South Carolina General Assembly
115th Session, 2003-2004

Download This Version in Microsoft Word format

Bill 4959


Indicates Matter Stricken
Indicates New Matter


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

A 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.

----XX----

This web page was last updated on Thursday, June 25, 2009 at 10:00 A.M.