Bill 3448

                    Current Status

Bill Number:               3448
Ratification Number:       394
Act Number                 371
Introducing Body:          House
Subject:                   Definitions of "Insurance Agent"

(A371, R394, H3448)

AN ACT TO AMEND SECTION 38-43-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITIONS OF "INSURANCE AGENT", SO AS TO DELETE CATEGORIES; AND TO AMEND SECTION 38-43-20, RELATING TO LICENSE REQUIREMENT OF INSURANCE AGENTS, SO AS TO DELETE FROM THE REQUIREMENT CLERICAL AGENCY EMPLOYEES, AND TO PROVIDE THAT THE EXEMPTION FOR SCHOOL DISTRICT PERSONNEL HANDLING INSURANCE MATTERS FOR STUDENT ACCIDENT AND HEALTH POLICIES APPLIES ONLY IF THE WORK IS DONE WITHOUT COMPENSATION.

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

Licensed agent

SECTION 1. Section 38-43-10 of the 1976 Code is amended to read:

"Section 38-43-10. A person who:

(a) solicits insurance in behalf of an insurer,

(b) takes or transmits other than for himself an application for insurance or a policy of insurance to or from an insurer,

(c) advertises or otherwise gives notice that he will receive or transmit insurance applications or policies,

(d) receives or delivers a policy of insurance of an insurer,

(e) receives, collects, or transmits any premium of insurance, or

(f) performs any other act in the making of an insurance contract for or with an insurer, other than for himself,

whether these acts are done by an employee of an insurer or at the instance or request of an insurer, must be a licensed agent of the insurer for which the act is done or the risk is taken unless provided otherwise in Section 38-43-20."

Exceptions

SECTION 2. Section 38-43-20 of the 1976 Code is amended to read:

"Section 38-43-20. No person may act as agent for an insurer or for a fraternal benefit association unless an agent's license has been issued to him by the Commissioner, except for the following persons:

(a) an officer, employee, or secretary of a fraternal benefit association, as defined in Chapter 37 of this title, or any of its subordinate lodges or branches, who devotes substantially all of his services to activities other than the collection of premiums for fraternal insurance contracts and who receives for the solicitation of these contracts no commission or other compensation directly dependent upon the number or amount of contracts solicited or procured;

(b) a member representative of a fraternal benefit association which insures its members against death, dismemberment, and disability resulting from accident only and which pays no commission or other consideration for the collection of premiums for these contracts;

(c) a school teacher or school official who, without compensation acts as agent for or performs any service in connection with the delivery or collection of insurance policies or premiums for accident and health insurance for children in the school system of the State, where he is employed;

(d) a group insurance policyholder or employee of a group policyholder who acts as an agent or performs any service in connection with the collection of premiums or the delivery of insurance policies or certificates to the group insurance policyholder or his employees; or

(e) an employee of a licensed agent who is under the agent's direct supervision or an employee of a licensed insurer, who performs solely clerical duties, and who is paid on an hourly or salary basis and not on a commission basis."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.