1 South Carolina General Assembly 2 115th Session, 2003-2004 3 4 S. 1140 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Senator McConnell 10 Document Path: l:\council\bills\dka\3883dw04.doc 11 12 Introduced in the Senate on April 8, 2004 13 Currently residing in the Senate Committee on Banking and Insurance 14 15 Summary: Life insurance, charitable organization as beneficiary, provisions 16 17 18 HISTORY OF LEGISLATIVE ACTIONS 19 20 Date Body Action Description with journal page number 21 4/8/2004 Senate Introduced and read first time 22 4/8/2004 Senate Referred to Committee on Banking and Insurance 23 24 25 VERSIONS OF THIS BILL 26 27 4/8/2004 28 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 38-63-100, CODE OF LAWS OF 12 SOUTH CAROLINA, 1976, RELATING TO A BONA FIDE 13 CHARITY OR NONPROFIT CORPORATION WHICH IS 14 NAMED A BENEFICIARY, SO AS TO PROVIDE THAT 15 CERTAIN CHARITABLE ORGANIZATIONS AND ENTITIES 16 MAY OWN OR PURCHASE LIFE INSURANCE ON AN 17 INDIVIDUAL WHO CONSENTS TO THE OWNERSHIP OR 18 PURCHASE OF THAT INSURANCE AND THE CHARITABLE 19 ORGANIZATION OR ENTITY HAS AN INSURABLE 20 INTEREST IN THE LIFE OF THE INDIVIDUAL INSURED. 21 22 Be it enacted by the General Assembly of the State of South 23 Carolina: 24 25 SECTION 1. Section 38-63-100 of the 1976 Code is amended to 26 read: 27 28 “Section 38-63-100. (A)(1) Notwithstanding any other another 29 provision of law, a charitable organization has an insurable interest 30 in the life an insured under a policy in which the charitable 31 organization is irrevocably named as a beneficiary provided that 32 the application for insurance is signed by the insured. For 33 purposes of this section, a ‘charitable organization’ means: 34 (a) a bona fide charity or nonprofit corporation which is in 35 compliance with the ‘Solicitation of Charitable Funds Act’, 36 (Chapter 55 of Title 33) has an insurable interest in the life of an 37 insured under a policy in which the charity or corporation is 38 irrevocably named as a beneficiary provided that the application 39 for insurance is signed by the insured; 40 (b) an organization to whom a charitable contribution 41 could be made pursuant to Section 170(c)(1), 170(c)(2), or 170(c) 42 (3) of the Internal Revenue Code; or

1 [1140] 1 1 (c) a trust, partnership, limited liability company, or 2 similar entity approved in writing by an organization, described in 3 subitem (a) or (b) which, with the written consent of the individual 4 insured, procures or causes to be procured the combination of an 5 insurance policy and annuity contract on the life of the individual, 6 provided that the form of the written consent that the individual 7 signs is filed with the director or his designee. 8 (2) The charitable organization has insurable interest in the 9 life of the insured whether the charitable organization originally 10 purchased the insurance or the insurance is later transferred to the 11 charitable organization by the insured or another person. 12 (B) The provisions of this section do not limit or abridge any 13 insurable interest or right to insure now existing at common law or 14 by statute, shall must be construed liberally to sustain insurable 15 interest, and shall stand stands as a declaration of existing law 16 applicable to all life insurance policies in existence on or after the 17 effective date of this section.” 18 19 SECTION 2. This act takes effect upon approval by the 20 Governor. 21 ----XX---- 22

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