South Carolina General Assembly
104th Session, 1981-1982

Bill 177

                    Current Status

Bill Number:               177
Ratification Number:       32
Act Number                 13
Introducing Body:          Senate
Subject:                   Broker to furnish statement and make
                           report to Chief Insurance
           Commissioner
View additional legislative information at the LPITS web site.

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

(A13, R32, S177)

AN ACT TO AMEND SECTION 38-47-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTY OF INSURANCE BROKERS TO FURNISH THE INSURED A STATEMENT OF THEIR COMPANIES' SOLVENCY AND MAKE A REPORT TO THE CHIEF INSURANCE COMMISSIONER OF THEIR TRANSACTIONS, SO AS TO PROVIDE REQUIREMENTS UNDER WHICH A RESIDENT BROKER MAY PLACE BUSINESS WITH AN INSURANCE COMPANY NOT LICENSED TO DO BUSINESS IN THIS STATE.

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

Broker to furnish statement and make report to Chief Insurance Commissioner

SECTION 1. Section 38-47-100 of the 1976 Code is amended to read:

"Section 38-47-100. At the request of any resident broker licensed under this Chapter, the Commissioner may approve certain unlicensed companies to write business on risks located in this State that one or more duly licensed companies have declined to write. The Commissioner may require the broker to submit, on behalf of the company, documents necessary to satisfy him that the company is licensed in its home state, that it is solvent, and that its operation is not hazardous to the policyholders. The Commissioner may require the broker or the company to file additional documents at any given time to maintain the company's approved status. The Commissioner may withdraw his approval at any time the company fails to meet any of such requirements. While the company maintains its approved status, any duly licensed resident broker may, under the terms of this Chapter, place business with any approved company. An insurance broker shall exercise due care in the placing of such insurance. Each broker shall file with the Commissioner within thirty days after December thirty-first of each year a detailed report of such business. The report shall be in such form as the Commissioner may prescribe. The broker's books, papers and accounts shall at all times be open to the inspection of the Commissioner or his appointee."

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.