South Carolina General Assembly
107th Session, 1987-1988

Bill 1094


                    Current Status

Bill Number:               1094
Ratification Number:       374
Act Number                 357
Introducing Body:          Senate
Subject:                   Inspection and examination of domestic
                           insurers
View additional legislative information at the LPITS web site.


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

(A357, R374, S1094)

AN ACT TO AMEND SECTIONS 38-13-10, 38-13-120, 38-43-250, AND 38-45-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, SO AS TO INCREASE FROM THREE TO FIVE YEARS THE TIME REQUIRED FOR EXAMINATION OF DOMESTIC INSURANCE COMPANIES FOR THE RETENTION OF RECORDS OF INSURANCE COMPANIES, AGENTS, AND BROKERS.

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

Inspection and examination of domestic insurers

SECTION 1. Section 38-13-10 of the 1976 Code is amended to read:

"Section 38-13-10. The Commissioner or an examiner shall visit every domestic insurer during the year immediately following the end of each five-year period of operation and thoroughly inspect and examine at least those affairs conducted during each full year of operation since the last examination, especially as to the insurer's financial condition, ability to fulfill its obligations, and compliance with the law. The Commissioner also may examine any domestic insurer whenever he considers it prudent to do so. Whenever the Commissioner considers it prudent for the protection of policyholders in this State, he may examine or have examined any insurer applying for admission or already admitted to do business in this State. The insurer shall pay the charges incurred in this examination, including the expenses of the Commissioner and the expenses and compensation of his assistants. The Commissioner, in lieu of conducting the examination, may accept an examination conducted by the supervising official of the insurer's domiciliary state."

Records of insurance companies

Section 2. Section 38-13-120 of the 1976 Code is amended to read:

"Section 38-13-120. All companies doing any kind of insurance business in this State shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums, and the person to whom issued of every policy or certificate of renewal. This information must be furnished to the Commissioner on demand, and the original books or record must be open to the inspection of the Commissioner on demand. These records must be kept for a minimum of five years."

Records of losses paid by insurers

Section 3. Section 38-13-130 of the 1976 Code is amended to read:

"Section 38-13-130. Every insurer doing business in this State shall maintain a record of losses paid under its policies and notices as provided in its policies which may normally result in claim or loss. The records must be maintained until the next regular examination by an insurance department or for a period of five years from the date of payment of the loss or receipt of the notice."

Records of insurance agents

Section 4. Section 38-43-250 of the 1976 Code is amended to read:

"Section 38-43-250. All agents shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums and the person to whom issued of every policy or certificate of renewal. The information from these records must be furnished to the Commissioner on demand and the original books or records are open to the inspection of the Commissioner on demand. These records must be kept for a minimum of five years."

Records of insurance brokers

Section 5. Section 38-45-80 of the 1976 Code is amended to read:

"Section 38-45-80. All brokers doing any kind of insurance business in this State shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums, and the person to whom issued of every policy or certificate of renewal. The information from these records must be furnished to the Commissioner on demand and the original books or records are open to the inspection of the Commissioner on demand. These records must be kept for a minimum of five years."

Time effective

Section 6. This act takes effect upon approval by the Governor.