reglab/housing_qa huggingface dataset:
SC Code § 38-27-460 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-460. Transfers after petition.

 (a) After petition for rehabilitation or liquidation has been filed a transfer of any of the real property of the insurer made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation is constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the register of deeds in the county where any real property in question is located. The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state is not impaired by the pendency of the proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.  (b) After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:  (1) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred.  (2) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his order, with the same effect as if the petition were not pending.  (3) A person having actual knowledge of the pending rehabilitation or liquidation is considered not to act in good faith.  (4) A person asserting the validity of a transfer under this section has the burden of proof. Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator is valid against the liquidator.  (c) Nothing in this chapter impairs the negotiability of currency or negotiable instruments.  HISTORY: Former 1976 Code Section 38-5-2160 [1982 Act . 384, Section 27] recodified as Section 38-27-460 by 1987 Act No. 155, Section 1; 1997 Act No. 34, Section 1.
SC Code § 38-27-480 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-480. Claims of holders of voidable rights.

 (a) No claim of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter is allowed unless he surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim may not be allowed unless the money is paid or the property is delivered to the liquidator within thirty days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.  (b) A claim allowable under subsection (a) by reason of the avoidance, whether voluntary or involuntary, or a preference, a lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused late filing under Section 38-27-540 if filed within thirty days from the date of the avoidance or within the further time allowed by the court under subsection (a).  HISTORY: Former 1976 Code Section 38-5-2180 [1982 Act No. 384, Section 29] recodified as Section 38-27-480 by 1987 Act No. 155, Section 1.
SC Code § 38-27-490 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-490. Setoffs.

 (a) Mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter must be set off and the balance only may be allowed or paid, except as provided in subsection (b) of this section and Section 38-27-520.  (b) No setoff is allowed in favor of any person where:  (1) the obligation of the insurer to the person would not at the date of the filing of a petition for liquidation entitle the person to share as a claimant in the assets of the insurer;  (2) the obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a setoff; or  (3) the obligation of the person is to pay an assessment levied against the members or subscribers of the insurer or is to pay a balance upon a subscription to the capital stock of the insurer or is in any other way in the nature of a capital contribution.  HISTORY: Former 1976 Code Section 38-5-2190 [1982 Act . 384, Section 30] recodified as Section 38-27-490 by 1987 Act No. 155, Section 1; 1997 Act No. 68, Section 10.
SC Code § 38-27-500 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-500. Assessments.

 (a) As soon as practicable but not more than two years from the date of an order of liquidation under Section 38-27-370 of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:  (1) The reasonable value of the assets of the insurer.  (2) The insurer's probable total liabilities.  (3) The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment.  (4) A recommendation as to whether or not an assessment should be made and in what amount.  (b)(1) Upon the basis of the report provided in subsection (a), including any supplements and amendments thereto, the circuit court may levy one or more assessments against all members of the insurer who are subject to assessment.  (2) Subject to any applicable legal limits on assessability, the aggregate assessment must be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.  (c) After levy of assessment under subsection (b) the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator should not pursue a judgment therefor.  (d) The liquidator shall give notice of the order to show cause by publication and by first class mail to each member liable thereunder mailed to his last known address as it appears on the insurer's records, at least twenty days before the return day of the order to show cause.  (e)(1) If a member does not appear and serve duly verified objections upon the liquidator by the return day of the order to show cause under subsection (c), the court shall make an order adjudging the member liable for the amount of the assessment against him, pursuant to subsection (c), together with costs, and the liquidator shall have a judgment against the member therefor.  (2) If by the return day the member appears and serves duly verified objections upon the liquidator, the director or his designee may hear and determine the matter or may appoint a referee to hear it and make an order as the facts warrant. In the event that the director or his designee determines that the objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.  (f) The liquidator may enforce any order or collect any judgment under subsection (e) by any lawful means.  HISTORY: Former 1976 Code Section 38-5-2200 [1982 Act No. 384, Section 31] recodified as Section 38-27-500 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 620.
SC Code § 38-27-510 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-510. Reinsurer's liability.

 The amount recoverable by the liquidator from reinsurers may not be reduced as a result of delinquency proceedings. Payment made directly to an insured or other creditor does not diminish the reinsurer's obligation to the insurer's estate except:  (1) where the contract or other written agreement specifically provides another payee of the reinsurance in the event of the insolvency of the ceding insurer; or  (2) where the assuming insurer, with the consent of the direct insured, has assumed the policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under the policies and in substitution for the obligations of the ceding insurer to the payees.  The reinsurance is payable under contracts reinsured by the assuming insurer on the basis of reported claims allowed in the liquidation proceedings, subject to court approval, without diminution because of the insolvency of the ceding insurer.  The domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of a claim against the ceding insurer on the contract reinsured within a reasonable time after the claim is filed in the liquidation proceeding. During the pendency of the claim, an assuming insurer may investigate the claim and interpose, at its own expense in the proceeding where the claim is to be adjudicated, any defenses which it considers available to the ceding insurer or its liquidator. This expense is chargeable, subject to court approval, against the insolvent ceding insurer as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the ceding insurer solely as a result of the defense undertaken by the assuming insurer. Where two or more assuming insurers are involved in the same claim and a majority in interest elect to interpose a defense to the claim, the expense must be apportioned in accordance with the terms of the reinsurance agreement as though the expense had been incurred by the ceding insurer.  HISTORY: Former 1976 Code Section 38-5-2210 [1982 Act No. 384, Section 32] recodified as Section 38-27-510 by 1987 Act No. 155, Section 1; 1998 Act No. 416, Section 1.
SC Code § 38-27-520 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-520. Recovery of premiums owed.

 (a)(1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium is obligated to pay any unpaid collected premium held by such person at the time of the declaration of insolvency, whether earned or unearned, and any unpaid earned premium, all as shown on the records of the insurer. An agent, broker, premium finance company, or any other person shall have no obligation to pay an uncollected unpaid unearned premium to the liquidator. The liquidator has the right to recover from that person any part of an unearned premium that represents that person's commission. Credits or setoffs or both are not allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.  (2) An insured is obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.  (b) Upon satisfactory evidence of a violation of this section, the director or his designee may pursue either one or both of the following courses of action:  (1) Suspend or revoke or refuse to renew the licenses of the offending party or parties.  (2) Impose a penalty of not more than one thousand dollars for each and every act in violation of this section by the party or parties.  (c) Before the director or his designee takes any action as set forth in subsection (b), he shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation and advising of an opportunity of hearing to be held at least ten days thereafter. After the hearing, upon failure of the accused to appear at the hearing, or upon failure to request the hearing, the director or his designee, if he finds a violation, shall impose the penalties under subsection (b) he considers advisable.  (d) When the director or his designee takes action in any or all of the ways set out in subsection (b), the party aggrieved may appeal from the action to the Administrative Law Court as provided by law.  HISTORY: Former 1976 Code Section 38-5-2220 [1982 Act No. 384, Section 33] recodified as Section 38-27-520 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 621; 1994 Act No. 368, Section 1.
SC Code § 38-27-540 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-540. Filing of claims.

 (a) Proof of all claims must be filed with the liquidator in the form required by Section 38-27-550 by the last day for filing specified in the notice required under Section 38-27-410, except that proof of claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly so requires.  (b) The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if he were not late, to the extent that the payment will not prejudice the orderly administration of the liquidation, under the following circumstances:  (1) The existence of the claim was not known to the claimant and he filed his claim as promptly thereafter as reasonably possible after learning of it.  (2) A transfer to a creditor was avoided under Sections 38-27-450 through 38-27-470, or was voluntarily surrendered under Section 38-27-480 and the filing satisfies the conditions of Section 38-27-480.  (3) The valuation under Section 38-27-600, of security held by a secured creditor, shows a deficiency, which is filed within thirty days after the valuation.  (c) The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if the claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, after the last day for filing where the payments were made and expenses incurred as provided by law.  (d) The liquidator may consider any claim filed late which is not covered by subsection (b) of this section and permit it to receive distributions which are subsequently declared on any claims of the same or lower priority if the payment does not prejudice the orderly administration of the liquidation. The late-filing claimant shall receive, at each distribution, the same percentage of the amount allowed on his claim as is then being paid to claimants of any lower priority. This must continue until his claim has been paid in full.  HISTORY: Former 1976 Code Section 38-5-2240 [1982 Act No. 384, Section 35] recodified as Section 38-27-540 by 1987 Act No. 155, Section 1.
SC Code § 38-27-550 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-550. Proof of claim.

 (a) Proof of claim consists of a statement signed by the claimant that includes all of the following that are applicable:  (1) the particulars of the claim, including the consideration given for it;  (2) the identity and amount of the security on the claim;  (3) the payments made on the debt, if any;  (4) that the sum claimed is justly owing and that there is no setoff, counterclaim, or defense to the claim;  (5) any right of priority of payment or other specific right asserted by the claimants;  (6) a copy of the written instrument which is the foundation of the claim;  (7) the name and address of the claimant and the attorney who represents him, if any.  (b) No claim need be considered or allowed if it does not contain all the information in subsection (a) which may be applicable. The liquidator may require that a prescribed form be used and may require that other information and documents be included.  (c) At any time the liquidator may request the claimant to present information or evidence supplementary to that required under subsection (a) and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.  (d) No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation and no judgment or order against an insured or the insurer entered at any time by default or by collusion need be considered as evidence of liability or of quantum of damages. No judgment or order against an insured or the insurer entered within four months before the filing of the petition need be considered as evidence of liability or of the quantum of damages.  (e) All claims of a guaranty association or foreign guaranty association must be in the form and shall contain the substantiation as agreed to by the association and the liquidator.  HISTORY: Former 1976 Code Section 38-5-2250 [1982 Act No. 384, Section 36] recodified as Section 38-27-550 by 1987 Act No. 155, Section 1.
SC Code § 38-27-560 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-560. Special claims.

 (a) The claim of a third party which is contingent only on his first obtaining a judgment against the insured must be considered and allowed as if there were no contingency.  (b) A claim may be allowed even if contingent, if it is filed in accordance with Section 38-27-540. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation.  (c) Claims that are due except for the passage of time must be treated as absolute claims are treated, except that the claims may be discounted at the legal rate of interest.  (d) Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under Section 38-27-320 or 38-27-370.  HISTORY: Former 1976 Code Section 38-5-2260 [1982 Act No. 384, Section 37] recodified as Section 38-27-560 by 1987 Act No. 155, Section 1.
SC Code § 38-27-570 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-570. Special provisions for third party and insureds' claims.

 (a) Whenever any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim with the liquidator.  (b) Whether or not the third party files a claim, the insured may file a claim on his own behalf in the liquidation. If the insured fails to file a claim by the date for filing claims specified in the order of liquidation or within sixty days after mailing of the notice required by Section 38-27-410, whichever is later, he is an unexcused late-filer.  (c) The liquidator shall make his recommendations to the court under Section 38-27-610 for the allowance of an insured's claim under subsection (b) of this section after consideration of the probable outcome of any pending action against the insured on which the claim is based, the probable damages recoverable in the action, and the probable costs and expenses of defense. After allowance by the court, the liquidator shall withhold any dividends payable on the claim, pending the outcome of litigation and negotiation with the insured. Whenever it seems appropriate, he shall reconsider the claim on the basis of additional information and amend his recommendations to the court. The insured must be afforded the same notice and opportunity to be heard on all changes in the recommendations as in their initial determination. The court may amend its allowance as it thinks appropriate. As claims against the insured are settled or barred, the insured must be paid from the amount withheld the same percentage dividend as was paid on other claims of like property, based on the lesser of (1) the amount actually recovered from the insured by action or paid by agreement, plus the reasonable costs and expenses of defense, or (2) the amount allowed on the claims by the court. After all claims are settled or barred, any sum remaining from the amount withheld reverts to the undistributed assets of the insurer. Delay in final payment under this subsection (c) is not a reason for unreasonable delay of final distribution and discharge of the liquidator.  (d) If several claims founded upon one policy are filed, whether by third parties or as claims by the insured under this section, and the aggregate allowed amount of the claims to which the same limit of liability in the policy is applicable exceeds that limit, each claim as allowed must be reduced in the same proportion so that the total equals the policy limit. Claims by the insured must be evaluated as in subsection (c). If any insured's claim is subsequently reduced under subsection (c), the amount thus freed must be apportioned ratably among the claims which have been reduced under this subsection (d).  (e) No claim may be presented under this section if it is or may be covered by any guaranty association or foreign guaranty association.  HISTORY: Former 1976 Code Section 38-5-2270 [1982 Act No. 384, Section 38] recodified as Section 38-27-570 by 1987 Act No. 155, Section 1.
SC Code § 38-27-580 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 27 - Insurers' Rehabilitation And Liquidation Act|Section 38-27-580. Disputed claims.

 (a) When a claim is denied in whole or in part by the liquidator, written notice of the determination must be given to the claimant or his attorney by first class mail at the address shown in the proof of claim. Within sixty days from the mailing of the notice, the claimant may file his objections with the liquidator. If no filing is made, the claimant may not further object to the determination.  (b) Whenever objections are filed with the liquidator and the liquidator does not alter his denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first class mail to the claimant or his attorney and to any other persons directly affected, not less than ten nor more than thirty days before the date of the hearing. The matter may be heard by the court or by a court-appointed referee who shall submit findings of fact along with his recommendation.  HISTORY: Former 1976 Code Section 38-5-2280 [1982 Act No. 384, Section 39] recodified as Section 38-27-580 by 1987 Act No. 155, Section 1.