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Bill Number: 402 Ratification Number: 13 Act Number 8 Introducing Body: Senate Subject: Authority and other approvals to any foreign insurer which transfers its corporate domicile to this state by merger or consolidation
(A8, R13, S402)
AN ACT TO PROVIDE A MEANS FOR THE CONTINUATION OF A CERTIFICATE OF AUTHORITY AND OTHER APPROVALS PERTAINING TO ANY FOREIGN INSURER WHICH TRANSFERS ITS CORPORATE DOMICILE TO THIS OR ANY OTHER STATE BY MERGER OR CONSOLIDATION OR ANY OTHER LAWFUL METHOD; AND TO AMEND SECTION 38-5-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REQUIREMENTS FOR THE ISSUANCE OF A CERTIFICATE OF AUTHORITY TO A DOMESTIC INSURER, SO AS TO REQUIRE DOMESTIC INSURERS TO MAINTAIN THEIR PRINCIPAL PLACE OF BUSINESS AND EXECUTIVE, ADMINISTRATIVE, AND HOME OFFICES IN SOUTH CAROLINA.
Be it enacted by the General Assembly of the State of South Carolina:
Transfer of corporate domicile
SECTION 1. The certificate of authority, agents' appointments and licenses, rates, and other items which the Commissioner of Insurance may allow which are in existence at the time any insurer licensed to transact the business of insurance in this State transfers its corporate domicile to this or any other state by merger, consolidation, or any other lawful method shall continue in effect upon such transfer if the insurer remains duly qualified to transact the business of insurance in this State. All outstanding policies of any transferring insurer shall remain in effect and need not be endorsed as to the new name of the company or its new location unless so ordered by the Commissioner of Insurance. Every transferring insurer shall file new policy forms with the Commissioner on or before the effective date of the transfer but may use existing policy forms with appropriate endorsements if allowed by, and under conditions as approved by, the Commissioner. Every transferring insurer shall notify the Commissioner of the details of the proposed transfer and shall file promptly any resulting amendments to corporate documents filed or required to be filed with the Commissioner.
Certificate to a domestic insurer to do business in State
SECTION 2. Section 38-5-100 of the 1976 Code is amended to read:
"Section 38-5-100. Before granting the original certificate of authority to do business in this State to any domestic insurer, the Commission also must be satisfied by proper evidence that:
(a) its directors and officers are competent, trustworthy, and have a good business reputation and that none of the directors and officers have been convicted of any crime in any jurisdiction involving fraud, dishonesty or like moral turpitude, or convicted of violating any insurance statute of any jurisdiction;
(b) it has employed one or more persons residing in this State with adequate experience and training to properly manage its business and affairs;
(c) it has not entered into any management contract, agency agreement, or other agreement which may materially affect its financial condition so as to render its proceedings hazardous to the public or to its policyholders;
(d) it has made adequate reinsurance arrangements if required;
(e) its proposed method of operation, when considered in the light of its financial condition and the absence of any prior operating experience, will not likely render its proceedings hazardous to the public or to its policyholders;
(f) its principal place of business and primary executive, administrative, and home offices are located and maintained in this State.
Item (f) of this section does not apply to any domestic insurer whose primary executive, administrative, and home offices were located outside this State on July 1, 1987. If subsequently the Commission is of the opinion that any condition exists which would have prohibited it from issuing the original certificate of authority to an insurer, then the condition constitutes a ground for license revocation or suspension under Section 38-5-160."
SECTION 3. This act takes effect upon approval by the Governor.