South Carolina S 220: Insurance Holding Company Regulatory Act

Bill Text

2025-2026 Bill 220 Text of Previous Version (Apr. 30, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 220

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

Committee Report

April 30, 2025

S. 220

Introduced 
by Senator Cromer 

S. Printed 4/30/25--H.

Read the first time April 3, 2025

________

The committee on House Labor, 
Commerce and Industry

To whom was referred a Bill (S. 220) to amend 
the South Carolina Code of Laws by amending Section 38-21-10, relating to 
definitions, so as to define terms; by amending Section 38-21-30, relating to, etc., 
respectfully

Report:

That they have duly and carefully considered 
the same, and recommend that the same do pass:

WILLIAM HERBKERSMAN for 
Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill amends Chapter 21 of Title 38 of 
South Carolina law, defining various aspects of insurance holding companies and 
amending regulatory standards they are subject to. This bill makes conforming 
changes to comply with NAIC's requirements of accredited state departments of 
insurance oversight of insurance holding companies. In December 2024, the NAIC 
adopted these changes as part of their accreditation standards, effective 
January 1, 2026. 

DOI regulates and monitors insurers in 
South Carolina. This bill effectively formalizes the existing standards at DOI 
and allows DOI to maintain their accreditation with the NAIC. DOI has indicated 
that the changes in this bill would increase the workload on their insurance 
analysts, but it is expected to manage this workload with existing staff and 
resources. Therefore, this bill will have no expenditure impact to the agency. 

State 
Revenue

This bill has no revenue impact; however, 
DOI noted that the failure to conform to accreditation standards may 
potentially lead to the loss of domiciled insurers willing to participate in 
the state's insurance market and fewer new firms entering the market. DOI 
stated the impact to premiums, and thereby, premium tax revenue due to insurers 
leaving the state's insurance market could be substantial. 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 38-21-10, RELATING TO DEFINITIONS, SO AS TO DEFINE TERMS; BY AMENDING 
SECTION 38-21-30, RELATING TO THE AUTHORITY OF INSURERS TO INVEST IN SECURITIES 
OF SUBSIDIARIES, SO AS TO INCLUDE HEALTH MAINTENANCE ORGANIZATIONS; BY AMENDING 
SECTION 38-21-70, RELATING TO CONTENTS OF STATEMENTS, SO AS TO FURTHER EXPLAIN 
THE REQUIREMENTS OF REPORTING THE DESCRIPTION OF TRANSACTIONS; BY AMENDING 
SECTION 38-21-90, RELATING TO APPROVAL OF COMMISSIONER OF ACQUISITION OF 
CONTROL, SO AS TO REQUIRE THE PERSON ACQUIRING CONTROL OF A DOMESTIC INSURER TO 
MAINTAIN OR RESTORE CAPITAL; BY AMENDING SECTION 38-21-160, RELATING TO 
INFORMATION WHICH NEED NOT BE DISCLOSED IN REGISTRATION STATEMENTs, SO AS TO 
DESIGNATE THAT THE DEFINITION DOES NOT APPLY FOR OTHER PURPOSES; BY AMENDING 
SECTION 38-21-225, RELATING TO THE ANNUAL ENTERPRISE RISK REPORT, SO AS TO 
IDENTIFY EXEMPTIONS FOR FILING THE GROUP CAPITAL CALCULATION AND TO REQUIRE 
FILING RESULTS OF THE LIQUIDITY STRESS TEST FOR SOME INSURERS; BY AMENDING 
SECTION 38-21-250, RELATING TO STANDARDS FOR TRANSACTIONS WITHIN INSURANCE 
SYSTEMS, SO AS TO OUTLINE RESPONSIBILITIES OF THE DIRECTOR, AMONG OTHER THINGS; 
AND BY AMENDING SECTION 38-21-290, RELATING TO CONFIDENTIAL INFORMATION, SO AS 
TO REQUIRE THE DIRECTOR TO KEEP GROUP CAPITAL CALCULATIONS, GROUP CAPITAL RATIO 
AND LIQUIDITY STRESS TEST RESULTS, AND SUPPORTING DISCLOSURES CONFIDENTIAL; AND 
TO ADD REFERENCES TO THIRD-PARTY CONSULTANTS.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 38-21-10 of the S.C. Code is amended to read:

 Section 
38-21-10. In this chapter, unless the context 
otherwise requires:

 (1) 
An "affiliate" of, or person "affiliated" with, a specific person means a 
person who directly, or indirectly through one or more intermediaries, 
controls, is controlled by, or is under common control with the person 
specified.

 (2) 
The term "control" (including the terms "controlling," "controlled by," and 
"under common control with") means the possession, direct or indirect, of the 
power to direct or cause the direction of the management and policies of a 
person, whether through the ownership of voting securities, by contract other 
than a commercial contract for goods or nonmanagement services, or otherwise, 
unless the power is the result of an official position with or corporate office 
held by the person. Control is presumed to exist if any person, directly, or 
indirectly, owns, controls, holds with the power to vote, or h