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mitted, is collected from each stock company, and a tax of one per cent from each mutual company. Reinsurance effected in unadmitted companies is not allowed to be deducted. Mutual companies are not permitted to deduct dividends or unearned premiums applied in part payment of premiums or returned to policyholders in cash or otherwise, except return premiums paid in accordance with the standard policy form by companies using that form. Tax is payable to the general treasurer on first Monday in April by doniestic companies, and during the month of January by

the agents of companies of other States. See “Retaliatory Law.” TAX STATEMENTS—Must be filed in January with the general treasurer.

Penalty for failure to make return, or for filing false statement, fine not exceeding $1000; and suit shall be begun on delinquent agent's bond to

recover tax. Statements are filed by agents. VALUED POLICY-No provision.


PROVIDENCE-Protective Department, 112 per cent on premiums.


STATE REQUIREMENTS. AGENTS DEFINED—Act of 1883, Sec. 6. "Any person who solicits insur

ance in behalf of any insurance company not organized under, or incorporated by, the laws of this State, or who takes or transmits other than for himself any application for insurance or any policy of insurance to, or from, such company, or who advertises or otherwise gives notice that he will receive or transmit the same, or who shall receive or deliver a policy of insurance of any such company, or who shall examine and inspect any risk, or receive, collect or transmit any premium of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in making, or the consummating of, any contract of insurance for, or with, any such company, other than for himself, or who shall examine into and adjust, or aid in adjusting, any loss for, or in behalf of, any such insurance company, whether any such acts shall be done at the instance or request, or by the employment of, such insurance company, shall be held to be acting as the agent of the company for which this act is done or risk is taken.” The Insurance Commissioner has ruled that under Sec. 1810, of the insurance laws, an agent who brokers a policy with

another agent, is the agent of the company whose policy he delivers. AGENTS' LICENSES—Each agent must procure from the Insurance Com

missioner a license for which the charge is fifty cents. Each solicitor, if not a member of a firm, must have a license. Licenses expire March 31, annually. Penalty for acting as agent without a license, fine of not over

$100, or imprisonment for not more than 30 days. ANNUAL STATEMENTS—Must be filed by March 31, showing condition

as of December 31 preceding. Penalty for failure to file annual statement,

revocation of authority. ANTI-COINSURANCE-No statute forbidding use of coinsurance clauses. ANTI-COMPACT-Sec. 8, Law of 1904. "That no insurance company shall

be permitted to do business in this State, which shall be a member of any association, whose purpose is to establish, fix or maintain excessive or unreasonable rates or charges for insurance: Provided, however, that it shall be lawful for such insurance companies to member of any association, the purpose and object of which is to secure the proper inspection of risks, the classification of risks, the maintenance of uniform and reasonable rates and the prevention of discrimination in charges between parties dealing with such insurance companies in this State.

Sec. 9. That upon the complaint of one or more citizens of this State, that any insurance company is discriminating in rates between citizens of this State on risks similar in character, the Insurance Commissioner shall forthwith summon said company to appear before him, and if it shall be shown that said company has charged for any risk so complained of an amount in excess of the rates charged other persons on other risks of the same class, this discrimination in rates to the prejudice of any citizen of this State, the Insurance Commissioner shall order said company to make due correction in the rate immediately, refunding such excess as may have been charged, together with interest thereon from the date of its payment until the same is refunded to the citizen thus charged; and if any such company shall fail to make this correction within thirty days after notice and the making of such order, the Insurance Commissioner, on proof thereof, shall revoke the license of the said company: Provided, that no rate on any fire insurance risk in this State shall exceed the rate on similar risks in adjoining States, nor shall any rate be charged or maintained on property in this State after a full hearing before the Insurance Commissioner, shall be shown to be greater than rates charged in adjoining States on risks of like character and similar circumstances. Nothing in this act contained shall prevent factory mutual insurance companies or associations from insuring, inspecting and adjusting factory property in this State.

Sec. 11. All laws and parts of laws in conflict with this act are hereby repealed, and this act shall take effect and be of force from and after its

passage and approval." ANTI-DISCRIMINATION—There is a law prohibiting discrimination in

rates between risks of the same class. ATTORNEY—The Insurance Commissioner must be authorized to accept

service of legal process. CANCELLATION OF POLICY—No provision. CAPITAL REQUIRED—Company must possess at least $100,000 of surplus

or capital, or shall file a certificate that it has deposited with some State official securities worth $100,000, and shall deposit with the Insurance Commissioner of South Carolina securities worth $10,000, or a surety company bond for that sum, in the discretion of the Insurance Commissioner.

Penalty for violation, fine of $500 to $1000. COMMISSIONS TO NON-RESIDENTS—Commissions must be received

by resident agents. DEPOSIT—Ins. Laws, Sec. 13. “Before licensing any insurance company

to do business in this State, the Insurance Commissioner shall require each such company to deposit with him an approved bond or approved securities, in the discretion of the Commissioner, as follows: * * * each fire * ** insurance company, $10,000.

* * * If a bond be given, shall be conditioned to pay any judgment entered up against any such company in any court of competent jurisdiction in this State, and such judgment shall be a lien upon the bond or securities. In case a bond is given, the judgment creditor shall have the right to bring suit on said bond for satisfaction of the judgment in the county in which the judgment is received." See "Capital Required."

DOMESTIC COMPANIES—Two or more persons may organize a corpora

tion after twenty per cent of capital is paid in, by filing articles of incorporation with the Secretary of State and a copy of same with the register

of the county in which located. EXAMINATIONS-Sec. 10. "** * He (the Commissioner) shall have au

thority to examine into the conditions of any company doing business in this State, and shall have power to summon witnesses and take testimony as he may deem fit and proper for the protection of the public interests of the State. At least once in two years, and whenever he determines it to be prudent, he shall, personally or by deputy, visit each domestic company and thoroughly inspect and examine its affairs, determine and fix the value of its assets and test and declare its ability to fulfill its obligations and maintain its solvency according to proper standards. When he determines it to be prudent for the protection of the policyholders in this State, he shall in like manner visit and examiné, or cause to be visited and examined by some competent person or persons whom he may appoint for that purpose, any foreign company applying for admission or already admitted to do business in this State, and such company shall pay the rea

sonable cost for such examination. FEES—Annual license fee, payable to the Insurance Commissioner on or be

fore March 31, $140 for company writing fire insurance, including marine and inland transportation, lightning and sprinkler damage: $115 for company writing marine insurance exclusively, including inland transportation. Quarterly pro rata abatements are allowed companies admitted after Oc

tober 1. FIRE DEPARTMENT TAX-Act of March 7, 1910, imposes a tax of one

per cent on all premiums written in cities or towns having regularly organized fire departments, with equipment valued at $1,000 or more, upon companies of other States or counties. Tax is payable within sixty days after December 31, yearly, to the Insurance Commissioner. Penalty for failure

to pay tax revocation of license. FIRE MARSHAL—Investigation of fires is provided for. See “Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS—None re

quired. GENERAL PENALTY-For violation of insurance law, or disobedience of

a lawful order of the Insurance Commissioner, fine of $100, or imprison

ment not exceeding 30 days. IMPAIRMENT-Sec. II. “If the Commissioner is of opinion, upon exam

ination or other evidence, that a company is in an unsound condition, that it has failed to comply with the law or with the provisions of its charter, or that its condition is such as to render its proceedings hazardous to the public or to its policyholders, or that its funds, if it is a life insurance company, are less than its liabilities, exclusive of its capital, or if its officers or agents refuse to submit to examination or to perform any legal obligation relative thereto, he shall revoke, or suspend all certificates of authority granted to said company, its officers or agents, and shall cause notices thereof to be published in a newspaper of general circulation in this state, and no new business shall thereafter be done by its agents in this State while such default or disability continues, nor until its authority to do busi

ness is restored by the Commissioner." INVESTMENTS PRESCRIBED—See "Taxes." LICENSED BROKERS-No provision. LIMIT ON A SINGLE RISK-No provision. LLOYDS-Same conditions apply as those relating to corporations. MISCELLANEOUS—Residents may procure insurance in unlicensed com

panies on paying a tax of three per cent on the premiums and securing authorization for the adjustment of a loss under such policies. The ad juster adjusting a loss under such a policy must pay a fire inspection tax of one-tenth of one per cent upon the amount of the loss. An agent for an unlicensed company may be authorized to collect premiums upon South Carolina policies in force, but not to write new business, on payment of

tax of one per cent on net premiums. MUTUAL COMPANIES-Sec. 18. “Any foreign mutual fire insurance com

pany maintaining no agents, writing no business except on property of its members and doing business without profit, may be admitted to do business in this State on the following terms: It shall file with the Insurance Commissioner a satisfactory statement of its condition and such other information as he shall require; a copy of its charter and amendments thereto; certificate of compliance with the laws of its home State, and the appointment of the Insurance Commissioner of South Carolina as its attorney to accept service. It shall pay an annual department license fee of twentyfive dollars and the additional license fee now provided by law on the

actual cost of insurance.” PRELIMINARY DOCUMENTS-Company must file with the Insurance

Commissioner a certified copy of its charter, certified copy of resolution appointing attorney, and a verified statement showing its financial condition; foreign companies must also file certificate of deposit. Copy of charter and copy of certificate of compliance with home insurance laws need be

filed but once. PUBLICATION—No requirement. RECIPROCAL LAW-None. REINSURANCE-Sec. 5 of the Law of Feb. 9; 1900 (Resident Agents) pro

vides that “the provisions of this act shall not be construed so as to prevent any policy, duplicate policy, or contract for reinsurance from being written or placed in any fire insurance company or association which has no agent resident in this State." All reinsurances must be reported annually (or oftener, as required). Penalty for violation, fine of $500. Reinsurances of South Carolina risks by unauthorized companies in author

ized companies are not permitted. REINSURANCE RESERVE-No provision.

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