Indicates Matter Stricken

Indicates New Matter

 

Committee Report

February 12, 2026

 

S. 619

 

Introduced by Senators Gambrell and Turner

 

S. Printed 2/12/26--S.

Read the first time April 29, 2025

 

________

 

The committee on Senate Banking and Insurance

To whom was referred a Bill (S. 619) to amend the South Carolina Code of Laws by amending Section 38-27-610, relating to priority of distribution for claims, so as to add funding agreements, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

 

    RONNIE CROMER for Committee.

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 38-27-610, RELATING TO PRIORITY OF DISTRIBUTION FOR CLAIMS, SO AS TO ADD FUNDING AGREEMENTS.

 

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

 

SECTION 1.  Section 38-27-610(2) of the S.C. Code is amended to read:

 

    (2) Class 2. Claims under policies, including claims of federal, state, and local governments, for losses incurred, loss claims, including third party claims, and claims of a guaranty association or foreign guaranty association. Claims under life insurance, and annuity policies, and funding agreements whether for death proceeds, annuity proceeds, or investment values, must be treated as loss claims. That portion of a loss, indemnification for which is provided by other benefits or advantages recovered by the claimant, must not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death, or as proceeds of life insurance or as gratuities. No payment by an employer to his employee may be treated as a gratuity.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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