reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-140. Insurance on out-of-state property by insurer not locally authorized.

No person may make, negotiate for or place, or aid in negotiating or placing an insurance contract in this State for another who is an applicant for insurance covering any property or risk in another state, territory, or district of the United States with an insurer not authorized to transact insurance business in the state, territory, or district where the property or risk or any part thereof is located.
HISTORY: Former 1976 Code Section 38-52-30 [1947 (45) 322; 1952 Code Section 37-263; 1962 Code Section 37-263; 1978 Act No. 457 Section 1] recodified as Section 38-25-140 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-150. Exemptions.

This article does not apply to:
(1) the lawful transaction of surplus lines insurance;
(2) the lawful transaction of reinsurance by insurers;
(3) transactions in this State involving a policy lawfully solicited, written, and delivered outside this State covering only subjects of insurance not resident, located, or expressly to be performed in this State at the time of issuance, and which transactions are subsequent to the issuance of the policy;
(4) attorneys acting in the ordinary relation of attorney and client in the adjustment of claims or losses;
(5) except for mass-marketed insurance, transactions in this State involving group life and group accident and health or blanket accident and health insurance or group annuities where (i) the master policy was lawfully issued and delivered in and pursuant to the laws of a state in which the insurer was authorized to do an insurance business and in which the policyholder was domiciled or otherwise had a bona fide situs and (ii) except for group annuities, the insurer complies with Sections 38-65-50, 38-65-60, 38-71-740, and 38-71-750;
(6) transactions in this State involving any policy of insurance or annuity contract issued before April 30, 1975;
(7) contracts of insurance covering risks of transportation and navigation and transactions in this State relative to a policy issued or to be issued outside this State involving insurance on vessels, craft or hulls, cargoes, marine builder's risk, marine protection and indemnity, or other risk, including strikes and war risks commonly insured under ocean or wet marine forms of policy;
(8) transactions in this State involving contracts of insurance other than contracts of life, accident, or accident and health insurance issued to one or more industrial insureds. An "industrial insured" means an insured:
(i) which procures insurance by use of the services of a full-time employee acting as a risk manager or insurance manager or utilizing the services of a regularly and continuously qualified insurance consultant;
(ii) whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars; and
(iii) which has at least twenty-five full-time employees.
HISTORY: Former 1976 Code Section 38-52-40 [1947 (45) 322; 1952 Code Section 37-264; 1962 Code Section 37-264; 1978 Act No. 457 Section 1] Section 38-53-30 [1975 (59) 127; 1976 Act No. 732 Section 8] recodified as Section 38-25-150 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-160. Director may exempt insurer or other organization from provisions of chapter; certain requirements; discontinuance of exemption.

The director or his designee may, by regulation of the department or by his order, exempt from all or any provisions of this chapter an insurer or other organization not formed or operating for profit which affords life insurance or annuities to nonprofit educational and scientific institutions and their staff members in this State. However, in affording this exemption the director or his designee shall require the insurer or other organization to appoint the director as agent for service of process. The director or his designee may require the insurer or other organization to file with the department, as information, policy forms, annual statements, and financial and other similar material. The director or his designee may, after due notice and hearing, discontinue the exemption for any reason which would have, if then existing or known, justified his refusal to afford the exemption when it was granted.
HISTORY: Former 1976 Code Section 38-53-30 [1975 (59) 127; 1976 Act No. 732 Section 8] recodified as Section 38-25-160 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 601.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-310. Director authorized to seek restraining order.

Whenever the director or his designee believes, from evidence satisfactory to him, that an insurer is violating or about to violate Section 38-25-110 the director or his designee may, through the Attorney General, cause a complaint to be filed in the Court of Common Pleas of Richland County to enjoin and restrain the insurer from continuing the violation, engaging in the violation, or doing any act in furtherance of the violation. The court has jurisdiction of the proceeding and has the power to make and enter an order or judgment awarding preliminary or final injunctive relief as in its judgment is proper.
HISTORY: Former 1976 Code Section 38-53-40 [1975 (59) 127] recodified as Section 38-25-310 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 602.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-320. Penalty for unauthorized insurers.

An unauthorized insurer who transacts any unauthorized act of an insurance business as set forth in Article 3 of this chapter may be fined not more than fifty thousand dollars.
HISTORY: Former 1976 Code Section 38-53-80 [1975 (59) 127] recodified as Section 38-25-320 by 1987 Act No. 155, Section 1; 1988 Act No. 374, Section 2.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-330. Penalty for violation of chapter.

A person wilfully violating any provisions of this chapter is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than three years, or both.
HISTORY: Former 1976 Code Section 38-51-180 [1947 (45) 322; 1952 Code Section 37-249; 1962 Code Section 37-249] Section 38-52-90 [1947 (45) 322; 1952 Code Section 37-271; 1962 Code Section 37-271; 1978 Act No. 457 Section 1] recodified as Section 28-25-330 by 1987 Act No. 155 Section 1; 1988 Act No. 374, Section 9; 1993 Act No. 184 Section 211; 1998 Act No. 262, Section 2.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-360. Personal liability on contracts of unauthorized insurers.

In the event of failure of an unauthorized insurer to pay any claim or loss within the provisions of the insurance contract, a person who assisted or in any manner aided directly or indirectly in the procurement of the insurance contract is liable to the insured for the full amount of the claim or loss in the manner provided by the insurance contract.
HISTORY: Former 1976 Code Section 38-53-30 [1975 (59) 127; 1976 Act No. 732 Section 8] recodified as Section 38-25-360 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-520. Director agent for service of process on unauthorized insurers.

(a) The issuance and delivery of a policy of insurance or contract of insurance or indemnity to any person in this State or the collection of a premium thereon by an insurer not licensed in this State, as herein required, irrevocably constitutes the director and any successor of his in office the true and lawful attorney in fact upon whom service of any and all processes, pleadings, actions, or suits arising out of the policy or contract in behalf of the insured may be made.
(b) Service of process in this action is made by delivering to and leaving with the director or some person in apparent charge of his office two copies of it and by payment to the director of a fee of ten dollars, of which five dollars must be retained by the director to offset the costs he incurs in service of process and of which five dollars must be deposited to the credit of the general fund of the state.
(c) The director or his designee shall immediately mail by registered mail one of the copies of the process to the defendant at its last known principal place of business and shall keep a record of all process served upon him. The service of process is sufficient if: (1) notice of the service and a copy of the process are sent within ten days thereafter by registered mail by the plaintiff's attorney to the defendant at its last known principal place of business, and (2) the defendant's receipt or a receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the plaintiff's attorney showing compliance herewith are filed with the clerk of court in which the action is pending by the date the defendant is required to appear or within any further time which the court may allow.
(d) No plaintiff is entitled to a judgment by default, a judgment with leave to prove damages, or a judgment pro confesso under this section until the expiration of thirty days from the date of filing of the affidavit of compliance.
(e) Nothing in this section limits or abridges the right to serve any process, notice, order, or demand upon any person or insurer in any other manner permitted by law.
HISTORY: Former 1976 Code Section 38-52-50 [1947 (45) 322; 1952 Code Section 37-265; 1962 Code Section 37-265; 1978 Act No. 457 Section 1] recodified as Section 38-25-520 by 1987 Act No. 155, Section 1; 1988 Act No. 366, Section 3; 1993 Act No. 181, Section 604.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-530. Alternative method for service on unauthorized insurer.

Service of process in any action, suit, or proceeding involving an unauthorized insurer is, in addition to that provided in Sections 38-25-510 and 38-25-520, valid if served upon any person within this State who, in this State on behalf of the insurer, is:
(1) soliciting insurance;
(2) making any contract of insurance or issuing or delivering any policies or written contracts of insurance; or
(3) collecting or receiving any premium for the insurer, or adjusting any loss or claim for the insurance, and if counsel, within ten days after service upon the person, causes to be sent by registered mail to the last known address of the insurer a copy of the process with proper postage affixed to the envelope containing it and files an affidavit, with the clerk of court or magistrate in whose court the cause is pending, of compliance herewith, with leave to the court to extend the time for the mailing of process and filing of affidavit.
HISTORY: 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-540. Actions by unauthorized insurers.

An unauthorized insurer is not permitted to maintain any action, suit, or proceeding in this State to enforce a right, claim, or demand arising out of the transaction of insurance business until the insurer has obtained a certificate of authority to transact insurance business in this State. The unauthorized insurer may maintain an action, suit, or proceeding in connection with its investments in this State or in connection with a contract issued by it at a time when it was authorized to do business in the state where the contract was issued. This section does not prevent the insurer from defending an action in the courts of this State. The failure of an insurer transacting insurance business in this State to obtain a certificate of authority does not impair the validity of any act or contract of the insurer. This section does not apply to an eligible surplus lines insurer which maintains the deposit required by Section 38-9-80 or which has on file with the department a surety bond issued by an admitted insurer in an amount determined by the director or his designee to be sufficient to meet the security requirements of Section 38-9-80. Before an eligible surplus lines insurer files or causes to be filed any action, suit, or proceeding in this State to enforce a right, claim, or demand arising out of the transaction of insurance, it shall produce evidence that the security deposit is presently on file or that the required surety bond is then in force and effect.
HISTORY: Former 1976 Code Section 38-52-60 [1947 (45) 322; 1952 Code Section 37-267; 1962 Code Section 37-267; 1978 Act No. 457 Section 1] Section 38-53-30 [1975 (59) 127; 1976 Act No. 732 Section 8] recodified as Section 38-25-540 by 1987 Act No. 155, Section 1; 1988 Act No. 314, Section 3; 1993 Act No. 181, Section 605.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-550. Prerequisites to pleading by unauthorized insurer; exemptions of eligible surplus lines insurer.

(a) Before an unauthorized insurer files or causes to be filed any pleading in any court action, suit, or proceeding or any notice, order, pleading, or process in an administrative proceeding before the director or his designee instituted against the person or insurer, the insurer shall either:
(1) Deposit with the clerk of court in which the action, suit, or proceeding is pending, or with the director or his designee in administrative proceedings before the director or his designee, cash or securities, or file with the clerk of court or the director or his designee a bond with good and sufficient sureties, to be approved by the clerk or director or his designee, in an amount to be fixed by the court or director or his designee sufficient to secure the payment of any final judgment which may be rendered in the action or administrative proceeding.
(2) Procure a certificate of authority to transact the business of insurance in this State. In considering the application of an insurer for a certificate of authority, for the purposes of this paragraph, the director or his designee need not assert the provisions of Section 38-7-90 against the insurer with respect to its application if he determines that the insurer would otherwise comply with the requirements for a certificate of authority.
(b) The director or his designee, in an administrative proceeding in which service is made as provided in Section 38-25-510, may in his discretion order a postponement as may be necessary to afford the defendant reasonable opportunity to comply with subsection (a) and to defend the action.
(c) This section does not apply to an eligible surplus lines insurer which maintains the deposit required by Section 38-9-80 or which has on file with the department a surety bond issued by an admitted insurer in an amount determined by the director or his designee to be sufficient to meet the security requirements of Section 38-9-80. Before an eligible surplus lines insurer files or causes to be filed any action, suit, or proceeding in this State to enforce a right, claim, or demand arising out of the transaction of insurance, it shall produce evidence that the security deposit is presently on file or that the required surety bond is then in force and effect.
HISTORY: Former 1976 Act Section 38-52-70 [1947 (45) 322; 1952 Code Section 37-268; 1962 Code Section 37-268; 1978 Act No. 457 Section 1] Section 38-53-60 [1975 (59) 127] recodified as Section 38-25-550 by 1987 Act No. 155, Section 1; 1988 Act No. 314, Section 4; 1993 Act No. 181, Section 606.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 25 - Unauthorized Transaction Of Insurance Business › Section 38-25-560. Filing of certain motions.

Nothing in this article may be construed to prevent an unauthorized insurer from filing a motion to quash a writ or to set aside service thereof made in the manner provided in Section 38-25-510, 38-25-520, or 38-25-530 on the ground that (a) no policy or contract of insurance has been issued or delivered to a citizen or resident of this State or to a corporation authorized to do business in this State, (b) the insurer has not been transacting business in this State, or (c) the person on whom service was made pursuant to Section 38-25-530 was not doing any of the acts listed in that section.
HISTORY: Former 1976 Code Section 38-52-80 [1947 (45) 322; 1952 Code Section 37-270; 1962 Code Section 37-270; 1978 Act No. 457 Section 1]; Section 38-53-60 [1975 (59) 127] recodified as Section 38-25-560 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-20. Definitions.

As used in this chapter:
(1) "Insurer" means a person who has done, purports to do, is going to do, or is licensed to do an insurance business and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by the department, or similar entity, of a state. For purposes of this chapter, other persons included under Section 38-27-40 are considered insurers.
(2) "Exceed its powers" means the following conditions:
(a) The insurer has refused to permit examination of its books, papers, accounts, records, or affairs by the director or his deputies, designees, employees, or commissioned examiners.
(b) A domestic insurer unlawfully has removed from this State books, papers, accounts, or records necessary for an examination of the insurer.
(c) The insurer has failed to comply promptly with the applicable financial reporting statutes or regulations and related departmental requests.
(d) The insurer has neglected or refused to observe an order of the director or his designee to make good, within the time prescribed by law, prohibited deficiency in its capital, capital stock, or surplus.
(e) The insurer is continuing to transact insurance or write business after its license has been revoked or suspended by the director or his designee.
(f) The insurer, by contract or otherwise, unlawfully, in violation of an order of the director or his designee, or without first having obtained written approval of the director or his designee if approval is required by law has:
(i) totally reinsured its entire outstanding business; or
(ii) merged or consolidated substantially its entire property or business with another insurer.
(g) The insurer engaged in a transaction in which it is not authorized to engage under the laws of this State.
(h) The insurer refused to comply with a lawful order of the director or his designee.
(3) "Consent" means agreement to administrative supervision by the insurer.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-30. Insurers to which chapter applies.

The provisions of this chapter apply to:
(1) domestic insurers;
(2) an insurer doing business in this State whose state of domicile has asked the director or his designee to apply the provisions of this chapter as regards the insurer.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-40. Conditions warranting supervision; notification.

(A) An insurer may be subject to administrative supervision by the department if upon examination or at another time it appears in the discretion of the director or his designee that one or more of the following circumstances exist:
(1) The insurer's condition renders the continuance of its business hazardous to the public or to its insureds.
(2) The insurer has exceeded its powers granted under its certificate of authority and applicable law.
(3) The insurer has failed to comply with a provision of the insurance laws of this State.
(4) The business of the insurer is being conducted fraudulently.
(5) The insurer gives its consent.
(B) If the director or his designee determines that one or more of the conditions set forth in subsection (A) exist, he shall:
(1) notify the insurer of his determination;
(2) furnish to the insurer a written list of the requirements to abate this determination;
(3) notify the insurer that it is under the supervision of the department and that the director or his designee is applying the provisions of the chapter. Action by the director or his designee is subject to review pursuant to related regulations and the Administrative Procedures Act.
(C) If placed under administrative supervision, the insurer has sixty days or another period of time designated by the director or his designee to comply with the requirements of the department subject to the provisions of this chapter.
(D) If it is determined after notice and hearing that the conditions giving rise to the supervision still exist at the end of the supervision period, the director or his designee may extend the period or may initiate proceedings under Chapter 27 of this title.
(E) If it is determined that none of the conditions giving rise to the supervision exist, the director or his designee shall release the insurer from supervision.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-50. Proceedings, hearings, notices, correspondence, reports and records.

(A) Proceedings, hearings, notices, correspondence, reports, records, and other information in the possession of the director, his designee, or the Department of Insurance relating to the supervision of an insurer are confidential except as provided by this section.
(B) Department personnel have access to the proceedings, hearings, notices, correspondence, reports, records, and other information permitted by the director or his designee.
(C) The director or his designee may open the proceedings or hearings or disclose notices, correspondence, reports, records, or other information to a department, agency, or instrumentality of this or another state or of the United States if the director or his designee determines that the disclosure is necessary or proper for the enforcement of the laws of this or another state or the United States.
(D) The director or his designee may open the proceedings or hearings or make public notices, correspondence, reports, records, or other information if the director or his designee determines that it is in the best interest of the public or in the best interest of the insurer, its insureds, its creditors, or the general public.
(E) This section does not apply to hearings, notices, correspondence, reports, records, or other information obtained after the appointment of a receiver for the insurer by a court of competent jurisdiction.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-60. Supervision by director or designee; acts prohibited or regulated as to supervised insurer

During the period of supervision, the director or his designated appointee shall serve as the administrative supervisor. The director or his designee may provide, after notice to the insurer, that the insurer may not do any of the following things during supervision without the prior approval of the director or his appointed supervisor:
(1) dispose of, convey, or encumber its assets or its business in force;
(2) withdraw its bank accounts;
(3) lend its funds;
(4) invest its funds;
(5) transfer its property;
(6) incur debt, obligation, or liability;
(7) merge or consolidate with another company;
(8) approve new premiums or renew policies;
(9) enter into a new reinsurance contract or treaty;
(10) terminate, surrender, forfeit, convert, or lapse an insurance policy, a certificate, or a contract, except for nonpayment of premiums due;
(11) release, pay, or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on an insurance policy, certificate, or contract;
(12) make a material change in management;
(13) increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends, or other preferential payments.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-70. Contest of supervisor's action; right of review.

During supervision the insurer may contest an action taken or proposed to be taken by the supervisor specifying the manner in which the action being complained of would not result in improving the condition of the insurer. Denial of the insurer's request upon reconsideration entitles the insurer to review under related regulation and the Administrative Procedures Act.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-80. Other proceedings not precluded.

Nothing in this chapter precludes the director or his designee from initiating judicial proceedings to place an insurer in conservation, rehabilitation, or liquidation or other delinquency proceedings, however designated under the laws of this State, regardless of whether the director or his designee previously has initiated administrative supervision proceedings under this chapter against the insurer.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-90. Meeting of director with supervisor.

The director or his designee may meet with a supervisor appointed under this chapter and with his attorney or other representative without the presence of another person at the time of or during a proceeding held under authority of this chapter to carry out the duties of the director or his designee or for the supervisor to carry out his duties under this chapter.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 26 - Administrative Supervision Of Insurers Act › Section 38-26-100. No liability of Department or director.

There is no liability on the part of, and no cause of action may arise against, the director, his designee, or the Department of Insurance or its employees or agents for action taken by them in the performance of their powers and duties under this chapter.
HISTORY: 1991 Act No. 13, Section 3; 1993 Act No. 181, Section 608.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-10. Short title.

This chapter may be cited as the "Insurers Rehabilitation and Liquidation Act".
HISTORY: Former 1976 Code Section 38-27-10 [1962 Code Section 37-1302; 1967 (55) 273] recodified as Section 38-1-20 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1810 [En, 1982 Act No. 384, Section 1] recodified as Section 38-27-10 by 1987 Act No. 155, Section 1; 1991 Act No. 13, Section 16; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-20. Construction.

This chapter does not limit the powers granted the director or his designee by other provisions of law and must be liberally construed to effect the purpose stated in Section 38-27-30.
HISTORY: Former 1976 Code Section 38-27-20 derived from [1962 Code Section 37-1301; 1967 (55) 273] recodified as Section 38-39-10 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1810 [En, 1982 Act No. 384, Section 1] recodified as Section 38-27-20 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-30. Purpose.

The purpose of this chapter is the protection of the interests of insureds, claimants, creditors, and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through:
(1) Early detection of any potentially dangerous condition in an insurer and prompt application of appropriate corrective measures.
(2) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry.
(3) Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation.
(4) Equitable apportionment of any unavoidable loss.
(5) Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of the insurer outside this State.
(6) Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business.
HISTORY: Former 1976 Code Section 38-27-30 [1962 Code Section 37-1303; 1967 (55) 273; 1971 (57) 709; 1985 Act No. 4, Section 1] recodified as Section 38-39-20 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1810 [1982 Act No. 384, Section 1] recodified as Section 38-27-30 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-40. Persons covered.

The proceedings authorized by this chapter may be applied to:
(1) insurers who are doing, or have done, an insurance business in this State and against whom claims arising from that business may exist now or in the future;
(2) insurers who purport to do an insurance business in this State;
(3) insurers who have insureds resident in this State;
(4) other persons organized or in the process of organizing with the intent to do an insurance business in this State;
(5) nonprofit service plans, fraternal benefit societies, and beneficial societies; however, this chapter does not apply to associations as defined in Section 38-38-730(A)(8);
(6) title insurance companies;
(7) surety companies subject to Chapter 15, Title 38;
(8) multiple employer self-insured health plans defined in Chapter 41 of Title 38;
(9) prepaid health care delivery plans.
HISTORY: Former 1976 Code Section 38-27-40 [1962 Code Section 37-1304; 1967 (55) 273; 1971 (57) 709; 1985 Act No. 4, Section 2] recodified as Section 38-39-30 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1820; 1982 Act No. 384, Section 2] recodified as Section 38-27-40 by 1987 Act No. 155, Section 1; 1991 Act No. 13, Section 17; 1993 Act No. 181, Section 609; 2008 Act No. 193, Section 1, eff April 2, 2008.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-70. Injunctions and orders.

(A)(1) A receiver appointed in a proceeding under this chapter may at any time apply for, and a court of general jurisdiction may grant, restraining orders, preliminary and permanent injunctions, and other orders considered necessary and proper to prevent:
(a) the transaction of further business;
(b) the transfer of property;
(c) interference with the receiver or with a proceeding under this chapter;
(d) waste of the insurer's assets;
(e) dissipation and transfer of bank accounts;
(f) the institution or further prosecution of any actions or proceedings;
(g) the obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets, or its policyholders;
(h) the levying of execution against the insurer, its assets, or its policyholders;
(i) the making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(j) the withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(k) any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders, or the administration of any proceeding under this chapter.
(2) The receiver may apply to any court outside of the State for the relief described in this subsection.
(B) After the seventh day following the commencement of a delinquency proceeding involving an insurer-member domiciled in this State, the insurer-member's FHLB must not be stayed or prohibited from exercising its rights regarding collateral pledged by that insurer-member. The provisions of this subsection apply notwithstanding another provision of this chapter.
HISTORY: Former 1976 Code Section 38-27-70 [1962 Code Section 37-1307; 1967 (55) 273] recodified as Section 38-39-60 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1850 [En, 1982 Act No. 384, Section 5] recodified as Section 38-27-70 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 609; 2016 Act No. 190 (S.693), Section 3, eff May 26, 2016.
Effect of Amendment
2016 Act No. 190, Section 3, redesignated former (a) as (A)(1); redesignated former (a)(1) through (a)(11) as (a) through (k); redesignated former (b) as (a)(2); added (B); and made other nonsubstantive changes.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-80. Cooperation of officers, owners, and employees.

(a) Any officer, manager, director, trustee, owner, employee, or agent of any insurer or any other person with authority over or in charge of any segment of the insurer's affairs must cooperate with the director or his designee in any proceeding under this chapter or any investigation preliminary to the proceeding. The term "person" as used in this section includes any person who exercises control directly or indirectly over activities of the insurer through any holding company or other affiliate of the insurer. "To cooperate" includes, but is not limited to:
(1) To reply promptly in writing to any inquiry from the director or his designee requesting a reply.
(2) To make available to the director or his designee any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in his possession, custody, or control.
(b) No person may obstruct or interfere with the director or his designee in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(c) This section may not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings, or other orders.
(d) Any person included within subsection (a) who fails to cooperate with the director or his designee, or any person who obstructs or interferes with the director or his designee in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any valid order the director or his designee issues under this chapter may:
(1) upon conviction, be sentenced to pay a fine not exceeding ten thousand dollars or to undergo imprisonment for a term of not more than one year, or both, or
(2) after a hearing, be subject to the imposition by the director or his designee of a civil penalty not to exceed ten thousand dollars and be subject further to the revocation or suspension of any insurance licenses issued by the director or his designee.
HISTORY: Former 1976 Code Section 38-27-80 [1962 Code Section 37-1308; 1967 (55) 273] recodified as Section 38-39-70 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1860 [1982 Act No. 384, Section 6] recodified as Section 38-27-80 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-90. Bonds.

In any proceeding under this chapter, the director and his designee(s) are responsible on their official bonds for the faithful performance of their duties. If the court considers it desirable for the protection of the assets, it may at any time require an additional bond from the director or his designee(s). These bonds must be paid for out of the assets of the insurer as a cost of administration.
HISTORY: Former 1976 Code Section 38-27-90 [1962 Code Section 37-1309; 1967 (55) 273; 1971 (57) 709, 937; 1980 Act No. 455; 1982 Act No. 378; 1983 Act No. 34; 1985 Act No. 37] recodified as Section 38-39-80 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1870 [1982 Act No. 384, Section 7] recodified as Section 38-27-90 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-100. Proceedings initiated prior to effective date of Insurers Supervision, Rehabilitation, and Liquidation Act.

An insurance proceeding under this chapter begun before the effective date of the Insurers Rehabilitation and Liquidation Act is deemed to have begun after that date for the purpose of conducting the proceeding. However, in the discretion of the director or his designee, the proceeding may be continued, in whole or in part, as it would have been if this act was not in effect.
HISTORY: 1991 Act No. 13, Section 4; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-110. Disabilities of delinquent insurer pending repayment to guaranty association.

Until payments of or on account of an insurer's contractual obligations by a guaranty association, including expenses and interest, are repaid to the guaranty association or a plan of repayment by the insurer is approved by the guaranty association, no insurer that is subject to a delinquency proceeding, whether formal or informal, administrative or judicial, may:
(1) be released from the proceeding unless it is converted into a judicial rehabilitation or liquidation proceeding;
(2) be permitted to solicit or accept new business or request or accept the restoration of a suspended or revoked license or certificate of authority;
(3) be returned to the control of its shareholders or private management; or
(4) have its assets returned to the control of its shareholders or private management.
HISTORY: 1991 Act No. 13, Section 4; 1993 Act No. 181, Section 609.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-220. Court's seizure order.

(a) The director or his designee may file in the circuit court a petition alleging, with respect to a domestic insurer:
(1) that grounds exist that would justify a court order for a formal delinquency proceeding against an insurer under this chapter;
(2) that the interests of policyholders, creditors, or the public will be endangered by delay; and
(3) the contents of an order considered necessary by the director or his designee.
(b) Upon a filing under subsection (a), the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the department to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer and of the premises occupied by it for transaction of its business and, until further order of the court, shall enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from transaction of its business except with the written consent of the director or his designee.
(c) The court shall specify in the order what its duration is, which must be the time the court considers necessary for the department to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may hold any hearings it considers desirable after notice it considers appropriate and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the department fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter ipso facto vacates the seizure order.
(d) Entry of a seizure order under this section does not constitute an anticipatory breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of the order for a hearing and review of the order. The court shall hold the hearing and review not more than fifteen days after the request. A hearing under this subsection may be held privately in chambers and it must be so held if the insurer proceeded against so requests.
(f) If, at any time after the issuance of a seizure order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given does not stay the effect of any order previously issued by the court.
HISTORY: Former 1976 Code Section 38-5-1920 [1982 Act No. 384, Section 10] recodified as Section 38-27-220 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 610.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-230. Confidentiality of hearings.

In proceedings and judicial reviews under Section 38-27-220, records of the insurer, other documents, insurance department files, and court records and papers, so far as they pertain to or are a part of the record of the proceedings, are and must remain confidential except as is necessary to obtain compliance, unless the circuit court, after hearing arguments from the parties in chambers, orders otherwise, or unless the insurer requests that the matter be made public. Until a court order, papers filed with the clerk of the circuit court must be held by him in a confidential file.
HISTORY: Former 1976 Code Section 38-5-1930 [1982 Act No. 384, Section 11] recodified as Section 38-27-230 by 1987 Act No. 155, Section 1; 1991 Act No. 13, Section 19; 1993 Act No. 181, Section 610.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-320. Rehabilitation orders.

(a) An order to rehabilitate the business of a domestic insurer or an alien insurer domiciled in this State shall appoint the director, and his successors in office, or his designee the rehabilitator and shall direct the rehabilitator to take possession immediately of the assets of the insurer and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of court or register of deeds of the county in which the principal business of the company is conducted or the county in which its principal office or place of business is located imparts the same notice which a deed, bill of sale, or other evidence of title duly filed or recorded with that office would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(b) Any order issued under this section shall require accounting to the court by the rehabilitator. Accountings must be at intervals as the court specifies in its order.
(c) Entry of an order of rehabilitation does not constitute an anticipatory breach of any contracts of the insurer.
HISTORY: Former 1976 Code Section 38-5-2020 [1982 Act No. 384, Section 13] recodified as Section 38-27-320 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 612; 1997 Act No. 34, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-340. Actions by and against rehabilitator.

(a) Any court in this State before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety days and any additional time necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take any action respecting the pending litigation he considers necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this State and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(b) No statute of limitations or defense of laches runs with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the order of rehabilitation is entered or the petition is denied.
(c) Any guaranty association or foreign guaranty association covering life or health insurance or annuities has standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if the association is or may become liable to act as a result of the rehabilitation.
HISTORY: Former 1976 Code Section 38-5-2040 [1982 Act No. 384, Section 15] recodified as Section 38-27-340 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 27 - Insurers' Rehabilitation And Liquidation Act › Section 38-27-350. Termination of rehabilitation.

(a) Whenever the director or his designee believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public or would be futile, the director or his designee may petition the circuit court for an order of liquidation. A petition under this subsection has the same effect as a petition under Section 38-27-360. The circuit court shall permit the directors of the insurer to take actions reasonably necessary to defend against the petition and may order payment from the estate of the insurer of costs and other expenses of defense as justice requires.
(b) The rehabilitator may at any time petition the circuit court for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of costs and other expenses of the petition as justice requires. If the circuit court finds that rehabilitation has been accomplished and that grounds for rehabilitation under Section 38-27-310 no longer exist, it shall order that the insurer be restored to possession of its property and the control of its business. The circuit court may also make that finding and issue that order at any time upon its own motion.
HISTORY: Former 1976 Code Section 38-5-2050 [1982 Act No. 384, Section 16] recodified as Section 38-27-350 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 614.