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, categorizing them alongside claims under life insurance and annuity policies. This inclusion ensures that claims related to funding agreements, whether for death proceeds, annuity proceeds, or investment values, are treated as loss claims, thereby clarifying their status in the distribution hierarchy during liquidation.

Additionally, the bill stipulates that any portion of a loss that is indemnified by other benefits or advantages recovered by the claimant will not be included in this class, with certain exceptions for familial obligations or life insurance proceeds. The bill is set to take effect upon approval by the Governor, reflecting a legislative effort to enhance the clarity and fairness of claims distribution in the context of insurer insolvency.

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