South Carolina General Assembly
104th Session, 1981-1982

Bill 2260

                    Current Status

Bill Number:               2260
Ratification Number:       183
Act Number                 131
Introducing Body:          House
Subject:                   Broker shall file with commissioner
                           request for approval of placement
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A131, R183, H2260)

AN ACT TO AMEND SECTION 38-47-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROCEDURE FOR PLACING INSURANCE WITH AN INSURER NOT LICENSED IN THIS STATE, SO AS TO REQUIRE THE BROKER TO OBTAIN WRITTEN APPROVAL OF THE CHIEF INSURANCE COMMISSIONER FOR PLACEMENT OF SUCH INSURANCE WITHIN A SPECIFIED TIME FRAME AND TO PROVIDE A PENALTY.

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

Broker shall file with commissioner request for approval of placement

SECTION 1. Section 38-47-130 of the 1976 Code is amended to read:

"Section 38-47-130. Within twenty days after placing of insurance with an insurer not licensed in this State or the effective date of the policy, whichever comes first, a broker shall file with the Commissioner a written request for approval of the placement. The request shall be filed on forms furnished by the Commissioner. The broker shall write or stamp upon the face of each policy of an insurer not licensed in this State the words 'This company not licensed to do business in this State'. If for any reason the Commissioner disapproves the placement, the broker shall refund the full premium to the policyholder. In the event the broker fails to file the request for approval in the time required, the Commissioner may impose a penalty not to exceed five percent of the total premium. Any such penalty collected shall be deposited in the general fund of the State."

Time effective

SECTION 2. This act shall take effect January 1, 1982.