The bill S. 619 aims to amend Section 38-27-610 of the South Carolina Code of Laws, which pertains to the priority of distribution for claims in the event of insurer liquidation. The amendment specifically adds provisions for funding agreements, stating that claims under life insurance, annuity policies, and funding agreements—whether for death proceeds, annuity proceeds, or investment values—must be treated as loss claims. This inclusion ensures that these types of claims are prioritized appropriately during the liquidation process.

Additionally, the bill clarifies that any portion of a loss for which indemnification is provided by other benefits or advantages recovered by the claimant should not be included in this class, with certain exceptions related to familial obligations or life insurance proceeds. The bill is set to take effect upon approval by the Governor.

Statutes affected:
04/29/2025: 38-27-610
Latest Version: 38-27-610