(1) Unless a longer period has been allowed by the director or his designee, a member insurer, at its option, has the right to show a certificate of contribution as an asset in the form approved by the director or his designee pursuant to Section 38-29-80(8) at percentages of the original face amount approved by the director or his designee, for calendar years as follows:
(a) one hundred percent for the calendar year of issuance;
(b) eighty percent for the first calendar year after the year of issuance;
(c) sixty percent for the second calendar year after the year of issuance;
(d) forty percent for the third calendar year after the year of issuance;
(e) twenty percent for the fourth calendar year after the year of issuance; and
(f) zero percent for the fifth calendar year after the year of issuance and thereafter.
(2) The insurer may offset the amount written off by it in a calendar year under subsection (1) against its premium, or income, tax liability to this State accrued with respect to business transacted in that year.
(3) Any sums acquired by refund, pursuant to Section 38-29-80(6), from the association which have previously been written off by contributing insurers and offset against premium (or income) taxes as provided in subsection (2) of this section and are not then needed for purposes of this chapter must be paid by the association to the department and by him deposited with the State Treasurer for credit to the general fund of this State.
HISTORY: Former 1976 Code Section 38-29-160 derived from 1962 Code Section 37-1414; 1971 (57) 351 recodified as Section 38-21-160 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-17-160 [1962 Code Section 37-577; 1972 (57) 2776] recodified as Section 38-29-160 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 631; 2020 Act No. 121 (S.580), Section 1.A, eff March 24, 2020.
Editor's Note
2020 Act No. 121, Section 1.B, provides as follows:
"[1.]B. The amendments made by this act do not apply to a member insurer that has been placed under an order of rehabilitation or liquidation before July 1, 2020."
Effect of Amendment
2020 Act No. 121, Section 1.A, in (1), inserted the (a) to (f) designators, and made nonsubstantive changes.
Structure South Carolina Code of Laws
Chapter 29 - South Carolina Life And Accident And Health Insurance Guaranty Association
Section 38-29-10. Short title.
Section 38-29-20. Definitions.
Section 38-29-30. Declaration of purpose.
Section 38-29-40. Application of chapter; limitations.
Section 38-29-60. Board of directors.
Section 38-29-70. Powers and duties of Association.
Section 38-29-80. Assessments.
Section 38-29-90. Plan of operation.
Section 38-29-110. Detection and prevention of insurer impairments.
Section 38-29-120. Appointment of special deputy for director.
Section 38-29-140. Examination and regulation of Association; annual reports.
Section 38-29-150. Exemption of Association from fees and taxes.
Section 38-29-170. Immunity from liability for action taken under chapter.
Section 38-29-180. Stay of proceedings involving impaired insurer; setting aside default judgment.