South Carolina Life and Accident and Health Insurance Guaranty Association

Contact Information

South Carolina Life and Accident and Health Insurance Guaranty Association
PO Box 8625
Columbia, SC 29202
(p) 803.603.6920 (f) 877.272.9022
Association Web site: http://www.sclifega.org
State Insurance Department: http://www.state.sc.us/doi/

Law Summaries Report

[ Current as of January 01, 2020 ] ]

Coverages

Covered Contracts

§38-29.40(1). Direct life insurance policies, accident and health insurance policies, annuity contracts, and contracts supplemental thereto issued by persons authorized to transact insurance in the state at any time.

Non-Covered Contracts

§38-29.40(2). (a) Portion of a policy or contract under which the risk is borne by the policyholder, (b) any policy or contract assumed by the impaired insurer under a contract of reinsurance, unless assumption certificates have been issued, (c) any policy or contract issued by an excluded organization, and (d) A policy or contract or part of it to the extent that the assessments required by Section 38-29-80 with respect to the policy or contract are preempted by federal or state law. Amended effective 6.19.2008.

Non-Resident Coverage

§38-29.70(6). Yes. The Association has no liability under the act for covered policies of a domestic insurer for residents of another state unless the other state has a guaranty association that provides protection to South Carolina residents that is substantially similar to that provided by the association for residents of other states.

Benefit Limits

§38-29.70(10). No liability with respect to any portion of a covered policy to the extent that the benefits to any one person exceed an aggregate of $300,000.

Triggers

Discretionary Triggers

§38-29.70(1). When a domestic insurer is impaired.

Mandatory Triggers

§38-29.70(3). When a domestic insurer is impaired under an order of liquidation or rehabilitation.

Foreign Triggers

§38-29.70(2). When a foreign or alien insurer is impaired under an order of liquidation, rehabilitation or conservation.

"Impaired Insurer"

§38-29.20(5). An insurer which becomes insolvent and is placed under a final order of liquidation, rehabilitation, or conservation by a court of competent jurisdiction, or an insurer considered by the director to be unable or potentially unable to fulfill its contractual obligations.

"Insolvent Insurer"

Not defined by Act.

"Member Insurer"

§ 38-29-20(6) "Member insurer" means any person authorized to transact in this State any kind of insurance to which this chapter applies under Section 38-29-40.

Account Structure

§38-29.50(1). Three accounts: accident and health insurance; life insurance; and annuity.

Assessments

Assessment Limits

§38-29.80(4). Four percent (4%) of premiums in state for policies covered by the account.

Assessment Classes

§38-29.80(2). Three classes of assessments: Class A for administrative costs, general expenses and examinations; Class B to carry out the powers and duties of the association with regard to an insolvent domestic insurer; and Class C to carry out the powers and duties of the association with regard to an insolvent foreign or alien insurer.

Interest Rate Adjustments

No provision.

Tax Offsets

§38-29.160. Yes. Member insurers may offset up to 20% of amount for 5 years, beginning with the year after a certificate of contribution is issued.

Definition of Premium

§ 38-29-20 (7) “Premiums” means direct gross insurance premiums and annuity considerations collected or written on covered policies, less return premiums and considerations thereon and dividends paid or credited to policyholders on the direct business. “Premiums” does not include premiums and considerations on contracts between insurers and reinsurers. As used in Section 38-29-80, “premiums” means those for the calendar year preceding the determination of impairment.

Advertising Prohibition

§ 38-29-130. “… unfair trade practice…” (5) It is a prohibited unfair trade practice for any person to make use in any manner of the protection afforded by this chapter in the sale of insurance.

(To select more than one category, hold down the Ctrl key)

These "Law Summaries" are provided to NOLHGA's members and other authorized NOLHGA Website users solely for general reference purposes. This compilation of statutory provisions, although believed to be correct as of the date indicated, is comprised of the most current statutory materials available on-line to NOLHGA and is not intended as legal advice; no liability is assumed in connection with its use. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage or any other related legal matter. For further information regarding the intended distribution of this information, or any other information appearing on the NOLHGA Website, please see the "Terms of Use" on NOLHGA's home page.
© 2001-2020 All Rights Reserved.
National Organization of Life & Health Insurance Guaranty Associations
13873 Park Center Road, Suite 505, Herndon, VA 20171
Phone Number: 703.481.5206