South Carolina Property and Casualty Insurance Guaranty Association Act

What this document is

S.C. Code Ann. ch. 38-31: South Carolina Property and Casualty Insurance Guaranty Association Act is a state statute published by South Carolina Legislature (scstatehouse.gov). It is one of the South Carolina documents that insurance license exam questions are written from, including south carolina property & casualty, south carolina personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• S.C. Code Ann. § 38-31-40 (Association created; membership as condition of authority to transact insurance; accounts)

  “There is created a nonprofit unincorporated legal entity to be known as the South Carolina Property and Casualty Insurance Guaranty Association. All insurers defined as member insurers in Section 38-31-20(8) are members of the association as a condition of their authority to transact insurance in...”

• S.C. Code Ann. § 38-31-30 (Application of chapter)

  “This chapter applies to all kinds of direct insurance but does not apply to the following: (1) life, annuity, health, or accident insurance;”

• S.C. Code Ann. § 38-31-60(a) (Powers and duties of Association)

  “The association: (a) is obligated to the extent of claims existing before the determination of insolvency and claims arising up to the earliest of the following dates: (i) thirty days after the determination of insolvency; (ii) the policy expiration date; or (iii) the date the insured replaces or cancels the policy.”

• S.C. Code Ann. § 38-31-70(4) (Plan of operation)

  “The plan of operation may provide that any or all powers and duties of the association, except those under items (c) and (i) of Section 38-31-60, are delegated to a corporation, an association similar to the association, or another organization which performs or will perform functions similar to...”

• S.C. Code Ann. § 38-31-60(a)(iv) (Powers and duties of Association)

  “(iv) Notwithstanding any other provisions of this chapter, except in the case of a claim for benefits under worker's compensation coverage, any obligation of the association to or on behalf of an insured and its affiliates on all covered claims combined shall cease when ten million dollars shall...”

• S.C. Code Ann. § 38-31-20(8)(d) (Definitions - Covered claim)

  “(d) any first party claim by an insured whose net worth exceeds ten million dollars on December thirty-first of the year next preceding the date the insurer becomes an insolvent insurer; provided that an insured's net worth on such date must be deemed to include the aggregate net worth of the...”

• S.C. Code Ann. § 38-31-60(a)(i)-(iii) (Powers and duties of Association)

  “The association: (a) is obligated to the extent of claims existing before the determination of insolvency and claims arising up to the earliest of the following dates: (i) thirty days after the determination of insolvency; (ii) the policy expiration date; or (iii) the date the insured replaces or cancels the policy.”

• S.C. Code Ann. § 38-31-100(1) (Exhaustion of other coverage and claims)

  “(1) A person, having a claim under an insurance policy, whether or not it is a policy issued by a member insurer, and the claim under such other policy arises from the same facts, injury, or loss that gave rise to the covered claim against the association, is required to first exhaust all coverage...”

• S.C. Code Ann. § 38-31-130 (Exemption of Association from fees and taxes)

  “The association is exempt from payment of all fees and all taxes levied by this State or any of its political subdivisions, except taxes levied on real or personal property.”

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Questions about this source

More South Carolina sources

• S.C. Code Ann. ch. 38-57: Unfair trade practices in the business of insuranceState statute
• S.C. Code Ann. ch. 38-43: Producers (licensing, appointment, discipline)State statute
• S.C. Code Ann. ch. 38-63: Life insurance policy provisionsState statute
• S.C. Code Ann. ch. 38-71: Accident and health insurance policy provisionsState statute
• South Carolina Code of Laws Title 38, Chapters 5, 43 and part of 55 (first third)State statute
• South Carolina Code of Laws Title 38, Chapters 55, 57, 59, 63 and part of 65 (second third)State statute
• South Carolina Code of Laws Title 38, Chapters 65, 71 and 72 (final third)State statute
• South Carolina Insurance Content OutlinesCandidate handbook or exam outline