Bill 3129

                    Current Status

Bill Number:               3129
Ratification Number:       640
Act Number                 524
Introducing Body:          House
Subject:                   Definition of insurance broker

(A524, R640, H3129)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-595 SO AS TO PROVIDE FOR THE SELECTION OF APPLICANTS FOR DESIGNATED PRODUCERS BY THE GOVERNING BOARD; TO AMEND SECTION 38-1-20, AS AMENDED, RELATING TO DEFINITIONS, SO AS TO PROVIDE CIRCUMSTANCES UNDER WHICH AN INSURANCE BROKER MAY PLACE INSURANCE AND TO PROVIDE ADDITIONAL INSURANCE COVERAGE AS SURPLUS LINE INSURANCE; TO AMEND SECTION 38-45-10, RELATING TO DEFINITIONS OF INSURANCE BROKER, SO AS TO PROVIDE CIRCUMSTANCES UNDER WHICH AN INSURANCE BROKER MAY PLACE INSURANCE; AND TO AMEND SECTION 38-77-590, RELATING TO DESIGNATED PRODUCERS, SO AS TO INCREASE TO TEN YEARS THE YEARS OF LICENSURE FOR AN APPLICANT.

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

Definition of insurance broker

SECTION 1. Section 38-1-20(21) of the 1976 Code is amended to read:

"(21) 'Insurance broker' means an individual licensed by the commissioner to represent citizens of this State in placing their insurance. An insurance broker may place that insurance either with an eligible surplus lines insurer or with a licensed insurance agent in an insurance carrier licensed in this State."

Definition surplus lines insurance

SECTION 2. Section 38-1-20(37.5) of the 1976 Code is amended to read:

"(37.5) 'Surplus lines insurance' means insurance in this State of risks located or to be performed in this State, permitted to be placed through a resident broker with a nonadmitted insurer eligible to accept the insurance, other than reinsurance, wet marine and transportation insurance, insurance independently procured, and life and health insurance and annuities. Excess and stop-loss insurance coverage upon group life, accident, and health insurance or upon a self-insured's life, accident, and health benefits program may be approved as surplus lines insurance."

Definition insurance broker

SECTION 3. Section 38-45-10 of the 1976 Code is amended to read:

"Section 38-45-10. 'Insurance broker' as used in this chapter means an individual licensed by the commissioner to represent citizens of this State in placing their insurance. An insurance broker may place that insurance either with an eligible surplus lines insurer or with a licensed insurance agent in an insurance carrier licensed in this State."

Conditions for appointment of designated producers by board

SECTION 4. Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-595. The governing board may designate an applicant who otherwise would be ineligible for designation because of a direct or indirect connection with a voluntary market outlet for automobile insurance, if that connection is due to the ability to write 'small commercial risks', as defined in Section 38-77-30(11). The governing board may designate the applicant for the limited purpose of servicing risks of 'individual private passenger automobile' insurance, as defined in Section 38-77-30(5.5), when it determines that insufficient market outlets exist in a particular area previously served by the applicant for 'individual private passenger automobile' insurance."

Requirement for applicant for designated producer

SECTION 5. Section 38-77-590(c)(1) of the 1976 Code is amended to read:

"(1) The applicant has been, for ten continuous years, a licensed resident property and casualty insurance agent and agency owner or principal with authority from one or more licensed insurers to write liability and physical damage insurance on private passenger automobiles;".

Time effective

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

Approved the 5th day of June, 1990.