2017 South Carolina Code of Laws
Title 38 - Insurance
CHAPTER 90 - CAPTIVE INSURANCE COMPANIES
Section 38-90-100. Applicability of investment requirements; loans.
(A) An association captive insurance company, an industrial insured captive insurance company insuring the risks of an industrial insured group, and a captive insurance company formed as a risk retention group shall comply with the investment requirements contained in this title. Notwithstanding any other provision of this title, the director may approve the use of alternative reliable methods of valuation and rating.
(B) A pure captive insurance company, a captive reinsurance company, a special purpose captive insurance company, other than a special purpose captive insurance company formed as a risk retention group, and a sponsored captive insurance company are not subject to any restrictions on allowable investments contained in this title; 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.
(C) Only a pure captive insurance company or a sponsored captive insurance company may make loans to its parent company or affiliates and only by order of the director and must be evidenced by a note in a form approved by the director. Loans of minimum capital and surplus funds required by Sections 38-90-40(A) and 38-90-50(A) are prohibited.
HISTORY: 2000 Act No. 331, Section 1; 2001 Act No. 58, Section 10, eff May 29, 2001; 2002 Act No. 228, Section 14, eff May 1, 2002; 2006 Act No. 332, Section 17, eff June 1, 2006; 2014 Act No. 282 (S.909), Section 14, eff June 10, 2014.
Effect of Amendment
2014 Act No. 282, Section 14, in subsection (A), substituted "An association captive insurance company, an industrial insured captive insurance company insuring the risks of an industrial insured group, and a captive insurance company formed as a risk retention group" for "An association captive insurance company and an industrial insured captive insurance company insuring the risks of an industrial insured group"; in subsection (B), inserted "other than a special purpose captive insurance company formed as a risk retention group,"; and in subsection (C), inserted "or a sponsored captive insurance company", and substituted "only by order of the director" for "only upon the prior written approval of the director".
