South Carolina General Assembly
116th Session, 2005-2006

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Bill 792

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Indicates New Matter


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

Indicates Matter Stricken

Indicates New Matter

RECALLED

May 24, 2006

S. 792

Introduced by Senator Thomas

S. Printed 5/24/06--H.

Read the first time May 2, 2006.

            

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-90-485 SO AS TO PROVIDE THAT THE CREATION OF A PROTECTED CELL DOES NOT CREATE A LEGAL PERSON SEPARATE FROM A SPECIAL PURPOSE FINANCIAL CAPTIVE (SPFC); BY ADDING SECTION 38-90-515 SO AS TO PROVIDE THAT SECURITIES ISSUED BY A SPFC PURSUANT TO INSURANCE SECURITIZATION MAY NOT BE CONSIDERED TO BE INSURANCE OR INSURANCE CONTRACTS; TO AMEND SECTION 38-13-400, RELATING TO THE REPORT REQUIRED TO BE FILED DISCLOSING MATERIAL ACQUISITIONS AND DISPOSITIONS OF ASSETS OR MATERIAL NONRENEWALS, CANCELLATIONS, OR REVISIONS OF CEDED REINSURANCE; TO AMEND SECTION 38-13-410, RELATING TO REPORTING AN INSURER'S ACQUISITIONS OR DISPOSITIONS OF ASSETS, SO AS TO ADD HEALTH MAINTENANCE ORGANIZATIONS TO THE REPORTING REQUIREMENTS; TO AMEND SECTION 38-13-420, RELATING TO REPORTING NONRENEWALS, CANCELLATIONS, OR REVISIONS OF CEDED REINSURANCE AGREEMENTS, SO AS TO ADD HEALTH MAINTENANCE ORGANIZATIONS TO THE REPORTING REQUIREMENTS; TO AMEND SECTION 38-71-880, AS AMENDED, RELATING TO MEDICAL AND SURGICAL BENEFITS AND MENTAL BENEFITS COVERAGE, SO AS TO CHANGE THE DATE FOR THE APPLICABILITY OF BENEFITS FOR SERVICES FURNISHED; TO AMEND SECTION 38-71-1410, RELATING TO THE SOUTH CAROLINA SMALL EMPLOYER INSURER REINSURANCE PROGRAM, SO AS TO ESTABLISH CODE REFERENCES FOR SELECTING A LICENSED ADMINISTRATOR INSTEAD OF AN ADMINISTERING INSURER; TO AMEND SECTION 38-73-220, RELATING TO THE APPROVAL PROCESS FOR INSURANCE RATE LEVEL CHANGES, SO AS TO CHANGE CODE REFERENCES FROM THE ARTICLE TO THE CHAPTER; TO AMEND SECTION 38-73-240, RELATING TO RATE FILINGS WHERE THE LINE OF INSURANCE IS DECLARED COMPETITIVE, SO AS TO CHANGE CODE REFERENCES FROM ARTICLE TO CHAPTER; TO AMEND SECTION 38-73-260, RELATING TO THE APPROVAL PROCESS FOR INSURANCE RATE LEVEL CHANGES, SO AS TO CHANGE CODE REFERENCES FROM ARTICLE TO CHAPTER; TO AMEND SECTION 38-73-270, RELATING TO THE CONSUMER INFORMATION SYSTEM FOR VARIOUS TYPES OF INSURANCE COVERAGE, SO AS TO CHANGE CODE REFERENCES FROM ARTICLE TO CHAPTER; TO AMEND SECTION 38-74-30, AS AMENDED, RELATING TO ELIGIBILITY FOR COVERAGE UNDER THE SOUTH CAROLINA HEALTH INSURANCE POOL, SO AS TO FURTHER DEFINE COVERAGE FOR AN INDIVIDUAL UNDER THE AGE OF SIXTY-FIVE; TO AMEND SECTION 38-74-60, AS AMENDED, RELATING TO COVERAGE UNDER THE POOL'S MAJOR EXPENSE PROVISIONS, SO AS TO PROVIDE MEDICARE SUPPLEMENTAL HEALTH INSURANCE COVERAGE TO AN INDIVIDUAL FOR REASONS OTHER THAN AGE; TO AMEND SECTION 38-77-530, RELATING TO THE PLAN OF OPERATION OF THE REINSURANCE FACILITY, SO AS TO AUTHORIZE THE GOVERNING BOARD OF THE FACILITY TO DECLARE AN ASSESSMENT ON INSURERS; TO AMEND SECTION 38-77-580, RELATING TO THE GOVERNING BOARD OF THE REINSURANCE FACILITY, SO AS TO CHANGE THE COMPOSITION OF THE BOARD; TO AMEND SECTION 38-90-40, AS AMENDED, RELATING TO CAPITALIZATION AND SECURITY REQUIREMENTS FOR A CAPTIVE INSURANCE COMPANY, SO AS TO AUTHORIZE THE DIRECTOR OF INSURANCE TO ISSUE A LICENSE TO A CAPTIVE INSURANCE COMPANY IF THE COMPANY PROVIDES THE DIRECTOR WITH EVIDENCE OF MINIMUM REQUIRED UNIMPAIRED PAID-IN CAPITAL; TO AMEND SECTION 38-90-50, AS AMENDED, RELATING TO FREE SURPLUS REQUIREMENTS FOR A CAPTIVE INSURANCE COMPANY, SO AS TO AUTHORIZE THE DIRECTOR OF INSURANCE TO ISSUE A LICENSE TO A CAPTIVE INSURANCE COMPANY CONDITIONED ON EVIDENCE OF MINIMUM REQUIRED FREE SURPLUS; TO AMEND SECTION 38-90-100, AS AMENDED, RELATING TO APPLICABILITY OF INVESTMENT REQUIREMENTS FOR AN ASSOCIATION CAPTIVE INSURANCE COMPANY AND AN INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY, SO AS TO CHANGE A REFERENCE FROM AN INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY TO A CAPTIVE INSURANCE COMPANY AND ADD A REFERENCE TO A SPECIAL PURPOSE CAPTIVE INSURANCE COMPANY; TO AMEND SECTION 38-90-140, AS AMENDED, RELATING TO THE TAX REQUIRED TO BE PAID TO THE DEPARTMENT OF INSURANCE BY A CAPTIVE INSURANCE COMPANY, SO AS TO CLARIFY ON WHAT THE TAX IS PAYABLE AND ESTABLISH A MAXIMUM TAX; TO AMEND SECTION 38-90-175, RELATING TO THE CAPTIVE INSURANCE REGULATORY AND SUPERVISION FUND, SO AS TO INCREASE FROM TEN TO TWENTY PERCENT THE AMOUNT OF FUNDS THE DEPARTMENT OF INSURANCE SHALL TRANSFER INTO THE FUND; TO AMEND SECTION 38-90-420, RELATING TO DEFINITIONS USED REGARDING SPECIAL PURPOSE FINANCIAL CAPTIVE INSURANCE COMPANIES, SO AS TO ADD THE DEFINITIONS OF "ADMINISTRATIVE LAW COURT", "CONTESTED CASE", AND "THIRD PARTY", AND CHANGE THE DEFINITION OF "INSOLVENCY"; TO AMEND SECTION 38-90-430, RELATING TO THE RELATIONSHIP OF ARTICLE 3, CHAPTER 90, TITLE 38 (SPECIAL PURPOSE FINANCIAL CAPTIVES) TO OTHER TITLE 38 PROVISIONS, SO AS TO ADD A REFERENCE TO A SPFC'S PROTECTED CELL; TO AMEND SECTION 38-90-440, RELATING TO THE REQUIREMENTS OF A SPFC TO TRANSACT BUSINESS IN THIS STATE, SO AS TO CHANGE AND ADD CERTAIN REQUIREMENTS; TO AMEND SECTION 38-90-450, RELATING TO ORGANIZATIONAL REQUIREMENTS OF A SPFC, SO AS TO DELETE THE REQUIREMENT THAT CAPITAL STOCK OF A SPFC MUST BE ISSUED AT NOT LESS THAN PAR VALUE; TO AMEND SECTION 38-90-480, RELATING TO THE ESTABLISHMENT OF PROTECTED CELLS BY A SPFC, SO AS TO CHANGE THE PROCEDURE FOR ESTABLISHING PROTECTED CELLS; TO AMEND SECTION 38-90-550, RELATING TO A MATERIAL CHANGE OF A SPFC'S PLAN OF OPERATION, SO AS TO REQUIRE A STATEMENT OF OPERATIONS BE FILED IF APPROVED OR REQUIRED RATHER THAN REQUESTED BY THE DIRECTOR OF INSURANCE; TO AMEND SECTION 38-90-570, RELATING TO THE EXPIRATION OF AUTHORITY GRANTED BY THE DIRECTOR OF INSURANCE ON CESSATION OF BUSINESS, SO AS TO AUTHORIZE THAT THE DIRECTOR SUSPEND OR REVOKE THE LICENSE OF A SPFC FOR FAILURE TO MEET THE PROVISIONS OF SECTION 38-90-480(D); TO AMEND SECTION 38-90-600, RELATING TO THE AUTHORITY OF THE DIRECTOR OF INSURANCE TO PETITION THE CIRCUIT COURT FOR AN ORDER TO CONSERVE, REHABILITATE, OR LIQUIDATE A SPFC DOMICILED IN THIS STATE FOR CERTAIN GROUNDS, SO AS TO ADD ADDITIONAL GROUNDS; TO AMEND SECTION 38-90-620, RELATING TO STANDARDS AND CRITERIA APPLICABLE IN A CONTESTED CASE BROUGHT BY A THIRD PARTY BASED ON THE DECISION OF THE DIRECTOR OF INSURANCE INVOLVING A SPFC, SO AS TO MODIFY THE STANDARDS AND CRITERIA; TO AMEND ACT 154 OF 1997, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT, SO AS TO DELAY THE REPEAL OF ARTICLE 5, CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, FROM JANUARY 1, 2006 TO JANUARY 1, 2010; AND TO AMEND ACT 291 OF 2004, RELATING TO VARIOUS AMENDMENTS TO THE INSURANCE LAW, SO AS TO DELAY THE EFFECTIVE DATE OF SECTION 38-43-106(H) OF THE 1976 CODE FROM MAY 1, 2006 TO MAY 1, 2010.

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

SECTION    1.    Article 3, Chapter 90, Title 38 of the 1976 Code is amended by adding:

"Section 38-90-485.    (A)(1)    The creation of a protected cell does not create, with respect to that protected cell, a legal person separate from the SPFC.

(2)    Notwithstanding the provision of item (1), a protected cell must have its own distinct name or designation that includes the words 'protected cell'. The SPFC shall transfer all assets attributable to the protected cell to one or more separately established and identified protected cell accounts bearing the name or designation of that protected cell.

(3)    Although it is not a separate legal person, the property of a SPFC in a protected cell is subject to orders of a court by name as it would have been if the protected cell were a separate legal person.

(4)    The property of a SPFC in a protected cell must be served in its own name with process in all civil actions or proceedings involving or relating to the activities of that protected cell or a breach by the SPFC of a duty to the protected cell or to a counterparty to a transaction linked or attributed to it by serving the SPFC in the manner described in Section 15-9-270.

(5)    A protected cell exists only at the pleasure of the SPFC. At the cessation of business of a protected cell in accordance with the plan approved by the director, the SPFC voluntarily shall close out the protected cell account.

(B)    Nothing in this section may be construed to prohibit a SPFC from contracting with, or arranging for, an investment advisor, commodity trading advisor, or other third party to manage the assets of a protected cell, if all remuneration, expenses, and other compensation of the third party advisor or manager are payable from the assets of that protected cell and not from the assets of other protected cells or the assets of the SPFC's general account, unless approved by the director.

(C)    Creditors with respect to a protected cell are not entitled to have recourse against the protected cell assets of other protected cells or the assets of the SPFC's general account. If an obligation of a SPFC relates only to the general account, the obligation of the SPFC extends only to that creditor, with respect to that obligation, and is entitled to have recourse only to the assets of the SPFC's general account.

(D)    The assets of the protected cell may not be used to pay expenses or claims other than those attributable to the protected cell. Protected cell assets are available only to the SPFC contract counterparty and other creditors of the SPFC that are creditors only with respect to that protected cell and, accordingly, are entitled, in conformity with this article, to have recourse to the protected cell assets attributable to that protected cell and absolutely are protected from the creditors of the SPFC that are not creditors with respect to that protected cell and who, accordingly, are not entitled to have recourse to the protected cell assets attributable to that protected cell. If an obligation of a SPFC to a person or counterparty arises from a SPFC contract or related insurance securitization transaction, or is otherwise incurred, with respect to a protected cell:

(1)    that obligation of the SPFC extends only to the protected cell assets attributable to that protected cell, and the person or counterparty, with respect to that obligation, is entitled to have recourse only to the protected cell assets attributable to that protected cell; and

(2)    that obligation of the SPFC does not extend to the protected cell assets of another protected cell or the assets of the SPFC's general account, and that person, with respect to that obligation, is not entitled to have recourse to the protected cell assets of another protected cell or the assets of the SPFC's general account. The SPFC's capitalization held separate and apart from the capitalization of its protected cell or cells as required by Section 38-90-480(D) must be available at all times to pay expenses of or claims against the SPFC and may not be used to pay expenses or claims attributable to any protected cell.

(E)    Notwithstanding another provision of law, a SPFC may allow for a security interest in accordance with applicable law to attach to protected cell assets or a protected cell account when in favor of a creditor of the protected cell or to facilitate the insurance securitization, including, without limitation, the issuance of the SPFC contract, to the extent those protected cell assets are not required at all times to support the risk, but without otherwise affecting the discharge of liabilities under the SPFC contract, or as otherwise approved by the director.

(F)    A SPFC shall establish administrative and accounting procedures necessary to properly identify the one or more protected cells of the SPFC and the protected cell assets and protected cell liabilities to each protected cell. The directors of a SPFC shall keep protected cell assets and protected cell liabilities:

(1)    separate and separately identifiable from the assets and liabilities of the SPFC's general account; and

(2)    attributable to one protected cell separate and separately identifiable from protected cell assets and protected cell liabilities attributable to other protected cells.

(G)    All contracts or other documentation reflecting protected cell liabilities clearly must indicate that only the protected cell assets are available for the satisfaction of those protected cell liabilities. In all SPFC insurance securitizations involving a protected cell, the contracts or other documentation effecting the transaction must contain provisions identifying the protected cell to which the transaction is attributed. In addition, the contracts or other documentation clearly must disclose that the assets of that protected cell, and only those assets, are available to pay the obligations of that protected cell. Notwithstanding the provisions of this subsection and subject to the provisions of this article and another applicable law or regulation, the failure to include this language in the contracts or other documentation may not be used as the sole basis by creditors, insureds or reinsureds, insurers or reinsurers, or other claimants to circumvent the provisions of this section.

(H)    A SPFC with protected cells annually shall file with the department accounting statements and financial reports required by this article which, among other things, must:

(1)    detail the financial experience of each protected cell and the SPFC separately; and

(2)    provide the combined financial experience of the SPFC and all protected cells.

(I)    A SPFC with protected cells shall notify the director in writing within ten business days of a protected cell becoming insolvent."

SECTION    2.    Article 3, Chapter 90, Title 38 of the 1976 Code is amended by adding:

"Section 38-90-515.    Securities issued by a SPFC pursuant to an insurance securitization may not be considered to be insurance or reinsurance contracts. An investor in these securities or a holder of these securities, by sole means of this investment or holding, may not be considered to be transacting the business of insurance in this State. The underwriter's placement or selling agents and their partners, directors, officers, members, managers, employees, agents, representatives, and advisors involved in an insurance securitization pursuant to this article may not be considered to be insurance producers or brokers or conducting business as an insurance or reinsurance company or agency, brokerage, intermediary, advisory, or consulting business only by virtue of their activities in connection with them."

SECTION    3.    Section 38-13-400 of the 1976 Code is amended to read:

"Section 38-13-400.    (A)    Effective January 1, 1995, every each insurer domiciled in this State and, effective July 1, 2006, each health maintenance organization domiciled in this State, shall file a report with the director or his designee disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements, unless such these acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the director or his designee for review, approval, or information purposes pursuant to other provisions of the insurance laws, regulations, or other requirements.

(B)    The report required in subsection (A) is due within fifteen days after the end of the calendar month in which any of the foregoing transactions occur.

(C)    One complete copy of the report, including any exhibits or other attachments filed as part thereof, must be filed with:

(1)    the director or his designee; and

(2)    the National Association of Insurance Commissioners.

(D)    All reports obtained by or disclosed to the director or his designee, pursuant to this section or Sections Section 38-13-410 or 38-13-420 must be given confidential treatment and are not subject to subpoena and shall may not be made public by the director, or his designee, the National Association of Insurance Commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer or health maintenance organization to which it pertains, unless the director or his designee, after giving the insurer or health maintenance organization which would be that is affected thereby notice and an opportunity to be heard, determines that the interest of policyholders, shareholders, or the public will be is best served by the publication thereof of the reports, in which event then the director or his designee may publish all or any part thereof of them in such the manner as the director or his designee considers appropriate."

SECTION    4.    Section 38-13-410 of the 1976 Code is amended to read:

"Section 38-13-410.    (A)    No Acquisitions or dispositions of assets need may not be reported pursuant to Section 38-13-400 if the acquisitions or dispositions are not material. For purposes of this section and Sections 38-13-400 and 38-13-420, a material acquisition (or the aggregate of any series of related acquisitions during any thirty-day period), or disposition (or the aggregate of any series of related dispositions during any thirty-day period) is one that is nonrecurring and not in the ordinary course of business and involves more than five percent of the reporting insurer's total admitted assets as reported in its the most recent annual statement of the insurer or health maintenance organization as filed with the insurance department of the insurer's state of domicile director or his designee.

(B)(1)    Asset acquisitions subject to this section and Sections 38-13-400 and 38-13-420 include every each purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or health maintenance organization or the acquisition of materials for such that purpose.

(2)    Asset dispositions subject to this section and Sections 38-13-400 and 38-13-420 include every each sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment (whether for the benefit of creditors or otherwise), abandonment, destruction, or other disposition.

(C)(1)    The following information must be disclosed in any report of a material acquisition or disposition of assets:

(a)    date of the transaction;

(b)    manner of acquisition or disposition;

(c)    description of the assets involved;

(d)    nature and amount of the consideration given or received;

(e)    purpose of, or reason for, the transaction;

(f)    manner by which the amount of consideration was determined;

(g)    gain or loss recognized or realized as a result of the transaction; and

(h)    names of the persons from whom the assets were acquired or to whom they were disposed.

(2)    Insurers An insurer and a health maintenance organization shall report material acquisitions and dispositions on a nonconsolidated basis unless the insurer or health maintenance organization is part of a consolidated group of insurers or health maintenance organizations which utilizes utilize a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's or health maintenance organization's reserves and such the insurer or health maintenance organization ceded substantially all of its direct and assumed business to the pool. An insurer or a health maintenance organization is considered to have ceded substantially all of its direct and assumed business to a pool if the insurer or a health maintenance organization has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's or health maintenance organization's capital and surplus."

SECTION    5.    Section 38-13-420(A) and (C) of the 1976 Code is amended to read:

"(A)    No Nonrenewals, cancellations, or revisions of ceded reinsurance agreements need may not be reported pursuant to Section 38-13-400 if the nonrenewals, cancellations, or revisions are not material. For purposes of this section and Sections 38-13-400 and 38-13-410, a material nonrenewal, cancellation, or revision is one that affects, for property and casualty business, including accident and health business when written as such, more than fifty percent of an insurer's or health maintenance organization's ceded written premium, or, for life, annuity, and accident and health business, more than fifty percent of the total reserve credit taken for business ceded, on an annualized basis as indicated in the insurer's or health maintenance organization's most recently filed annual statement; provided,. However, that no a filing is not required if the insurer's or health maintenance organization's ceded written premium or the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent of direct plus assumed written premium or ten percent of the statutory reserve requirement before any cession, respectively.

(C)(1)    The following information must be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:

(a)    effective date of the nonrenewal, cancellation, or revision;

(b)    the description of the transaction with an identification of the initiator of the transaction;

(c)    purpose of, or reason for, the transaction; and

(d)    if applicable, the identity of the replacement reinsurers.

(2)    Insurers An insurer and a health maintenance organization are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer or health maintenance organization is part of a consolidated group of insurers or health maintenance organizations which utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's or health maintenance organization's reserves and the insurer or health maintenance organization ceded substantially all of its direct and assumed business to the pool. An insurer or a health maintenance organization is deemed considered to have ceded substantially all of its direct and assumed business to a pool if the insurer or health maintenance organization has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's or health maintenance organization's capital and surplus."

SECTION    6.    Section 38-71-880(F) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"(F)    This section shall does not apply to benefits for services furnished on or after December 31, 2003 2006."

SECTION    7.    Section 38-71-1410(F)(2) of the 1976 Code is amended to read:

"(2)    establish procedures for selecting an administering insurer a licensed administrator, as provided in Sections 38-51-10 through 38-51-60, and setting forth the powers and duties of the administering insurer licensed administrator;"

SECTION    8.    Section 38-73-220(B) and (C) of the 1976 Code, as added by Act 290 of 2004, is amended to read:

"(B)    Notwithstanding any other provisions another provision of this article chapter, for any policies governed by this section, filings that produce rate-level changes within the limitation specified in subsection (A) become effective without prior approval. No more than two rate increases within the limitation specified in subsection (A) may be implemented during any twelve-month period and the second rate-increase filing in the twelve-month period is subject to prior approval.

(C)    A rate increase or decrease falling within the limitation in subsection (B) may become effective not less than thirty days after the date of the filing with the director. The filing is considered to meet the requirements of this article chapter. If the director finds that this filing is not in compliance with this article chapter, he shall issue a written order specifying in detail the provisions with which the insurer has not complied and state a reasonable period in which the filing is considered no longer effective. An order by the director pursuant to this section that is issued more than thirty days from the date on which the director received the rate filing is on a prospective basis only and does not affect any contract issued or made before the effective date of the order."

SECTION    9.    Section 38-73-240(A), (D), and (E) of the 1976 Code, as added by Act 290 of 2004, is amended to read:

"(A)    In a line of insurance declared competitive, each insurer shall file with the director all rates, supplementary rate information, and supporting information for competitive markets at least thirty days before the proposed effective date. The director or his designee may give written notice, within thirty days of the receipt of the filing, that additional time is needed, not to exceed thirty days from the date of the notice, to consider the filing. Upon written application of the insurer, the director or his designee may authorize rates to be effective before the expiration of the waiting period or an extension of it. A filing is considered to meet the requirements of this article chapter and to become effective unless disapproved pursuant to this section by the director or his designee before the expiration of the waiting period or an extension of it. Residual market mechanisms or advisory organizations may file residual market rates.

(D)    All rates, supplementary rate information, and any supporting information filed pursuant to this article chapter is open to public inspection after the filing becomes effective.

(E)    With respect to applications for rate increases for fire, allied lines, and homeowner's insurance that exceed the seven percent cap as provided for in Section 38-73-260(A) and if an applicant insurer had earned premiums in this State in the previous calendar year of more than ten million dollars for the line or type of insurance for which the rate increase is sought, the director or his designee shall provide a copy of the filing to the Consumer Advocate or, in the alternative, shall direct the insurer to provide a copy simultaneously to the Consumer Advocate. Within ten business days of the receipt of the filing, the Consumer Advocate may request from the insurer additional information. A copy of the request must be served on the director or his designee. Within ten business days of the receipt of the information sought, the Consumer Advocate shall inform the insurer and the director if, in his opinion, the filing is not in compliance with this article chapter and specify in detail the reason for his opinion. If the filing is accepted by the director and becomes effective, the Consumer Advocate, upon good cause shown, may request a hearing before the Administrative Law Judge Division Court. An order of the administrative law judge issued pursuant to the provisions of this section is on a prospective basis only and does not affect any contract issued or made before the effective date of the order."

SECTION    10.    Section 38-73-260(B), (C), and (E) of the 1976 Code, as added by Act 290 of 2004, is amended to read:

"(B)    Notwithstanding another provision of this article chapter, for any policies governed by this section, filings that produce rate-level changes within the limitation specified in subsection (A) become effective without prior approval. No more than two rate increases within the limitation specified in subsection (A) may be implemented during a twelve-month period and the second rate increase filing in the twelve-month period is subject to prior approval.

(C)    A rate increase or decrease falling within the limitation in subsection (B) may become effective not less than thirty days after the date of the filing with the director. The filing is considered to meet the requirements of this article chapter. If the director finds that this filing is not in compliance with this article chapter, he shall issue a written order specifying in detail the provisions with which the insurer has not complied and state a reasonable period in which the filing is considered no longer effective. An order by the director pursuant to this section that is issued more than thirty days from the date on which the director received the rate filing is on a prospective basis only and does not affect a contract issued or made before the effective date of the order.

(E)    With respect to applications for rate increases for fire, allied lines, and homeowner's insurance that exceed the seven percent cap as provided in subsection (A) and if an applicant insurer had earned premiums in this State in the previous calendar year of more than ten million dollars for the line or type of insurance for which the rate increase is sought, the director or his designee shall provide a copy of the filing to the Consumer Advocate or, in the alternative, shall direct the insurer to provide a copy simultaneously to the Consumer Advocate. Within ten business days of the receipt of the filing, the Consumer Advocate may request from the insurer additional information. A copy of the request must be served on the director or his designee. Within ten business days of the receipt of the information sought, the Consumer Advocate shall inform the insurer and the director if, in his opinion, the filing is not in compliance with this article chapter and specify in detail the reason for his opinion. If the filing is accepted by the director and becomes effective, the Consumer Advocate, upon good cause shown, may request a hearing before the Administrative Law Judge Division Court. An order of the administrative law judge issued pursuant to the provisions of this section is on a prospective basis only and does not affect any contract issued or made before the effective date of the order."

SECTION    11.    Section 38-73-270 of the 1976 Code, as added by Act 290 of 2004, is amended to read:

"Section 38-73-270.    The director shall utilize, develop, or cause to be developed, a consumer information system which provides and disseminates price and other relevant information on a readily available basis to purchasers of homeowner's, private passenger nonfleet automobile, or property insurance for personal, family, or household needs. The director may utilize, develop, or cause to be developed, a consumer information system which provides and disseminates price and other relevant information on a readily available basis to purchasers of insurance for commercial risks and personal risks not otherwise specified. The activity may be conducted internally within the insurance department, in cooperation with other state insurance departments, through outside contractors, or in another appropriate manner. As necessary and appropriate, the director, insurers, advisory organizations, statistical agents, and other persons or organizations involved in conducting the business of insurance in this State, pursuant to the provisions of this article chapter, shall cooperate in the development and utilization of a consumer information system."

SECTION    12.    Section 38-74-30(A)(3) of the 1976 Code, as last amended by Act 240 of 2002, is further amended to read:

"(3)    if the individual is under the age of sixty-five and covered under Medicare Parts A and B due to disability and is under age sixty-five for reasons other than age."

SECTION    13.    Section 38-74-60(B) of the 1976 Code, as last amended by Act 240 of 2002, is further amended to read:

"(B)    The pool shall offer Medicare supplemental health insurance coverage to every each person who is under age sixty-five covered under Medicare Parts A and B for reasons other than age. The benefit plans to be offered shall must include Medicare supplement plan A and plan C."

SECTION    14.    Section 38-77-580 of the 1976 Code is amended to read:

(A)    The operations and affairs of the facility are under the direction and control of a governing board of nineteen five persons of whom four must be residents of South Carolina appointed by the Governor of South Carolina to represent consumers. The director shall appoint eight three persons to represent the insurance industry. In making these appointments, the director may accept nominations for qualified individuals from the American Insurance Association, the National Association of Independent Insurers, The Alliance of American Insurers, and any other individual, group, or trade or professional association. However, of the eight persons appointed to represent the insurance industry, not less than five Three persons must be either residents of South Carolina and those who are not residents of South Carolina or must have job responsibilities that include the supervision over South Carolina operations; not less than two must be officers or employees of insurers licensed to transact automobile insurance in South Carolina and domiciled therein. The director shall appoint six persons to represent producers, all of whom must be residents of South Carolina. The state independent agents' association, the South Carolina Professional Auto Insurance Agents' Association, the state professional insurance agents' association, and any other individual, group, or insurance agent, trade, or professional association may nominate qualified candidates for appointment. Vacancies on the board must be published in newspapers of general, statewide circulation.

(B)    In addition, the Consumer Advocate is an ex-officio member of the governing board of the Reinsurance Facility. No A person who is associated with any a business within the meaning of Section 8-13-20, which is either subject to regulation by the Department of Insurance or which provides goods or services to the facility for compensation, is not eligible for appointment to the board to represent consumers, except that any a person serving on the board representing consumers on the effective date of this provision who would otherwise be disqualified from serving based on this provision may continue to serve for the remainder of his current term.

(C)    The director is chairman of the board, ex officio, but has no vote except in the case of a tie. The director, or his designated representative, shall preside over all meetings which must be held not less than quarterly in South Carolina at the times and places the director designates. However, upon the filing with the director of a request for a meeting signed by not fewer than five three members of the board and specifying the subjects to be discussed at the proposed meeting, the director shall call a special meeting of the board to be held not less than fifteen nor more than thirty days after receipt of the request. Notice, in writing, of the special meeting must be provided to members of the board.

(D)    Members of the board shall serve two years or until their successors are appointed and have qualified. Any A vacancy must be filled for the unexpired term only. The director may receive nominations from any individual, group, or insurance agent trade or professional association for any a vacancy.

(E)    Amendment of the plan of operation may be made only at the annual meeting of the board or at a special meeting called by the director for that purpose and so specified in the notice of meeting. Amendments of the plan require the affirmative vote of two-thirds of all the board members and are subject to the approval of the director or his designee. The director or his designee may approve amendments only if they are consistent with the purposes of this chapter. If the consumer-representative members of the board unanimously dissent from a proposed amendment and specify their reasons for dissent in writing, the director or his designee may not approve the amendment until after a public hearing addressed to the reasons for the dissent. The director may make provision for voting by proxy at meetings.

(F)    The director or his designee, through the department, may propose to the board any amendment to or modification of the plan that the director or his designee considers to be necessary to render the plan reasonable or consistent with the purposes of this chapter, specifying in writing the reasons for any proposed amendment or modification. In the event that If the board fails to adopt his proposed amendment or modification, the director or his designee may, after notice and public hearing addressed to the reasons for the proposed amendment or modification, may promulgate the amendment or modification considered necessary to render the plan reasonable or consistent with the purposes of this chapter."

SECTION    15.    Section 38-90-40 of the 1976 Code, as last amended by Act 291 of 2004, is further amended to read:

"Section 38-90-40.    (A)(1)    The director may not issue a license to a captive insurance company unless the company possesses and maintains unimpaired paid-in capital of:

(a)    in the case of a pure captive insurance company, not less than one hundred thousand dollars;

(b)    in the case of an association captive insurance company incorporated as a stock insurer or organized as a limited liability company, not less than four hundred thousand dollars;

(c)    in the case of an industrial insured captive insurance company incorporated as a stock insurer or organized as a limited liability company, not less than two hundred thousand dollars;

(d)    in the case of a sponsored captive insurance company, not less than five hundred thousand dollars; however, if the sponsored captive insurance company does not assume any risk, the risks insured by the protected cells are homogeneous and there are no more than ten cells, the director may reduce this amount to an amount not less than one hundred fifty thousand dollars;

(e)    in the case of a special purpose captive insurance company, an amount determined by the director after giving due consideration to the company's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured.

(2)(a)    Except for a sponsored captive insurance company that does not assume any risk, the capital must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director.

(b)    For a sponsored captive insurance company that does not assume any risk, the capital also may be in the form of other high quality securities as approved by the director.

(B)(1)    The director may not issue a license to a captive insurance company incorporated as a nonprofit corporation unless the company possesses and maintains unrestricted net assets of:

(a)    in the case of a pure captive insurance company, not less than two hundred fifty thousand dollars; and

(b)    in the case of a special purpose captive insurance company, an amount determined by the director after giving due consideration to the company's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured.

(2)    Contributions to a captive insurance company incorporated as a nonprofit corporation must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director.

(C)    For purposes of subsections (A) and (B), the director may issue a license expressly conditioned upon the captive insurance company providing to the director satisfactory evidence of possession of the minimum required unimpaired paid-in capital. Until this evidence is provided, the captive insurance company may not issue any policy, assume any liability, or otherwise provide coverage. The director summarily may revoke the conditional license without legal recourse by the company if satisfactory evidence of the required capital is not provided within a maximum period of time, not to exceed one year, to be established by the director at the time the conditional license is issued.

(D)    The director may prescribe additional capital or net assets based upon the type, volume, and nature of insurance business transacted. Contributions in connection with these prescribed additional net assets or capital may must be in the form of:

(1)    cash;

(2)    cash equivalent;

(3)    an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director; or

(4)    securities invested as provided in Section 38-90-100.

(D)(E)    In the case of a branch captive insurance company, as security for the payment of liabilities attributable to branch operations, the director shall require that a trust fund, funded by an irrevocable letter of credit or other acceptable asset, be established and maintained in the United States for the benefit of United States policyholders and United States ceding insurers under insurance policies issued or reinsurance contracts issued or assumed, by the branch captive insurance company through its branch operations. The amount of the security may be no less than the capital and surplus required by this chapter and the reserves on these insurance policies or reinsurance contracts, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums with regard to business written through branch operations; however, the director may permit a branch captive insurance company that is required to post security for loss reserves on branch business by its reinsurer to reduce the funds in the trust account required by this section by the same amount so long as the security remains posted with the reinsurer. If the form of security selected is a letter of credit, the letter of credit must be established by, or issued or confirmed by, a bank chartered in this State or a member bank of the Federal Reserve System.

(E)(F)(1)    A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set forth in Section 38-21-250 through Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director.

(2)    A captive insurance company incorporated as a nonprofit corporation may not make any distributions without the prior approval of the director.

(F)(G)    An irrevocable letter of credit, which is issued by a financial institution other than a bank chartered by this State or a member bank of the Federal Reserve System, shall meet the same standards as an irrevocable letter of credit which has been issued by either entity."

SECTION    16.    Section 38-90-50 of the 1976 Code, as last amended by Act 291 of 2004, is further amended to read:

"Section 38-90-50.    (A)(1)    The director may not issue a license to a captive insurance company unless the company possesses and maintains free surplus of:

(a)    in the case of a pure captive insurance company, not less than one hundred fifty thousand dollars;

(b)    in the case of an association captive insurance company incorporated as a stock insurer or organized as a limited liability company, not less than three hundred fifty thousand dollars;

(c)    in the case of an industrial insured captive insurance company incorporated as a stock insurer or organized as a limited liability company, not less than three hundred thousand dollars;

(d)    in the case of an association captive insurance company incorporated as a mutual insurer, not less than seven hundred fifty thousand dollars;

(e)    in the case of an industrial insured captive insurance company incorporated as a mutual insurer, not less than five hundred thousand dollars;

(f)    in the case of a sponsored captive insurance company, not less than five hundred thousand dollars; however, if the sponsored captive insurance company does not assume any risk, the risks insured by the protected cells are homogeneous and there are no more than ten cells, the director may reduce this amount to an amount not less than one hundred fifty thousand dollars; and

(g)    in the case of a special purpose captive insurance company, an amount determined by the director after giving due consideration to the company's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured.

(2)(a)    Except for a sponsored captive insurance company that does not assume any risk, the surplus must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with the branch office in this State and approved by the director.

(b)    For a sponsored captive insurance company that does not assume any risk, the surplus also may be in the form of other high quality securities as approved by the director.

(B)    Notwithstanding the requirements of subsection (A) a captive insurance company organized as a reciprocal insurer under this chapter may not be issued a license unless it possesses and thereafter maintains free surplus of one million dollars.

(C)    For purposes of subsections (A) and (B), the director may issue a license expressly conditioned upon the captive insurance company providing to the director satisfactory evidence of possession of the minimum required free surplus. Until this evidence is provided, the captive may not issue any policy, assume any liability, or otherwise provide coverage. The director summarily may revoke the conditional license without legal recourse by the company if satisfactory evidence of the required capital is not provided within a maximum period of time, not to exceed one year, to be established by the director at the time the conditional license is issued.

(D)    The director may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted. This capital may additional surplus must be in the form of:

(1)    cash;

(2)    cash equivalent;

(3)    an irrevocable letter of credit issued by a bank chartered by this State, or a member bank of the Federal Reserve System with a branch in this State or as approved by the director or

(4)    securities invested as provided in Section 38-90-100.

(D)(E)    A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations set forth in Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distribution must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director.

(E)(F)    An irrevocable letter of credit, which is issued by a financial institution other than a bank chartered by this State or a member bank of the Federal Reserve System, shall meet the same standards as an irrevocable letter of credit which has been issued by either entity."

SECTION    17.    Section 38-90-100(B) of the 1976 Code, as last amended by Act 58 of 2001, is further amended to read:

"(B)    A pure captive insurance company, an industrial insured captive insurance company a captive reinsurance company, a special purpose captive insurance, and a sponsored captive insurance company are not subject to any restrictions on allowable investments contained in this title; however, the director may request a written investment plan and may prohibit or limit an investment that threatens the solvency or liquidity of the company."

SECTION    18.    Section 38-90-140(B), (C), and (E) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"(B)    A captive insurance company shall pay to the department by March first of each year, a tax at the rate of two hundred and twenty-five thousandths of one percent on the first twenty million dollars of assumed reinsurance premium, and one hundred fifty thousandths of one percent on the next twenty million dollars and fifty thousandths of one percent on the next twenty million dollars and twenty-five thousandths of one percent of each dollar of assumed reinsurance premium after that up to a maximum tax of one hundred thousand dollars. However, no reinsurance tax applies does not apply to premiums for risks or portions of risks which are subject to taxation on a direct basis pursuant to subsection (A). A premium tax is not payable in connection with the receipt of assets in exchange for the assumption of loss reserves and other liabilities of another insurer or other funding mechanism under common ownership and control if the transaction is part of a plan to discontinue the operations related to the loss reserves and other liabilities being assumed of the other insurer or funding mechanism and if the intent of the parties to the transaction is to renew or maintain business with the captive insurance company.

(C)(1)    If the aggregate taxes to be paid by a captive insurance company calculated under subsections (A) and (B) amount to less than five thousand dollars in any year, the captive insurance company shall pay a minimum tax of five thousand dollars for that year. However, in the calendar year in which a captive is first licensed, the minimum tax will must be prorated on a quarterly basis.

(2)    For captives licensed in the:

(a)    first quarter, the prorated minimum tax is five thousand dollars. For captives licensed in the;

(b)    second quarter, the prorated minimum tax is three thousand seven hundred fifty dollars. For captives licensed in the;

(c)    third quarter, the prorated minimum tax is two thousand five hundred dollars. For captives licensed in the; and

(d)    fourth quarter, the prorated minimum tax is one thousand two hundred fifty dollars.

(2)    In the calendar year in which a captive is first licensed, if the aggregate taxes to be paid by a captive insurance company calculated under subsections (A) and (B) amount to less than the minimum tax prorated on a quarterly basis, the captive insurance company shall pay the prorated minimum tax for that calendar year.

(3)    If the aggregate taxes to be paid by a captive insurance company calculated under subsections (A) and (B) amount to more than one hundred thousand dollars in any year, the captive insurance company shall pay a maximum tax of one hundred thousand dollars for that year.

(E)    Two or more captive insurance companies under common ownership and control must be taxed, as though they were a single separate captive insurance company companies."

SECTION    19.    Section 38-90-175(A) of the 1976 Code, as added by Act 188 of 2002, is amended to read:

"(A)    There is hereby created a fund to be known as the 'Captive Insurance Regulatory and Supervision Fund' for the purpose of providing the financial means for the director to administer Chapter 87 and Chapter 90 of this title and for reasonable expenses incurred in promoting the captive insurance industry in the State. The transfer of ten twenty percent of the taxes collected by the department pursuant to Chapter 90 of this title, and all fees and assessments received by the department pursuant to the administration of this chapter shall must be credited to this fund. All fees received by the department from reinsurers who assume risk solely only from captive insurance companies, shall must be deposited into the Captive Insurance Regulatory and Supervision Fund. All fines and administrative penalties, however, shall must be deposited directly into the general fund."

SECTION    20.    Section 38-90-420 of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"Section 38-90-420.    For purposes of this article:

(1)    'Administrative Law Court' means that agency and court of record created pursuant to the provisions of Section 1-23-500.

(2)    'Affiliated company' means a company in the same corporate system as a parent, by virtue of common ownership, control, operation, or management.

(3)    'Contested case' means a proceeding in which the legal rights, duties, obligations, or privileges of a party are required by law to be determined by the Administrative Law Court after an opportunity for hearing.

(2)(4)    'Control' including the terms ' controlling', 'controlled by', and 'under common control with' means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control must be presumed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of another person. This presumption may be rebutted by a showing that control does not exist. Notwithstanding other provisions of this item, for purposes of this article, the fact that a SPFC exclusively provides reinsurance to a ceding insurer under a SPFC contract is not by itself sufficient grounds for a finding that the SPFC and ceding insurer are under common control.

(3)(5)    'Counterparty' means a SPFC's parent or affiliated company, as ceding insurer to the SPFC contract, or subject to the prior approval of the director, a nonaffiliated company.

(4)(6)    'Director' means the Director of the South Carolina Department of Insurance or the director's designee.

(5)(7)    'Department' means the South Carolina Department of Insurance.

(6)(8)    'Fair value' means:

(a)    as to cash, the amount of it; and

(b)    as to an asset other than cash:

(i)    the amount at which that asset could be bought or sold in a current transaction between arms-length, willing parties;

(ii)    the quoted mid-market price for the asset in active markets must be used if available; and

(iii)    if quoted mid-market prices are not available, a value determined using the best information available considering values of similar assets and other valuation methods, such as present value of future cash flows, historical value of the same or similar assets, or comparison to values of other asset classes, the value of which have been historically related to the subject asset.

(7)(9)    'Insolvency' or 'insolvent' means that the SPFC or one or more of its protected cells is unable to pay its obligations when they are due, unless those obligations are the subject of a bona fide dispute, or the director previously has established by order other criteria for determining the solvency of the SPFC or one or more of its protected cells. In which case the SPFC is insolvent if it fails to meet that criteria.

(8)(10)    'Insurance securitization' means a package of related risk transfer instruments, capital market offerings, and facilitating administrative agreements by which proceeds are obtained by a SPFC directly or indirectly through the issuance of securities, which complies with applicable securities law, and which proceeds are held in trust pursuant to the provisions of this article to secure the obligations of the SPFC under one or more SPFC contracts with a counterparty, where investment risk to the holders of these securities is contingent upon the obligations of the SPFC to the counterparty under the SPFC contract in accordance with the transaction terms.

(9)(11)    'Management' means the board of directors, managing board, or other individual or individuals vested with overall responsibility for the management of the affairs of the SPFC, including the election and appointment of officers or other of those agents to act on behalf of the SPFC.

(10)(12)    'Organizational document' means the SPFC's Articles of Incorporation, Articles of Organization, Bylaws, Operating Agreement, or other foundational documents that establish the SPFC as a legal entity or prescribes its existence.

(11)(13)    'Parent' means any corporation, limited liability company, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent of the outstanding voting securities of a SPFC.

(12)(14)    'Permitted investments' means those investments that meet the qualifications pursuant to Section 38-90-530.

(13)(15)    'Protected cell' means a separate account established and maintained by a SPFC for one SPFC contract and the accompanying insurance securitization with a counterparty as further provided for in Chapter 10 of this title.

(14)(16)    'Qualified United States financial institution' means, for purposes of meeting the requirements of a trustee as specified in Section 38-90-530, a financial institution that is eligible to act as a fiduciary of a trust, and is:

(a)    organized or, in the case of a United States branch or agency office of a foreign banking organization, is licensed under the laws of the United States or any state of the United States; and

(b)    regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.

(15)(17)    'Securities' means those different types of debt obligations, equity, surplus certificates, surplus notes, funding agreements, derivatives, and other legal forms of financial instruments.

(16)(18)    'Securities Commissioner' means the Attorney General of the State of South Carolina as provided in Title 35.

(17)(19)    'SPFC' or 'Special Purpose Financial Captive' means a captive insurance company which has received a certificate of authority from the director for the limited purposes provided for in this article.

(18)(20)    'SPFC contract' means a contract between the SPFC and the counterparty pursuant to which the SPFC agrees to provide insurance or reinsurance protection to the counterparty for risks associated with the counterparty's insurance or reinsurance business.

(19)(21)    'SPFC securities' means the securities issued by a SPFC.

(20)(22)    'Surplus note' means an unsecured subordinated debt obligation deemed to be a surplus certificate as described in Section 38-13-110(4) and otherwise possessing characteristics consistent with paragraph 3 of the Statement of Statutory Accounting Principals No. 41, as amended, National Association of Insurance Commissioners (NAIC).

(23)    'Third party' means a person unrelated to an SPFC or its counterparty, or both, that has been aggrieved by a decision of a director regarding that SPFC or its activities."

SECTION    21.    Section 38-90-430(C) of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"(C)    The director, by rule, regulation, or order, may exempt a SPFC or their protected cells, on a case-by-case basis, from provisions of this article that he determines to be inappropriate given the nature of the risks to be insured."

SECTION    22.    Section 38-90-440(B) and (C) of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"Section 38-90-440.    (A) A SPFC, when permitted by its organizational documents, may apply to the director for a license to transact insurance or reinsurance business as authorized by this article. A SPFC only may insure or reinsure the risks of its counterparty. Notwithstanding another provision of this article, a SPFC may purchase reinsurance to cede the risks assumed under the SPFC contract as approved by the director.

(B)    To transact business in this State a SPFC shall:

(1)    obtain from the director a license authorizing it to conduct insurance or reinsurance business, or both, in this State;

(2)    hold at least one management meeting each year in this State;

(3)    maintain its principal place of business in this State; and

(4)    appoint a resident registered agent to accept service of process and to otherwise act on its behalf in this State. If the registered agent, with reasonable diligence, is not found at the registered office of the SPFC, the director must be an agent of the SPFC upon whom any process, notice, or demand may be served.;

(5)    provide such documentation of the insurance securitization as requested by the director immediately upon closing of the transaction, including:

(a)    an opinion of legal counsel with respect to compliance with this article and any other applicable laws as of the effective date of the transaction; and

(b) a statement under oath of its president and secretary showing its financial condition; and

(6)    provide a complete set of the documentation of the insurance securitization to the director shortly following closing of the transaction.

(C)(1)    Before receiving a license, a SPFC shall file with the director A complete SPFC application must include the following:

(1)    a certified copy of its organizational documents, a statement under oath of its president and secretary showing its financial condition, and any other statements or documents required by the director.; and

(2)    In addition to the information required by item (1), an applicant SPFC shall file with the director evidence of:

(a)    the amount and liquidity of its assets relative to the risks to be assumed;

(b)    the adequacy of the expertise, experience, and character of the person or persons who manages it;

(c)    the overall soundness of its plan of operation; and

(d)    other factors considered relevant by the director in ascertaining whether the proposed SPFC is able to meet its policy obligations; and

(e)    the applicant SPFC's financial condition, including the source and form of the minimum capitalization to be contributed to the SPFC.

(3)    A plan of operation, consisting of a description of or statement of intent with respect to the contemplated insurance securitization, the SPFC contract, and related transactions, which must include:

(a)    draft documentation or, at the discretion of the director, a written summary of all material agreements that are entered into to effectuate the SPFC contract and, before effecting such, the insurance securitization, to include the names of the counterparty, the nature of the risks being assumed, the proposed use of protected cells, if any, and the maximum amounts, purpose, and nature and the interrelationships of the various transactions required to effectuate the insurance securitization;

(b)    the source and form of additional capitalization to be contributed to the SPFC;

(c)    the proposed investment strategy of the SPFC;

(d)    a description of the underwriting, reporting, and claims payment methods by which losses covered by the SPFC contract are reported, accounted for, and settled; and

(e)    a pro forma balance sheet and income statement illustrating various stress case scenarios for the performance of SPFC under the SPFC contract.

(4)    Biographical affidavits in NAIC format of all of the prospective SPFC's officers and directors, providing their legal names, any names under which they have or are conducting their affairs, and any affiliations with other persons as defined in Chapter 21 of this title, together with other biographical information as the director may request;

(5)    An affidavit from the applicant SPFC verifying:

(a)    the applicant SPFC meets the provisions of this article;

(b)    the applicant SPFC operates only pursuant to the provisions in this article;

(c)    the applicant SPFC's investment strategy reflects and takes into account the liquidity of assets and the reasonable preservation, administration, and asset management of such assets relative to the risks associated with the SPFC contract and the insurance securitization transaction;

(d)    the securities proposed to be issued are valid legal obligations that are either properly registered with the Securities Commissioner or constitute an exempt security or form part of an exempt transaction pursuant to Section 35-1-310 or 35-1-320; and

(e)    unless otherwise exempted by the director, the trust agreement, the trusts holding assets that secure the obligations of the SPFC under the SPFC contract, and the SPFC contract with the counterparty in connection with the contemplated insurance securitization are structured pursuant to the provisions in this article.

(6)    Any other statements or documents required by the director to evaluate and complete the licensing of the SPFC.

(D)    In addition to the information required by items (1) and (2) subsection (C), and to the provisions of Section 38-90-480, if a protected cell is used, an applicant SPFC shall file with the director:

(a)    a business plan demonstrating how the applicant accounts for the loss and expense experience of each protected cell at a level of detail found to be sufficient by the director, and how it reports the experience to the director;

(b)    a statement acknowledging that all financial records of the SPFC, including records pertaining to any protected cells, must be made available for inspection or examination by the director;

(c)    all contracts or sample contracts between the SPFC and any counterparty, related to each protected cell; and

(d)    evidence that a description of the expenses are allocated to each protected cell in an equitable manner.

(4)(E)    Information submitted pursuant to this subsection is confidential and is subject to Section 38-90-610.

(D)(F)    Section 38-13-60 applies to examinations, investigations, and processing conducted pursuant to the authority of this article.

(E) In addition, a complete SPFC application must include the following:

(1)    an affidavit from the applicant verifying that the prospective SPFC meets the provisions of this article;

(2)    a representation from the applicant that the prospective SPFC will operate only pursuant to the provisions in this article;

(3)    biographical affidavits in NAIC format of all of the prospective SPFC's officers and directors, providing their legal names, any names under which they have or are conducting their affairs, and any affiliations with other persons as defined in Chapter 21 of this title, together with other biographical information as the director may request;

(4)    the source and form of the minimum capital to be contributed to the SPFC;

(5)    a plan of operation, consisting of a description of the contemplated insurance securitization, the SPFC contract, and related transactions, which must include:

(a)    draft documentation or, at the discretion of the director, a written summary of all material agreements that are entered into to effectuate the SPFC contract and the insurance securitization, to include the names of the counterparty, the nature of the risks being assumed, the proposed use of protected cells, if any, and the maximum amounts, purpose, and nature and the interrelationships of the various transactions required to effectuate the insurance securitization;

(b)    the investment strategy of the SPFC and a representation from the applicant that the investment strategy complies with the investment provisions provided for in this article;

(c)    a description of the underwriting, reporting, and claims payment methods by which losses covered by the SPFC contract are reported, accounted for, and settled;

(d)    a representation from the applicant that the trust agreement, the trusts holding assets that secure the obligations of the SPFC under the SPFC contract, and the SPFC contract with the counterparty in connection with the contemplated insurance securitization is structured pursuant to the provisions in this article;

(e)    a pro forma balance sheet and income statements illustrating various stress case scenarios for the performance of SPFC under the SPFC contract; and

(f)    an affidavit from the applicant that the securities proposed to be issued are valid legal obligations that are either properly registered with the Securities Commissioner or constitute an exempt security or form part of an exempt transaction pursuant to Section 35-1-310 or 35-1-320.

(F)(G)    To transact insurance or reinsurance business in this State, a SPFC shall pay to the department:

(1)    A SPFC shall pay to the department a nonrefundable fee of two hundred dollars for processing its application for license. In addition, the director may retain legal, financial, and examination services from outside the department to examine and investigate the application, the reasonable cost of which may be charged against the applicant, or the director may use internal resources to examine and investigate the application for a fee of twelve thousand dollars, half of which is payable upon filing of the application and the remainder upon licensure., or both;

(2)    In addition, a SPFC also shall pay a license fee for the year of registration of three hundred dollars and an annual renewal fee of five hundred dollars.;

(3)    A SPFC shall pay an annual review fee of twenty-four hundred dollars or, if higher, the actual cost as determined by the director.; and

(4)    premium taxes as required by this article.

(G)(H)    The director may grant a license authorizing the SPFC to transact insurance or reinsurance business as a SPFC in this State until March first, at which time the license may be renewed, upon finding that the:

(1)    the proposed plan of operation provides a reasonable and expected successful operation;

(2)    the terms of the SPFC contract and related transactions comply with this article;

(3)    the proposed plan of operation is not hazardous to any counterparty;

(4)    the commissioner of the state of domicile of each counterparty has notified the director in writing or otherwise provided assurance satisfactory to the director that it has approved or nondisapproved the transaction; and

(5)    the director may grant a license authorizing the SPFC to do insurance or reinsurance business in this State until March first at which time the license may be renewed;

(6)    the certificate of authority authorizing the SPFC to transact business is limited only to the insurance or reinsurance activities that the SPFC is allowed to conduct pursuant to this article;.

(7)    the SPFC shall provide a complete set of the documentation of the insurance securitization to the director upon closing of the transactions, including an opinion of legal counsel with respect to compliance with this article and any other applicable laws as of the effective date of the transaction;

(8)(I)    In evaluating the expectation of a successful operation, the director shall consider, among other factors, whether the proposed SPFC, and its management are of known good character and reasonably believed not to be affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions, or other insurance or business relations, with a person known to have been involved in the improper manipulation of assets, accounts, or reinsurance.

(H)(J)    A foreign or alien corporation or limited liability company, upon approval of the director, may become a domestic SPFC by complying with all of the provisions of this article and by filing with the Secretary of State its organizational documents, together with appropriate amendments to it, as may be adopted pursuant to the provisions of this article to bring these organizational documents into compliance with this article. After this is accomplished, the foreign or alien corporation or limited liability company is entitled to the necessary or appropriate certificates or licenses to transact business as a SPFC in this State and is subject to the authority and jurisdiction of this State. In connection with this redomestication, the director may waive any requirements for public hearings. It is not necessary for a corporation or limited liability company redomesticating into this State to merge, consolidate, transfer assets, or otherwise engage in another reorganization, other than as specified in this section."

SECTION    23.    Section 38-90-450(G), (H), and (I) of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"(G)    The capital stock of a SPFC incorporated as a stock insurer must be issued at not less than par value.

(H)    At least one of the members of the management of the SPFC must be a resident of this State.

(I)(H)    A SPFC formed pursuant to the provisions of this article has the privileges of and is subject to the provisions of the 1976 Code, applicable to its formation, as well as the applicable provisions contained in this article. If a conflict occurs between a provision of the applicable law and a provision of this article, the latter controls. Nothing contained in this provision with respect to a SPFC shall abrogate, limit, or rescind in any way the authority of the Securities Commissioner pursuant to the provisions of Title 35."

SECTION    24.    Section 38-90-480 of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"Section 38-90-480.    (A)    This section and Section 38-90-485 provide a basis for the creation and use of protected cells by a SPFC as a means of accessing alternative sources of capital, lowering formation and administrative expenses, and generally making insurance securitizations more efficient. If a conflict occurs between a provision of Chapter 10, Title 38 or Article 1, Chapter 90, Title 38 and either this section or Section 38-90-485, this section and Section 38-90-485 control.

(B)    A SPFC may establish and maintain one or more protected cells to insure or reinsure risks of one or more SPFC contracts with a counterparty, subject to with prior written approval of the director and subject to compliance with the applicable provisions of this article and the following conditions:

(1)    a protected cell must be established only for the purpose of insuring or reinsuring risks of one or more SPFC contracts with a counterparty with the intent of facilitating an insurance securitization;

(2)    each protected cell must be accounted for separately on the books and records of the SPFC to reflect the financial condition and results of operations of the protected cell, net income or loss, dividends or other distributions to the counterparty for the SPFC contract with each cell, and other factors as may be provided in the SPFC contract, insurance securitization transaction documents, plan of operation, or business plan, or as required by the director;

(3)    amounts attributed to a protected cell under this chapter, including assets transferred to a protected cell account, are owned by the SPFC, and the SPFC may not be, or may not hold itself out to be, a trustee with respect to those protected cell assets of that protected cell account;

(4)    all attributions of assets and liabilities between a protected cell and the general account must be in accordance with the plan of operation approved by the director. No other attribution of assets or liabilities may be made by a SPFC between the SPFC's general account and its protected cell or cells. The SPFC shall attribute all insurance obligations, assets, and liabilities relating to a SPFC contract and the related insurance securitization transaction, including any securities issued by the SPFC as part of the insurance securitization, to a particular protected cell. The rights, benefits, obligations, and liabilities of any securities attributable to that protected cell and the performance under a SPFC contract and the related securitization transaction and any tax benefits, losses, refunds, or credits allocated, or any of them, at any point in time pursuant to a tax allocation agreement between the SPFC and the SPFC's counterparty, parent, or company or group company, or any of them, in common control with them, as the case may be, including any payments made by or due to be made to the SPFC pursuant to the terms of the agreement, must reflect the insurance obligations, assets, and liabilities relating to the SPFC contract and the insurance securitization transaction that are attributed to a particular protected cell;

(2)(5)    the assets of a protected cell must not be chargeable with liabilities arising out of another a SPFC contract the SPFC may enter into with the counterparty related to or associated with another protected cell. However, one or more SPFC contracts may be attributed to a protected cell so long as those SPFC contracts are intended to be, and ultimately are, part of a single securitization transaction;

(3)(6)    a sale, an exchange, or another transfer of assets may not be made by the SPFC between or among any of its protected cells without the consent of the director, counterparty, and each protected cell;

(4)(7)    except as otherwise contemplated in the SPFC contract and or related insurance securitization transaction documents, or both, a sale, an exchange, a transfer of assets, a dividend, or a distribution may not be made from a protected cell to a counterparty or parent without the director's approval and may not be approved if the sale, exchange, transfer, dividend, or distribution would result in insolvency or impairment with respect to a protected cell; and

(5)    a SPFC annually shall file with the director financial reports the director requires, which must include, but are not limited to, accounting statements detailing the financial experience of each protected cell;

(6)    a SPFC shall notify the director in writing within ten business days of a protected cell that is insolvent or otherwise unable to meet its claims payment or expense obligations;

(7)    a SPFC contract with a protected cell does not take effect without the director's prior written approval, and the addition of each new protected cell constitutes a change in the business plan requiring the director's prior written approval. The director may retain legal, financial, and examination services from outside the department to examine and investigate the application for a protected cell, the reasonable cost of which may be charged against the applicant, or the director may use internal resources to examine and investigate the application the reasonable cost of which may be charged against the applicant up to a maximum of twelve thousand dollars.

(8)    a SPFC may pay interest or repay principal, or both, and make distributions or repayments in respect of any securities attributed to a particular protected cell from assets or cash flows relating to or emerging from the SPFC contract and the insurance securitization transactions that are attributable to that particular protected cell in accordance with the provisions of this article or as otherwise approved by the director.

(B)    This section is adopted to provide a basis for the creation of protected cells by a SPFC as one means of accessing alternative sources of capital, lowering formation and administrative expenses, and achieving the benefits of insurance securitization. The creation of protected cells is intended to be a means to achieve more efficiencies in conducting insurance securitizations.

(C)    A SPFC contract with or attributable to a protected cell does not take effect without the director's prior written approval, and the addition of each new protected cell constitutes a change in the business plan requiring the director's prior written approval. The director may retain legal, financial, and examination services from outside the department to examine and investigate the application for a protected cell, the reasonable cost of which may be charged against the applicant, or the director may use internal resources to examine and investigate the application the reasonable cost of which may be charged against the applicant up to a maximum of twelve thousand dollars, or both.

(D)    A SPFC utilizing protected cells initially shall possess minimum capitalization separate and apart from the capitalization of its protected cell or cells in an amount determined by the director after giving due consideration of the SPFC's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured or reinsured. For purposes of determining the capitalization of each protected cell, a SPFC initially shall capitalize and after that time maintain capitalization in each protected cell in the amount and manner required for a SPFC in Section 38-90-460.

(E)    The establishment of one or more protected cells alone does not constitute, and may not be deemed to be, a fraudulent conveyance, an intent by the SPFC to defraud creditors, or the carrying out of business by the SPFC for any other fraudulent purpose."

SECTION    25.    Section 38-90-550(C) of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"(C)    Each SPFC shall file by March first, a statement of operations, using either generally accepted accounting principles or, if requested approved or required by the director, statutory accounting principles with useful or necessary modifications or adaptations required or approved or accepted by the director for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information required by the director. The statement of operations must include a statement of income, a balance sheet, and may include a detailed listing of invested assets, including identification of assets held in trust to secure the obligations of the SPFC under the SPFC contract. The SPFC also may include with the filing risk based capital calculations and other adjusted capital calculations to assist the director with evaluating the levels of the surplus of the SPFC for the year ending on December thirty-first of the previous year. The statements must be prepared on forms required by the director. In addition the director may require the filing of performance assessments of the SPFC contract."

SECTION    26.    Section 38-90-570(B) and (D) of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"(B)    The director may suspend or revoke the license of a SPFC in this State for:

(1)    insolvency;

(2)    failure to meet the provisions of Section 38-90-460, 38-90-480(D), or 38-90-580;

(3)    use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public, the holders of the securities, or policyholders of the SPFC; or

(4)    failure to otherwise comply in any material respect with applicable laws of this State.

(D)    Unless the grounds for suspension or revocation relate only to the financial condition or soundness of the SPFC or to a deficiency in its assets, the director shall notify the SPFC not less than thirty days before revoking its authority to do business in this State and specify in the notice the particulars of the alleged violation of the law or its organizational documents or grounds for revocation and a proper opportunity must be offered the SPFC to be heard before the Administrative Law Judge Division Court."

SECTION    27.    Section 38-90-600 of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"Section 38-90-600.    (A)    Except as otherwise modified in this section, the terms and conditions set forth in Chapters 26 and 27 of this title pertaining to administrative supervision of insurers and the rehabilitation, receiverships, and liquidation of insurers apply in full to SPFCs or each of the SPFC's protected cells, independently, or both, without causing or otherwise effecting a conservation, rehabilitation, receivership, or liquidation of the SPFC or another protected cell.

(1)(B)    Notwithstanding the provisions of Chapter Chapters 26 and 27, Title 38, and without causing or otherwise affecting the conservation or rehabilitation of an otherwise solvent protected cell of an SPFC and subject to the provisions of subsection (G)(5) of this section, the director may apply by petition to the circuit court for an order authorizing the director to conserve, rehabilitate, or liquidate a SPFC domiciled in this State on one or more of the following grounds:

(a)(1)    there has been embezzlement, wrongful sequestration, dissipation, or diversion of the assets of the SPFC intended to be used to pay amounts owed to the counterparty or the holders of SPFC securities; or

(b)(2)    the SPFC is insolvent and the holders of a majority in outstanding principal amount of each class of SPFC securities request or consent to conservation, rehabilitation, or liquidation pursuant to the provisions of this article.

(C)    Notwithstanding the provisions of Chapters 26 and 27, Title 38, the director may apply by petition to the circuit court for an order authorizing the director to conserve, rehabilitate, or liquidate one or one or more of a SPFC's protected cells, independently, without causing or otherwise effecting a conservation, rehabilitation, receivership, or liquidation of the SPFC generally or another of its protected cells, on one or more of the following grounds:

(1)    there has been embezzlement, wrongful sequestration, dissipation, or diversion of the assets of the SPFC attributable to the affected protected cell or cells intended to be used to pay amounts owed to the counterparty or the holders of SPFC securities of the affected protected cell or cells; or

(2)    the affected protected cell is insolvent and the holders of a majority in outstanding principal amount of each class of SPFC securities attributable to that particular protected cell request or consent to conservation, rehabilitation, or liquidation pursuant to the provisions of this article.

(2)(D)    The court may not grant relief provided by subitem (a) of item (1) of subsection (B) or item (1) of subsection (C) unless, after notice and a hearing, the director, who must shall have the burden of proof, establishes by clear and convincing evidence that relief must be granted. The court's order may be made in respect of one or more protected cells by name, rather than the SPFC generally.

(B)(E)    Notwithstanding another provision in this title, regulations promulgated under this title, or another applicable law or regulation, upon any order of conservation, rehabilitation, or liquidation of a SPFC, or one or more of the SPFC's protected cells, the receiver shall manage the assets and liabilities of the SPFC pursuant to the provisions of this article. The receiver shall ensure that the assets linked to one protected cell are not applied to the liabilities linked to another protected cell or to the SPFC generally, unless an asset or liability is linked to more than one protected cell, in which case the receiver shall deal with the asset or liability in accordance with the terms of any relevant governing instrument or contract.

(C)(F)    With respect to amounts recoverable under a SPFC contract, the amount recoverable by the receiver must not be reduced or diminished as a result of the entry of an order of conservation, rehabilitation, or liquidation with respect to the counterparty, notwithstanding another provision in the contracts or other documentation governing the SPFC insurance securitization.

(1)(G)    Notwithstanding the provisions of Chapter Chapters 26 and 27 of this title, or other laws of this State:

(1)    an application or petition, or a temporary restraining order or injunction issued pursuant to the provisions of Chapter Chapters 26 and 27 of this title, with respect to a counterparty does not prohibit the transaction of a business by a SPFC, including any payment by a SPFC made pursuant to a SPFC security, or any action or proceeding against a SPFC or its assets.;

(2)    Notwithstanding the provisions of Chapter 27 of this title, the commencement of a summary proceeding or other interim proceeding commenced before a formal delinquency proceeding with respect to a SPFC, and any order issued by the court does not prohibit the payment by a SPFC made pursuant to a SPFC security or SPFC contract or the SPFC from taking any action required to make the payment.;

(D)    Notwithstanding the provisions of Chapter 27 of this title or other laws of this State:

(1)(3)    a receiver of a counterparty may not void a nonfraudulent transfer by a counterparty to a SPFC of money or other property made pursuant to a SPFC contract; and

(2)(4)    a receiver of a SPFC may not void a nonfraudulent transfer by the SPFC of money or other property made to a counterparty pursuant to a SPFC contract or made to or for the benefit of any holder of a SPFC security on account of the SPFC security.; and

(5)    the director may not seek to have a SPFC with protected cells declared insolvent as long as at least one of the SPFC's protected cells remains solvent, and in the case such an insolvency, the receiver shall handle SPFC's assets in compliance with subsection (E) and other laws of this State.

(H)    Subsection (G) does not prohibit the director from taking any action permitted under Chapter 26 or 27 with respect only to the conservation or rehabilitation of a SPFC with protected cell or cells, provided the director would have had sufficient grounds to seek to declare the SPFC insolvent; subject to and without otherwise affecting the provisions of item (5) of subsection (G). In this case, with respect to the solvent protected cell or cells, the director may not prohibit payments made by the SPFC pursuant to the SPFC security, SPFC contract, or otherwise made under the insurance securitization transaction that are attributable to these protected cell or cells or prohibit the SPFC from taking any action required to make these payments.

(E)(I)    With the exception of the fulfillment of the obligations under a SPFC contract, and notwithstanding another provision of this article or other laws of this State, the assets of a SPFC, including assets held in trust, must not be consolidated with or included in the estate of a counterparty in any delinquency proceeding against the counterparty pursuant to the provisions of this article for any purpose including, without limitation, distribution to creditors of the counterparty."

SECTION    28.    Section 38-90-620 of the 1976 Code, as added by Act 291 of 2004, is amended to read:

"Section 38-90-620.    (A)    A contested case brought by a third party based on a decision of the director pursuant to this article is governed by applicable civil law of the State of South Carolina except that, the aggrieved third party shall:

(1)    prove the appeal its case by a clear and convincing evidence standard;

(2)    demonstrate irreparable harm to the SPFC or its counterparty, or both;

(3)    not have another show that there is no other adequate remedy at law; and

(4)    post a bond of sufficient surety to protect the interests of the holders of the SPFC securities and policyholders but in not it may not be less than fifteen percent of the total amount of the securitized transaction.

(B)    If the a director decides to reverse, amend, or modify reverses, amends, or modifies a license previously issued to a SPFC or the an order issued made in connection with them for a reason other than that specified in Section 38-90-570(B), the director shall meet a license previously issued to a SPFC, the action must comply with the standards and criteria provided in subsection (A), unless the action in reversing, amending, or modifying the license is in conformance with the provisions of Section 38-90-570(B)."

SECTION    29.    The first paragraph of Section 38-75-370 of the 1976 Code is amended to read:

"All members of the association shall participate in its writings, expenses, profits, and losses in the proportion that the net direct premium of the member written in this State during the preceding calendar year two years before the current year bears to the aggregate net direct premiums written in this State by all members of the association, as certified to the association by the department after review of annual statements, other reports, and other statistics which the department considers necessary to provide the information required and which the department is authorized to obtain from a member of the association. After certification by the department, the association may rely on the member company's annual statement in determining the company's participation in profits and losses for each year.

SECTION    30.    This act takes effect upon approval by the Governor.

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This web page was last updated on Tuesday, June 23, 2009 at 2:51 P.M.