SC Code of Laws

The following sections of the South Carolina Code of Laws are commonly referred to as the captive statutes.  They are excerpted from Title 38 - Insurance and are the principal provisions of law that apply to captive insurance companies licensed in our state.

These are for your information only.  The online version of the South Carolina Code can be found here.  The authoritative versions are available in print from Thomson Reuters.

Chapter 90 - Captive Insurance Companies*

Section Description

10

Definitions

20

Licensing; required information and documentation; fee; renewal

30

Adoption of name


35

Confidential information; disclosure by the director


40

Capitalization requirements; security requirements for branch captive insurance companies; restriction on payment of dividends


45

Minimum capitalization or reserves


50

Free surplus requirements; restriction on payment of dividends


55

Incorporation of a captive reinsurance company


60

Incorporation options and requirements


70

Reports


75

Discounting of loss and loss adjustment expense reserves


80

Inspections and examinations; confidentiality of reports; limitations applicable to branch captive insurance companies; application of general provisions


90

Suspension or revocation of license


100

Applicability of investment requirements; loans


110

Reinsurance; effect on reserves


120

Requirement to join ratings organization


130

Participation in plan, pool, association, or guaranty or insolvency fund


140

Tax payment; rates; “common ownership and control" defined


145

Annual captive reinsurance tax


150

Rules, regulations, and orders


160

Application of provisions of title; director discretion; exemption of special purpose captive insurance companies


175

Captive Insurance Regulatory and Supervision Fund created; disbursements


180

Applicability of provisions relating to insurance reorganizations, receiverships, and injunctions; sponsored captive insurance company assets and capital provisions


185

Management of assets of captive reinsurance company


190

Regulations establishing standards to ensure risk management control by parent company; temporary pending promulgation of regulations

200

Conversion of certain stock, mutual corporations, or limited liability companies into reciprocal insurers; plan for conversion


210

Formation of sponsored captive insurance company; establishing protected cells


220

Requirements applicable to sponsors


230

Participants in sponsored captive insurance companies


235

Terms and conditions for a protected cell insurance companies apply to sponsored captive insurance companies; exception


240

Eligibility of licensed captive insurance company for certificate of authority to act as insurer

*Please note the table above does not include all sections of Chapter 90 (e.g. SPFC and Coastal Captive sections are omitted)

Chapter 87 - Risk Retention Groups and Purchasing Groups

Section Description

10

Purpose

20

Definitions


30

Chartering of risk retention groups; submission of plan of operation; revisions of plan; information required


40

Out of state chartered risk retention groups; requirements for doing business in state


50

Participation by risk retention groups and purchasing groups in state insurance insolvency guaranty fund


70

Purchasing group and insurer subject to all applicable state laws; exceptions


80

Purchasing group; notice of intent to do business; notice of changes; designation of commissioner as agent for service; exceptions; additional information


90

Purchase of insurance from non state chartered group or non state admitted insurer; notice requirements; deductible or self insured retention not permitted; aggregate limits on purchase


100

Premium taxes


110

Powers of Chief Insurance Commissioner; applicable procedures; injunctive relief


120

License required to solicit, negotiate or procure liability insurance; notice to insured


130

U.S. District Court injunctions enforceable in state courts


140

Rules and regulations