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
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."
Alternative. Inasmuch as Section
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
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