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Indicates Matter Stricken
Indicates New Matter
Sponsors: Senators Cleary, Bryant and Knotts
Document Path: l:\s-res\rec\004taxe.dag.doc
Introduced in the Senate on January 25, 2007
Currently residing in the Senate Committee on Banking and Insurance
Summary: Wind and Hail Underwriting Association
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/25/2007 Senate Introduced and read first time SJ-10 1/25/2007 Senate Referred to Committee on Banking and Insurance SJ-10
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 38-75-330 OF THE 1976 CODE, RELATING TO THE WIND AND HAIL UNDERWRITING ASSOCIATION, TO PROVIDE THAT THE ASSOCIATION IS AN INTEGRAL PART OF THIS STATE AND NEEDS THE MAXIMUM FINANCIAL RESOURCES TO PAY CLAIMS FOLLOWING A CATASTROPHIC HURRICANE, AND TO PROVIDE THAT DEPARTMENT OF INSURANCE SHALL PROMULGATE RULES AND REGULATIONS SO THAT THE INCOME OF THE ASSOCIATION MAY BE EXEMPT FROM FEDERAL TAXATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-75-330 of the 1976 Code is amended to read:
"Section 38-75-330. There is created the South Carolina Wind and Hail Underwriting Association, an unincorporated nonprofit association whose responsibilities, liability, and regulations are governed and defined by this article, consisting of all private insurers authorized to write and engage in writing property insurance within this State on a direct and statewide basis, but excluding insurers whose writings are limited to property wholly owned by parent, subsidiary, or allied organizations, or insurers whose writings are limited to property wholly owned by religious organizations, provided, however, as a condition of exemption from membership such insurers providing property insurance for insurable property in the coastal area as defined by this article shall also provide essential property insurance for such risks. Every such insurer must be a member of the association and must remain a member of the association so long as the association is in existence as a condition of its authority to continue to transact the business of insurance in this State.
The General Assembly finds that by providing essential insurance to property owners that would otherwise be unable to obtain insurance, the association is an integral part of this State. Because it is essential for the association to have the maximum financial resources to pay claims following a catastrophic hurricane, it is the intent of the General Assembly that the income of the corporation be exempt from federal income taxation and that interest on the debt obligations issued by the association be exempt from federal income taxation. The department may adopt rules and promulgate regulations necessary to obtain tax-exempt status."
SECTION 2. This act takes effect upon approval by the Governor.
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