2005-2006 Bill 3592: Charity Or Nonprofit Corporation Named Beneficiary of Life Insurance

South Carolina General Assembly

116th Session, 2005-2006

H. 3592

STATUS INFORMATION

General Bill

Sponsors: Rep. Limehouse

Document Path: l:\council\bills\nbd\11240sd05.doc

Introduced in the House on February 17, 2005

Currently residing in the House Committee on Labor, Commerce and Industry

Summary: Charity or nonprofit corporation named beneficiary of life insurance policy

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

2/17/2005HouseIntroduced and read first time HJ25

2/17/2005HouseReferred to Committee on Labor, Commerce and IndustryHJ25

VERSIONS OF THIS BILL

2/17/2005

A BILL

TO AMEND SECTION 3863100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A BONA FIDE CHARITY OR NONPROFIT CORPORATION WHICH IS NAMED A BENEFICIARY OF A LIFE INSURANCE POLICY, SO AS TO PROVIDE THAT A CHARITABLE ORGANIZATION HAS AN INSURABLE INTEREST IN THE LIFE OF AN INDIVIDUAL INSURED UNDER A POLICY OF INSURANCE IN WHICH THE CHARITABLE ORGANIZATION IS NAMED AS A BENEFICIARY UNDER THE CONDITIONS SPECIFIED IN THIS SECTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION1.Section 3863100 of the 1976 Code is amended to read:

“Section 3863100.Notwithstanding any other provision of law, a bona fide charity or nonprofit corporation which is in compliance with the “Solicitation of Charitable Funds Act” (Chapter 55 of Title 33)charitable organization has an insurable interest in the life of an insured under a policy in which the charity or corporationcharitable organization is irrevocably named as a beneficiary provided that the application for insurance is signed by the insured. For purposes of this section, a ‘charitable organization’ means:

(1)a bona fide charity or nonprofit corporation which is in compliance with the ‘Solicitation of Charitable Funds Act’; or

(2)any trust, business trust, partnership, corporation, limited liability company or similar entity approved in writing by an organization described in Section 501(c)(3) of the Internal Revenue Code with the written consent of the individual insured. The charitable organization has an insurable interest in the life of the insured whether the charitable organization originally purchased the insurance or the insurance is later transferred to the charitable organization by the insured or another person.

The provisions of this section do not limit or abridge any insurable interest or right to insure now existing at common law or by statute, shall be construed liberally to sustain insurable interest, and shall stand as a declaration of existing law applicable to all life insurance policies in existence on or after the effective date of this section.”

SECTION2.This act takes effect upon approval by the Governor.

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