It is unlawful for an insurer to transact insurance business in this State without a certificate of authority from the director or his designee. Any of the acts listed in items (1) through (8) in this State effected by mail or otherwise by or on behalf of an unauthorized insurer is considered to constitute the transaction of an insurance business in this State. The venue of an act committed by mail is at the point where the matter transmitted by mail is delivered and takes effect. Unless otherwise indicated, the term "insurer" as used in this section includes all corporations, associations, partnerships, and individuals engaged as principals in the business of insurance and also includes interinsurance exchanges and mutual benefit societies.
(1) The making of or proposing to make, as an insurer, an insurance contract.
(2) The making of or proposing to make, as guarantor or surety, any contract of guaranty or suretyship as a vocation and not merely incidental to any other legitimate business or activity of the guarantor or surety.
(3) The taking or receiving of any application for insurance.
(4) The receiving or collection of any premium, commission, membership fees, assessments, dues, or other consideration for any insurance or any part thereof.
(5) The issuance or delivery of contracts of insurance to residents of this State or to persons authorized to do business in this State.
(6) Directly or indirectly acting as an agent for or otherwise representing or aiding on behalf of another, any person or insurer in the solicitation, negotiation, procurement, or effectuation of insurance or renewals thereof or in the dissemination of information as to coverage or rates, or forwarding of applications, or delivery of policies or contracts, or inspection of risks, a fixing of rates or investigation or adjustment of claims or losses or in the transaction of matters after effectuation of the contract and arising out of it, or in any other manner representing or assisting a person or insurer in the transaction of insurance with respect to subjects of insurance resident, located, or to be performed in this State. This section does not prohibit full-time salaried employees of a corporate insured from acting in the capacity of an insurance manager or buyer in placing insurance in behalf of their employer.
(7) The transaction of any kind of insurance business specifically recognized as transacting an insurance business within the meaning of the statutes relating to insurance.
(8) The transacting or proposing to transact any insurance business in substance equivalent to any of the foregoing in a manner designed to evade the insurance laws of this State.
HISTORY: Former 1976 Code Section 38-53-30 [1975 (59) 127; 1976 Act No. 732 Section 8] recodified as Section 38-25-110 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 600.
Structure South Carolina Code of Laws
Chapter 25 - Unauthorized Transaction Of Insurance Business
Section 38-25-10. Declaration.
Section 38-25-120. Acting as agent for unauthorized insurer prohibited.
Section 38-25-130. Aiding unauthorized insurer prohibited.
Section 38-25-140. Insurance on out-of-state property by insurer not locally authorized.
Section 38-25-150. Exemptions.
Section 38-25-310. Director authorized to seek restraining order.
Section 38-25-315. Emergency cease and desist orders; penalties.
Section 38-25-320. Penalty for unauthorized insurers.
Section 38-25-330. Penalty for violation of chapter.
Section 38-25-360. Personal liability on contracts of unauthorized insurers.
Section 38-25-510. Service of process on an unauthorized insurer in certain actions.
Section 38-25-520. Director agent for service of process on unauthorized insurers.
Section 38-25-530. Alternative method for service on unauthorized insurer.
Section 38-25-540. Actions by unauthorized insurers.