South Carolina § 38-5-90 - Additional requirements for issuance of certificate or license to foreign or alien insurer; grounds for revocation or suspension of license.

§ 38-5-90. Additional requirements for issuance of certificate or license to foreign or alien insurer; grounds for revocation or suspension of license.

Before granting the original certificate of authority or license to a foreign or alien insurer to do business in this State, the director or his designee must be satisfied by proper evidence that:

(a) The insurer is duly qualified to transact business under the laws of this State.

(b) The insurer has filed with him an affidavit of its president or other chief officer that it has not violated this title in the past year and that it accepts the terms and obligations of this title as part of the consideration for license.

(c) The insurer pays all taxes and performs all duties required by law.

(d) The reserves of the insurer are adequate for the protection of policyholders of this State.

(e) The insurer's directors and officers are competent, trustworthy, and have a good business reputation.

(f) The insurer has employed one or more persons with adequate experience and training to manage properly its business and affairs relating to its policies in South Carolina.

(g) The insurer has not entered into any management contract, agency agreement, or other agreement which may materially affect its financial condition so as to render its proceedings hazardous to the public or to its policyholders.

(h) The insurer has made adequate reinsurance arrangements if required.

(i) The insurer's proposed method of operation, when considered in light of its financial condition and the absence of any prior operating experience, will not likely render its proceedings hazardous to the public or to its policyholders.

(j) The insurer is safe and solvent.

(k) The insurer's dealings are fair and equitable.

(l) The insurer conducts its business in a manner not contrary to the public interest.

If subsequently the director or his designee is of the opinion that a condition exists which would have prohibited him from issuing a certificate of authority or license to the insurer, then that condition also constitutes a ground for license revocation under Section 38-5-120.

HISTORY: Former 1976 Code SECTION 38-5-90 [1947 (45) 322; 1952 Code SECTION 37-106; 1962 Code SECTION 37-106, recodified as SECTION 38-5-80 and SECTION 38-5-90 by 1987 Act No. 155, SECTION 1; Former 1976 Code SECTIONS 38-5-50 [1947 (45) 322; 1952 Code SECTION 37-102; 1962 Code SECTION 37-102], 38-5-60 [1947 (45) 322; 1952 Code SECTION 37-103; 1962 Code SECTION 37-103], 38-5-70 [1947 (45) 322; 1952 Code SECTION 37-104; 1962 Code SECTION 37-104], 38-5-90 [1947 (45) 322; 1952 Code SECTION 37-106; 1962 Code SECTION 37-106], 38-5-110 [1947 (45) 322; 1952 Code SECTION 37-107; 1962 Code SECTION 37-107], and 38-5-120 [1962 Code SECTION 37-107.1; 1971 (57) 131] recodified as SECTION 38-5-90 by 1987 Act No. 155, SECTION 1; 1993 Act No. 181, SECTION 533; 2000 Act No. 312, SECTION 2.