South Carolina § 38-13-40 Examiners not to be appointed if conflict of interest exists; exceptions.

South Carolina Statutes

§ 38-13-40 — Examiners not to be appointed if conflict of interest exists; exceptions.

South Carolina·Title 38 INSURANCE·Ch. 13 EXAMINATIONS, INVESTIGATIONS, RECORDS, AND REPORTS

(A)No examiner may be appointed by the director if the examiner, directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in a person subject to examination under Section 38-13-10. This section does not preclude automatically an examiner from being:

(1)a policyholder or claimant under an insurance policy;

(2)a grantor of a mortgage or similar instrument on the examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business;

(3)an investment owner in shares of regulated diversified investment companies; or (4) a settlor or beneficiary or a 'blind trust' into which otherwise impermissible holdings have been placed.

(B)Notwithstanding the requirements of this section, the direct

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(A) No examiner may be appointed by the director if the examiner, directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in a person subject to examination under Section 38-13-10. This section does not preclude automatically an examiner from being: (1) a policyholder or claimant under an insurance policy; (2) a grantor of a mortgage or similar instrument on the examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business; (3) an investment owner in shares of regulated diversified investment companies; or (4) a settlor or beneficiary or a 'blind trust' into which otherwise impermissible holdings have been placed. (B) Notwithstanding the requirements of this section, the director may retain on an individual basis qualified actuaries, certified public accountants, or other similar individuals who are practicing their professions independently, even though the persons may be employed or retained similarly by persons subject to examination under Section 38-13-10.

South Carolina § 38-13-40 (Examiners not to be appointed if conflict of interest exists; exceptions.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

HISTORY: Former 1976 Code SECTION 38-13-40 [1947 (45) 322; 1952 Code SECTION 37-604; 1962 Code SECTION 37-604] recodified as SECTION 38-15-20 by 1987 Act No. 155, SECTION 1; Former 1976 Code SECTION 38-5-1270 [1947 (45) 322; 1952 Code SECTION 37-284; 1962 Code SECTION 37-284] recodified as SECTION 38-13-40 by 1987 Act No. 155, SECTION 1; 1992 Act No. 394, SECTION 1; 1993 Act No. 181, SECTION 537.