Bill > S0619

This bill amends South Carolina's insurance liquidation law by modifying the priority of claims distribution in cases where an insurance company becomes insolvent and requires liquidation. Specifically, the bill updates Section 38-27-610(2) to explicitly include funding agreements within the second class of claims, alongside existing categories like life insurance and annuity policies. Under this amendment, claims related to funding agreements will now be treated as loss claims, which means they will be given priority during the liquidation process. This change ensures that funding agreements (financial contracts that guarantee a specific return or payment schedule) receive the same treatment as other insurance-related financial instruments when an insurer is being dissolved. The bill clarifies that certain types of benefits, such as those recovered through familial support obligations or life insurance proceeds, will not be counted against these claims. The legislation will take effect immediately upon receiving the Governor's approval, providing a clear and updated framework for handling insurance company liquidations in South Carolina.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=0619&session=126&summary=B