S.C. Code Ann. § 38-91-110 – Creation of Associated Auto Insurers Plan; membership; purpose; powers | Midpage
§ 38-91-110
S.C. Code Ann. § 38-91-110
Creation of Associated Auto Insurers Plan; membership; purpose; powers
(a) A joint underwriting association, hereinafter referred to as the "Associated Auto Insurers Plan", is hereby created consisting of all insurers authorized to write and engaged in writing automobile insurance within this State. Each insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact such insurance in this State.
(b) The purpose of the association shall be to guarantee that automobile insurance will be available to any qualified applicant who is unable to procure such insurance through ordinary methods while preserving to the public the benefits of competition among financially sound automobile insurers by encouraging maximum use of the normal private insurance system.
(c) Pursuant to the provisions of this act and its plan of operation, the association is empowered on behalf of its members:
(1) To issue automobile insurance policies to qualified applicants or to arrange for the issuance of such policies through members of the association;
(2) To establish procedures for the sharing among the members of profit or loss on association business and other costs, charges, expenses, liabilities, income, property and other assets of the association. The assessment of members for their appropriate shares may be based on the member's premium volume or exposure units for business other than association business or on a combination of such bases or on any other equitable basis with allowances for incentive programs for insurers to write in the voluntary market business written in the association. Allowances may be provided for existing debits and credits under any automobile insurance plans replaced or terminated as a result of this legislation;
(3) To reinsure association business;
(4) To establish the compensation to be paid to any licensed resident insurance agent or broker;
(5) To join, advise, assist, associate, cooperate and contract with its members and with such organizations, associations, insurers, governmental agencies, and others as may be necessary or proper to accomplish the purpose of the association;
(6) To sue and be sued in the name of the association. No judgment against the association shall create any direct liability in the individual participating members thereof;
(7) To do anything not specifically enumerated above or related thereto which is otherwise necessary or proper to accomplish the purpose of the association.