MASC Ordinance

AN ORDINANCE

Amending The Business License Ordinance

Provisions For Insurance Companies and

For Brokers For Non-admitted Fire and Casualty Insurers

      BE IT ORDAINED by the Mayor and Council of the City/Town of ___________, that the

Business License Ordinance is amended by changing the provisions for insurance companies and

for brokers for non-admitted fire and casualty insurers to read as follows:

SECTION 1.

SIC         NAICS

CODE or CODE

63           5241         Insurance Companies: Except as to fire insurance, gross premiums means

gross premiums collected (1) on policies on property or risks located in the

municipality, and (2) on policies, wherever the insured property or risk is

located, that are sold, solicited, negotiated, taken, transmitted, received,

delivered, applied for, produced or serviced by the insurance company's

office located in the municipality or by the insurance company s employee

doing business within the municipality or by the office of the insurance

company s licensed or appointed producer (agent) located in the municipality

or by the insurance company s licensed or appointed producer (agent) doing

business within the municipality. As to fire insurance, gross premiums

means gross premiums (1) collected in the municipality, and/or (2) realized

from risks located within the limits of the municipality.

Gross premiums shall include new and renewal business without deductions

for any dividend, credit, return premiums or deposit.

Solicitation for insurance, receiving or transmitting an application or policy,

examination of a risk, collection or transmitting of a premium, adjusting a

claim, delivering a benefit, or doing any act in connection with a policy or

claim shall constitute doing business within the municipality whether or not

an office is maintained therein. A premium collected on property or a risk

located within the municipality shall be deemed to have been collected within

the municipality. Declining rates shall not apply.

631-632 52411         Life, Health and Accident ..................................0.75% of Gross Premiums

633-635 524126       Fire and Casualty....................................................2% of Gross Premiums

636 524127             Title Insurance.......................................................2% of Gross Premiums

6411 524210           Brokers for Fire and Casualty Insurers - Non-admitted:

As to brokers for non-admitted fire and casualty insurers, gross

premiums means gross premiums collected by or for fire and

casualty insurers not licensed in South Carolina (1) on policies on

property or risks located in the municipality and/or (2) on policies,

wherever the insured property or risk is located, that are sold,

solicited, negotiated, taken, transmitted, received, delivered,

Revised 10/2004

applied for, produced or serviced by a broker located in or doing

business within the municipality. Brokers shall provide, with their

payment of the tax, a copy of the report required by the State

Department of Insurance showing the locations of the property or

risks insured. ............................................... 2% of Gross Premiums

[Premiums for non-admitted business are not included in broker's

gross commissions for other business. Declining rates shall not

apply.]

SECTION 2.

Notwithstanding any other provisions of this ordinance, license taxes for insurance companies

and brokers for non-admitted fire and casualty insurers shall be payable on or before May 31 in

each year without penalty. The penalty for delinquent payments shall be 5% of the tax due per

month, or portion thereof, after the due date until paid.

SECTION 3.

Any exemptions in the business license ordinance for income from business in interstate

commerce are hereby repealed. Gross income from interstate commerce shall be included in the

gross income for every business subject to a business license tax.

SECTION 4.

The Agreement with the Municipal Association of South Carolina, pursuant to S. C. Code

section 5-7-300, for collection of current and delinquent license taxes from insurance companies

and brokers for non-admitted fire and casualty insurers shall continue in effect.

All ordinances in conflict with this ordinance are hereby repealed.

This ordinance shall be effective on the date of final reading.

_________________________________

Mayor

ATTEST:

_________________________________

Clerk

First reading: ____________

Final reading:____________

Revised 10/2004