(A) When the director or his designee upon investigation finds that a foreign or alien society transacting or applying to transact business in this State (1) has exceeded its powers, (2) has failed to comply with any of the provisions of this chapter, (3) is not fulfilling its contracts in good faith, or (4) is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, the director or his designee shall notify the society of the deficiencies and state in writing the reasons for his dissatisfaction. The director or his designee shall issue a written notice at once to the society requiring that the deficiencies which exist are corrected. The director shall issue a written notice to the society the nature of the alleged violations committed not less than thirty days before revoking its authority to do business in this State. The director or his designee must specify in the notice the particulars of the alleged violation of the law or its charter or grounds for revocation and an opportunity must be offered to the society for a hearing. The director or his designee may, in lieu of license revocation or suspension provided in Section 38-2-10, impose a monetary penalty as provided in Section 38-2-10 for each violation or failure of compliance or refusal to submit or perform as prescribed therein. Series of acts by a society which merely implement a basic violation and are not separate and distinct violations of an independent nature are considered to be a part of the basic violation and only one penalty may be imposed thereon . If on the named date the society does not present good and sufficient reason why its authority to do business in this State should not be suspended, revoked, or refused, the director or his designee may suspend or refuse the license of the society to do business in this State until satisfactory evidence is furnished to the director or his designee that the suspension or refusal should be withdrawn, or the director or his designee may revoke the authority of the society to do business in this State.
(B) Nothing contained in this section may be construed as preventing any society from continuing in good faith all contracts made in this State during the time the society was legally authorized to transact business in this State.
HISTORY: 2000 Act No. 259, Section 1.
Structure South Carolina Code of Laws
Chapter 38 - Fraternal Benefit Societies
Section 38-38-10. Fraternal benefit society defined.
Section 38-38-20. Lodge system operating requirements; lodges for children.
Section 38-38-30. Representative form of government requirements.
Section 38-38-40. Definitions.
Section 38-38-50. Operation for benefit of members; power to adopt bylaws and rules.
Section 38-38-110. Membership provisions in bylaws or rules.
Section 38-38-140. Waiver of bylaw provisions.
Section 38-38-210. Requirements for formation of domestic society.
Section 38-38-220. Amendment of bylaws; notice to director.
Section 38-38-230. Not-for-profit institutions for benefit of members.
Section 38-38-240. Reinsurance.
Section 38-38-250. Consolidation or merger of domestic societies.
Section 38-38-260. Reorganization into mutual life insurer.
Section 38-38-310. Contractual benefits allowed; persons covered.
Section 38-38-320. Designation and change of beneficiary; payment of death benefits.
Section 38-38-330. Attachment, garnishment or seizure of benefits.
Section 38-38-350. Application of laws of State.
Section 38-38-410. Authorized investments.
Section 38-38-420. Assets to be held for use and benefit of society; special funds and accounts.
Section 38-38-430. Governance by chapter.
Section 38-38-440. Designation as charitable and benevolent institution.
Section 38-38-510. Standards of valuation for certificates; maintenance of excess reserves.
Section 38-38-520. Required statements and reports; penalties.
Section 38-38-530. Renewal of licenses; fees; license as prima facie evidence.
Section 38-38-540. Examination; notice of examination.
Section 38-38-550. Authorization to transact business in State; what to file with director.
Section 38-38-580. Injunctions.
Section 38-38-590. Licensing of agents.
Section 38-38-600. Applicability of general insurance provisions; membership requirements exception.
Section 38-38-710. Appointment of director as legal attorney for service of process.
Section 38-38-720. False statement or misrepresentation with intent to defraud; penalties.
Section 38-38-730. Societies and associations exempted from provisions of chapter.