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Current Status Bill Number:View additional legislative information at the LPITS web site.1262 Ratification Number:330 Act Number:312 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20000321 Primary Sponsor:McConnell All Sponsors:McConnell, Matthews, Patterson, Reese, Hayes, Jackson, Passailaigue and Saleeby Drafted Document Number:l:\council\bills\nbd\11906ac00.doc Date Bill Passed both Bodies:20000505 Governor's Action:S Date of Governor's Action:20000526 Subject:Insurance; domestic, foreign, fire insurer; broker, agent, Medical and health, Life, Property, Loss Mitigation Program History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20000616 Act No. A312 ------ 20000526 Signed by Governor ------ 20000523 Ratified R330 House 20000505 Read third time, enrolled for ratification House 20000504 Read second time, unanimous consent for third reading on the next Legislative day House 20000503 Committee report: Favorable 26 HLCI House 20000330 Introduced, read first time, 26 HLCI referred to Committee Senate 20000329 Read third time, sent to House Senate 20000328 Read second time ------ 20000327 Scrivener's error corrected Senate 20000323 Committee report: Favorable 02 SBI Senate 20000321 Introduced, read first time, 02 SBI referred to Committee Versions of This Bill Revised on March 23, 2000 - Word format Revised on March 27, 2000 - Word format Revised on May 3, 2000 - Word format
(A312, R330, S1262)
AN ACT TO AMEND SECTION 38-3-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DUTIES OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, SO AS TO DELETE THE PROVISION REQUIRING THE DEPARTMENT TO FURNISH REPORTING FORMS TO DOMESTIC INSURERS; TO AMEND SECTION 38-5-90, AS AMENDED, RELATING TO REQUIREMENTS FOR ISSUANCE OF A CERTIFICATE OR LICENSE TO FOREIGN OR ALIEN INSURERS, SO AS TO DELETE THE REQUIREMENT THAT THE INSURER MUST EMPLOY PERSONS RESIDING IN THE STATE; TO AMEND SECTION 38-7-35, AS AMENDED, RELATING TO USES FOR TAX IMPOSED ON FIRE INSURERS, SO AS TO REQUIRE CERTAIN TAXES TO BE USED TO IMPLEMENT THE DIVISION OF FIRE AND LIFE SAFETY PROGRAM OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION; TO AMEND SECTION 38-7-60, AS AMENDED, RELATING TO RETURNS OF PREMIUMS, SO AS TO PROVIDE THAT SUCH RETURNS MAY BE UNDER OATH OF AN OFFICER OF THE INSURER RATHER THAN THE INSURER'S CHIEF EXECUTIVE OFFICER; TO AMEND SECTION 38-13-80, AS AMENDED, RELATING TO ANNUAL STATEMENTS THAT MUST BE SUBMITTED BY AN INSURER, SO AS TO DELETE THE PROVISION REQUIRING THE DEPARTMENT TO FURNISH FORMS FOR THIS STATEMENT; TO AMEND SECTION 38-27-610, AS AMENDED, RELATING TO PRIORITY FOR THE DISTRIBUTION OF CLAIMS, SO AS TO REVISE THE PRIORITY AND TO INCLUDE CLAIMS OF THE FEDERAL GOVERNMENT, NOT OTHERWISE INCLUDED, AND TO INCLUDE CLAIMS OF GENERAL CREDITORS AND CERTAIN CLAIMS AGAINST AN INSURER FOR LIABILITY FOR BODILY INJURY AND PROPERTY DAMAGE; TO AMEND SECTION 38-33-90, AS AMENDED, RELATING TO REQUIRED REPORTS FOR HEALTH MAINTENANCE ORGANIZATIONS, SO AS TO REVISE CERTAIN REPORTING REQUIREMENTS, TO REQUIRE ANNUAL FILING OF THE ANNUAL STATEMENT CONVENTION BLANK WITH A NATIONAL INSURANCE ASSOCIATION, AND TO PROVIDE IMMUNITY FROM LIABILITY TO THIS ASSOCIATION FOR COLLECTING, ANALYZING, AND DISSEMINATING THIS ANNUAL INFORMATION; TO AMEND SECTION 38-33-100, RELATING TO FINANCIAL REQUIREMENTS FOR ISSUANCE OF A HEALTH MAINTENANCE ORGANIZATION CERTIFICATE OF AUTHORITY, SO AS TO REVISE THE NET WORTH REQUIREMENT AND TO INCLUDE CERTAIN CAPITAL AND SURPLUS REQUIREMENTS; TO AMEND SECTIONS 38-45-20 AND 38-45-30, BOTH AS AMENDED, RELATING TO REQUIREMENTS FOR A RESIDENT AND NONRESIDENT, RESPECTIVELY, TO BE LICENSED AS AN INSURANCE BROKER, SO AS TO ELIMINATE THE REQUIREMENT FOR APPROVAL BY THE DEPARTMENT AND CERTIFICATION BY BROKERS AS THEY RELATE TO BROKER'S TAXES; TO AMEND SECTION 38-45-110, AS AMENDED, RELATING TO PROCEDURES FOR PLACING INSURANCE WITH SURPLUS LINES INSURERS, SO AS TO DELETE THE REQUIREMENT FOR APPROVAL BY THE DEPARTMENT AND PENALTIES AND PROCEDURES RELATING TO DISAPPROVAL; TO AMEND SECTION 38-61-20, AS AMENDED, RELATING TO APPROVAL OF ALL INSURANCE POLICIES ISSUED OR SOLD IN THE STATE AND EXEMPTIONS FROM APPROVAL, SO AS TO REQUIRE AN OFFICER OF THE INSURER, RATHER THAN THE CHIEF EXECUTIVE OFFICER, TO CERTIFY INFORMATION WHEN POLICIES ARE EXEMPT FROM THE APPROVAL PROCESS; TO ADD SECTIONS 38-63-660, 38-65-360, 38-69-330, AND 38-71-1760 ALL SO AS TO AUTHORIZE THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO PROMULGATE REGULATIONS RELATING TO INDIVIDUAL LIFE INSURANCE, GROUP LIFE INSURANCE, INDIVIDUAL ANNUITIES, AND ACCIDENT AND HEALTH INSURANCE, RESPECTIVELY; TO AMEND SECTION 38-73-495, AS AMENDED, RELATING TO THE AUTHORITY OF THE DEPARTMENT TO DISAPPROVE PREVIOUSLY APPROVED RATES FOR WORKERS' COMPENSATION INSURANCE CLASSIFICATIONS AND REVISIONS OF THESE CLASSIFICATIONS, SO AS TO REQUIRE APPEALS OF THESE MATTERS TO THE DEPARTMENT WITHIN ONE YEAR OF THE POLICY EXPIRATION OR CANCELLATION DATE; TO AMEND SECTIONS 38-73-1370 AND 38-73-1380, BOTH AS AMENDED, RELATING TO PROCEDURES FOR RATING ORGANIZATIONS TO FILE RATES AND PREMIUMS AND FOR APPROVAL OF FINAL RATE OR PREMIUM CHARGES, RESPECTIVELY, SO AS TO ELIMINATE THE REQUIREMENT FOR A PUBLIC HEARING IN CONNECTION WITH THESE MATTERS; TO AMEND SECTION 38-75-470, RELATING TO AN ADVISORY COMMITTEE TO THE DIRECTOR OF THE DEPARTMENT OF INSURANCE AND TO THE SOUTH CAROLINA BUILDING CODES COUNCIL, SO AS TO INCLUDE AS COMMITTEE MEMBERS REPRESENTATIVES OF THE SOUTH CAROLINA EMERGENCY PREPAREDNESS DIVISION AND THE STATE FLOOD MITIGATION PROGRAM AND TO INCREASE THE DIRECTOR'S AND GOVERNOR'S APPOINTEES BY ONE; TO AMEND SECTION 38-75-480, RELATING TO A LOSS MITIGATION GRANT PROGRAM, SO AS TO AUTHORIZE PROVIDING TECHNICAL ASSISTANCE AND INFORMATION RESOURCES TO LOCAL GOVERNMENTS IN CONNECTION WITH DEVELOPING NATURAL HAZARD MITIGATION STRATEGIES; TO AMEND SECTION 38-77-125, RELATING TO INSURANCE COMPANY INFORMATION REQUIRED TO BE INCLUDED ON AUTOMOBILE INSURANCE POLICIES, SO AS TO DELETE THE REQUIREMENT THAT RESIDENT INSURANCE ADJUSTER INFORMATION MUST ALSO BE INCLUDED; AND TO REPEAL SECTION 38-47-80 RELATING TO REQUIRING A PROPERTY OR CASUALTY INSURANCE COMPANY TO MAINTAIN A RESIDENT ADJUSTER IN THE STATE.
Be it enacted by the General Assembly of the State of South Carolina:
Director's duties
SECTION 1. Section 38-3-110 of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"Section 38-3-110. The director or his designee has the following duties:
(1) supervise and regulate the rates and service of every insurer in this State and fix just and reasonable standards, classifications, regulations, practices, and measurements of service to be observed and followed by every insurer doing business in this State. Nothing contained in this title authorizes or requires a review by the department or the director of any order of the director's designee or the deputy director under the Administrative Procedures Act. This item does not grant any additional authority to the director or his designee with regard to insurance rates other than the ratemaking authority specifically granted to the director or his designee, or the Department of Insurance for certain kinds of insurance in other provisions of this title;
(2) see that all laws of this State governing insurers or relating to the business of insurance are faithfully executed and make regulations to carry out this title and all other insurance laws of this State, the enforcement or administration of which is not otherwise specifically provided for;
(3) report to the Attorney General or other appropriate law enforcement officials criminal violations of the laws relative to the business of insurance or the provisions of this title which he considers necessary to report;
(4) institute civil actions, either through his office or through the Attorney General, relative to the business of insurance or the provisions of this title which he considers necessary to institute."
Certificate of authority or license requirement
SECTION 2. Section 38-5-90(f) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(f) The insurer has employed one or more persons with adequate experience and training to manage properly its business and affairs relating to its policies in South Carolina."
Funds to be used for loss mitigation grant program
SECTION 3. Section 38-7-35 of the 1976 Code, as last amended by Act 44 of 1999, is further amended by adding at the end:
"(C) One hundred thousand dollars of the revenue collected annually pursuant to Section 38-7-30 must be transferred to the Department of Insurance for the purpose of implementing the program as provided in Section 38-75-480.
(D) Subsection (C) of this section ceases to be of any force or effect after June 30, 2002."
Return of premiums form
SECTION 4. Section 38-7-60(1) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(1) Not later than March first of each year, every insurer licensed by the director or his designee shall file with him a return of premiums collected by the insurer in the State during the immediately preceding calendar year ending on December thirty-first. The return must be made on forms prescribed by the director or his designee and must be made under oath by the insurer's employee or representative responsible for the preparation of fee and tax returns, as well as an officer of the insurer."
Annual statement; reports
SECTION 5. Section 38-13-80 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-13-80. (A) Every insurer annually shall file with the department by March first, in the form and detail the director or his designee prescribes, a statement showing the business standing and financial condition of the insurer on December thirty-first of the preceding year, except that upon timely written request by the chief managing agent or officer setting forth reasons why the statement cannot be filed within the time provided, the director or his designee may grant in writing an extension of filing time for not more than thirty days. This statement must conform substantially to the form of statement adopted by the National Association of Insurance Commissioners. Unless the director or his designee provides otherwise, the annual statement is to be prepared in accordance with the annual statement instructions and the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners. The annual statement must be verified by at least two of its principal officers, at least one of whom prepared or supervised the preparation of the annual statement.
(B) The director or his designee may require every insurer to file quarterly reports and additional information considered necessary to enable the director or his designee to carry out his duties under this chapter. The reports and information must be furnished in the time and manner prescribed by the director or his designee."
Priority of distribution
SECTION 6. Section 38-27-610 of the 1976 Code, as amended by Act 13 of 1991, is further amended to read:
"Section 38-27-610. The priority of distribution of claims from the insurer's estate must be in accordance with the order in which each class of claims is set forth in this section. Every claim in each class must be paid in full or adequate funds retained for the payment before the members of the next class receive any payment. No subclasses may be established within any class. The order of distribution of claims is:
(1) Class 1. The costs and expenses of administration including, but not limited to:
(a) the actual and necessary costs of preserving or recovering the assets of the insurer;
(b) compensation for services rendered by the receiver in the amount of five percent of the total assets of the insurer coming into the possession of the receiver;
(c) any necessary filing fees;
(d) the fees and mileage payable to witnesses;
(e) compensation of the special deputies, attorneys, and other persons as appointed by the receiver for the efficient conduct of the receivership, rehabilitation, or liquidation;
(f) the reasonable expenses of a guaranty association or foreign guaranty association in handling claims.
(2) Class 2. Claims under policies, including claims of federal, state, and local governments, for losses incurred, loss claims, including third party claims, and claims of a guaranty association or foreign guaranty association. Claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, must be treated as loss claims. That portion of a loss, indemnification for which is provided by other benefits or advantages recovered by the claimant, must not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death, or as proceeds of life insurance or as gratuities. No payment by an employer to his employee may be treated as a gratuity.
(3) Class 3. Claims under nonassessable policies for unearned premium or other premium refunds.
(4) Class 4. Claims of the federal government not included in items (2) or (3).
(5) Class 5. Debts due to employees for services performed to the extent that they do not exceed one thousand dollars and represent payment for services performed within one year before the filing of the petition for liquidation. Officers and directors are not entitled to the benefit of this priority. This priority is in lieu of any other similar priority authorized by law as to wages or compensation of employees.
(6) Class 6. Claims of general creditors and claims against the insurer for liability for bodily injury or for injury to or destruction of tangible property which are not under policies.
(7) Class 7. Claims of state and local governments, except those under item (2). Claims, including those of a state or local governmental body for a penalty or forfeiture, are allowed in this class only to the extent of the pecuniary loss sustained from the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs. The remainder of the claims are postponed to the class of claims under item (11).
(8) Class 8. Claims filed late or any other claims other than claims under items (9), (10), and (11) of this section.
(9) Class 9. Surplus or contribution notes, or similar obligations, and premium refunds on assessable policies except premium refund claims of the federal government which must be included in the class of claims under item (4).
(10) Class 10. Payments to members of domestic mutual insurance companies are limited in accordance with law.
(11) Class 11. The claims of shareholders or other owners."
Annual statements; reports
SECTION 7. Section 38-33-90 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-33-90. (A) Every health maintenance organization annually shall file with the department by March first, in the form and detail the director or his designee prescribes, a statement showing the business standing and financial condition of the health maintenance organization on December thirty-first of the preceding year, except that upon timely written request by the president or chief executive officer setting forth reasons why the statement cannot be filed within the time provided, the director or his designee may grant in writing an extension of filing time for not more than thirty days. This statement must conform substantially to the statement form adopted by the National Association of Insurance Commissioners. Unless the director or his designee provides otherwise, the annual statement is to be prepared in accordance with the annual statement instructions and the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners.
(B) The director or his designee may require every health maintenance organization to file quarterly reports and additional information considered necessary to enable the director or his designee to carry out his duties under this chapter. The reports and information must be furnished in the time and manner prescribed by the director or his designee.
(C) Every health maintenance organization which is authorized to write business in this State shall file annually with the National Association of Insurance Commissioners by March first a copy of its annual statement convention blank along with any additional filings prescribed by the director or his designee for the preceding year. The information filed with the National Association of Insurance Commissioners must be in the same format and scope as that required by the director or his designee and must include the signed jurat page and the actuarial certification. Any amendments and addenda to the annual statement filing subsequently filed with the director or his designee also must be filed with the National Association of Insurance Commissioners. Foreign health maintenance organizations domiciled in a state which has a law substantially similar to this subsection are considered in compliance with this section.
(D) In the absence of actual malice, members of the National Association of Insurance Commissioners, their authorized committees, subcommittees, and task forces, their delegates, National Association of Insurance Commissioners' employees, and all others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks are acting as agents of the director or his designee under the authority of this section and are not subject to civil liability for libel, slander, or any other cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required by this section."
Financial requirements
SECTION 8. Section 38-33-100 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-33-100. (A) No health maintenance organization may be issued a certificate of authority unless it is possessed of net worth of at least one million two hundred thousand dollars, six hundred thousand dollars of which must be capital if it is a stock health maintenance organization. After the issuance, the health maintenance organization shall maintain a net worth of not less than seven hundred fifty thousand dollars, six hundred thousand dollars of which must be capital if it is a stock health maintenance organization. Net worth means total assets less total liabilities. Instruments acceptable to the director or his designee may be utilized in determining net worth. If the director or his designee determines that the number of enrollees in the health maintenance organization is excessive or may become excessive in relation to the organization's net worth, the director or his designee may require that future enrollment be limited until it is no longer necessary.
(B) If the surplus of a stock health maintenance organization is less than twenty-five percent of the surplus initially required, as set forth in subsection (A), the health maintenance organization is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27.
(C) If the capital of a stock health maintenance organization is impaired, the health maintenance organization is delinquent, and the director or his designee shall begin delinquency proceedings.
(D) If the surplus of a licensed mutual health maintenance organization is less than the sum of the capital and minimum surplus required to be maintained by a stock health maintenance organization licensed to write the same kind or kinds of business, the mutual health maintenance organization is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27.
(E) If the surplus of a licensed mutual health maintenance organization is less than the minimum capital required to be possessed by a stock health maintenance organization licensed to write the same kind or kinds of business, the mutual health maintenance organization is delinquent, and the director or his designee shall begin delinquency proceedings."
Quarterly premium tax payments for resident brokers
SECTION 9. Section 38-45-20(4) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(4) payment to the department, within thirty days after March thirty-first, June thirtieth, September thirtieth, and December thirty-first each year, of a broker's premium tax of four percent upon premiums for policies of insurers not licensed in this State. Credit may be taken for tax on policies canceled flat within forty-five days of the effective policy date as long as the business was placed in good faith and the policy was canceled at the request of the insured."
Quarterly premium tax payments for nonresident brokers
SECTION 10. Section 38-45-30(6) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(6) paying the department, within thirty days after March thirty-first, June thirtieth, September thirtieth, and December thirty-first each year, a broker's premium tax of four percent upon premiums for policies of insurers not licensed in this State. Credit may be taken for tax on policies canceled flat within forty-five days of the effective policy date as long as the business was placed in good faith and the policy was canceled at the request of the insured."
Surplus lines insurer
SECTION 11. Section 38-45-110 of the 1976 Code, as last amended by Act 260 of 1998, is further amended to read:
"Section 38-45-110. The broker shall write or stamp upon the face of each policy and application of an eligible surplus lines insurer the words 'This company not licensed to do business in this State and not afforded guaranty fund protection'."
Officer to certify compliance
SECTION 12. Section 38-61-20(C) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(C) The director or his designee may exempt from the requirements of subsection (A) as long as he considers proper any type of insurance policy, contract, or certificate to which in his opinion subsection (A) practically must not be applied, or the filing and approval of which, in his opinion, is not necessary for the protection of the public. However, every insurer at least annually shall list the types and form numbers of all policies it issues or sells in this State which the director or his designee has exempted from being filed and approved, and an officer of the insurer shall certify that all of these policies comply fully with the laws of this State. If a policy, contract, or certificate is certified to be in compliance with the laws of this State and the director or his designee finds it violates a law of this State, he may disqualify that insurer from certifying policies, contracts, or certificates allowed under this subsection."
Regulations to be promulgated
SECTION 13. The 1976 Code is amended by adding:
"Section 38-63-660. The Director of the Department of Insurance or his designee shall promulgate regulations to implement the provisions of this chapter."
Regulations to be promulgated
SECTION 14. The 1976 Code is amended by adding:
"Section 38-65-360. The Director of the Department of Insurance or his designee shall promulgate regulations to implement the provisions of this chapter."
Regulations to be promulgated
SECTION 15. The 1976 Code is amended by adding:
"Section 38-69-330. The Director of the Department of Insurance or his designee shall promulgate regulations to implement the provisions of this chapter."
Regulations to be promulgated
SECTION 16. The 1976 Code is amended by adding:
"Section 38-71-1760. The Director of the Department of Insurance or his designee shall promulgate regulations to implement the provisions of this chapter."
Period for appeals
SECTION 17. Section 38-73-495 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-73-495. The director or his designee may:
(1) disapprove a previously approved rate for any classification for workers' compensation insurance upon a finding that the rate for that classification is excessive, inadequate, or unfairly discriminatory;
(2) require the division of a particular classification into separate classifications, or the joining of separate classifications into one classification, upon a finding that such action is in the public interest;
(3) direct that a particular risk be classified in a particular classification upon a finding that a risk is classified incorrectly;
(4) disapprove an experience modification rate for workers' compensation insurance upon a finding that the rate is excessive, inadequate, or unfairly discriminatory.
Appeals to the department must be filed within one year of policy expiration date or cancellation date, whichever comes first."
Rate filings
SECTION 18. Section 38-73-1370 of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"Section 38-73-1370. After June 30, 1989, no rating organization may file a rate increase with the department for any previously approved final rate or premium charge for any private passenger automobile insurance coverage. A rating organization may file the pure loss component of the rate or premium charge for any private passenger automobile insurance coverage, by class and territory, for the approval of the director or his designee. The director or his designee may approve the pure loss component of the rate or premium charge for use by the members or subscribers of the rating organization. No member or subscriber may use the approved pure loss component of the rate or premium charge unless and until the expense component of the rate or premium charge has also been filed with the department and approved by the director or his designee pursuant to Section 38-73-1380."
Approval of rate and premium charges
SECTION 19. Section 38-73-1380 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-73-1380. After June 30, 1989, no member or subscriber of a rating organization may utilize a rate or premium charge for any private passenger automobile insurance coverage unless and until the final rate or premium charge has been filed with the division and approved by the director or his designee. After the effective date of this section, the final rate or premium charge is the pure loss component filed and approved by a rating organization on behalf of its members or subscribers added to the expense component of the rate or premium charge, filed with the department and approved by the director or his designee, by each member or subscriber of a rating organization independently.
Any expense component filed by a member or subscriber of a rating organization may be approved by the director or his designee subject to Section 38-73-1370 and all other requirements of this chapter."
Advisory committee
SECTION 20. Section 38-75-470 of the 1976 Code, as added by Act 123 of 1997, is amended to read:
"Section 38-75-470. The Director of Insurance shall appoint an advisory committee to the director and the South Carolina Building Codes Council to study issues associated with the development of strategies for reducing loss of life and mitigating property losses due to hurricane, earthquake, and fire. The advisory committee also must consider the costs associated with these strategies to individual property owners. The advisory committee must include:
(1) one representative from Clemson University involved with wind engineering;
(2) one representative from an academic institution involved with the study of earthquakes;
(3) one representative from the Department of Insurance;
(4) one representative from an insurer writing property insurance in South Carolina;
(5) one representative from the Department of Commerce;
(6) one representative from the Federal Emergency Management Association;
(7) one representative from the Homebuilders Association;
(8) one representative from the Manufactured Housing Institute of South Carolina;
(9) one representative from the State Fire Marshal's office;
(10) one representative from the South Carolina Emergency Preparedness Division;
(11) one representative from the State Flood Mitigation Program;
(12) three at-large members appointed by the director; and
(13) three at-large members appointed by the Governor.
Members shall serve for terms of two years and shall receive no per diem, mileage, or subsistence. Vacancies must be filled in the same manner as the original appointment.
Within thirty days after its appointment, the advisory committee shall meet at the call of the Director of Insurance. The advisory committee shall elect from its members a chairman and a secretary and shall adopt rules not inconsistent with this chapter. Meetings may be called by the chairman on his own initiative and must be called at the request of three or more members of the advisory committee. All members shall be notified by the chairman of the time and place of the meeting at least seven days in advance of the meeting. All meetings must be open to the public. At least two-thirds vote of those members in attendance at the meeting shall constitute an official decision of the advisory committee."
Loss mitigation grant program
SECTION 21. Section 38-75-480 of the 1976 Code, as added by Act 123 of 1997, is amended to read:
"Section 38-75-480. (A) There is established within the Department of Insurance a loss mitigation grant program. Funds may be appropriated to the grant program, and any funds so appropriated shall be used for the purpose of making grants to local governments or for the study and development of strategies for reducing loss of life and mitigating property losses due to hurricane, flood, earthquake, and fire. Grants to local governments shall be for the following purposes:
(1) implementation of building code enforcement programs including preliminary training of inspectors;
(2) conducting assessments to determine need for and desirability of making agreements to provide enforcement services pursuant to Section 6-9-60;
(3) providing technical assistance to and acting as an information resource for local governments in the development of proactive hazard mitigation strategies as they relate to reducing the loss of life and mitigating property losses due to natural hazards to include hurricane, flood, earthquake, and fire.
Funds may be appropriated for a particular grant only after a majority affirmative vote on each grant by the advisory committee.
(B) The Department of Insurance may make application and enter into contracts for and accept grants in aid from federal and state government and private sources for the purposes of:
(1) implementation of building code enforcement programs including preliminary training of inspectors;
(2) conducting assessments to determine need for and desirability of making agreements to provide enforcement services pursuant to Section 6-9-60; and
(3) study and development of strategies for reducing loss of life and mitigating property losses due to hurricane, flood, earthquake, and fire."
Insurance company information required
SECTION 22. Section 38-77-125 of the 1976 Code is amended to read:
"Section 38-77-125. Every automobile insurance policy or other policy containing automobile insurance coverage on the face of the policy must state the complete name of the company issuing the policy, its address, and telephone number."
Repeal
SECTION 23. Section 38-47-80 of the 1976 Code is repealed.
Time effective
SECTION 24. This act takes effect upon approval by the Governor.
Ratified the 23rd day of May, 2000.
Approved the 26th day of May, 2000.
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