South Carolina General Assembly
104th Session, 1981-1982

Bill 434

                    Current Status

Bill Number:               434
Ratification Number:       233
Act Number                 163
Introducing Body:          Senate
Subject:                   Business of insurance shall be transacted
                           by authorized agents
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A163, R233, S434)

AN ACT TO AMEND SECTION 38-51-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT INSURANCE COMPANIES DO BUSINESS THROUGH LICENSED AGENTS, SO AS TO AUTHORIZE INSURANCE COMPANIES TO REPLACE EXISTING POLICIES WITHOUT COMPLYING WITH THE COUNTERSIGNATURE REQUIREMENT AND TO AMEND SECTION 42-3-20, AS AMENDED, RELATING TO THE APPOINTMENT OF THE MEMBERS TO THE INDUSTRIAL COMMISSION, SO AS TO PROVIDE THAT THE CHAIRMAN OF THE INDUSTRIAL COMMISSION MAY BE APPOINTED TO A TWO-YEAR TERM BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE.

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

Business of insurance shall be transacted by authorized agents

Section 1. Section 38-51-60 of the 1976 Code is amended to read:

"Section 38-51-60. All business done in this State by insurance companies doing the business of insurance as defined in this title shall be transacted by their regularly authorized agents residing in this State or through applications of such agents. Except as provided in Section 38-51-80, it shall be unlawful for any salaried officer, manager or other representative of any such company to transact for his company any of the business of a licensed agent for which such licensed agent received a commission, unless he himself shall be a bond fide resident licensed agent. No provision of this section shall apply to direct insurance covering the rolling stock of railroad corporations or property in transit while in possession and custody of bonds issued by any surety company in connection with any public or private contract. An insurance company may replace its outstanding policies with a newly revised policy form and necessary endorsements without complying with the countersignature requirement."

Appointment of Commission

Section 2. Section 42-3-20 of the 1976 Code, as last amended by Act 481 of 1980, is further amended by striking beginning on line six "and the chairman may serve two terms in his six-year term but not consecutively." The section when amended shall read:

"Section 42-3-20. The Commission shall consist of seven members appointed by the Governor with the advice and consent of the Senate for terms of six years and until their successors are appointed and qualify. The Governor with the advice and consent of the Senate shall designate one commissioner as chairman for a term of two years.

The commissioner shall hear and determine all contested cases, conduct informal conferences when necessary, approve settlements, hear applications for full Commission reviews and handle such other matters as may come before the department for judicial disposition. Full Commission reviews shall be conducted by six commissioners only, with the original hearing commissioner not sitting at such reviews. When one commissioner is temporarily incapacitated or a vacancy exists on the Commission, reviews may be conducted by the five remaining commissioners but in such cases decisions of the hearing commissioner shall not be reversed except on the vote of at least four commissioners."

Time effective

Section 3. This act shall take effect upon approval by the Governor.