Terms Used In South Carolina Code > Title 33 > Chapter 44 - Uniform Limited Liability Company Act of 1996

• Admitted insurer: means an insurer licensed to do business in this State. See South Carolina Code 38-1-20
• Advice and consent: Under the Constitution, presidential nominations for executive and judicial posts take effect only when confirmed by the Senate, and international treaties become effective only when the Senate approves them by a two-thirds vote.
• Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Appointment: means an individual designated by an official or authorized representative of an authorized insurer to act on its behalf as a producer. See South Carolina Code 38-1-20
• Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
• Arrest: Taking physical custody of a person by lawful authority.
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Association: means any joint underwriting association established pursuant to this chapter. See South Carolina Code 38-83-10
• Association: means a joint underwriting association established pursuant to this subdivision. See South Carolina Code 38-89-10
• Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
• Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Casualty insurance: means each insurance against legal liability of the insured for bodily injury to or death of another person, including workers' compensation insurance, and for damages to or loss or destruction of the property of another person; medical payments insurance when written in conjunction with insurance covering liability for the deaths or bodily injuries of another person; guaranteeing the fidelity of a person holding a position of public or private trust; loss of or damage to property caused by burglary, theft, larceny, robbery, fraud, or unlawful taking or secretion of property owned by or entrusted to the insured; loss of or damage to property of the insured resulting from the explosion of or damage to a fired or unfired boiler or other pressure vessel, engine, turbine, compressor, pump, wheel, or an apparatus generating, transmitting, or using electric power, and machinery or equipment connected with any of them; loss resulting from nonpayment of debts owed to merchants or another person extending credit. See South Carolina Code 38-1-20
• Clerk of court: An officer appointed by the court to work with the chief judge in overseeing the court's administration, especially to assist in managing the flow of cases through the court and to maintain court records.
• Commission: means the part of the premium paid to the producer as compensation for his services. See South Carolina Code 38-1-20
• Commissioner: means the commissioner, director, or superintendent of insurance in a state. See South Carolina Code 38-87-20
• Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
• Completed operations liability: means liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by:
  
  (a) any person who performs that work; or
  
  (b) any person who hires an independent contractor to perform that work; but includes liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability;
  
  (3) "Domicile" for purposes of determining the state in which a purchasing group is domiciled, means:
  
  (a) for a corporation, the state in which the purchasing group is incorporated; and
  
  (b) for an unincorporated entity, the state of its principal place of business;
  
  (4) "Hazardous financial condition" means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able:
  
  (a) to meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or
  
  (b) to pay other obligations in the normal course of business;
  
  (5) "Insurance" means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this State;
  
  (6) "Liability":
  
  (a) means legal liability for damages (including costs of defense, legal costs and fees, and other claims expenses) because of injuries to other persons, damage to their property, or other damage or loss to such other persons resulting from or arising out of:
  
  (i) any business (whether profit or nonprofit), trade, product, services (including professional services), premises, or operations; or
  
  (ii) any activity of any state or local government, or any agency or political subdivision thereof; and
  
  (b) does not include personal risk liability and an employer's liability with respect to its employees other than legal liability under the Federal Employers' Liability Act (45 U. See South Carolina Code 38-87-20
• Consumer: means an individual including, but not limited to, an applicant, policyholder, insured, beneficiary, claimant, and certificate holder who is a resident of this State and whose nonpublic information is in a licensee's possession, custody, or control. See South Carolina Code 38-99-10
• Contract: A legal written agreement that becomes binding when signed.
• Conviction: A judgement of guilt against a criminal defendant.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• coverage: means as defined in Sections 38-71-670(6) and 38-71-840(14). See South Carolina Code 38-93-10
• Criminal gang: means a formal or informal ongoing organization, association, or group that consists of five or more persons who form for the purpose of committing criminal activity and who knowingly and actively participate in a pattern of criminal gang activity. See South Carolina Code 16-8-230
• Criminal gang member: means an individual who is an active member of a criminal gang. See South Carolina Code 16-8-230
• Cybersecurity event: means an event resulting in unauthorized access to or the disruption or misuse of an information system or information stored on an information system. See South Carolina Code 38-99-10
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Day care liability insurance: means insurance protection against the day care liability of the insured and against loss, damage, or expense incident to a claim arising out of day care service to a person as the result of negligence in rendering or failing to render day care service. See South Carolina Code 38-89-10
• Decedent: A deceased person.
• Deed: The legal instrument used to transfer title in real property from one person to another.
• Department: means the Department of Insurance of South Carolina. See South Carolina Code 38-1-20
• Department: means the Department of Insurance. See South Carolina Code 38-99-10
• Dependent: A person dependent for support upon another.
• Designee or deputy director: means the person or persons appointed by the director, serving at the will and pleasure of the director as his designee, to supervise and carry out the functions and duties of the department as provided by law. See South Carolina Code 38-1-20
• Director: means the person who is appointed by the Governor upon the advice and consent of the Senate and who is responsible for the operation and management of the department. See South Carolina Code 38-1-20
• Director: means the Director of the Department of Insurance. See South Carolina Code 38-78-20
• Director: means the person who is appointed by the Governor upon the advice and consent of the Senate and who is responsible for the operation and management of the South Carolina Department of Insurance, including all of its divisions. See South Carolina Code 38-87-20
• Director: means the Director of the Department of Insurance or his designee. See South Carolina Code 38-99-10
• Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
• Encrypted: means the transformation of data into a form which results in a low probability of assigning meaning without the use of a protective process or key. See South Carolina Code 38-99-10
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Ex officio: Literally, by virtue of one's office.
• Family member: means , with respect to an individual:
  
  (a) a dependent of the individual; and
  
  (b) any other individual who is a first-degree, second-degree, third-degree, or fourth-degree relative of the individual or his dependent. See South Carolina Code 38-93-10
• Fiduciary: A trustee, executor, or administrator.
• Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. ^{Source: OCC}
• Fraud: Intentional deception resulting in injury to another.
• Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. ^{Source: OCC}
• Genetic information: means , with respect to an individual, the:
  
  (i) individual's genetic tests;
  
  (ii) genetic tests of the individual's family members; and
  
  (iii) manifestation of a disease or disorder in family members of the individual. See South Carolina Code 38-93-10
• Genetic services: means :
  
  (a) a genetic test;
  
  (b) genetic counseling, including obtaining, interpreting, or assessing genetic information; or
  
  (c) genetic education. See South Carolina Code 38-93-10
• Genetic test: means an analysis of human DNA, RNA, chromosomes, proteins, or metabolites that detects genotypes, mutations or chromosomal changes. See South Carolina Code 38-93-10
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• Grantor: The person who establishes a trust and places property into it.
• Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
• Home state: means the District of Columbia and a state or territory of the United States in which an insurance producer maintains his principal place of residence or principal place of business and is licensed to act as an insurance producer. See South Carolina Code 38-1-20
• Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. ^{Source: FDIC}
• Individual: means an insured, individual enrollee, covered dependent, participant, covered person, beneficiary, eligible employee, dependent of an eligible employee, or applicant for coverage. See South Carolina Code 38-93-10
• Information security program: means the administrative, technical, and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic information. See South Carolina Code 38-99-10
• Information system: means a discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination or disposition of electronic information, as well as any specialized system such as industrial or process controls systems, telephone switching and private branch exchange systems, and environmental control systems. See South Carolina Code 38-99-10
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• insurance: includes annuities. See South Carolina Code 38-1-20
• Insurance company: means an "insurer". See South Carolina Code 38-1-20
• Insurer: includes a corporation, fraternal organization, burial association, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations. See South Carolina Code 38-1-20
• Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
• issuer: means an entity that provides health insurance coverage in this State as defined in Sections 38-71-670(7) and 38-71-840(16). See South Carolina Code 38-93-10
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• License: means a document issued by the state's director or his designee authorizing a person to act as an insurance producer for the lines of authority specified in the document. See South Carolina Code 38-1-20
• Licensee: means a person licensed, authorized to operate, or registered, or required to be licensed, authorized, or registered pursuant to the insurance laws of this State but does not include a purchasing group or a risk retention group chartered and licensed in a state other than this State or a licensee that is acting as an assuming insurer that is domiciled in another state or jurisdiction. See South Carolina Code 38-99-10
• Lien: A claim against real or personal property in satisfaction of a debt.
• Life insurance: means a contract of insurance upon the lives of human beings. See South Carolina Code 38-1-20
• Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Mortgage loan: A loan made by a lender to a borrower for the financing of real property. ^{Source: OCC}
• Multifactor authentication: means authentication through verification of at least two of the following authentication factors:
  
  (a) knowledge factors, such as a password; or
  
  (b) possession factors, such as a token or text message on a mobile phone; or
  
  (c) inherence factors, such as a biometric characteristic. See South Carolina Code 38-99-10
• Net direct premiums: means gross direct premiums written on bodily injury liability insurance, other than automobile liability insurance, homeowners liability insurance, and farmowners liability insurance, including the liability component of multiple peril package policies, as computed by the director or his designee less return premiums or the unused or unabsorbed portions of premium deposits. See South Carolina Code 38-83-10
• Net direct premiums: means gross direct premiums written on bodily injury liability insurance, other than automobile liability insurance, homeowners liability insurance, and farmowners liability insurance, including the liability component of multiple peril package policies, as computed by the director or his designee less return premiums or the unused or unabsorbed portions of premium deposits. See South Carolina Code 38-89-10
• Nonpublic information: means information that is not publicly available information and is:
  
  (a) business-related information of a licensee the tampering with which, or unauthorized disclosure, access, or use of which, would cause a material adverse impact to the business, operations, or security of the licensee;
  
  (b) any information concerning a consumer which because of name, number, personal mark, or other identifier can be used to identify such consumer, in combination with any one or more of the following data elements:
  
  (i) social security number;
  
  (ii) driver's license number or nondriver identification card number;
  
  (iii) account number, credit or debit card number;
  
  (iv) security code, access code, or password that would permit access to a consumer's financial account; or
  
  (v) biometric records;
  
  (c) any information or data, except age or gender, in any form or medium created by or derived from a health care provider or a consumer and that relates to:
  
  (i) the past, present, or future physical, mental or behavioral health or condition of a consumer or a member of the consumer's family;
  
  (ii) the provision of health care to a consumer; or
  
  (iii) payment for the provision of health care to a consumer. See South Carolina Code 38-99-10
• Oath: A promise to tell the truth.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Oversight: Committee review of the activities of a Federal agency or program.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: means a corporation, agency, partnership, association, voluntary organization, individual, or another entity, organization, or aggregation of individuals. See South Carolina Code 38-1-20
• Person: means an individual, partnership, corporation, incorporated or unincorporated association, joint stock company, reciprocal, syndicate, or any similar entity or combination of entities acting in concert. See South Carolina Code 38-78-20
• Person: means any individual or any nongovernmental entity including, but not limited to, a nongovernmental partnership, corporation, branch, agency, or association. See South Carolina Code 38-99-10
• Personal property: All property that is not real property.
• Personal risk liability: means liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, familial, or household responsibilities or activities, rather than from responsibilities or activities referred to in item (6);
  
  (8) "Plan of operation or a feasibility study" means an analysis which presents the expected activities and results of a risk retention group including, at a minimum:
  
  (a) information sufficient to verify that its members are engaged in businesses or activities similar or related with respect to the liability to which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;
  
  (b) for each state in which it intends to operate, the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer;
  
  (c) historical and expected loss experience of the proposed members and national experience of similar exposures to the extent that this experience is reasonably available;
  
  (d) pro forma financial statements and projections;
  
  (e) appropriate opinions by a qualified, independent casualty actuary, including a determination of minimum premium or participation levels required to commence operations and to prevent a hazardous financial condition;
  
  (f) identification of management, underwriting and claims procedures, marketing methods, managerial oversight methods, investment policies, and reinsurance agreements;
  
  (g) identification of each state in which the risk retention group has obtained, or sought to obtain, a charter and license, and a description of its status in each such state; and
  
  (h) such other matters as may be prescribed by the commissioner of the state in which the risk retention group is chartered for liability insurance companies authorized by the insurance laws of that state;
  
  (9) "Product liability" means liability for damages because of any personal injury, death, emotional harm, consequential economic damage, or property damage (including damages resulting from the loss of use of property) arising out of the manufacture, design, importation, distribution, packaging, labeling, lease, or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of such a person when the incident giving rise to the claim occurred;
  
  (10) "Purchasing group" means any group which:
  
  (a) has as one of its purposes the purchase of liability insurance on a group basis;
  
  (b) purchases such insurance only for its group members and only to cover their similar or related liability exposure, as described in item (10)(c);
  
  (c) is composed of members whose businesses or activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and
  
  (d) is domiciled in any state;
  
  (11) "Risk retention group" means any corporation or other limited liability association:
  
  (a) whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its group members;
  
  (b) which is organized for the primary purpose of conducting the activity described under item (11)(a);
  
  (c) which:
  
  (i) is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or
  
  (ii) before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance commissioner of at least one state that it satisfied the capitalization requirements of such state, except that any such group must be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability (as such terms were defined in the Product Liability Risk Retention Act of 1981 before the date of the enactment of the Liability Risk Retention Act of 1986);
  
  (d) which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person;
  
  (e) which:
  
  (i) has as its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or
  
  (ii) has as its sole owner an organization which has as
  
  (A) its members only persons who comprise the membership of the risk retention; and
  
  (B) its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group;
  
  (f) whose members are engaged in businesses or activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;
  
  (g) whose activities do not include the provision of insurance other than:
  
  (i) liability insurance for assuming and spreading all or any portion of the liability of its group members; and
  
  (ii) reinsurance with respect to the liability of any other risk retention group (or any members of such other group) which is engaged in businesses or activities so that such group or member meets the requirement described in item (f) of this section for membership in the risk retention group which provides such reinsurance; and
  
  (h) the name of which includes the phrase "Risk Retention Group";
  
  (12) "State" means any state of the United States or the District of Columbia. See South Carolina Code 38-87-20
• Plaintiff: The person who files the complaint in a civil lawsuit.
• Pleadings: Written statements of the parties in a civil case of their positions. In the federal courts, the principal pleadings are the complaint and the answer.
• Policy: means a contract of insurance. See South Carolina Code 38-1-20
• Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
• Premium: means payment given in consideration of a contract of insurance. See South Carolina Code 38-1-20
• producer: means a person who represents an insurance company and is required to be licensed pursuant to § 38-43-10. See South Carolina Code 38-1-20
• Professional liability insurance: means insurance protection against the legal liability of the insured and against loss, damage, or expense incident to a claim arising out of service to or representation of any person as the result of negligence or malpractice in rendering or failing to render a professional service. See South Carolina Code 38-83-10
• Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
• Provider: means a person who is contractually obligated to the service contract holder under the terms of the service contract. See South Carolina Code 38-78-20
• Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
• Publicly available information: means information that a licensee has a reasonable basis to believe is lawfully made available to the general public from federal, state, or local governmental records, widely distributed media, or disclosures to the general public that are required to be made by federal, state, or local law. See South Carolina Code 38-99-10
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
• Risk assessment: means the risk assessment that each licensee is required to conduct under this chapter. See South Carolina Code 38-99-10
• Secretary: means the Secretary of the United States Department of Health and Human Services. See South Carolina Code 38-93-10
• Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company. See South Carolina Code 38-1-20
• Service contract: includes a contract or agreement for a separately stated consideration for a specific duration to perform one or more of the following services:
  
  (a) the repair or replacement of tires and wheels on a motor vehicle damaged as a result of coming into contact with road hazards;
  
  (b) the removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without sanding, bonding, painting, or replacing a vehicle body panel;
  
  (c) the replacement of a motor vehicle key or key fob in the event that the key or key fob becomes inoperable, lost, or stolen; and
  
  (d) other services consistent with the provisions of this chapter approved by the director. See South Carolina Code 38-78-20
• Service of process: The service of writs or summonses to the appropriate party.
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• Solicit: means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. See South Carolina Code 38-1-20
• State: means the State of South Carolina. See South Carolina Code 38-99-10
• Statute: A law passed by a legislature.
• Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
• Subpoena: A command to a witness to appear and give testimony.
• Surplus lines insurance: means insurance in this State of risks located or to be performed in this State, permitted to be placed through a licensed broker, or a licensed broker as provided in § 38-45-10(8)(b)(ii), with a nonadmitted insurer eligible to accept the insurance, other than reinsurance, wet marine and transportation insurance, insurance independently procured, and life and health insurance and annuities. See South Carolina Code 38-1-20
• Terminate: means the cancellation of the relationship between an insurance producer and the insurer or the termination of a producer's authority to transact insurance. See South Carolina Code 38-1-20
• Testify: Answer questions in court.
• Testimony: Evidence presented orally by witnesses during trials or before grand juries.
• Third-party service provider: means a person not otherwise defined as a licensee that contracts with a licensee to maintain, process, store or otherwise is permitted access to nonpublic information through its provision of services to the licensee. See South Carolina Code 38-99-10
• Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
• Trustee: A person or institution holding and administering property in trust.
• Underwriting purposes: means :
  
  (a) rules for, or determination of, eligibility including enrollment and continued eligibility for benefits under the policy or coverage;
  
  (b) the computation of premium or contribution amounts under the policy or coverage;
  
  (c) the application of any preexisting condition exclusion under the policy or coverage; and
  
  (d) other activities related to the creation, renewal, or replacement of a policy or contract of health insurance coverage. See South Carolina Code 38-93-10