South Carolina General Assembly
104th Session, 1981-1982

Bill 335

                    Current Status

Bill Number:               335
Ratification Number:       376
Act Number                 319
Introducing Body:          Senate
Subject:                   Relating to the reduction of graded
                           license fee on foreign life insurance
                           companies on account of local
                           investments
View additional legislative information at the LPITS web site.

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

(A319, R376, S335)

AN ACT TO AMEND SECTION 38-5-330, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDUCTION OF GRADED LICENSE FEE ON FOREIGN LIFE INSURANCE COMPANIES ON ACCOUNT OF LOCAL INVESTMENTS, SO AS TO INCLUDE BONDS OR NOTES OF THE AGENCIES OF THE STATE.

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

Reduction of graded premium tax on foreign life insurers on account of local investments

Section 1. Section 38-5-330 of the 1976 Code, as last amended by Act 368 of 1980, is further amended to read:

"Section 38-5-330. If the executive officer making a return for a company required to pay the additional tax provided by Section 38-5-320 shall file with the Commissioner a sworn statement showing that at least one-fourth of the reserve on all policies issued in this State is invested in any or all of the following securities or property, to wit: (a) notes or bonds of this State, its agencies, or of counties or municipalities of this State or subdivisions thereof, (b) notes or bonds secured by first mortgages on real estate in this State, (c) bonds of solvent domestic corporations or of solvent corporations domesticated in this State, secured by first mortgages on improved property located wholly in this State, (d) notes or debentures of corporations (foreign or domestic) where the entire proceeds (except costs and expenses incident to the financing of such notes or debentures) are to be expended for industrial facilities in this State, the fact of such expenditures to be established to the satisfaction of the Commissioner under such regulations as he may prescribe, (e) average daily balance on deposits in banks of this State, maintained continuously for twelve months next preceding the date of the return or average daily balance invested in savings accounts in building and loan, savings and loan, and federal savings and loan associations of this State, maintained continuously for twelve months next preceding the date of the return or (f) any property situate within the State and returned for taxes therein, at the value at which it is assessed for taxation, then the additional insurance premium tax on premiums collected during the time such investments have been actually made and maintained shall be one and three-fourths percent. Under like conditions if such investment be one-half of such reserve, the additional insurance premium tax shall be one and one-half percent. Under like conditions if such investment be three-fourths of such reserve, the additional insurance premium tax shall be one and one-fourth percent. And if the entire reserve be so invested, under like conditions the additional insurance premium tax on such premium receipts shall be one percent."

Time effective

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