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Rep. Gagnon says bill would treat insurer funding agreements as policy claims to attract investment
Summary
Representative Gagnon said S.619 would classify funding agreements as a class 2 claim in insurer liquidations—aligning South Carolina with other states and aiming to attract institutional investment. The committee gave the bill a favorable report by show of hands; the transcript does not include a numeric tally.
Representative Gagnon explained that funding agreements are contracts between insurers and institutional investors such as pension funds, and that current South Carolina practice treats those agreements differently than policy claims in liquidation. "This bill would allow funding agreements to be treated as a class 2, like claims under life insurance and annuity policies upon liquidation," he said, and framed the change as necessary to draw investment back to South Carolina companies.
Gagnon described the statutory order of priority in insurer liquidations and said there are 11 classes of claims under state statute; S.619 would move funding agreements into class 2 to bring treatment in line with other states.
There were no substantive objections on the record. The committee moved and seconded, then by show of hands gave S.619 a favorable report and referred it to the House floor; the transcript records the action but does not provide a roll-call tally.
