Current Status Introducing Body:Senate Bill Number:597 Ratification Number:136 Act Number:186 Primary Sponsor:Saleeby Type of Legislation:JR Subject:Reinsurance facility Companion Bill Number:3829 Date Bill Passed both Bodies:19930513 Computer Document Number:597 Governor's Action:S Date of Governor's Action:19930519 Introduced Date:19930325 Date of Last Amendment:19930513 Last History Body:------ Last History Date:19930519 Last History Type:Act No. 186 Scope of Legislation:Statewide All Sponsors:Saleeby Type of Legislation:Joint Resolution
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
597 ------ 19930519 Act No. 186
597 ------ 19930519 Signed by Governor
597 ------ 19930518 Ratified R 136
597 Senate 19930513 Ordered enrolled for
ratification
597 House 19930513 Conference Committee Report
adopted
597 House 19930512 Conference Committee report 98
received
597 Senate 19930511 Conference Committee Report 98
received, adopted
597 Senate 19930428 Conference powers granted, 98 Washington
appointed Senators to Passailaigue
Committee of Conference Saleeby
597 House 19930427 Conference powers granted, 98 T.C. Alexander
appointed Reps. to Committee Alexander
of Conference Cato
Felder
597 House 19930427 Insists upon amendment
597 Senate 19930422 Non-concurrence in House
amendment
597 House 19930421 Read third time, returned to
Senate with amendment
597 House 19930420 Amended, read second time
597 House 19930420 Reconsidered vote whereby
read second time
597 House 19930415 Read second time
597 House 19930407 Recalled from Committee 26
597 House 19930406 Introduced, read first time, 26
referred to Committee
597 Senate 19930401 Amended, read third time,
sent to House
597 Senate 19930331 Amended
597 Senate 19930326 Read second time, notice of
general amendments
597 Senate 19930325 Ordered to receive second
reading with notice of
general amendments on Friday,
March 26, 1993
597 Senate 19930325 Introduced, read first time,
placed on Calendar without
reference
View additional legislative information at the LPITS web site.
(A186, R136, S597)
A JOINT RESOLUTION TO REQUIRE THE SOUTH CAROLINA CHIEF INSURANCE COMMISSIONER TO SOLICIT AN INVITATION FOR BIDS FOR ANY AND ALL SERVICES USED OR PAID FOR BY THE SOUTH CAROLINA REINSURANCE FACILITY, PROVIDE FOR TERMINATION OF CERTAIN CONTRACTS, TO CONDUCT CERTAIN AUDITS AND REPORT THE RESULTS TO THE GENERAL ASSEMBLY AND PROVIDE EXCEPTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Invitation for bids
SECTION 1. No later than forty-five days after the effective date of this act, the Chief Insurance Commissioner of the South Carolina Department of Insurance is directed and required to issue an invitation for bids for any and all services which are currently paid for by, or provided to, the South Carolina Reinsurance Facility by designated carriers, nonprofit service association of insurance companies, or other company not otherwise excluded in Section 4. The solicitation shall be conducted in strict accordance with the provisions of Chapter 35 of Title 11 generally, and specifically with respect to the provisions governing competitive sealed bidding. For the purpose of this solicitation, a person or organization responding to the invitation need not be a licensed insurance company or any other organization required to be licensed by the Insurance Commission in order to be a responsible bidder. The facility business to be bid under this section must be split into not less than three blocks of business to be awarded to not less than three different providers, and the contracts must be for five years.
Termination of contract
SECTION 2. Any contract or agreement currently in force for the provision of services to the South Carolina Reinsurance Facility by a designated carrier, nonprofit service association of insurance companies, or other company not otherwise excluded by Section 4 is terminated not later than September 30, 1993, or the specified termination date, whichever comes first.
Audit to be performed
SECTION 3. (A) The Chief Insurance Commissioner of the South Carolina Department of Insurance is directed and required to perform an audit of the records of the South Carolina Reinsurance Facility for the purpose of providing the General Assembly a comprehensive report. The report must be completed by June 1, 1993, and must include:
(1) Comparative audited financial statements, including all applicable comparative schedules and footnote disclosures from each designated carrier and any company, organization, business, enterprise, or other entity with which a designated carrier, or the facility, contracts or has or has had a business relationship since 1987. This audit report is to be prepared by an independent certified public accountant and is to include all financial statements and footnote disclosures required under generally accepted accounting procedures. The commissioner must also include in the report the results of a review performed by the Department of Insurance of the books, records, and papers of any company, organization, business, enterprise, or other entity subject to licensure by the Department of Insurance which contracts with or has or has had a business relationship with a designated carrier since 1987.
(2) Supplemental comparative schedules to be included in the report are:
(a) a detailed schedule of profit or loss incurred by each of the designated carriers of the facility on facility business,
(b) a listing of all shareholders who own more than a five percent interest and their annual compensation,
(c) a listing of all shareholders who own more than a five percent interest in any entity, corporation, or partnership with related business contracts or interests to the designated carrier,
(d) an annual analysis of any distribution of profits to shareholders or partners who have an ownership interest of five percent or more,
(e) the amount of reserves held by each carrier for facility business and the income from the investment of such reserves,
(f) a detailed listing by item and amount of all expenses which each designated carrier is reimbursed by the facility, and
(g) a comparative analysis of loss ratios.
(3) A detailed listing of all expenses incurred by the facility.
(B) The commissioner must obtain from each designated carrier a complete audited financial statement from and a record of all transactions between each of the designated carriers and any company, organization, business, enterprise, or other entity with which a designated carrier contracts or has a business relationship.
Exceptions
SECTION 4. The provisions of this act requiring the solicitation of bids for services and mandating audit and disclosure do not apply to contracts utilized to enforce insurance policy sales between designated agents and insureds and the designated carriers, contracts for leasing or maintenance of office equipment or furniture, telephone services, office supplies, postal services, legal services, or other noninsurance-related contracts utilized in the ordinary course of everyday business operation.
Report to General Assembly
SECTION 5. The results of the audits, reviews, and financial statements required herein must be collected and compiled by the commissioner and included in the report to the General Assembly, the contents of which or work products incidental thereto must not be disclosed to any source by the commissioner prior to or outside of the report. Any present designated carrier which has a contract or business relationship with any other company, organization, business, enterprise, or other entity subject to the provisions herein which refuses or fails to present the audited financial statements required herein, is ineligible to be considered in the bidding process provided for in Section 1.
Time effective
SECTION 6. This joint resolution takes effect upon approval by the Governor.
Approved the 19th day of May, 1993.