(A) An insurer may be subject to administrative supervision by the department if upon examination or at another time it appears in the discretion of the director or his designee that one or more of the following circumstances exist:

(1) The insurer’s condition renders the continuance of its business hazardous to the public or to its insureds.

Terms Used In South Carolina Code 38-26-40

  • Consent: means agreement to administrative supervision by the insurer. See South Carolina Code 38-26-20
  • Continuance: Putting off of a hearing ot trial until a later time.
  • Department: means the Department of Insurance of South Carolina. See South Carolina Code 38-1-20
  • Director: means the person who is appointed by the Governor upon the advice and consent of the Senate and who is responsible for the operation and management of the department. See South Carolina Code 38-1-20
  • insurance: includes annuities. See South Carolina Code 38-1-20
  • Insurer: means a person who has done, purports to do, is going to do, or is licensed to do an insurance business and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by the department, or similar entity, of a state. See South Carolina Code 38-26-20

(2) The insurer has exceeded its powers granted under its certificate of authority and applicable law.

(3) The insurer has failed to comply with a provision of the insurance laws of this State.

(4) The business of the insurer is being conducted fraudulently.

(5) The insurer gives its consent.

(B) If the director or his designee determines that one or more of the conditions set forth in subsection (A) exist, he shall:

(1) notify the insurer of his determination;

(2) furnish to the insurer a written list of the requirements to abate this determination;

(3) notify the insurer that it is under the supervision of the department and that the director or his designee is applying the provisions of the chapter. Action by the director or his designee is subject to review pursuant to related regulations and the Administrative Procedures Act.

(C) If placed under administrative supervision, the insurer has sixty days or another period of time designated by the director or his designee to comply with the requirements of the department subject to the provisions of this chapter.

(D) If it is determined after notice and hearing that the conditions giving rise to the supervision still exist at the end of the supervision period, the director or his designee may extend the period or may initiate proceedings under Chapter 27 of this title.

(E) If it is determined that none of the conditions giving rise to the supervision exist, the director or his designee shall release the insurer from supervision.