Bill > H4457

This bill amends Section 38-27-610 of South Carolina's legal code to modify the priority of claims during an insurer's liquidation. Specifically, the bill expands Class 2 claims to explicitly include funding agreements alongside existing categories like life insurance and annuity policies. The amendment clarifies that claims under funding agreements will be treated the same as loss claims, which means they will be given priority in the liquidation process. The bill ensures that certain types of claims—such as those for death proceeds, annuity proceeds, or investment values—are recognized and protected. The legislation also maintains existing provisions that exclude portions of losses already covered by other benefits, with specific exceptions for familial support, succession, life insurance proceeds, and gratuities. The bill will take effect upon the Governor's approval, providing a technical update to the state's insurance liquidation procedures to offer more comprehensive protection for policyholders and claimants in the event of an insurer's financial collapse.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=4457&session=126&summary=B