Current through Register Vol. 48, No. 34, August 23, 2024
Section 69-27 - Guaranty Act-ApplicabilitySection 1. Purpose. The purpose of this regulation is to require that brokers fully and fairly disclose to all policyholders of insurers not licensed to do business in this State that the provisions of the South Carolina Insurance Guaranty Association Act, (Sections 38-31-30 et seq., Code of Laws of South Carolina, 1976, as amended) which protect policyholders in the event of a property and casualty company insolvency, do not apply to an unauthorized, unlicensed carrier.Section 2. Requirement. Consistent with the above stated purpose, on or after the effective date of this regulation, no broker shall place or renew any insurance with any insurer not licensed in this State unless he shall write or stamp upon the face of each policy or evidence of renewal of an insurer not licensed in this State the words "The S. C. Guaranty Act does not apply to this policy."Section 3. Alternative. Inasmuch as Section 38-45-110, South Carolina Code of Laws, similarly requires that the words "This Company Not Licensed to do business in this State" to be written or stamped upon the face of each policy of an insurer not licensed in this State, the two requirements may be filled conjunctively. To Wit: In fulfilling the requirements of Section 38-45-110 and this Regulation, the broker may write or stamp upon the face of each policy or evidence of renewal of an insurer not licensed in this State the words "This Company is Not Licensed to do Business in this State, and the S. C. Guaranty Act does Not Apply to This Policy." (Provisions based on Insurance Commission designation R11-76.)