South Carolina General Assembly
104th Session, 1981-1982

Bill 2528

                    Current Status

Bill Number:               2528
Ratification Number:       307
Act Number                 286
Introducing Body:          House
Subject:                   To create the State Workers' Compensation
                           Insolvency Fund
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A286, R307, H2528)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-7-200 SO AS TO CREATE THE STATE WORKERS' COMPENSATION INSOLVENCY FUND WITHIN THE OFFICE OF THE STATE WORKERS' COMPENSATION FUND TO INSURE PAYMENT OF VALID COMPENSATION PAYMENTS TO INJURED WORKERS.

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

State Worker's Compensation Insolvency Fund

Section 1. The 1976 Code is amended by adding:

"Section 42-7-200. (a) There is established within the office of the State Workers' Compensation Fund the State Workers' Compensation Insolvency Fund to insure payment of awards of workers' compensation benefits which are unpaid because of the insolvency of employers who fail to acquire necessary coverage for employees. The fund shall be administered by the director of the state fund.

When any award is made by the Industrial Commission for workers' compensation benefits and such claim or any part thereof is not paid because of the insolvency of an employer who has not secured coverage, payments shall be made from the insolvency fund upon certified approval of the Industrial Commission. The director of the state fund shall establish procedures for the implementation of this section.

When any claimant is paid benefits from the insolvency fund the insolvency fund shall be subrogated to all rights of the claimant to the amount paid from the fund and the administrator of the fund shall institute proceedings for the collection of such funds against the party legally obligated for such payments.

(b) To establish and maintain the State Workers' Compensation Insolvency Fund there shall be earmarked from the collections of the tax on insurance carriers and self-insured persons provided for in Sections 42-5-140 and 42-5-190 an amount sufficient to establish and annually maintain the insolvency fund at a level of not less than two hundred thousand dollars."

Time effective

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