Frequently Asked Questions

Yes, beginning the year immediately following the issuance of its license, a South Carolina captive must annually hold at least one board of directors meeting (or meeting of the managing board for LLCs) at which a quorum is physically present in this State, provided that at least two (2) board members must be physically present in this State. These requirements are set forth in S.C. Code §38-90-20(B)(2). 

Yes, South Carolina requires at least 1 resident director. 

Specifically, S.C. Code §38-90-60(H), (I), and (J) provides that: 

• In the case of a captive insurance company formed as a corporation, a mutual insurer, or a nonprofit corporation, at least one of the members of the board of directors of a captive insurance company incorporated in this State must be a resident of this State.
• In the case of a captive insurance company formed as a limited liability company, at least one of the managers of the captive insurance company must be a resident of this State. 
• In the case of a captive insurance company formed as a reciprocal insurer, at least one of the members of the subscribers' advisory committee must be a resident of this State.

• List of Approved Assuming Reinsurers in South Carolina (AARs)
• List of Approved Unlicensed Reinsurers in South Carolina (AURs)
• List of Insurance Companies and HMOs Authorized to Transact Business Within the State of South Carolina

The Department may examine risk retention groups and industrial insured captives at least once every five years and whenever the Director determines it to be prudent under S.C. Code §38-90-80(A)(1). A captive insurance company that is not a risk retention group or industrial insured captive may be examined at the discretion of the Director according to S.C. Code §38-90-80(A)(2).  

All filings only need to be submitted electronically unless otherwise requested by the department.

Financial projections covering a 5 year period should be submitted with the initial application. These proforma projections should include the expected and adverse scenarios. Projections covering subsequent 3-5 year periods are required once the initial proformas either expire or are materially different than actual results, most likely due to significant changes to the approved plan of operations. The financial projections should include a balance sheet and income statement along with assumptions used in creating the proformas.

Many redomestications follow the same formation process as new captives, with an application, business plan, and other required filings. However, you should first contact captivemail@doi.sc.gov if you are thinking of redomesticating. Captives redomesticating to SC are treated on a case-by-case basis and the typical process may not be required under certain scenarios.

Yes, according to S.C. Code §38-90-100(A), association captives, industrial insured captives, and risk retention groups shall comply with the investment requirements contained in S.C. Code §38-12-10 et seq. 

A pure captive, a special purpose captive (other than a risk retention group formed as a special purpose captive), and a sponsored captive are not subject to any restrictions on allowable investments contained in Title 38 of the S.C. Code of Laws. However, the Director may request a written investment plan and may prohibit or limit an investment that threatens the solvency or liquidity of the company. The Department currently prohibits the use of auction rate securities and guaranteed interest contracts.

Special purpose financial captives (SPFCs) generally follow the investment restrictions of their ceding state’s domicile. A SPFC's investment strategy should reflect and take into account the liquidity of assets and the reasonable preservation, administration, and asset management of such assets relative to the risks associated with the SPFC contract and the insurance securitization transaction as required by S.C. Code §38-90-440.

Send a written request to Captive Mail with the captive’s name and the effective date of the certificate needed. We will send them to you electronically. There is no fee for electronic certificates.

All requests should be submitted directly to captivemail@doi.sc.gov. 

At a minimum, requests should include a cover letter containing an executive summary explaining the details of the plan change and draft copies of any affected policies, agreements, etc. In addition, a red-lined copy of the business plan should be submitted reflecting the changes. Depending on the type and materiality of the change, other documentation may be required such as revised financial proformas, most recent unaudited financials, parent’s financials, documentation of board approval, etc.

Typical turnaround time for these requests is 5 business days, provided we receive all necessary information with the request.

Our site provides links to online versions of the South Carolina Code of Laws and Regulations, however these are the unannotated Code and Regulations provided as a service to the public. While every effort was made to ensure the accuracy and completeness of the unannotated South Carolina Code and Regulations, the unannotated versions are not official.

Only the current published volumes of the South Carolina Code of Laws Annotated and any pertinent acts and joint resolutions contain the official version. These can be purchased at Thomson Reuters.

Premium taxes are due by March 1st and you can pay them by visiting the South Carolina Department of Insurance Taxation Page.