§ 38-87-50 — Participation by risk retention groups and purchasing groups in state insurance insolvency guaranty fund.

South Carolina § 38-87-50

• Jurisdiction: South Carolina
• Title 38: INSURANCE
• Ch. 87: REGULATION AND TAXATION OF RISK RETENTION GROUPS AND PURCHASING GROUPS

Text

(A) No risk retention group is required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this State; nor may any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by such risk retention group. (B) When a purchasing group obtains insurance covering its members' risks from an approved surplus lines insurer not admitted in this State or a risk retention group, no such risks, wherever resident or located, may be covered by any insurance guaranty fund or similar mechanism in this State. (C) When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this State may be covered by the South Carolina Property and Casualty Insurance Guaranty Association created under Chapter 31 of this title. (D) The director or his designee may require a risk retention group to participate in any mechanism established or authorized under the law of this State for the equitable apportionment among insurers of liability insurance losses and expenses incurred on policies written through such mechanism, and such risk retention group shall submit sufficient information to the department to enable him to apportion on a nondiscriminatory basis the risk retention group's proportionate share of such losses and expenses.

Legislative History

HISTORY: 1988 Act No. 355, SECTION 1; 1993 Act No. 181, SECTION 841.