
(ii) acts as an agent for the insurer whether known as a MGA, a manager, or another similar term;, who
(iii) with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in one quarter or year with one or both of the following activities related to the business produced:
a. adjusts or pays claims in excess of five thousand dollars;
b. negotiates ceding reinsurance contracts on behalf of the insurer."
SECTION 13. Section 38-45-20(2) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:
"(2) successful completion of classroom insurance courses approved by the director or his designee consisting of no less than twelve classroom hours, which must be in addition to the requirements for a producer license contained in Section 38-43-105. The course subjects must be related to broker or surplus lines activities as approved by the director or his designee. A course certificate must be issued to each course participant upon successful completion of the course requirements. The certificate expires twenty-four months following the date of issuance. A request for licensure submitted to the department after the expiration date of the certificate is considered invalid for purposes of licensure as a broker;"
SECTION 14. Section 38-45-80 of the 1976 Code is amended to read:
"Section 38-45-80. All brokers doing any kind of insurance business in this State shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums, and the person to whom issued of every policy or certificate of renewal. The information from these records must be furnished to the director or his designee on demand and the original books or records are open to the inspection of the director or his designee on demand. These records must be kept for a minimum of five years. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity or person under examination were an insurer, unless the context requires otherwise."
SECTION 15. Section 38-48-120 of the 1976 Code is amended to read:
"Section 38-48-120. Every Each public adjuster shall maintain all records of losses and claims adjusted for three years after the settlement or closing of each claim. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity or person under examination were an insurer, unless the context requires otherwise."
SECTION 16. Section 38-51-60 of the 1976 Code is amended to read:
"Section 38-51-60. Every Each administrator shall maintain at its principal administrative office for the duration of the written agreement referred to in Section 38-51-40 and five years thereafter after that time adequate books and records of all transactions among the administrator, insurers, and insured persons. The books and records must be maintained in accordance with prudent standards of insurance recordkeeping. The director or his designee shall have access to the books and records for the purpose of examination, audit, and inspection, and information from the records must be furnished to the director or his designee on demand. Any trade secrets contained therein, in them including, but not limited to, the identity and addresses of policyholders and certificate holders, are confidential, except that the director or his designee may use the information in any proceedings instituted against the administrator. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity under examination were an insurer, unless the context requires otherwise. The insurer shall retain the right to continuing access to the books and records of the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insured persons, subject to any restrictions in the written agreement between the insurer and administrator on the proprietary rights of the parties in such these books and records."
SECTION 17. Section 38-53-320 of the 1976 Code is amended to read:
"Section 38-53-320. Whenever If the director or his designee considers it necessary, he shall visit and examine, or cause to be visited and examined by some competent person appointed by him, for that purpose any professional bondsman subject to the provisions of this chapter. For this purpose, the director or his designee or person making the examination has free access to all books and papers of the bondsman that relate to his business and to the books and papers kept by any of his agents or runners. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity or person under examination were an insurer, unless the context requires otherwise."
SECTION 18. Section 38-77-155 of the 1976 Code is amended to read:
"Section 38-77-155. The director shall distribute monies annually from the Uninsured Motorists Fund among the several insurers writing motor vehicle bodily injury and property damage liability insurance on motor vehicles registered in this State. Monies must be distributed in the proportion that each insurer's premium income for the basic uninsured motorists limits auto liability coverage bears to the total premium income for basic uninsured motorists limits auto liability coverage written in this State during the preceding year. Premium income must be gross premiums less cancellation and return premiums for coverage required by Section 38-77-150. Only insurers that maintain records satisfactory to the director shall receive any payment from the Uninsured Motorists Fund. Records must be considered satisfactory if they adequately disclose the loss experience for the coverage. The director shall obtain premium information from the annual statement filed by each insurer."
SECTION 19. Section 38-78-70(C) of the 1976 Code is amended to read:
"(C) The provider shall make all accounts, books, and records concerning transactions regulated under pursuant to the provisions of this chapter, or other pertinent laws, available to the director upon request. In enforcing the provisions of this chapter, the examination procedures, requirements, and responsibilities provided for in Chapter 13 also apply as if the entity under examination were an insurer, unless the context requires otherwise."
SECTION 20. This act takes effect upon approval by the Governor, except that the amendment to Section 38-43-106(C)(1) contained in SECTION 8 and the provisions contained in SECTION 11 take effect July 1, 2004, and SECTIONS 4, 5, 6, 7, 9, 10, and 11 take effect January 1, 2005.
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