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H. 3592

STATUS INFORMATION

General Bill
Sponsors: Rep. Limehouse
Document Path: l:\council\bills\nbd\11240sd05.doc

Introduced in the House on February 17, 2005
Currently residing in the House Committee on Labor, Commerce and Industry

Summary: Charity or nonprofit corporation named beneficiary of life insurance policy

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   2/17/2005  House   Introduced and read first time HJ-25
   2/17/2005  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-25

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/17/2005

TO AMEND SECTION 38-63-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A BONA FIDE CHARITY OR NONPROFIT CORPORATION WHICH IS NAMED A BENEFICIARY OF A LIFE INSURANCE POLICY, SO AS TO PROVIDE THAT A CHARITABLE ORGANIZATION HAS AN INSURABLE INTEREST IN THE LIFE OF AN INDIVIDUAL INSURED UNDER A POLICY OF INSURANCE IN WHICH THE CHARITABLE ORGANIZATION IS NAMED AS A BENEFICIARY UNDER THE CONDITIONS SPECIFIED IN THIS SECTION.

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

SECTION    1.    Section 38-63-100 of the 1976 Code is amended to read:

"Section 38-63-100.    Notwithstanding any other provision of law, a bona fide charity or nonprofit corporation which is in compliance with the "Solicitation of Charitable Funds Act" (Chapter 55 of Title 33) charitable organization has an insurable interest in the life of an insured under a policy in which the charity or corporation charitable organization is irrevocably named as a beneficiary provided that the application for insurance is signed by the insured. For purposes of this section, a 'charitable organization' means:

(1)    a bona fide charity or nonprofit corporation which is in compliance with the 'Solicitation of Charitable Funds Act'; or

(2)    any trust, business trust, partnership, corporation, limited liability company or similar entity approved in writing by an organization described in Section 501(c)(3) of the Internal Revenue Code with the written consent of the individual insured. The charitable organization has an insurable interest in the life of the insured whether the charitable organization originally purchased the insurance or the insurance is later transferred to the charitable organization by the insured or another person.

The provisions of this section do not limit or abridge any insurable interest or right to insure now existing at common law or by statute, shall be construed liberally to sustain insurable interest, and shall stand as a declaration of existing law applicable to all life insurance policies in existence on or after the effective date of this section."

SECTION    2.    This act takes effect upon approval by the Governor.

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