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2309Ratification Number: 460Act Number: 416Introducing Body: HouseSubject: Relating to the requirement that insurance companies do business through resident licensed agents
(A416, R460, H2309)
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 RESIDENT LICENSED AGENTS, SO AS TO REQUIRE THAT ALL POLICIES, EXCEPT HEALTH AND ACCIDENT AND LIFE INSURANCE POLICIES, AND CERTIFICATES ISSUED UNDER GROUP INSURANCE POLICIES ISSUED IN THIS STATE BE COUNTERSIGNED BY THE AGENT EXCEPT FOR AMENDMENTS OR REPLACEMENT OF OUTSTANDING POLICIES WITH REVISED FORMS OR ENDORSEMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
Resident agents licensed
SECTION 1. Section 38-51-60 of the 1976 Code is further 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 must be transacted by their regularly authorized agents residing in this State or through applications of the agents, and all policies, except health and accident and life insurance policies and certificates issued under group insurance policies, must be personally or mechanically countersigned on behalf of the agent. Except as provided in Section 38-51-80, it is unlawful for any salaried officer, manager, or other representative of any company to transact for his company any of the business of a licensed agent for which the licensed agent received a commission, unless he himself is a bona fide resident licensed agent. No provision of this section applies to direct insurance covering the rolling stock of railroad corporations or property in transit while in possession and custody of railroad corporations or other common carriers or applies to bid bonds issued by any surety company in connection with any public or private contract. An insurance company may amend or replace its outstanding policies with a newly revised policy form or necessary endorsements without complying with the countersignature requirement."
SECTION 2. This act shall take effect upon approval by the Governor.