South Carolina General Assembly
112th Session, 1997-1998

Bill 3257

                    Current Status

Bill Number:                    3257
Ratification Number:            46
Act Number:                     19
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19970116
Primary Sponsor:                Kelley
All Sponsors:                   Kelley and Keegan 
Drafted Document Number:        council\legis\bills\dka\3973mm.97
Date Bill Passed both Bodies:   19970326
Date of Last Amendment:         19970204
Governor's Action:              S
Date of Governor's Action:      19970423
Subject:                        Insurance Director removed from
                                Medical Malpractice Liability and
                                Patient's Compensation Fund
                                associations
History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19970509  Act No. A19
------  19970423  Signed by Governor
------  19970417  Ratified R46
Senate  19970326  Read third time, enrolled for
                  ratification
Senate  19970325  Read second time
Senate  19970320  Committee report: Favorable              02 SBI
Senate  19970206  Introduced, read first time,             02 SBI
                  referred to Committee
House   19970205  Read third time, sent to Senate
House   19970204  Amended, read second time
House   19970129  Committee report: Favorable with         26 HLCI
                  amendment
House   19970116  Introduced, read first time,             26 HLCI
                  referred to Committee
View additional legislative information at the LPITS web site.

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

(A19, R46, H3257)

AN ACT TO AMEND SECTION 38-79-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO POLICY FORMS, PROVISIONS, AND RATES; SECTION 38-79-260, AS AMENDED, RELATING TO THE BOARD OF DIRECTORS OF THE SOUTH CAROLINA MEDICAL MALPRACTICE LIABILITY JOINT UNDERWRITING ASSOCIATION; AND SECTION 38-79-430, AS AMENDED, RELATING TO THE BOARD OF GOVERNORS OF THE SOUTH CAROLINA PATIENTS' COMPENSATION FUND, SO AS TO REMOVE THE INVOLVEMENT OF THE DIRECTOR OF THE SOUTH CAROLINA DEPARTMENT OF INSURANCE IN THE ASSOCIATION AND THE FUND AND TO REQUIRE THE BOARD TO ELECT A CHAIRMAN AND NECESSARY OFFICERS; AND TO REPEAL SECTION 38-79-270 RELATING TO APPEALS OF ACTIONS OF THE STATE MEDICAL MALPRACTICE LIABILITY JOINT UNDERWRITING ASSOCIATION.

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

South Carolina Medical Malpractice Underwriters set policies and rates

SECTION 1. Section 38-79-190(1) of the 1976 Code, as last amended by Section 830, Act 181 of 1993, is further amended to read:

"(1) The board of directors shall specify whether policy forms and the rate structure must be on a 'claims-made' or 'occurrence' basis and coverage may be provided by the association only on the basis specified by the board of directors. The board of directors shall specify the 'claims-made' basis only if the contract makes provision for residual 'occurrence' coverage upon the retirement, death, disability, or removal from the State of the insured. Provision may be made for a premium charge allocable to any such residual 'occurrence' coverage and the premium charges for the residual coverage must be segregated and separately maintained for such purpose which may include the reinsurance of all or a part of that portion of the risk."

South Carolina Medical Malpractice Underwriters governed by board

SECTION 2. Section 38-79-260 of the 1976 Code, as last amended by Section 830, Act 181 of 1993, is further amended to read:

"Section 38-79-260. The association is governed by a board of twenty-one directors, nine of whom are appointed by the Governor, one of whom represents consumers, two of whom represent licensed insurance agents or brokers, three of whom are members of the South Carolina Medical Association, two of whom are members of the South Carolina Hospital Association, and one of whom is a member of the South Carolina Dental Association. Twelve members are elected by cumulative voting by members of the association, whose votes in the election must be weighed in accordance with each member's net direct premiums written during the preceding calendar year. The approved plan of operation of the association may make provision for combining insurers under common ownership or management into groups for voting, assessment, and all other purposes and may provide that not more than one of the officers or employees of such a group may serve as a director at any one time. The board shall elect a chairman and other necessary officers for two-year terms. The insurer representatives of the board of directors must be elected at a meeting of the members or their authorized representatives, which must be held at a time and place designated by the chairman of the board. The board must meet at the call of the chairman or a majority of the members of the board but in any event it must meet at least once a year."

South Carolina Patients' Compensation Fund governed by board

SECTION 3. Section 38-79-430 of the 1976 Code, as last amended by Section 831, Act 181 of 1993, is further amended to read:

"Section 38-79-430. The Board of Governors (board) is created to manage and operate the fund. The board is composed of three physicians to be appointed by the Governor after consultation with the South Carolina Medical Association, two dentists to be appointed by the Governor after consultation with the South Carolina Dental Association, two hospital representatives to be appointed by the Governor after consultation with the South Carolina Hospital Association, two insurance representatives to be appointed by the Governor after consultation with the insurance industry, one attorney to be appointed by the Governor after consultation with the South Carolina Bar, one attorney to be appointed by the Governor after consultation with the South Carolina Trial Lawyers Association, and two representatives of the general public appointed by the Governor who are unaffiliated with insurance or health care industries or the medical or legal professions. The appointed members shall serve for a term of six years. The board shall elect a chairman and other necessary officers for two-year terms. The board must meet at the call of the chairman or a majority of the members but in any event it must meet at least once a year. A majority of the board members shall constitute a quorum for the transaction of any business of the board. The affirmative vote by a majority of the quorum present at a duly called meeting after notice is required to exercise any function of the board. The board may promulgate any regulations necessary to carry out the provisions of this article. "

Repeal

SECTION 4. Section 38-79-270 of the 1976 Code is repealed.

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

Approved the 23rd day of April, 1997.