A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 38-25-520, RELATING TO SERVICE OF PROCESS ON UNAUTHORIZED INSURERS, SO AS TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING; BY AMENDING SECTION 15-9-270, RELATING TO SERVICE OF PROCESS ON INSURANCE COMPANIES, SO AS TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING; BY AMENDING SECTION 15-9-280, RELATING TO SERVICE OF PROCESS ON UNAUTHORIZED INSURERS, SO AS TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING, AND TO PROVIDE COMPLIANCE DEMONSTRATION MEASURES; AND BY AMENDING SECTION 15-9-285, RELATING TO SERVICE OF PROCESS ON UNAUTHORIZED INSURERS, SO AS TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING, AND TO CORRECT ARCANE REFERENCES.

 

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

 

SECTION 1.  Section 38-25-520 of the S.C. Code is amended to read:

 

    Section 38-25-520. (a) The issuance and delivery of a policy of insurance or contract of insurance or indemnity to any person in this State or the collection of a premium thereon by an insurer not licensed in this State, as herein required, irrevocably constitutes the director and any successor of his in office the true and lawful attorney in fact upon whom service of any and all processes, pleadings, actions, or suits arising out of the policy or contract in behalf of the insured may be made.

    (b) Service of process in this action is made by delivering to and leaving withelectronic or physical delivery to the director or his designee or some person in apparent charge of his office two copies of it and by payment to the director or his designee of a fee of ten dollars, of which five dollars must be retained by the director to offset the costs he incurs in service of process and of which five dollars must be deposited to the credit of the general fund of the state.

    (c) The director or his designee shall immediately mailtransmit electronically or sent by registered mail one of the copies of the process to the defendant at its last known principal place of business and shall keep a record of all process served upon him.  The service of process is sufficient if:  (1) notice of the service and a copy of the process are sent within ten days thereafter by registered mail by the plaintiff's attorney to the defendant at its last known principal place of business, and (2) the defendant's receipt or a receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the plaintiff's attorney showing compliance herewith are filed with the clerk of court in which the action is pending by the date the defendant is required to appear or within any further time which the court may allow.

    (d) No plaintiff is entitled to a judgment by default, a judgment with leave to prove damages, or a judgment pro confesso under this section until the expiration of thirty days from the date of filing of the affidavit of compliance.

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

 

SECTION 2.  Section 15-9-270 of the S.C. Code is amended to read:

 

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

 

SECTION 3.  Section 15-9-280 of the S.C. Code is amended to read:

 

    Section 15-9-280.  (a) Any act of transacting an insurance business as set forth in Section 38-25-110 by an unauthorized insurer is equivalent to and constitutes an irrevocable appointment by the insurer, binding upon him, his executor or administrator, or successor in interest if a corporation, of the Secretary of State or his successor in office to be the true and lawful attorney of the insurer upon whom may be served all lawful process in any action, suit, or proceeding in any court by the Director of the Department of Insurance or his designee, or by the State and upon whom may be served any notice, order, pleading, or process in any proceeding before the Department of Insurance and which arises out of transacting an insurance business in this State by the insurer.  Any act of transacting an insurance business in this State by an unauthorized insurer is signification of its agreement that any such lawful process in such court action, suit, or proceeding and any such notice, order, pleading, or process in such administrative proceeding before the Department of Insurance so served are of the same legal force and validity as personal service of process in this State upon the insurer.

    (b) Service of process in such action is made by delivering to and leaving withelectronic or physical delivery to the Secretary of State, or some person in apparent charge of his office, two copies thereof and by payment to the Secretary of State of the fee prescribed by law. Service upon the Secretary of State as attorney is service upon the principal.

    (c) The Secretary of State shall immediately forward by certified mail one of the copies of the process or the notice, order, pleading, or process in proceedings before the Department of Insurance to the defendant in the court proceeding or to whom the notice, order, pleading, or process in the administrative proceeding is addressed or directed at its last known principal place of business and shall keep a record of all process so served on him which shall show the day and hour of service. The service is sufficient if:

       (1) notice of the service and a copy of the court process or the notice, order, pleading, or process in the administrative proceeding are sent within ten days thereafter by certified mail by the plaintiff or the plaintiff's attorney in the court proceeding or electronically or by certified mail by the Department of Insurance in the administrative proceeding to the defendant in the court proceeding or to whom the notice, order, pleading, or process in the administrative proceeding is addressed or directed at the last known principal place of business of the defendant in the court or administrative proceeding; and

       (2) the defendant's receipt or receipts issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person or insurer to whom the letter is addressed, and an affidavit of the plaintiff or the plaintiff's attorney in a court proceeding or of the Department of Insurance in an administrative proceeding, showing compliance therewith, are filed with the clerk of court in which the action, suit, or proceeding is pending or with the Department of Insurance in administrative proceedings, by the date the defendant in the court or administrative proceeding is required to appear or respond thereto, or within any further time as the court or the Department of Insurance may allow. When the Department of Insurance has electronically transmitted the notice of the service and a copy of the court process or the notice, order, pleading, or process as prescribed by the director, evidence showing compliance therewith may be filed with the affidavit of compliance in lieu of receipts issued by the post office.

    (d) No plaintiff is entitled to a judgment by default, a judgment with leave to prove damages, or a judgment pro confesso in any court or administrative proceeding in which court process or notice, order, pleading, or process in proceedings before the Department of Insurance is served under this section until the expiration of thirty days from the date of filing of the affidavit of compliance.

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

 

SECTION 4.  Section 15-9-285 of the S.C. Code is amended to read:

 

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

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

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

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

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

    (d) No plaintiff is entitled to a judgment by default, a judgment with leave to prove damages, or a judgment pro confesso under this section until the expiration of thirty days from the date of filing of the affidavit of compliance.

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

 

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

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