(A) At the cessation of business of a SPFC following termination or cancellation of a SPFC contract and the redemption of any related securities issued in connection with them, the authority granted by the director expires or, in the case of retiring and surviving protected cells, be modified, and the SPFC is no longer authorized to conduct activities unless and until a new or modified license is issued pursuant to a new filing pursuant to the provisions of Section 38-90-440 or as agreed by the director.
(B) The director may suspend or revoke the license of a SPFC in this State for:
(1) insolvency;
(2) failure to meet the provisions of Section 38-90-460, 38-90-480(D), or 38-90-580;
(3) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public, the holders of the securities, or policyholders of the SPFC; or
(4) failure to otherwise comply in any material respect with applicable laws of this State.
(C) If the director finds, upon examination or other evidence, that a SPFC has committed any of the acts specified in subsection (B), the director may impose the penalties provided in Section 38-2-10 if the director considers it in the best interest of the public, the holders of the securities, and the policyholders of the SPFC.
(D) Unless the grounds for suspension or revocation relate only to the financial condition or soundness of the SPFC or to a deficiency in its assets, the director shall notify the SPFC not less than thirty days before revoking its authority to do business in this State and specify in the notice the particulars of the alleged violation of the law or its organizational documents or grounds for revocation and a proper opportunity must be offered the SPFC to be heard before the Administrative Law Court.
HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004; 2006 Act No. 332, Section 26, eff June 1, 2006.
Structure South Carolina Code of Laws
Chapter 90 - Captive Insurance Companies
Section 38-90-10. Definitions.
Section 38-90-20. Licensing; required information and documentation; fee; renewal.
Section 38-90-30. Adoption of name.
Section 38-90-35. Discovery of confidential information in civil actions.
Section 38-90-40. Capitalization requirements.
Section 38-90-60. Incorporation options and requirements.
Section 38-90-75. Discounting of loss and loss adjustment expense reserves.
Section 38-90-90. Suspension or revocation of license.
Section 38-90-100. Applicability of investment requirements.
Section 38-90-110. Reinsurance; effect on reserves.
Section 38-90-120. Requirement to join ratings organization.
Section 38-90-130. Participation in plan, pool, association, or guaranty or insolvency fund.
Section 38-90-140. Tax payment; rates; "common ownership and control" defined.
Section 38-90-150. Rules, regulations, and orders.
Section 38-90-165. Declaration of inactivity.
Section 38-90-175. Captive Insurance Regulatory and Supervision Fund created; disbursements.
Section 38-90-210. Formation of sponsored captive insurance company; establishing protected cells.
Section 38-90-215. Protected cells.
Section 38-90-220. Requirements applicable to sponsors.
Section 38-90-225. Participants in a sponsored captive insurance company.
Section 38-90-230. Protected cell assets; availability to creditors.
Section 38-90-235. Repealed by 2014 Act No. 282, Section 24, eff June 10, 2014.
Section 38-90-250. Certificate of authority.
Section 38-90-420. Definitions.
Section 38-90-430. Relation to other Title 38 provisions.
Section 38-90-450. Organization requirements; privileges and restrictions.
Section 38-90-460. Capitalization.
Section 38-90-470. Authorized contracts.
Section 38-90-480. Protected cells.
Section 38-90-485. Effect of creation of protected cell; naming; management of assets.
Section 38-90-490. Issuance of securities.
Section 38-90-500. Swap agreements and other forms of asset management agreements.
Section 38-90-510. Authority to enter into contracts; contents.
Section 38-90-520. Requirements and guidelines for asset management.
Section 38-90-530. Trust agreements for assets held in trust or pledged to secure obligations.
Section 38-90-540. Payment of dividends.
Section 38-90-560. Examinations by director; confidentiality of examination reports.
Section 38-90-580. Tax rates and payment schedules.
Section 38-90-600. Conservation, rehabilitation, or liquidation of SPFC.
Section 38-90-610. Disclosure of information by director.