South Carolina Code of Laws
Chapter 79 - Medical Malpractice Insurance
Section 38-79-140. Plan of operation.

(1) The association must operate pursuant to a plan of operation which shall provide for economic, fair, and nondiscriminatory administration and for the prompt and efficient provision of medical malpractice insurance and may contain other provisions including, but not limited to, preliminary assessment of all members for initial expenses necessary to commence operations, establishment of necessary facilities, management of the association, assessment of the members to defray losses and expenses, commissions arrangements, reasonable and objective underwriting standards, acceptance and cession of reinsurance, appointment of servicing carriers, and procedures for determining amounts of insurance to be provided by the association. The plan of operation must be amended within thirty days following the merger provided for in Section 38-79-300. The amended plan must address the orderly and expeditious winding down of the Patients' Compensation Fund.
(2) The plan of operation shall provide that any profit achieved by the association must be added to the reserves of the association or returned to the policyholders as a dividend. If there is no accumulated deficit, any profit achieved by the association must be added to the reserves of the association.
(3) The approved plan of operation may make provisions for combining insurers under common ownership or management into groups for voting, assessment, and all other purposes and may provide that no more than one of the officers or employees of a group may serve as a director at any one time.
(4) Amendments to the plan of operation may be made by the directors of the association with the approval of the director or his designee or must be made at the direction of the director or his designee after due notice and public hearing.
HISTORY: 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 830; 2019 Act No. 67 (H.3760), Section 1, eff May 16, 2019.
Effect of Amendment
2019 Act No. 67, Section 1, in (1), added the second and third sentences; in (2), added the second sentence; and rewrote (3).

Structure South Carolina Code of Laws

South Carolina Code of Laws

Title 38 - Insurance

Chapter 79 - Medical Malpractice Insurance

Section 38-79-20. Medical malpractice judgments, settlements, agreements and awards to be filed by insurers with appropriate licensing board.

Section 38-79-30. Volunteer health care provider not liable for civil damages; agreements to provide voluntary noncompensated service; continuing education.

Section 38-79-40. Employment and compensation restrictions on members of Board of Joint Underwriting Association and Board of Governors of Patients' Compensation Fund; exception.

Section 38-79-110. Definitions.

Section 38-79-120. Association created; membership as a condition of authority to transact insurance; purpose.

Section 38-79-125. Members to pay assessment equal to member's proportional share of accumulated deficit of the association.

Section 38-79-130. Powers of association; policy limits.

Section 38-79-140. Plan of operation.

Section 38-79-150. Application for coverage.

Section 38-79-160. Reserved.

Section 38-79-170. Investment income considered in rates and determination of profit or loss of Association.

Section 38-79-180. Submission of all policy forms, classifications, rates, rating plans, or rules for approval.

Section 38-79-190. Policy forms and rate structure; claims-made or occurrence basis; forbidden provisions; rates charged.

Section 38-79-200. Rate increase or assessment authorized.

Section 38-79-210. Deficits to be recouped.

Section 38-79-220. Elimination of accumulated deficit; uniform assessment; surcharges.

Section 38-79-230. Additional surcharge on premium; annual increase.

Section 38-79-240. Plans to be binding on members of association.

Section 38-79-250. Obligations of terminated members; responsibility of State.

Section 38-79-260. Board of directors.

Section 38-79-280. Annual statement required.

Section 38-79-290. Examination of association; audit in lieu of examination.

Section 38-79-300. Merger of Patients' Compensation Fund into South Carolina Medical Malpractice Association; obligations and responsibilities; accumulated deficits; Board of Directors.

Section 38-79-400 to 38-79-490. Repealed.