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Captive Insurance Division

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1. Does South Carolina require annual board meetings?

Yes, our captives must hold at least one board of directors meeting each year in this state as required by SC Code §38-90-20(B)(2). A majority of the directors must be physically present at that meeting. The first board meeting must take place within the first 12 months of licensing.

2. Does South Carolina require a resident director?

Yes, South Carolina requires at least 1 resident director.

3. Where can I find information on credit for reinsurance in the SC Code of Laws?

Pursuant to §38-90-110 of the SC Code of Laws and Section 9 of SC Regulation 69-60, captives may take credit for reserves ceded to reinsurers complying with the provisions of Sections 38-9-200, 38-9-210, and 38-9-220.

Reinsurers meeting specific criteria in §38-9-200 can be authorized in South Carolina. There are no collateralization requirements for authorized reinsurers or Lloyd’s of London Syndicates. The authorized reinsurers are listed on the SCDOI’s website under the following lists:

• List of Approved Assuming Reinsurers in South Carolina (AARs)
• List of Approved Unlicensed Reinsurers in South Carolina (AURs)
• List of Insurance Companies and HMOs Authorized to Transact Business Within the State of South Carolina

For unauthorized reinsurers, collateral must be provided in the forms prescribed under §38-9-210.

Industrial insured captives may not take credit for reserves ceded to a reinsurer if the reinsurer is not in compliance with Sections 38-9-200, 38-9-210, and 38-9-220. All other captives may not take credit for reserves ceded to a reinsurer if the reinsurer is not in compliance with Sections 38-9-200, 38-9-210, and 38-9-220, unless specific approval has been granted for this credit or the reinsurer by order of the director.

4. How often are captive examinations required by South Carolina?

Within 3 years of licensure and and then as needed for all captives other than Risk Retention Groups.  Risk Retention Groups will be examined once every 5 years.

5. When are captive filings due?

A list of our filing deadlines can be found at Captive Filing Deadlines.

6. Do I need to submit hard copy or electronic filings?

The RRG and SPFC Statements are required both electronically and in hard copy. All other filings only need to be submitted electronically unless otherwise requested by the department.

7. How often should proforma projections be filed and what should be included?

Financial projections covering a 5 year period should be submitted with the initial application. Projections covering subsequent 3-5 year periods are required once the initial proformas either expire or are materially different than actual results, most likely due to significant changes to the approved plan of operations. The financial projections should include a balance sheet and income statement along with assumptions used in creating the proformas.

8. How do I redomesticate to South Carolina?

Many redomestications follow the same formation process as new captives, with an application, business plan, and other required filings. However, you should first contact our Assistant Director of Captives, Greg Delleney, if you are thinking of redomesticating. Captives redomesticating to SC are treated on a case-by-case basis and the typical process may not be required under certain scenarios.

9. What are the minimum capitalization requirements for South Carolina captives?

Minimum capitalization requirements can be found on the Types of Captives page.

10. What are the fees and rates in South Carolina?

Captive fees and rates can be found on the Fees & Rates page.

11. Does South Carolina have any investment restrictions?

Yes, RRGs and association captives must comply with the provisions of SC Code §38-12.

SPFCs generally follow the investment restrictions of their ceding state’s domicile.

All other captives are not subject to any restrictions on allowable investments but we may prohibit or limit an investment that threatens the solvency or liquidity of the company. The department currently prohibits the use of auction rate securities and guaranteed interest contracts.

12. How do I request a Certificate of Good Standing?

Send a written request to Captive Mail with the captive’s name and the number of certificates you need. We will send them to you in hard-copy along with an invoice. The cost is $15 per certificate.

13. How do I become an approved service provider in South Carolina?

You just need to fill out the appropriate application on the Apply to be a Service Provider page and submit to Captive Mail.

14. How should I submit a request to change my captive’s business plan?

All requests should be submitted to Captive Mail with a copy to the business plan analyst, Eva Conley.

At a minimum, requests should include an executive summary explaining the details of the plan change and draft copies of any affected policies, agreements, etc. Depending on the type and materiality of the change, other documentation may be required such as revised financial proformas, most recent unaudited financials, parent’s financials, documentation of board approval, etc.

15. Where can I find the most up-to-date version of the SC Code of Laws or SC Code of Regulations?

Our site provides links to online versions of the Code and Regulations, however these are the unannotated Code and Regulations provided as a service to the public. While every effort was made to ensure the accuracy and completeness of the unannotated South Carolina Code and Regulations, the unannotated versions are not official.

Only the current published volumes of the South Carolina Code of Laws Annotated and any pertinent acts and joint resolutions contain the official version. These can be purchased at Thomson Reuters.

16. How do I pay premium taxes?

Premium taxes are due by March 1st and you can pay them by visiting the South Carolina Department of Insurance Taxation page.

17. What information related to captive insurance companies is kept confidential by the SC Department?

Almost all of the information pertaining to captive insurance companies is kept confidential by the department. Notable exceptions are in cases where a subpoena has been issued, discovery during a civil suit, and under certain circumstances information may be shared with another public official having jurisdiction over the regulation of insurance.