2017 South Carolina Code of Laws
Title 38 - Insurance
CHAPTER 90 - CAPTIVE INSURANCE COMPANIES
Section 38-90-240. Eligibility of licensed captive insurance companies for certificate of authority to act as insurer.
(A) The following may be participants in a sponsored captive insurance company formed or licensed pursuant to this chapter:
(1) an association, a corporation, limited liability company, partnership, trust, or other business entity; and
(2) a sponsor may be a participant in a sponsored captive insurance company.
(B) A participant does not need to be a shareholder of the sponsored captive insurance company or an affiliate of the company.
(C) A participant shall insure only its own risks through a sponsored captive insurance company, unless otherwise approved by the director.
(D) A risk retention group may not be either a sponsor or participant in a sponsored captive insurance company.
(E) A sponsored captive insurance company established pursuant to Section 38-90-210 may not be used to facilitate insurance securitizations, but may be established for the purpose of isolating the expenses and claims. Insurance securitization transactions utilizing protected cells are governed by Chapter 10 of this title.
HISTORY: 2000 Act No. 331, Section 1; 2014 Act No. 282 (S.909), Section 22, eff June 10, 2014.
Effect of Amendment
2014 Act No. 282, Section 22, rewrote the section.
