reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1120. Provisions to ensure expenses are allocated and treated properly; penalty.

(A) No automobile insurer or representative of any automobile insurer may wilfully include in a private passenger automobile insurance rate filing any expense or loss which was generated in whole or part by either another line of insurance or general expenses or overhead applicable to all lines, unless the insurer has allocated properly the expense or loss among all its lines of insurance. The insurer's compliance with generally accepted accounting and actuarial principles constitutes a complete defense to an action brought under this section. No insurer may adopt a different method or usage of allocating or treating expenses or losses for purposes of rate filings in South Carolina from that which it uses in other states for similar lines of insurance, unless different treatment is required by statute or regulation.
(B) The director or his designee, at least once every four years, shall make or cause to be made, for each insurer which writes more than one percent of the private passenger market in South Carolina, an examination of each insurer's books, records, and accounts to ensure that the expenses are being allocated or treated properly. In lieu of an independent examination, the director or his designee may request a sworn affidavit from the insurer's controller, accountant, or actuary that the companies' expenses are being allocated and treated properly and that private passenger automobile insureds are not being charged an inequitable or unfair share of the insurer's expenses, acquisition costs, overhead, or other expenses. The director or his designee shall survey for the companies at appropriate intervals a comparison of the acquisition cost of private passenger business in South Carolina versus other similar states in which the companies do business.
(C) An insurer violating the provisions of this section is subject to a civil penalty of not less than twenty-five thousand dollars. A person who violates the provisions of this section is guilty of a felony and, upon conviction, must be imprisoned for not more than ten years or fined not less than ten thousand dollars, or both.
HISTORY: 1989 Act No. 148, Section 32; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1210. Members of rating organization not required to file individually; rates for members in first year; collection, compilation and dissemination of premium data.

(A)(1) This item applies to property and casualty insurance but does not apply to workers' compensation insurance. An insurer may satisfy its obligation to make required filings by becoming a member of, or a subscriber to, a licensed rating organization which makes filings and by authorizing the director or his designee to accept the filings on its behalf. However, notwithstanding another provision of this article, a member or subscriber, within twelve months after its membership or subscribership, may not file to adopt a rate approved for use for the rating organization if the rate is more than the rate in use by the member or subscriber before its membership or subscribership in the rating organization. Further, notwithstanding the provisions of Sections 38-73-1300 and 38-73-1310, a member or subscriber, within twelve months after its membership or subscribership, may not be granted an upward deviation from its rate in use when becoming a member or subscriber. However, if a rate increase for the rating organization is approved within twelve months after an insurer becomes a member or subscriber, the member or subscriber may increase its rates by the same percentage of increase granted the rating organization. Nothing contained in this chapter may be construed to require an insurer to become a member of or a subscriber to a rating organization.
(2) This item applies to workers' compensation insurance. An insurer may satisfy its obligation to make required filings by becoming a member of, or a subscriber to, a licensed rating organization that makes filings and by authorizing the director or his designee to accept the filings on its behalf. However, a licensed rating organization may not satisfy the insurer's obligation to make filings required pursuant to Section 38-73-525.
(B) In addition to other activities not prohibited by this chapter, a rating organization may collect, compile, and disseminate to insurers compilations of past and current premiums of insurers.
HISTORY: Former 1976 Code Section 38-43-910 [1947 (45) 322; 1952 Code Section 37-721; 1962 Code Section 37-721; 1977 Act No. 162] recodified as Section 38-73-1210 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783; 1998 Act No. 291, Section 2; 2016 Act No. 213 (S.1064), Section 2, eff June 3, 2016.
Effect of Amendment
2016 Act No. 213, Section 2, rewrote (A), establishing that an insurer writing workers' compensation insurance may satisfy its filing obligation by becoming a member of or subscriber to a licensed rating organization.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1220. Application for license as rating organization.

A corporation, an unincorporated association, a partnership, or an individual, whether located within or outside this State, may make application to the director or his designee for a license as a rating organization for the kinds of insurance or subdivisions thereof or, in the case of insurance to which Article 3 of this chapter is applicable, classes of risk or parts or combinations thereof as are specified in its application and shall file therewith:
(1) a copy of its constitution, its articles of agreement or association or certificate of incorporation, and its bylaws, rules, and regulations governing the conduct of its business;
(2) a list of its members and subscribers;
(3) the name and address of a resident of this State upon whom notices or orders of the director or his designee or process affecting the rating organization may be served;
(4) a statement of its qualification as a rating organization.
HISTORY: Former 1976 Code Section 38-43-920 [1947 (45) 322; 1952 Code Section 37-722; 1962 Code Section 37-722] recodified as Section 38-73-1220 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1230. Issuance or denial of license; duration; fee.

If the director or his designee finds that the applicant is competent, trustworthy, and otherwise qualified to act as a rating organization and that its constitution, articles of agreement or association or certificate of incorporation, and its bylaws, rules, and regulations governing the conduct of its business conform to the requirements of law, he shall issue a license specifying the kinds of insurance or subdivision or class of risk or part or combination thereof for which the applicant is authorized to act as a rating organization. Every application must be granted or denied in whole or in part by the director or his designee within sixty days of the date of its filing with him. Licenses issued pursuant to this section remain in effect for an indefinite term unless sooner suspended or revoked by the director or his designee. The fee for the license is two hundred dollars owed and payable annually by March first.
HISTORY: Former 1976 Code Section 38-43-930 [1947 (45) 322; 1948 (45) 1734; 1952 Code Section 37-723; 1962 Code Section 37-723; 1980 Act No. 306, Section 2] recodified as Section 38-73-1230 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1240. Suspension or revocation of license.

Licenses issued pursuant to Section 38-73-1230 may be suspended or revoked by the director or his designee, after hearing upon notice, in the event the rating organization ceases to meet the requirements of this article.
HISTORY: Former 1976 Code Section 38-43-940 [1947 (45) 322; 1952 Code Section 37-724; 1962 Code Section 37-724] recodified as Section 38-73-1240 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1250. Changes within rating organization.

Every rating organization shall notify the director or his designee promptly of every change in:
(1) its constitution, its articles of agreement or association or certificate of incorporation, or its bylaws, rules, and regulations governing the conduct of its business;
(2) its lists of members and subscribers;
(3) the name and address of the resident of this State designated by it upon whom notices or orders of the director or his designee or process affecting the rating organization may be served.
HISTORY: Former 1976 Code Section 38-43-950 [1947 (45) 322; 1952 Code Section 37-725; 1962 Code Section 37-725] recodified as Section 38-73-1250 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1260. Subscribers to rating organizations.

Subject to rules and regulations which have been approved by the department as reasonable, each rating organization shall permit any insurer, not a member, to be a subscriber to its rating services for any kind of insurance, subdivision, or class of risk or part or combination thereof for which it is authorized to act as a rating organization. If the rating organization refuses to admit an insurer as a subscriber or fails to grant or reject an insurer's application for subscribership within thirty days after it was made, the insurer may request a review by the director or his designee. Upon review the failure to act must be treated as a rejection of the application. If the director or his designee finds at a hearing, held upon at least thirty days' written notice to the rating organization, that the insurer has been refused admittance to the rating organization as a subscriber without justification, he shall order the rating organization to admit the insurer as a subscriber. If he finds that the action of the rating organization was justified, the director or his designee shall make an order affirming its action.
Each rating organization shall furnish its rating services without discrimination to its members and subscribers.
HISTORY: Former 1976 Code Section 38-43-960 [1947 (45) 322; 1952 Code Section 37-726; 1962 Code Section 37-726] recodified as Section 38-73-1260 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1270. Changes in rules and regulations; review of reasonableness.

Notice of proposed changes in the rules and regulations referred to in Section 38-73-1260 must be given to subscribers.
The reasonableness of any rule or regulation in its application to subscribers must, at the request of any subscriber or any insurer, be reviewed by the director or his designee at a hearing held upon at least thirty days' written notice to the rating organization and to the subscriber or insurer. If the director or his designee finds that the rule or regulation is unreasonable in its application to subscribers, he shall order that the rule or regulation is not applicable to subscribers.
HISTORY: Former 1976 Code Section 38-43-970 [1947 (45) 322; 1952 Code Section 37-727; 1962 Code Section 37-727] recodified as Section 38-73-1270 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1280. Rules may not regulate certain payments.

No rating organization may adopt any rule the effect of which would be to prohibit or regulate the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers.
HISTORY: Former 1976 Code Section 38-43-980 [1947 (45) 322; 1952 Code Section 37-728; 1962 Code Section 37-728] recodified as Section 38-73-1280 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1290. Filings must be adhered to.

Every member of or subscriber to a rating organization shall adhere to the filings made on its behalf by the organization, except as provided in Sections 38-73-1300 and 38-73-1310.
HISTORY: Former 1976 Code Section 38-43-990 [1947 (45) 322; 1952 Code Section 37-729; 1962 Code Section 37-729] recodified as Section 38-73-1290 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1300. Application for modification by fire or inland marine insurer.

A member of or subscriber to a rating organization to whom the provisions of Article 3 of this chapter are applicable may make written application to the director or his designee for permission to file a modification from the class loss costs, schedules, rating plans, or rules respecting any kind of insurance or class of risk within a kind of insurance or any combination of them. The application must specify the basis for the modification. A copy of the application must be sent simultaneously to the rating organization.
HISTORY: Former 1976 Code Section 38-43-1000 [1947 (45) 322; 1952 Code Section 37-730; 1962 Code Section 37-730] recodified as Section 38-73-1300 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783; 2001 Act No. 82, Section 28, eff July 20, 2001.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1310. Application for modification by casualty or automobile insurer.

A member of or subscriber to a rating organization to whom the provisions of Article 5 of this chapter are applicable may make written application to the department for permission to file a uniform percentage decrease or increase to be applied to the premiums produced by the rating system filed for a kind of insurance or for a class of insurance which is found by the director or his designee to be a proper rating unit for the application of such uniform percentage decrease or increase or for a subdivision of a kind of insurance. The application must specify the basis for the modification and must be accompanied by the data upon which the applicant relies. A copy of the application and data must be sent simultaneously to the rating organization.
HISTORY: Former 1976 Code Section 38-43-1010 [1947 (45) 322; 1952 Code Section 37-731; 1962 Code Section 37-731] recodified as Section 38-73-1310 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783; 2001 Act No. 82, Section 29, eff July 20, 2001.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1330. Examination of policies and other papers; correction of errors.

Any rating organization acting for insurers to whom the provisions of Article 3 of this chapter are applicable may provide with respect to such insurers for the examination of policies, daily reports, binders, renewal certificates, endorsements, or other evidences of insurance, or the cancellation thereof, and may make reasonable rules governing their submission. The rules shall contain a provision that, in the event an insurer does not within sixty days furnish satisfactory evidence to the rating organization of the correction of any error or omission previously called to its attention by the rating organization, the rating organization shall notify the director or his designee thereof. All information so submitted for examination is confidential.
HISTORY: Former 1976 Code Section 38-43-1030 [1947 (45) 322; 1952 Code Section 37-733; 1962 Code Section 37-733] recodified as Section 38-73-1330 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1340. Appeal by minority.

Any member of or subscriber to a rating organization may appeal to the Administrative Law Court from the action or decision of the rating organization in approving or rejecting any proposed change in or addition to the filings of the rating organization. The Administrative Law Court shall, after a hearing held before it upon not less than thirty days' written notice to the appellant and to the rating organization, issue an order approving the action or decision of the rating organization or directing it to give further consideration to the proposal, or, if the appeal is from the action or decision of the rating organization in rejecting a proposed addition to its filings, Administrative Law Court may, in the event it finds that the action or decision was unreasonable, issue an order directing the rating organization to make an addition to its filings on behalf of its members and subscribers in a manner consistent with its findings, within a reasonable time after the issuance of the order.
If the appeal in the case of an insurer to whom the provisions of Article 5 of this chapter are applicable is based upon the failure of the rating organization to make a filing on behalf of the member or subscriber which is based on a system of expense provisions which differs, in accordance with the right granted in item (2) of Section 38-73-430, from the system of expense provisions included in a filing made by the rating organization, the Administrative Law Court shall, if it grants the appeal, order the rating organization to make the requested filing for use by the appellant. In deciding the appeal the Administrative Law Court shall apply the standards set forth in Section 38-73-430.
The actual cost to the Administrative Law Court, and the Department of Insurance provided it participates in the hearing, in connection with the appeal may be charged by the Administrative Law Court to the parties making the appeal in any proportion he considers proper and must be immediately paid by the respective parties.
HISTORY: Former 1976 Code Section 38-43-1040 [1947 (45) 322; 1952 Code Section 37-734; 1960 (51) 1646; 1962 Code Section 37-734] recodified as Section 38-73-1340 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1350. Cooperation.

Notwithstanding the provisions of Sections 38-73-1370, 38-73-1380, 38-73-1400, 38-73-1410, 38-73-1420, and 38-73-1430, after public hearing the director or his designee may prohibit cooperation among or within property/casualty rating or advisory organizations by insurers or among or within these rating or advisory organizations and insurers in rate making or in other matters within the scope of this chapter, except to the extent that these organizations may compile and disseminate only historic loss data with no mathematical trending or analytical methodologies, upon a finding by the director or his designee that the anti-competitive effects of this cooperation outweigh practical constraints of prohibitions. All property/casualty filings are subject to prior approval by the director or his designee. The provisions of Title 1, Chapter 23 (Administrative Procedures Act) apply to all property/casualty rate filings.
HISTORY: Former 1976 Code Section 38-43-1050 [1947 (45) 322; 1952 Code Section 37-735; 1962 Code Section 37-735] recodified as Section 38-73-1350 by 1987 Act No. 155, Section 1; 1989 Act No. 148, Section 41(A); 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1360. Actuarial, technical, and other services.

Any rating organization serving insurers to which the provisions of Article 3 of this chapter apply may subscribe for or purchase actuarial, technical, or other services and these services must be available to all insurers who are members and subscribers of the organization without discrimination.
HISTORY: Former 1976 Code Section 38-43-1060 [1947 (45) 322; 1952 Code Section 37-736; 1962 Code Section 37-736] recodified as Section 38-73-1360 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1370. Rating organizations not permitted to file certain rate increases; filing pure loss component of rate or premium; use of approved pure loss component by members or subscribers.

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.
HISTORY: 1989 Act No. 148, Section 41(B); 1993 Act No. 181, Section 783; 2000 Act No. 312, Section 18.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1380. Approval of final rate or premium charge required; computation of final rate or premium charge; approval of expense component filed by each member or subscriber independently.

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.
HISTORY: 1989 Act No. 148, Section 41(B); 1991 Act No. 129, Section 1; 1993 Act No. 181, Section 783; 2000 Act No. 312, Section 19.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1400. Definition of pure loss component, expense component, and final rate or premium charge.

(1) After June 30, 1989, the "pure loss component" of the final rate or premium charge for private passenger automobile insurance is that portion of the final rate or premium charge applicable to calendar/accident year incurred losses (the sum of paid losses plus loss reserves including incurred but not reported loss reserves) and loss adjustment expense (those expenses directly related to the payment of claims) in this State, trended to include both the past and prospective loss experience. If the insurer writes one percent or more of the written premium for automobile insurance during the previous calendar year, that insurer must file its own trending methodology as independently derived.
(2) The "expense component" of the final rate or premium charge for private passenger automobile insurance is that portion of the final rate or premium charge applicable to production costs (including commissions and other acquisition expenses), underwriting costs, administrative costs (including the actual costs of taxes, licenses and fees), and profit margin in this State.
(3) The "final rate or premium charge" is the approved pure loss component added to the approved expense component. In the determination of whether the pure loss component should be approved and in the determination of whether the expense component should be approved, neither may be inadequate, excessive, nor unfairly discriminatory and the director or his designee shall take into account investment income from unearned premium and loss reserves, surplus and realized capital gains.
HISTORY: 1989 Act No. 148, Section 41(B); 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1410. Refiling of final rates or premium charges previously approved not required.

After June 30, 1989, upon the effective date of this section, nothing herein should be construed to require a rating organization or its members or subscribers to immediately refile final rates or premium charges previously approved by the director or his designee for private passenger automobile insurance coverages. Members or subscribers of a rating organization are authorized to continue to use automobile insurance rates or premium charges, approved before the effective date of this section, or decreases from those rates or premium charges filed by the rating organization and, subsequently, approved after the effective date of this section.
HISTORY: 1989 Act No. 148, Section 41(B); 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1420. Board of Governors of Reinsurance Facility to file expense component; use of component after approval.

After June 30, 1989, the Board of Governors of the South Carolina Reinsurance Facility shall file an expense component for private passenger automobile insurance rate or premium charges after the rating organization with the largest number of members or subscribers has filed a pure loss component for private passenger automobile insurance with the director or his designee. Upon the approval of such component by the director or his designee, those automobile insurers designated pursuant to Section 38-77-590(A), for risks written by them through producers designated pursuant to that same section, shall utilize these final rate or premium charges. Automobile insurers designated pursuant to Section 38-77-590(A) are not required to use those same final rates or premium charges for risks written through their agents not appointed pursuant to Section 38-77-590.
HISTORY: 1989 Act No. 148, Section 41(B); 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1425. Final rate or premium charge for private passenger automobile insurance risk ceded to reinsurance facility.

The final rate or premium charge for a private passenger automobile insurance risk ceded to the facility which does not qualify for the safe driver discount in Section 38-73-760(e) is the final rate or premium charge required by Section 38-73-1420 or the final rate or premium charge approved for use by the insurer, whichever is greater.
HISTORY: 1991 Act No. 113, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1430. Authority to extend provisions of Sections 38-73-1370, 38-73-1380, 38-73-1400, 38-73-1410 to other lines of insurance.

After June 30, 1989, the director or his designee may extend the provisions of Sections 38-73-1370, 38-73-1380, 38-73-1400, and 38-73-1410 to other lines of property and casualty insurance, by order, after public hearing, when the determination is made that to do so is in the public interest.
HISTORY: 1989 Act No. 148, Section 41(B); 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1510. "Advisory organization" defined.

Every group, association, or other organization of insurers, whether located within or outside this State, which assists insurers which make their own filings or rating organizations in rate making by the collection and furnishing of loss or expense statistics or by the submission of recommendations, but which does not make filings under this chapter, is known as an "advisory organization".
HISTORY: Former 1976 Code Section 38-43-1210 [1947 (45) 322; 1952 Code Section 37-741; 1962 Code Section 37-741] recodified as Section 38-73-1510 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1520. Filing certain data and agreement authorizing examination.

Every advisory organization shall file with the department:
(1) a copy of its constitution, its articles of agreement or association or certificate of incorporation, and its bylaws, rules, and regulations governing its activities;
(2) a list of its members;
(3) the name and address of a resident of this State upon whom notices or orders of the director or his designee or process issued at his discretion may be served;
(4) an agreement that the director or his designee may examine the advisory organization in accordance with the provisions of Section 38-73-90.
HISTORY: Former 1976 Code Section 38-43-1220 [1947 (45) 322; 1952 Code Section 37-742; 1962 Code Section 37-742] recodified as Section 38-73-1520 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1530. Requiring discontinuance of certain acts or practices.

If, after a hearing, the director or his designee finds that the furnishing of information or assistance involves any act or practice which is unfair, unreasonable, or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects the act or practice is unfair, unreasonable, or otherwise inconsistent with the provisions of this chapter and requiring the discontinuance of the act or practice.
HISTORY: Former 1976 Code Section 38-43-1230 [1947 (45) 322; 1952 Code Section 37-743; 1962 Code Section 37-743] recodified as Section 38-73-1530 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1540. Rate filings may not be supported by data from unauthorized advisory organization.

No insurer which makes its own filings nor any rating organization may support its filings by statistics or adopt rate-making recommendations furnished to it by an advisory organization which has not complied with this article or with an order of the director or his designee involving statistics or recommendations issued under Section 38-73-1530. If the director or his designee finds an insurer or rating organization to be in violation of this section, he may issue an order requiring the discontinuance of the violation.
HISTORY: Former 1976 Code Section 38-43-1240 [1947 (45) 322; 1952 Code Section 37-744; 1962 Code Section 37-744] recodified as Section 38-73-1540 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1710. Regulation of joint underwriting and joint reinsurance.

Every group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance is subject to regulation with respect thereto as herein provided, subject, however, with respect to joint underwriting, to all other provisions of this chapter, and, with respect to joint reinsurance, to Sections 38-73-90 to 38-73-130.
HISTORY: Former 1976 Code Section 38-43-1310 [1947 (45) 322; 1952 Code Section 37-751; 1962 Code Section 37-751] recodified as Section 38-73-1710 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations › Section 38-73-1720. Discontinuance of unfair activity or practice may be ordered.

If, after a hearing, the director or his designee finds that any activity or practice of any such group, association, or other organization is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects the activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter and requiring the discontinuance of the activity or practice.
HISTORY: Former 1976 Code Section 38-43-1320 [1947 (45) 322; 1952 Code Section 37-752; 1962 Code Section 37-752] recodified as Section 38-73-1720 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 783.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 74 - Health Insurance Pool › Section 38-74-40. Administration of pool.

(A) The board shall select an insurer through a competitive bidding process to administer the pool. The board shall evaluate bids submitted based on criteria established by the board which includes:
(1) the insurer's proven ability to handle accident and health insurance;
(2) the efficiency of the insurer's claim-paying procedures;
(3) an estimate of total charges for administering the plan;
(4) the insurer's ability to administer the pool in a cost-efficient manner;
(B)(1) The administering insurer shall serve for a period of three years subject to removal for cause.
(2) At least one year prior to the expiration on each three-year period of service by an administering insurer, the board shall invite all insurers, including the current administering insurer, to submit bids to serve as the administering insurer for the succeeding three-year period. Selection of the administering insurer for the succeeding period must be made at least six months prior to the end of the current three-year period.
(C)(1) The administering insurer shall perform all eligibility and administrative claims payment functions relating to the pool.
(2) The administering insurer shall establish a premium billing procedure for collection of premium from insured persons. Billings must be made on a periodic basis as determined by the board.
(3) The administering insurer shall perform all necessary functions to assure timely payment of benefits to a covered person under the pool including:
(a) making available information relating to the proper manner of submitting a claim for benefits to the pool and distributing forms upon which submission must be made;
(b) evaluating the eligibility of each claim for payment by the pool.
(4) The administering insurer shall submit regular reports to the board regarding the operation of the pool. The frequency, content, and form of the report are determined by the board.
(5) Following the close of each fiscal year, the administering insurer shall determine the net loss for the year and report this information to the board and the department on a form prescribed by the commissioner.
(6) The administering insurer is paid as provided in the plan of operation for its expenses incurred in the performance of its services.
HISTORY: 1989 Act No. 127, Section 4.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 74 - Health Insurance Pool › Section 38-74-50. Insurer's assessment.

(A) Each insurer's assessment is determined by multiplying the net loss of pool operation by a fraction, the numerator of which equals that insurer's total premium and subscriber contract charges for health insurance written in the State during the preceding calendar year, and the denominator of which equals the total of all health premiums and subscriber contract charges written by all insurers in the State during the preceding calendar year. Health insurance premiums that are less than an amount determined by the board to justify the cost of collection are not considered for purposes of determining assessments.
(B) If assessments exceed the net loss of pool operation, the excess must be held at interest and used by the board to offset future losses or to reduce pool premiums. As used in this subsection, "future losses" includes reserves for incurred but not reported claims.
(C)(1) Each member's proportion of participation in the pool is determined annually by the board based on annual statements and other reports considered necessary by the board and filed by the member with it.
(2) Any deficit incurred by the pool may be recouped by assessments apportioned under subsection (A) of this section by the board among members.
(D) The board may abate or defer, in whole or in part, the assessment of a member if, in the opinion of the board, payment of the assessment would endanger the ability of the member to fulfill its contractual obligations. In the event an assessment against a member is abated or deferred in whole or in part, the amount by which the assessment is abated or deferred may be assessed against the other members in a manner consistent with the basis for assessments set forth in subsection (A) of this section. The member receiving abatement or deferment shall remain liable to the pool for the deficiency for four years.
HISTORY: 1989 Act No. 127, Section 5.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 74 - Health Insurance Pool › Section 38-74-70. Immunity.

(A) Neither the participation in the pool as members, the establishment of rates, forms, or procedures nor any other joint or collective action required by this chapter may be the basis of any legal action, criminal or civil liability, or penalty against the pool or any of its members.
(B) There is no liability on the part of, and no cause of action of any nature may arise against, a member insurer or its agents or employees, the pool's agents, employees, or board of directors, or the director, his designees or his representatives, for any act or omission in the performance of their powers and duties under this chapter. This section does not relieve the pool of any of its liability.
HISTORY: 1989 Act No. 127, Section 7; 1993 Act No. 181, Section 791.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 74 - Health Insurance Pool › Section 38-74-80. Tax exemption and credits.

The pool established pursuant to this chapter is exempt from all taxes and assessments. Any member subject to tax liability imposed by any state statute may take credit for any assessment paid to the pool in the previous year against its premium or income tax payable. The tax credit is in addition to any other tax credits to which the member may be entitled pursuant to South Carolina law, but the credit may not reduce the member's tax liability below zero. Any unused credit may be carried forward three years. The credits are subject to the provisions of Section 38-7-120(c). The members are responsible for any loss of the operation of the pool, including any loss in excess of assessments paid to the pool. This State is not responsible for any loss of the operation of the pool, and no state funds may be used to defray any loss. If the total assessment for all members of the pool exceeds ten million dollars in any one year, the credit for any member shall be limited to the amount determined by multiplying the member's assessment by a fraction, the numerator of which equals ten million dollars and the denominator of which equals the total assessment in the year for all members of the pool.
HISTORY: 1989 Act No. 127, Section 8; 2002 Act No. 240, Section 4, eff January 1, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 75 - Property, Casualty, And Title Insurance Generally › Section 38-75-10. Fire insurance policy shall indicate allocation of premium and location of property.

Every fire insurer doing business in this State shall cause to be plainly written or printed on the face of each fire insurance policy written and issued by it the name of the county entitled to the allocation of the premiums on the business and the location of the property so insured. This information must be incorporated in all daily reports or other evidence furnished by the agent of coverage assumed.
HISTORY: Former 1976 Code Section 38-43-160 [1948 (45) 1961; 1952 Code Section 37-665; 1962 Code Section 37-665; 1978 Act No. 585 Section 1] recodified as Section 38-75-10 by 1987 Act No. 155, Section 1; 1988 Act No. 329.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 75 - Property, Casualty, And Title Insurance Generally › Section 38-75-20. Maximum amounts of fire insurance policies; stated values; contributions by coinsurers.

No insurer doing business in this State may issue a fire insurance policy for more than the value stated in the policy or the value of the property to be insured. The amount of insurance must be fixed by the insurer and insured at or before the time of issuing the policy. In case of total loss by fire the insured is entitled to recover the full amount of insurance. In case of a partial loss by fire the insured is entitled to recover the actual amount of the loss but in no event more than the amount of the insurance stated in the contract. If two or more policies are written upon the same property, they are considered to be contributive insurance, and, if the aggregate sum of all such insurance exceeds the insurable value of the property, as agreed by the insurer and the insured, each insurer, in the event of a total or partial loss, is liable for its pro rata share of insurance. This section does not apply to insurance on chattels or personal property.
HISTORY: Former 1976 Code Section 38-9-190 [1947 (45) 322; 1948 (45) 1734; 1952 Code Section 37-154; 1962 Code Section 37-154] recodified as Section 38-75-20 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 75 - Property, Casualty, And Title Insurance Generally › Section 38-75-30. Maximum amounts of fire insurance policies; exceptions for manufacturing property and replacement riders.

Notwithstanding Section 38-75-20, insurers may, at the request of owners of property used principally for manufacturing purposes, including places of residence for occupancy by employees, issue policies wholly exempt from Section 38-75-20. Riders or endorsements may, in consideration of an adequate premium or premium deposit, be attached to policies insuring property, indemnifying the insured for the difference between the actual value stated in the policy and the amount actually expended to repair, rebuild, or replace with new materials of like size, kind, and quality the insured property that has been damaged or destroyed by fire or other perils insured against.
HISTORY: Former 1976 Code Section 38-9-200 [1947 (45) 322; 1948 (45) 1734; 1952 Code Section 37-155; 1962 Code Section 37-155] recodified as Section 38-75-30 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 75 - Property, Casualty, And Title Insurance Generally › Section 38-75-40. Validity of additional or coinsurance clause.

No insurer or agency licensed to do business in this State may issue any policy or contract of insurance covering property in this State which contains any clause or provision requiring the insured to take or maintain a larger amount of insurance than that expressed in the policy or in any way provides that the insured is liable as a coinsurer with the insurer issuing the policy for any part of the loss or damage to the property described in the policy. Any such clause or provision is void. However, such a clause or provision may be used if there is stamped on the filing face of the policy or printed in bold type at the top of the clause the words "coinsurance clause". If there is a difference in the rate for insurance with and without the coinsurance clause, the rates for each must be furnished the insured upon request.
HISTORY: Former 1976 Code Section 38-9-220 [1947 (45) 322; 1952 Code Section 37-157; 1962 Code Section 37-157] recodified as Section 38-75-40 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 75 - Property, Casualty, And Title Insurance Generally › Section 38-75-50. Clause limiting or invalidating policies if property is encumbered is void.

Any clause in any policy of insurance purporting or undertaking to limit or invalidate the force of the policy in case of encumbrance by real estate mortgage of the property insured by the policy is void.
HISTORY: Former 1976 Code Section 38-9-210 [1947 (45) 322; 1952 Code Section 37-156; 1962 Code Section 37-156] recodified as Section 38-75-50 by 1987 Act No. 155, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 75 - Property, Casualty, And Title Insurance Generally › Section 38-75-60. Cause of action by insurer against tenant.

Notwithstanding any other provision of law, no insurer has a cause of action against a tenant who causes damage to real or personal property leased by the landlord to the tenant when the insurer is liable to the landlord for the damages under an insurance contract between the landlord and the insurer, unless the damage is caused by the tenant intentionally or in reckless disregard of the rights of others.
HISTORY: Former 1976 Code Section 38-9-370 [En, 1977 Act No. 151 Section 2] recodified as Section 38-75-60 by 1987 Act No. 155, Section 1.