South Carolina S 210: Captive Insurance Companies

Bill Text

2025-2026 Bill 210 Text of Previous Version (May. 08, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 210

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

House RECEDED FROM ITS Amendment

May 8, 2025

S. 210

Introduced 
by Senator Turner 

S. Printed 5/8/25--H.

Read the first time April 9, 2025

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 38-90-10, RELATING TO DEFINITIONS, SO AS TO INCLUDE REFERENCES TO 
FOREIGN CAPTIVE INSURANCE COMPANIES AND TO ADD TERMS; BY AMENDING SECTION 
38-90-20, RELATING TO REQUIREMENTS OF CAPTIVE INSURANCE COMPANIES, SO AS TO 
AMEND MEETING REQUIREMENTS AND OUTLINE COMPONENTS OF A PLAN OF OPERATION; BY 
AMENDING SECTION 38-90-40, RELATING TO CAPITALIZATION REQUIREMENTS, SO AS TO 
GIVE DISCRETION TO THE DIRECTOR; BY AMENDING SECTION 38-90-60, RELATING TO 
INCORPORATION OPTIONS AND REQUIREMENTS, SO AS TO INCLUDE FOREIGN CAPTIVE 
INSURANCE COMPANIES; BY AMENDING SECTION 38-90-70, RELATING TO REPORTS, SO AS 
TO CHANGE A DEADLINE AND INCLUDE REFERENCES TO FOREIGN CAPTIVE INSURANCE 
COMPANIES; BY AMENDING SECTION 38-90-75, RELATING TO DISCOUNTING OF LOSS AND 
LOSS ADJUSTMENT EXPENSE RESERVES, SO AS TO ALLOW A SPONSORED CAPTIVE INSURANCE 
COMPANY TO FILE ONE ACTUARIAL OPINION; BY AMENDING SECTION 38-90-80, RELATING 
TO INSPECTIONS AND EXAMINATIONS, SO AS TO MAKE THE EXAMINATION OF SOME CAPTIVE 
INSURANCE COMPANIES OPTIONAL AND TO INCLUDE REFERENCES TO FOREIGN CAPTIVE 
INSURANCE COMPANIES; BY AMENDING SECTION 38-90-140, RELATING TO TAX PAYMENTS, 
SO AS TO AMEND REQUIRED TAX PAYMENTS FOR A SPONSORED CAPTIVE INSURANCE COMPANY; 
BY AMENDING SECTION 38-90-165, RELATING TO DECLARATION OF INACTIVITY, SO AS TO 
ALLOW FOR THE SUBMISSION OF A WRITTEN APPROVAL; BY AMENDING SECTION 38-90-175, 
RELATING TO THE CAPTIVE INSURANCE REGULATORY AND SUPERVISION FUND CREATED, SO 
AS TO INCREASE THE ALLOWED TRANSFER OF COLLECTED TAXES; AND BY AMENDING SECTION 
38-90-215, RELATING TO PROTECTED CELLS, SO AS TO REMOVE LICENSING REQUIREMENTS.

 Amend Title To Conform

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

SECTION 1. Section 38-90-10 (1), (6), and (21) of the S.C. Code is 
amended to read:

 (1) "Alien or 
foreign captive insurance company" means an insurance 
company or protected cell, or its equivalent, of an insurance company 
formed to write insurance business for its parents and affiliates and licensed 
pursuant to the laws of an alien or foreign jurisdiction 
which imposes statutory or regulatory standards in a form acceptable to the 
director on companies transacting the business of insurance in such 
jurisdiction, but may not include a corporation controlled 
by an alien adversary.

 (6) 
"Branch captive insurance company" means an alien or 
foreign captive insurance company licensed by the director to transact 
the business of insurance in this State through a business unit with a 
principal place of business in this State.

 (21) 
"Participant" means an entity as defined in Section 38-90-24038-90-225, and any affiliates of that entity, that are 
insured by a sponsored captive insurance company, where the losses of the 
participant are limited through a participant contract to the assets of a 
protected cell.

SECTION 2. Section 38-90-10 of the S.C. Code is amended by adding:

 (34) "Alien adversary" means any alien 
government or nongovernment person determined by the United States Secretary of 
Commerce to have engaged in a long-term pattern or serious instances of conduct 
significantly adverse to the national security of the United States or the 
security and safety of United States citizens.

 (35) "Corporation 
controlled by an alien adversary" means a legal entity engaged in commerce 
that:

 (a) 
is wholly owned by an alien adversary;

 (b) 
has an alien adversary as a dominant shareholder, directly or indirectly;

 (c) 
is wholly owned by a citizen of an alien adversary; or

 (d) 
has one or a number of citizens of an alien adversary whose cumulative 
ownership is as a dominant shareholder.

 (36) "Dominant 
shareholder" means the single owner of ten percent or more of a legal entity 
engaged in commerce's stock, securities, or other indicia of ownership; or 
multiple owners of twenty percent or more of a legal entity engaged in 
commerce's stock, securities, or other indicia of ownership.

SECTION 3. Section 38-90-20 of the S.C. Code is amended to read:

 Section 38-90-20. (A) 
A captive insurance company, when permitted by its articles of incorporation, 
articles of organization, operating agreement, or charter, may apply to the 
director for a license to provide any and all insurance, except workers' 
compensation insurance written on a direct basis, authorized by this title; however:

 (1) 
a pure captive insurance c