(A) The license of a captive insurance company to conduct an insurance business in this State may be suspended or revoked by the director for:
(1) insolvency or impairment of capital or surplus;
(2) failure to meet the requirements of Section 38-90-40;
(3) refusal or failure to submit an annual report, as required by Section 38-90-70, or any other report or statement required by law or by lawful order of the director;
(4) failure to comply with its own charter, bylaws, or other organizational document;
(5) failure to submit to examination or any legal obligation relative to an examination, as required by Section 38-90-80;
(6) refusal or failure to pay the cost of examination as required by Section 38-90-80;
(7) 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 or to its policyholders; or
(8) failure otherwise to comply with laws of this State.
(B) If the director finds, upon examination, hearing, or other evidence, that a captive insurance company has committed any of the acts specified in subsection (A) of this section, the director may suspend or revoke such license if the director considers it in the best interest of the public and the policy holders of the captive insurance company, notwithstanding any other provision of this title.
(C) In lieu of suspending or revoking the license of a captive insurance company, the director may impose fines as provided for in Section 38-2-10.
HISTORY: 2000 Act No. 331, Section 1; 2009 Act No. 28, Section 9, eff June 2, 2009; 2014 Act No. 282 (S.909), Section 13, eff June 10, 2014; 2018 Act No. 251 (H.4675), Section 1, eff May 18, 2018.
Effect of Amendment
2014 Act No. 282, Section 13, in subsection (C), substituted "In lieu of" for "Instead of".
2018 Act No. 251, Section 1, in (A)(2), deleted "or 38-90-50" following "Section 38-90-40".
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.