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H. 4959
STATUS INFORMATION
General Bill
Sponsors: Rep. Tripp
Document Path: l:\council\bills\dka\3781dw04.doc
Introduced in the House on March 16, 2004
Currently residing in the House Committee on Labor, Commerce and Industry
Summary: Workers' compensation coverage offered through a captive insurance company
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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3/16/2004 House Introduced and read first time HJ-33
3/16/2004 House Referred to Committee on Labor, Commerce and Industry
HJ-33
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 38-90-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSING REQUIREMENTS FOR A CAPTIVE INSURANCE COMPANY, SO AS TO AUTHORIZE EMPLOYERS WHO WOULD OTHERWISE QUALIFY AS A SELF-INSURER TO OFFER WORKERS' COMPENSATION COVERAGE DIRECTLY THROUGH A CAPTIVE INSURANCE COMPANY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-90-20(A) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:
"(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 do any and all insurance, except workers' compensation insurance, authorized by this title; however:
(1) a pure captive insurance company may not insure any risks other than those of its parent, affiliated companies, controlled unaffiliated business, or a combination of them;
(2) an association captive insurance company may not insure any risks other than those of the member organizations of its association and their affiliated companies;
(3) an industrial insured captive insurance company may not insure any risks other than those of the industrial insureds that comprise the industrial insured group and their affiliated companies;
(4) in general, a special purpose captive insurance company only may insure the risks of its parent. Notwithstanding any other provisions of this chapter, a special purpose captive insurance company may provide insurance or reinsurance, or both, for risks as approved by the director;
(5) a captive insurance company may not provide personal motor vehicle or homeowner's insurance coverage or any component of these coverages;
(6) a captive insurance company may not accept or cede reinsurance except as provided in Section 38-90-110;
(7) a captive insurance company may offer workers' compensation coverage only if its parent could otherwise qualify as a self-insurer under South Carolina workers' compensation statutes. The director, by bulletin or regulation, may establish or outline additional criteria related to the offer of this coverage."
SECTION 2. This act takes effect upon approval by the Governor.
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