(1) Unless a longer period has been allowed by the director or his designee, a member insurer, at its option, has the right to show a certificate of contribution as an asset in the form approved by the director or his designee pursuant to § 38-29-80(8) at percentages of the original face amount approved by the director or his designee, for calendar years as follows:

(a) one hundred percent for the calendar year of issuance;

Terms Used In South Carolina Code 38-29-160

  • Association: means the South Carolina Life and Accident and Health Insurance Guaranty Association created under § 38-29-50. See South Carolina Code 38-29-20
  • Department: means the Department of Insurance of South Carolina. See South Carolina Code 38-1-20
  • Director: means the Director of the Department of Insurance. See South Carolina Code 38-29-20
  • Insurer: includes a corporation, fraternal organization, burial association, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations. See South Carolina Code 38-1-20
  • Premium: means payment given in consideration of a contract of insurance. See South Carolina Code 38-1-20
  • State: means a state, the District of Columbia, Puerto Rico, and a United States' possession, territory, or protectorate. See South Carolina Code 38-29-20

(b) eighty percent for the first calendar year after the year of issuance;

(c) sixty percent for the second calendar year after the year of issuance;

(d) forty percent for the third calendar year after the year of issuance;

(e) twenty percent for the fourth calendar year after the year of issuance; and

(f) zero percent for the fifth calendar year after the year of issuance and thereafter.

(2) The insurer may offset the amount written off by it in a calendar year under subsection (1) against its premium, or income, tax liability to this State accrued with respect to business transacted in that year.

(3) Any sums acquired by refund, pursuant to § 38-29-80(6), from the association which have previously been written off by contributing insurers and offset against premium (or income) taxes as provided in subsection (2) of this section and are not then needed for purposes of this chapter must be paid by the association to the department and by him deposited with the State Treasurer for credit to the general fund of this State.

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