A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 38-21-225, RELATING TO THE ANNUAL GROUP CAPITAL CALCULATION FILING DEADLINE IN THE INSURANCE HOLDING COMPANY REGULATORY ACT, SO AS TO ESTABLISH THE DEADLINE AS MAY FIRST.

 

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

 

SECTION 1.  Section 38-21-225(B) of the S.C. Code is amended to read:

 

    (B) Except as provided below, the ultimate controlling person of every insurer subject to registration must file concurrently with the registration an annual group capital calculation as directed by the lead state commissioner.  The report must be completed in accordance with NAIC Group Capital Calculation instructions, which may permit the lead state commissioner to allow a controlling person that is not the ultimate controlling person to file the group capital calculation.  The report must be filed with the lead state commissioner of the insurance holding company system as determined by the director in accordance with the procedures within the Financial Analysis Handbook adopted by the NAIC before May first.  The following insurance holding company systems are exempt from filing the group capital calculation:

       (1) an insurance holding company system that has only one insurer within its holding company structure, that only writes business in its domestic state, and assumes no business from any other insurer;

       (2) an insurance holding company system that is required to perform a group capital calculation specified by the United States Federal Reserve Board.  The lead state commissioner must request the calculation from the Federal Reserve Board under the terms of information-sharing agreements in effect.  If the Federal Reserve Board cannot share the calculation with the lead state commissioner, the insurance holding company system is not exempt from the group capital calculation filing;

       (3) an insurance holding company system whose non-U.S. group-wide supervisor is located within a reciprocal jurisdiction as described in Section 38-9-200 that recognizes the U.S. state regulatory approach to group supervision and group capital;

       (4) an insurance holding company system:

           (a) that provides information to the lead state that meets the requirements for accreditation under the NAIC financial standards and accreditation program, either directly or indirectly through the group-wide supervisor, who has determined such information is satisfactory to allow the lead state to comply with the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook, and

           (b) whose non-U.S. group-wide supervisor that is not in a reciprocal jurisdiction recognizes and accepts, as specified by the director in regulation, the Group Capital Calculation as the worldwide group capital assessment for U.S. insurance groups who operate in that jurisdiction.

       (5) Notwithstanding the provisions of this subsection, a lead state commissioner must require the group capital calculation for U.S. operations of any non-U.S.-based insurance holding company system where, after any necessary consultation with other supervisors or officials, it is deemed appropriate by the lead state commissioner for prudential oversight and solvency monitoring purposes or for ensuring the competitiveness of the insurance marketplace.

       (6) Notwithstanding the exemptions from filing the group capital calculation stated in this section, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation or to accept a limited group capital filing or report in accordance with criteria as specified by the director in regulation.

       (7) If the lead state commissioner determines that an insurance holding company system no longer meets one or more of the requirements for an exemption from filing the group capital calculation under this section, the insurance holding company system must file the group capital calculation at the next annual filing date unless given an extension by the lead state commissioner based on reasonable grounds shown.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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