S.C. Code Ann. § 38-63-220 — SC Code / Title 38 / Chapter 63 / Article 3 / Section 38-63-220
SECTION 38-63-220. Required policy provisions.
Status: in_force

All individual life insurance policies must contain in substance the following: (a) a brief and correct description of its benefits on the lower portion of its first page and an identifying form number on the lower left hand corner of its first page; (b) a provision stating clearly, understandably, and conspicuously on the first page that the policyholder is permitted to return the policy within a period of not less than ten days of its delivery to the policyholder. If replacement of insurance is involved, the policyholder is permitted to return the policy within a period of not less than twenty days of its delivery to the policyholder. If the policy was solicited by a direct response insurer rather than through a licensed insurance agent, the provision must state that the policyholder is permitted to return the policy within a period of not less than thirty-one days. The entire premium paid by the policyholder must be returned immediately to the policyholder; (c) a provision stating who is authorized by the insurer to waive, alter, or change any of the terms or conditions of the policy. It may also state that no agent has the power or authority to waive, change, or alter any of the terms or conditions of the policy; (d) a provision that the policy and any rider or supplemental benefits attached to the policy are incontestable as to the truth of the application for insurance and to the representations of the insured individual after they have been in force during the lifetime of the insured for a period of two years from their date of issue. Any rider or supplemental benefits subsequently attached to the policy are incontestable as to the truth of the application for the rider or supplemental benefits and to the representations of the insured individual after they have been in force during the lifetime of the insured for a period of two years from their date of issue. If an insurer initiates a mutual rescission or institutes proceedings to vacate a policy on the ground of the falsity of the representations contained in the application for the policy, the proceedings or mutual rescission must commence within the time permitted in this subsection; (e) a provision that if it is found that the age or sex of the insured, or of any individual considered in determining the premium, has been misstated, any amount payable or benefit accruing under the policy is that as the premium would have purchased according to the correct age or sex; (f) a provision that when a policy becomes a claim by the death of the insured, settlement must be made upon receipt of proof of death. When a policy provides for payment of its proceeds in a lump sum upon the death of the insured and the insurer fails to pay the proceeds within thirty days of submission of proof of death and all necessary claim papers needed in order to pay the claim properly, the payment must include interest at the legal rate of interest from the date of death of the insured until the date the claim is paid; (g) a provision stating how the beneficiary is designated and how the beneficiary may be changed; (h) a provision stating the amount of premium and the time and manner payable. If the death of the insured occurs during a period for which the premium has been paid, the insurer shall add to the policy proceeds a refund of any premium paid for any period beyond the date of death of the insured, provided such premium was not waived under any policy provision for waiver of premium; (i) a provision that the insured is entitled to a grace period of not less than thirty-one days within which the payment of any premium after the first may be made. During the grace period, the policy continues in full force. If a claim arises under the policy during the grace period, the amount of any premium due or overdue may be deducted from any amount payable under the policy in settlement; (j) a provision that the policy may be reinstated at any time within three years after the date of default in the payment of any premium, unless the policy has been surrendered for its cash value or unless the extended term insurance, if any, has expired, upon evidence of insurability satisfactory to the insurer and the payment of all overdue premiums and payment (or within the limits permitted by the then cash value of the policy reinstatement) of any other indebtedness to the insurer upon the policy with interest as to both premiums and indebtedness at a rate not exceeding eight percent a year compounded annually. However, acceptance of all or any part of a premium more than thirty days in arrears by the agent or company without requiring reinstatement application continues the policy in force without any lapse of coverage; (k) a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, that will accrue on the policy anniversary or other dividend date specified in the policy. Except as provided in this section, any dividend becoming payable is, at the option of the party entitled to elect the option, either payable in cash or applied to any one of the other dividend options as may be provided by the policy. If other dividend options are provided, the policy must further state which option is automatically effective if the party has not elected some other option. If a policy specifies a period within which the other option may be elected, this period must be not less than thirty days following the date on which the dividend is due and payable. If a participating policy provides that the benefit under any paid-up nonforfeiture provision is to be participating, it may provide that any divisible surplus becoming payable or apportioned while the insurance is in force under the nonforfeiture provision will be applied in the manner set forth in the policy; (l) a provision that after three full years' premiums have been paid, and after the policy has a cash surrender value, and while no premium is in default beyond the grace period for payment, the insurer will loan on the execution of a proper note or loan agreement by the owner of the policy, or on proper assignment of the policy and on the sole security of the policy, at the option of the owner of the policy, an amount not exceeding the cash value of the policy at the end of the current policy year including any dividend additions to the policy. The company may deduct from the loan value or from the proceeds of the loan any existing indebtedness on or secured by the policy not already deducted in determining the cash value, including interest due or accrued, and any unpaid balance of the premium for the current policy year, and may collect interest in advance of the loan through the end of the current policy year. The policy must reserve to the insurer the right to defer the granting of a loan, other than for the payment of any premium to the insurer, for six months after application for the loan. The policy may also provide that if interest on any indebtedness is not paid when due, it must then be added to the existing indebtedness and bear interest at the same rate, and that if and when the total indebtedness on the policy, including interest due or accrued, equals or exceeds the amount of the loan value of the policy, then the policy terminates, but not until at least thirty days' notice has been mailed by the insurer to the last known address of the insured or policy owner and to that of any assignee of record on file with the insurer. The policy, at the insurer's option, may provide for an automatic premium loan, subject to an election of the party entitled to elect. No condition other than as provided in this subsection may be exacted as a prerequisite to any loan. This subsection does not apply to term insurance or to term insurance benefits provided by rider or supplemental policy provisions; (m) a provision that is in accordance with Sections 38-63-240 to 38-63-280; (n) a provision that is in accordance with Article 5, Chapter 63, Title 38, Standard Nonforfeiture Law for Life Insurance. The director or his designee may approve policies with provisions which vary from the provisions required in this section if the provisions are more favorable to the insured or if the provisions are not applicable because of the nature of the product. Effect of Amendment 2022 Act No. 191, SECTION 2, in (d), in the third sentence, inserted "initiates a mutual rescission or" following "If an insurer" and "or mutual rescission" following "the proceedings".
S.C. Code Ann. § 38-19-1140 — SC Code / Title 38 / Chapter 19 / Article 13 / Section 38-19-1140
SECTION 38-19-1140. Review of plan; costs; public hearing; order of approval or disapproval.
Status: in_force

(A) The Director of the Department of Insurance shall review the plan of reorganization for the purpose of determining whether the plan meets the requirements of this article. The director may employ staff personnel and outside consultants. All reasonable costs related to the review, including those costs attributable to staff personnel, shall be paid by the insurer making the filing. During the process of review, the director may communicate with the mutual insurer and request such additional information from the mutual insurer as the director may consider necessary. (B) The director or his designee must conduct a public hearing regarding the proposed plan of reorganization no later than forty-five days from when the filing is deemed complete. Any interested person may appear and participate at the hearing. The director or his designee must provide notice of the public hearing by publication in a newspaper of general circulation. (C) Within one hundred twenty days of the filing of the plan which is considered to be complete by the director, the director shall issue an order approving or disapproving the plan. The director shall approve the plan if the director determines: (1) the requirements of this article have been met; (2) the director is satisfied that the interests of the policyholders are preserved and protected and that the plan of reorganization is fair and equitable to the policyholders, and in the best interests of the policyholders; (3) the directors, officers, agents, and employees are not unjustly enriched by the reorganization plan. The approval of the director shall be conditioned upon the approval of the policyholders as provided in this article. If the director does not approve the plan, then the director shall issue an order setting forth in detail the reasons for disapproval. If a plan is disapproved, then the mutual insurer may resubmit the plan to the director within thirty days of receipt of the order of disapproval. Within ninety days after the filing of the resubmitted plan, which is considered to be complete by the director, the director shall issue an order approving or disapproving the resubmitted plan. The approval of the resubmitted plan shall be conditioned upon the approval of the policyholders as provided by this article. If the director disapproves the resubmitted plan, then the mutual insurer may seek judicial review of the director's decision in the circuit court of common pleas for Richland County.
S.C. Code Ann. § 38-14-90 — SC Code / Title 38 / Chapter 14 / Section 38-14-90
SECTION 38-14-90. Capital requirements.
Status: in_force

A SPRV must have minimum initial capital of not less than five thousand dollars. All of the initial capital must be received by the SPRV in cash. The minimum initial capital required and all other funds of the SPRV in excess of its minimum initial capital, including funds held in trust to secure the obligations of the SPRV pursuant to its obligations under the SPRV contracts, must be invested as provided in Section 38-14-170.
S.C. Code Ann. § 38-12-290 — SC Code / Title 38 / Chapter 12 / Article 2 / Section 38-12-290
SECTION 38-12-290. Foreign investments.
Status: in_force

(A) Subject to the limitations of Section 38-12-220, an insurer may acquire, directly or indirectly through an investment affiliate, foreign investments or engage in investment practices with persons of or in foreign jurisdictions, of substantially the same types as those that an insurer is permitted to acquire pursuant to this chapter, other than the type permitted pursuant to Section 38-12-240, if as a result and after giving effect to the investment the aggregate amount of foreign investments then held and foreign investment practices then engaged in by the insurer pursuant to this subsection: (1) does not exceed twenty percent of its admitted assets; and (2) in a single foreign jurisdiction does not exceed ten percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1, or an equivalent rating by a nationally recognized statistical rating organization recognized by the SVO, or three percent of its admitted assets as to any other foreign jurisdiction. (B) Subject to the limitations of Section 38-12-220, an insurer may acquire investments and engage in investment practices denominated in foreign currencies, whether or not they are foreign investments acquired or foreign investment practices engaged in pursuant to subsection (A), or additional foreign currency exposure as a result of the termination or expiration of a hedging transaction with respect to investments denominated in a foreign currency, if as a result of and after giving effect to the transaction the aggregate amount of investments then held by the insurer and investment practices then engaged in by the insurer pursuant to this subsection: (1) denominated in foreign currencies does not exceed ten percent of its admitted assets; and (2) denominated in foreign currency of a single foreign jurisdiction does not exceed ten percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1, or an equivalent rating by a nationally recognized statistical rating organization recognized by the SVO, or three percent of its admitted assets as to any other foreign jurisdiction. An investment is not considered denominated in a foreign currency if the acquiring insurer enters into one or more hedging transactions permitted pursuant to Section 38-12-300 to hedge the foreign currency exchange rate risk associated with the investment or investment practice. (C) In addition to investments permitted by subsections (A) and (B), an insurer that is authorized to do business in a foreign jurisdiction and that has outstanding insurance, annuity, or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments and engage in foreign investment practices respecting that foreign jurisdiction, and may acquire investments and engage in investment practices denominated in the currency of that jurisdiction, subject to the limitations of Section 38-12-220. Investments made pursuant to this subsection in obligations of foreign governments, their political subdivisions, and government sponsored enterprises are not subject to the limitations of Section 38-12-220 if those investments carry an SVO rating of 1 or 2 or an equivalent rating by a nationally recognized statistical rating organization recognized by the SVO. The aggregate amount of investments acquired and investment practices engaged in by the insurer pursuant to this subsection may not exceed the greater of: (1) the amount the insurer is required by the law of the foreign jurisdiction to invest in the foreign jurisdiction; or (2) one hundred fifteen percent of the amount of its reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction. (D) In addition to investments permitted pursuant to subsections (A), (B), and (C), an insurer that is not authorized to do business in a foreign jurisdiction but that has outstanding insurance, annuity, or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments and engage in foreign investment practices respecting that foreign jurisdiction, and may acquire investments and engage in investment practices denominated in the currency of that jurisdiction, subject to the limitations of Section 38-12-220. Investments made and investment practices engaged in pursuant to this subsection in obligations of foreign governments, their political subdivisions, and government sponsored enterprises are not subject to the limitations of Section 38-12-220 if those investments and investment practices carry a SVO rating of 1 or 2 or an equivalent rating by a nationally recognized statistical rating organization recognized by the SVO. The aggregate amount of investments acquired and investment practices then engaged in by the insurer pursuant to this subsection may not exceed one hundred five percent of the amount of its reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction. (E) Investments acquired and investment practices engaged in by an insurer pursuant to this section must be aggregated with investments of the same types made pursuant to all other sections of this chapter, and in a similar manner, for purposes of determining compliance with the limitations, if any, contained in other sections. Investments in and investment practices engaged in with respect to obligations of foreign governments, their political subdivisions, and government sponsored enterprises of these persons, except for those exempted pursuant to subsections (C) and (D), are subject to the limitations of Section 38-12-220.
S.C. Code Ann. § 38-73-430 — SC Code / Title 38 / Chapter 73 / Article 5 / Section 38-73-430
SECTION 38-73-430. Making of rates.
Status: in_force

Rates must be made in accordance with the following provisions: (1) Due consideration must be given to past and prospective loss experience within and outside this State, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers, to past and prospective expenses, both countrywide and those specially applicable to this State, and to all other relevant factors within and outside of this State. (2) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of the insurer or group with respect to any kind of insurance or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable. (3) Risks may be grouped by classifications for the establishment of rates and minimum premiums, and classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring any variations in hazards or expense provisions, or both, that can be demonstrated to have a probable effect upon losses or expenses. (4) Rates may not be excessive, inadequate, or unfairly discriminatory. (5) Due consideration must be given to assessments for purposes such as the guaranty fund, wind and hail joint underwriting association, and similar mechanisms. Except to the extent necessary to meet the provisions of item (4) of this section, uniformity among insurers in any matters within the scope of this section is neither required nor prohibited.
S.C. Code Ann. § 38-73-1510 — SC Code / Title 38 / Chapter 73 / Article 13 / Section 38-73-1510
SECTION 38-73-1510. "Advisory organization" defined.
Status: in_force

Every group, association, or other organization of insurers, whether located within or outside this State, which assists insurers which make their own filings or rating organizations in rate making by the collection and furnishing of loss or expense statistics or by the submission of recommendations, but which does not make filings under this chapter, is known as an "advisory organization".
S.C. Code Ann. § 38-7-30 — SC Code / Title 38 / Chapter 7 / Section 38-7-30
SECTION 38-7-30. Tax on fire insurers to cover expenses of inspections and investigations; annual report.
Status: in_force

Any expenses, including expenses of counsel, detectives, and officers, incurred by the discrimination in rates, must be defrayed by the fire insurance companies doing business in this State, and a tax of one percent on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies is levied for this purpose, to be collected by the director or his designee as other taxes on fire insurance companies are collected. The director or his designee shall keep a separate account of all monies received and disbursed under the provisions of this section and shall include the account in his annual report. Fifty percent of the one percent tax levied in this section must be directed to the Division of Fire and Life Safety of the Department of Labor, Licensing and Regulation to be used only for expenses of this division. For fiscal year 1997-98 only, the fifty percent of the tax levied by this section that is directed to the Department of Labor, Licensing and Regulation is capped at $2,567,325. The department shall report annually to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee where any growth above the base authorization for the preceding is expended and for what purposes within the Division of Fire and Life Safety.
S.C. Code Ann. § 38-71-125 — SC Code / Title 38 / Chapter 71 / Article 1 / Section 38-71-125
SECTION 38-71-125. Mastectomies; hospitalization requirements; early release provisions.
Status: in_force

All individual and group health insurance policies and health maintenance organizations providing coverage for the hospitalization for mastectomies must provide benefits for hospitalization for at least forty-eight hours following a mastectomy. Nothing in this section shall be construed to prohibit an attending physician from releasing the patient prior to the expiration of the time provided herein. In the case of an early release, coverage shall include at least one home care visit if ordered by the attending physician.
S.C. Code Ann. § 38-25-310 — SC Code / Title 38 / Chapter 25 / Article 5 / Section 38-25-310
SECTION 38-25-310. Director authorized to seek restraining order.
Status: in_force

Whenever the director or his designee believes, from evidence satisfactory to him, that an insurer is violating or about to violate Section 38-25-110 the director or his designee may, through the Attorney General, cause a complaint to be filed in the Court of Common Pleas of Richland County to enjoin and restrain the insurer from continuing the violation, engaging in the violation, or doing any act in furtherance of the violation. The court has jurisdiction of the proceeding and has the power to make and enter an order or judgment awarding preliminary or final injunctive relief as in its judgment is proper.
S.C. Code Ann. § 38-55-10 — SC Code / Title 38 / Chapter 55 / Article 1 / Section 38-55-10
SECTION 38-55-10. No contracts may be made except under this title.
Status: in_force

It is unlawful for an insurer to make a contract of insurance or annuity upon or concerning any property, interest, or lives in this State or with any resident of this State or for any person as insurance agent or insurance broker to make, negotiate, solicit, or in any manner aid in the transaction of these insurance contracts unless and except as authorized under this title.
S.C. Code Ann. § 38-75-375 — SC Code / Title 38 / Chapter 75 / Article 5 / Section 38-75-375
SECTION 38-75-375. Contested assessment or interest levy by association; payment under protest; appeal; exposure to disciplinary procedures.
Status: in_force

(A) If a member company perceives an assessment or interest levied by the association to be unjust or illegal, the company shall pay the assessment or interest under protest in writing within thirty days of the assessment or interest charge. Upon receiving this payment, the association shall pay the money collected into the association account and designate the money as having been paid under protest. (B) A member company paying an assessment or interest under protest shall appeal to the association within thirty days after making the payment. If it is determined in that appeal that the assessment or interest was collected unjustly or illegally, the association shall refund the assessment or interest to the payor. (C) If a member company fails to pay an assessment or interest within thirty days of the assessment or interest charge by the association, the company is subject to disciplinary procedures pursuant to Section 38-5-120 or 38-5-130.
S.C. Code Ann. § 38-99-10 — SC Code / Title 38 / Chapter 99 / Section 38-99-10
SECTION 38-99-10. Definitions.
Status: in_force

As used in this chapter: (1) "Authorized individual" means an individual known to and screened by the licensee and determined to be necessary and appropriate to have access to nonpublic information held by the licensee and its information systems. (2) "Consumer" means an individual including, but not limited to, an applicant, policyholder, insured, beneficiary, claimant, and certificate holder who is a resident of this State and whose nonpublic information is in a licensee's possession, custody, or control. (3) "Cybersecurity event" means an event resulting in unauthorized access to or the disruption or misuse of an information system or information stored on an information system. The term "cybersecurity event" does not include the unauthorized acquisition of encrypted nonpublic information if the encryption, process or key is not also acquired, released or used without authorization. The term "cybersecurity event" also does not include an event with regard to which the licensee has determined that the nonpublic information accessed by an unauthorized person has not been used or released and has been returned or destroyed. (4) "Department" means the Department of Insurance. (5) "Director" means the Director of the Department of Insurance or his designee. (6) "Encrypted" means the transformation of data into a form which results in a low probability of assigning meaning without the use of a protective process or key. (7) "Information security program" means the administrative, technical, and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic information. (8) "Information system" means a discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination or disposition of electronic information, as well as any specialized system such as industrial or process controls systems, telephone switching and private branch exchange systems, and environmental control systems. (9) "Licensee" means a person licensed, authorized to operate, or registered, or required to be licensed, authorized, or registered pursuant to the insurance laws of this State but does not include a purchasing group or a risk retention group chartered and licensed in a state other than this State or a licensee that is acting as an assuming insurer that is domiciled in another state or jurisdiction. (10) "Multifactor authentication" means authentication through verification of at least two of the following authentication factors: (a) knowledge factors, such as a password; or (b) possession factors, such as a token or text message on a mobile phone; or (c) inherence factors, such as a biometric characteristic. (11) "Nonpublic information" means information that is not publicly available information and is: (a) business-related information of a licensee the tampering with which, or unauthorized disclosure, access, or use of which, would cause a material adverse impact to the business, operations, or security of the licensee; (b) any information concerning a consumer which because of name, number, personal mark, or other identifier can be used to identify such consumer, in combination with any one or more of the following data elements: (i) social security number; (ii) driver's license number or nondriver identification card number; (iii) account number, credit or debit card number; (iv) security code, access code, or password that would permit access to a consumer's financial account; or (v) biometric records; (c) any information or data, except age or gender, in any form or medium created by or derived from a health care provider or a consumer and that relates to: (i) the past, present, or future physical, mental or behavioral health or condition of a consumer or a member of the consumer's family; (ii) the provision of health care to a consumer; or (iii) payment for the provision of health care to a consumer. (12) "Person" means any individual or any nongovernmental entity including, but not limited to, a nongovernmental partnership, corporation, branch, agency, or association. (13) "Publicly available information" means information that a licensee has a reasonable basis to believe is lawfully made available to the general public from federal, state, or local governmental records, widely distributed media, or disclosures to the general public that are required to be made by federal, state, or local law. For the purposes of this item, a licensee has a reasonable basis to believe information is lawfully made available to the general public if the licensee has taken steps to determine: (a) that the information is of the type that is available to the general public; and (b) whether a consumer can direct that the information not be made available to the general public and, if so, that the consumer has not done so. (14) "Risk assessment" means the risk assessment that each licensee is required to conduct under this chapter. (15) "State" means the State of South Carolina. (16) "Third-party service provider" means a person not otherwise defined as a licensee that contracts with a licensee to maintain, process, store or otherwise is permitted access to nonpublic information through its provision of services to the licensee. Editor's Note 2018 Act No. 171, SECTIONS 1 and 2, provide as follows: "SECTION 1. The purpose and intent of this act is to establish standards for data security and standards for the investigation of and notification to the director of a cybersecurity event applicable to licensees. This act may not be construed to create or imply a private cause of action for a violation of its provisions nor may it be construed to curtail a private cause of action which would otherwise exist in the absence of this act. "SECTION 2. This act is known and may be cited as the 'South Carolina Insurance Data Security Act'."
S.C. Code Ann. § 38-41-25 — SC Code / Title 38 / Chapter 41 / Section 38-41-25
SECTION 38-41-25. Agent, broker or administrator must give notice of transacting business.
Status: in_force

(A) No agent or broker may solicit, advertise for, market, accept an application for, or in any way transact business on behalf of a multiple employer self-insured health plan in this State, as that term is defined in this chapter, unless the agent or broker first notifies the commissioner, in writing, that the plan is transacting or proposing to transact business in this State. (B) No third party administrator, licensed administrator of insurance benefit plans, or insurer acting as an administrator may collect charges or premiums for, or adjust or settle claims on behalf of, any multiple employer self-insured health plan in this State, as that term is defined in this chapter, unless the third party administrator, licensed administrator of insurance benefit plans, or insurer first notifies the commissioner, in writing, that the plan is transacting or proposing to transact business in this State. (C) The notice required by this section does not constitute approval by the commissioner of the multiple employer self-insured health plan, nor does it limit, in any manner, the administrative remedies available to the commissioner. Further, the notice does not limit or deprive any person of any private right of action under the law or the criminal jurisdiction of any law enforcement officer.
S.C. Code Ann. § 38-14-40 — SC Code / Title 38 / Chapter 14 / Section 38-14-40
SECTION 38-14-40. Application process and requirements; limited certificate of authority; approval in changes in plan of operation.
Status: in_force

(A) Within thirty days after receipt by the director, or his designee, of a complete filing by the prospective SPRV organizer for authority to form or acquire a SPRV, which SPRV must exist and operate expressly for the limited purposes set forth in this chapter, the application must be deemed approved and a limited certificate of authority must be issued, unless before the expiration of the thirty-day period the director, or his designee, approves or disapproves the application in writing. A limited certificate of authority may not be issued unless the country or state of domicile of each ceding insurer has notified the director or his designee in writing that they have not disapproved the transaction. (B) A complete filing of the application must include the following: (1) an affidavit verifying that each prospective SPRV organizer meets the requirements of this chapter; (2) a representation that the prospective SPRV organizer intends to form a SPRV that must operate in accordance with the requirements set forth in this chapter; (3) the proposed name of the SPRV; (4) biographical affidavits of all SPRV organizers setting forth their legal names, any names under which they have or are conducting their affairs, and any affiliations with other persons as defined in Chapter 21, together with such other biographical information as the director, or his designee, may request; (5) the source and form of the minimum capital to be contributed to the SPRV; (6) any persons with which the SPRV is or, upon formation, will be affiliated as defined in Chapter 21; (7) the names and biographical affidavits of the proposed members of the board of directors and principal officers of the SPRV, setting forth their legal names, any names under which they have or are conducting their affairs and any affiliations with other persons as defined in Chapter 21, together with such other biographical information as the director, or his designee, may request; and (8) a plan of operation, consisting of a description of the contemplated insurance securitization, the SPRV contract and related transactions, which must include: (a) draft documentation or, at the discretion of the director, or his designee, a written summary of all material agreements that are entered into to effectuate the insurance securitization and the related SPRV contract, to include the names of the ceding insurers, the nature of the risks being assumed, and the maximum amounts, purpose, and nature and the interrelationships of the various transactions required to effectuate the insurance securitization; (b) the investment strategy of the SPRV and a representation that the investment strategy complies with the investment requirements set forth in this chapter and that the strategy will include investment practices or other provisions to preserve asset values, which will facilitate attainment of full funding during the term of the securitization with assets that may be monetized in response to a triggering event without a substantial loss in value; (c) a description of the method by which losses covered by the SPRV contract that may develop after the termination of the contract period are to be addressed under the provisions of the SPRV contract; and (d) a representation that the trust agreement and the trusts holding assets that secure the obligations of the SPRV under the SPRV contract and the SPRV contract with the ceding insurers in connection with the contemplated insurance securitization will be structured in accordance with the requirements set forth in this chapter. (C) The director, or his designee, must approve the application and issue a limited certificate of authority upon a finding that: (1) the proposed plan of operation provides a reasonable expectation of a successful operation; (2) the terms of the SPRV contract and related transactions comply with this chapter; (3) the proposed plan of operation is not hazardous to any ceding insurer or to policyholders; and (4) the commissioner of the state of domicile of each ceding insurer has notified the director, or his designee, in writing that it has not disapproved the transaction. In evaluating the expectation of a successful operation, the director, or his designee, must consider, among other factors, whether the proposed SPRV organizer, directors, and officers are of known good character and not reasonably believed to be affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions, or other insurance or business relations, with any person known to have been involved in the improper manipulation of assets, accounts, or reinsurance. If the director, or his designee, denies the application, he must grant the prospective SPRV organizer a hearing upon request. (D) Upon approval by the director, or his designee, of the application and the issuance of a limited certificate of authority, the SPRV may be acquired or formed and, in accordance with the approved plan of operation, the SPRV may enter into contracts and conduct other activities within the scope of the filed plan of operation. (E) The limited certificate of authority must state that the SPRV's authorization to be involved in the business of reinsurance must be limited only to the reinsurance activities that the SPRV is allowed to conduct pursuant to this chapter. (F) The SPRV organizer must provide a complete set of the documentation of the insurance securitization to the director, or his designee, upon closing of the transactions, including an opinion of legal counsel with respect to compliance with this chapter and any other applicable laws as of the effective date of the transaction. Any material change of the SPRV's plan of operation described in items (1) through (8) of subsection (B) including, but not limited to, the issuance of new securities to continue the securitization activities of the SPRV pursuant to this chapter after expiration and full satisfaction of the initial securitization transactions, must require prior approval of the director, or his designee; however, the change in the counterparty to swap transactions for an existing securitization as allowed under this chapter must not be considered a material change. Any material change that is not disapproved by the director, or his designee, in writing within fifteen days after its submission must be deemed approved.
S.C. Code Ann. § 38-77-750 — SC Code / Title 38 / Chapter 77 / Article 7 / Section 38-77-750
SECTION 38-77-750. Enforcement of subpoenas; warrant to produce witnesses; certification of records.
Status: in_force

(a) The court of common pleas shall, on application of the arbitrators, or any one of them, or any party or his attorney, enforce by proper proceedings the attendance and testimony of witnesses and the production of records and may punish for contempt of court, by fine or imprisonment or both, the unexcused failure or refusal to attend and give testimony or produce records required by any subpoena issued. The court may issue to the sheriff of the county in which any hearing is held a warrant requiring him to produce at the hearing any witness who has ignored or failed to comply with any subpoena issued and served upon the witness pursuant to this article and the warrant shall authorize and empower the sheriff to arrest and produce at the hearing the witness. It is the duty of the sheriff to do so, but the failure of a witness to appear may be excused on the same grounds as provided by law in the courts of this State. (b) All records introduced in evidence which are not identified by their preparer must be certified under oath as a correct statement of the facts contained therein.
S.C. Code Ann. § 38-21-310 — SC Code / Title 38 / Chapter 21 / Section 38-21-310
SECTION 38-21-310. Enjoining violations of chapter, regulations, or orders.
Status: in_force

Whenever it appears to the director or his designee that an insurer or a director, officer, employee, or agent of it has committed or is about to commit a violation of this chapter or of any regulation by the department or order issued by the director or his designee hereunder, the director or his designee may apply to the circuit court for the county in which the principal office of the insurer is located or if the insurer has no such office in this State then to the Circuit Court for Richland County for an order enjoining the insurer or its director, officer, employee, or agent from violating or continuing to violate this chapter or any regulation or order and for any other equitable relief which the nature of the case and the interests of the insurer's policyholders, creditors, and shareholders or the public may require.
S.C. Code Ann. § 38-77-270 — SC Code / Title 38 / Chapter 77 / Article 3 / Section 38-77-270
SECTION 38-77-270. Christian Science or any licensed healing art care and treatment.
Status: in_force

Nothing in this title prohibits an insurer from providing Christian Science or any licensed healing art care and treatment. Any Christian Science or any licensed healing art care and treatment constitutes economic loss.
S.C. Code Ann. § 38-12-280 — SC Code / Title 38 / Chapter 12 / Article 2 / Section 38-12-280
SECTION 38-12-280. Securities lending, repurchase, reverse repurchase, and dollar roll transactions.
Status: in_force

An insurer may enter, directly or indirectly through an investment affiliate, into securities lending transactions that are conducted directly, through a custodian bank that is a qualified bank, or through an agent, and may enter into repurchase transactions, reverse repurchase transactions, and dollar roll transactions, subject to the following conditions: (1) the insurer's board of directors must adopt a written plan that specifies guidelines and objectives regarding such transactions, including: (a) a description of how cash may be invested or used for general corporate purposes of the insurer; (b) operational procedures to manage interest rate risk, counterparty default risk, the conditions under which proceeds from reverse repurchase transactions may be used in the ordinary course of business, and the use of acceptable collateral in a manner that reflects the liquidity needs of the transaction; and (c) the extent to which the insurer may engage in these transactions; (2) the insurer must enter into a written agreement for all transactions authorized in this subsection other than dollar roll transactions. The written agreement must: (a) require each transaction to terminate no more than one year from its inception; (b) be made with the counterparty, except that for securities lending transactions, the agreement may be: (i) through a custodian bank that is a qualified bank; or (ii) with an agent acting on behalf of the insurer if the: (A) agent or the guarantor of the agent's obligations pursuant to the agreement is a qualified bank or a qualified business entity; and (B) agreement with the agent requires the agent to enter into separate agreements with each counterparty that are consistent with the requirements of this subsection and prohibits securities lending transactions pursuant to the agreement with the agent or its affiliates; (3) cash received in a transaction pursuant to this subsection, if not used by the insurer for its general corporate purposes in accordance with the plan adopted by the board of directors pursuant to item (1), must be invested in accordance with this chapter and in a manner that recognizes the liquidity needs of the transaction. For so long as any transaction pursuant to this subsection remains outstanding, the insurer, its agent, or custodian, either physically or through the book entry systems of the Federal Reserve, Depository Trust Company, or other securities depositories approved by the director, shall maintain: (a) possession of acceptable collateral for the transaction in at least the amount required pursuant to the provisions of the SVO procedures manual; (b) a perfected security interest in the acceptable collateral; or (c) in the case of a foreign jurisdiction, title to or rights of a secured creditor to the acceptable collateral; (4) the limitations of Sections 38-12-220 and 38-12-290 do not apply to the counterparty exposure created by transactions pursuant to this section. For purposes of calculations made to determine compliance with this item, the insurer's future obligation to resell securities in the case of a repurchase transaction, or to repurchase securities in the case of a reverse repurchase transaction, must not be counted. An insurer may not enter into a transaction pursuant to this subsection if as a result of and after giving effect to the transaction, the aggregate amount of: (a) securities then loaned to, sold to, or purchased from any counterparty pursuant to this subsection exceeds five percent of its admitted assets. In calculating the amount sold to or purchased from a counterparty under repurchase or reverse repurchase transactions, effect may be given to netting provisions pursuant to a written master agreement; or (b) all securities then loaned to, sold to, or purchased from all counterparties pursuant to this subsection exceeds forty percent of its admitted assets; (5) in a dollar roll transaction, the insurer must receive cash in an amount at least equal to the market value of the securities transferred by the insurer in the transaction as of the transaction date.
S.C. Code Ann. § 38-78-70 — SC Code / Title 38 / Chapter 78 / Section 38-78-70
SECTION 38-78-70. Provider to maintain accounts, books, and records.
Status: in_force

(A) A provider shall maintain accurate accounts, books, and records concerning transactions regulated under this chapter which shall include: (1) copies of each type of service contract issued; (2) the name and address of each service contract holder to the extent that the name and address have been furnished by the service contract holder; (3) a list of the locations where service contracts are marketed, sold, or offered for sale; and (4) recorded claims files which shall contain at least the dates and description of claims related to the service contracts. Except as provided in subsection (B), the provider shall retain all records required to be maintained by this section for at least one year after the specified period of coverage has expired. The records required under this chapter may be, but are not required to be, maintained on a computer disk or other recordkeeping technology. If records are maintained in other than hard copy, the records must be capable of duplication to legible hard copy at the request of the director. (B) A provider discontinuing business in this State shall maintain its records until it furnishes the director satisfactory proof that it has discharged all obligations to contract holders in this State. (C) The provider shall make all accounts, books, and records concerning transactions regulated under this chapter, or other pertinent laws, available to the director upon request.
S.C. Code Ann. § 38-73-910 — SC Code / Title 38 / Chapter 73 / Article 9 / Section 38-73-910
SECTION 38-73-910. Application of section and exceptions; notice of hearing as a prerequisite to granting rate increases for certain types of insurance.
Status: in_force

(A) This section applies to all types of property and casualty insurance coverage except as set forth in this section. Overall rate level increases or decreases for all property and casualty insurance coverages except for property insurance filings governed by Sections 38-73-220 and 38-73-260 and automobile insurance filings governed by Section 38-73-905 are subject to prior approval as set forth in this section. All rate, rule, and form filings, including loss-cost filings and other supplementary filings, submitted by a rating organization are subject to the prior approval of the department. Every filing must state the proposed effective date and must indicate the type of coverage to which it applies. The director must approve or disapprove these filings in accordance with the applicable provisions of this chapter. (B) An increase in the premium rates may not be granted for workers' compensation insurance, nor for any other line or type of insurance with respect to which the director or his designee has, by order, made a finding that (a) legal or other compulsion upon the part of the insured to purchase the insurance interferes with competition, or (b) under prevailing circumstances there does not exist substantial competition, unless notice is given in all newspapers of general, statewide circulation at least thirty days in advance of the insurer's proposed effective date of the increase in premium rates. The notice must state the amount of increase, the type and line of coverage, and the proposed effective date and must allow any insured or affected party to request within fifteen days a public hearing upon the propriety of the rate increase request before the Administrative Law Court. A copy of the notice must be sent to the Consumer Advocate. (C) However, the requirements of public notices and public hearings in this section do not apply to applications for rate increases when the applicant insurer had earned premiums in this State in the previous calendar year of less than two million dollars for the line or type of insurance for which the rate increase is sought or, if the rate increase is sought by a modeling organization, the earned premiums in this State for all members and subscribers of the organization for whom an increase is sought were less than two million dollars for the previous calendar year for the line or type of insurance for which the rate increase is sought. The two million dollars must be increased by a factor equal to the increase in the consumer price index, all items, every three years. (D) If the director finds that a filing is not in compliance with this chapter, he shall issue a written notice of disapproval in accordance with the provisions of Section 38-73-990. (E) The Director of the Department of Insurance or his designee may promulgate regulations to implement the provisions of this section. (F) This section does not apply to rate or rule filings of insurers who write only exempt commercial policies. Rate or rule filings for exempt commercial policies must comply with the requirements of S.C. Code Ann. Regs. Section 69-64, Section 38-73-920, and other applicable provisions of this title. Effect of Amendment 2021 Act No. 33, SECTION 2, rewrote the section. 2022 Act No. 195, SECTION 9, in (A), inserted the third sentence, and in the fifth sentence, substituted "must approve" for "shall approve".
S.C. Code Ann. § 38-90-80 — SC Code / Title 38 / Chapter 90 / Article 1 / Section 38-90-80
SECTION 38-90-80. Inspections and examinations; confidentiality of reports; limitations applicable to branch captive insurance companies; application of general provisions.
Status: in_force

(A)(1) At least once every five years, and whenever the director determines it to be prudent, the director personally, or by a competent person appointed by the director, shall thoroughly inspect and examine each risk retention group or industrial insured insurance company to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with this chapter. The director, at his discretion, may physically visit the risk retention group or industrial insured insurance company. The expenses and charges of the examination must be paid to the State by the company or companies examined and the department shall issue its warrants for the proper charges incurred in all examinations. (2) A captive insurance company that is not a risk retention group or industrial insured captive insurance company may be examined at the discretion of the director. (B) All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies of documents produced by, obtained by, or disclosed to the director or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the director or an employee or agent of the director without the prior written consent of the company, except to the extent provided in this subsection. (1) Nothing in this subsection prevents the director from using this information in furtherance of the director's regulatory authority under this title. (2) The director may grant access to this information to public officers having jurisdiction over the regulation of insurance in any other state or country, or to law enforcement officers of this State or any other state or country or agency of the federal government at any time, so long as the officers receiving the information agree in writing to hold it in a manner consistent with this section. (3) The confidentiality provisions of this subsection do not extend to final reports produced by the director in inspecting or examining a risk retention group. In addition, nothing contained in this subsection limits the authority of the director to use and, if appropriate, make public a preliminary examination report, examiner or insurer work papers or other documents, or other information discovered or developed during the course of an examination in the furtherance of a legal or regulatory action which the director considers appropriate. (C) This section applies to all business written by a captive insurance company; however, the examination for a branch captive insurance company must be of branch business and branch operations only, as long as the alien or foreign captive insurance company provides annually to the director, a certificate of compliance, or its equivalent, issued by or filed with the licensing authority of the jurisdiction in which the alien or foreign captive insurance company is formed and demonstrates to the director's satisfaction that it is operating in sound financial condition in accordance with all applicable laws and regulations of that jurisdiction. (D) To the extent that the provisions of Chapter 13 do not contradict the provisions of this section, Chapter 13 applies to captive insurance companies licensed under this chapter. Effect of Amendment 2014 Act No. 282, SECTION 12, in subsection (A), deleted "for pure captive insurance companies and for special purpose captive insurance companies" from the end of the second sentence. 2018 Act No. 251, SECTION 1, rewrote the section. 2025 Act No. 62, SECTION 8, in (A)(2), substituted "may be examined at the discretion of the director" for "must be examined three years following the date of licensure and at the discretion of the director thereafter"; and in (C), twice inserted "or foreign" following "alien".
S.C. Code Ann. § 38-27-360 — SC Code / Title 38 / Chapter 27 / Article 5 / Section 38-27-360
SECTION 38-27-360. Grounds for liquidation.
Status: in_force

The director or his designee may petition the circuit court as provided by law for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this State on the basis: (1) of any ground for an order of rehabilitation as specified in Section 38-27-310, whether or not there has been a prior order directing the rehabilitation of the insurer; (2) that the insurer is insolvent; or (3) that the insurer is in such a condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
S.C. Code Ann. § 38-90-410 — SC Code / Title 38 / Chapter 90 / Article 3 / Section 38-90-410
SECTION 38-90-410. Purpose.
Status: in_force

This article provides for the creation of Special Purpose Financial Captives (SPFCs) exclusively to facilitate the securitization of one or more risks, as a means of accessing alternative sources of capital and achieving the benefits of securitization. SPFCs are created for the limited purpose of entering into a SPFC contract and insurance securitization transactions and into related agreements to facilitate the accomplishment and execution of those transactions. The creation of SPFCs is intended to achieve greater efficiencies in structuring and executing insurance securitizations, to diversify and broaden insurers' access to sources of capital, to facilitate access for many insurers to insurance securitization and capital markets financing technology, and to further the economic development and expand the interest of the State of South Carolina through its captive insurance program.
S.C. Code Ann. § 38-13-20 — SC Code / Title 38 / Chapter 13 / Article 1 / Section 38-13-20
SECTION 38-13-20. Examination warrant; conduct of examination; access to books, records, accounts, etc.; refusal to submit to examination; subpoenas, examination under oath; failure to obey subpoena; retaining professionals and specialists as examiners; director's or designee's authority.
Status: in_force

(A) Upon determining that an examination must be conducted, the director or his designee shall issue an examination warrant appointing one or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting the examination, the examiner shall observe South Carolina laws and regulations and those guidelines and procedures set forth in the Examiners' Handbook adopted by the National Association of Insurance Commissioners. The director also may employ other guidelines or procedures he considers appropriate. (B) Every person or insurer and his or its officers, directors, and agents from whom information is sought shall provide to the examiners appointed under subsection (A) timely, convenient, and free access at all reasonable hours at his or its offices to all books, records, accounts, papers, documents, and all computer or other recordings relating to the property, assets, business, and affairs of the person or insurer being examined. If the director or his designee considers it necessary to the conduct of the examination, he may require that the person or insurer or his or its agents or affiliated or subsidiary corporations or partnerships furnish the original books and records. The officers, directors, employees, and agents of the insurer or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a person or an insurer by his or its officers, directors, employees, or agents to submit to examination or to comply with a reasonable written request of the examiners is grounds for suspension or revocation of the person's or insurer's certificate of authority to engage in the business of insurance in this State. The director or his designee may make the suspension or revocation and the reasons for it public. Proceedings for revocation must be conducted pursuant to Section 38-5-140. (C) The director or his examiners may issue subpoenas, administer oaths, and examine under oath a person as to matters pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the director or his designee may petition a court of competent jurisdiction, and upon proper showing the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order is punishable as contempt of court. (D) When making an examination under Section 38-13-10, the director or his designee may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners. The cost of the retainment must be borne by the insurer which is the subject of the examination together with the expenses of the director or his designee and the expenses and compensation of the director's assistants. If a domestic insurer has less than one million dollars total capital and surplus as of December 31, 1993, and thereafter, then it must not be assessed the actual examination costs but shall instead pay in accordance with the examination fee schedule in effect as of July 1, 1993. If an insurer determines that its examination fees have not been assessed as provided in this section or that the fees assessed are unreasonable in relation to the examination performed, the insurer may appeal the assessments to the Administrative Law Court. Examination fees must be retained by the department and are considered "other funds". (E) Nothing contained in Section 38-13-10 limits the authority of the director or his designee to: (1) terminate or suspend an examination to pursue other legal or regulatory action pursuant to the insurance laws of this State. Findings of fact and conclusions made pursuant to an examination are prima facie evidence in a legal or regulatory action; (2) use and, if appropriate, make public a final or preliminary examination report, examiner or insurer work papers or other documents, or other information discovered or developed during the course of an examination in the furtherance of a legal or regulatory action which the director or his designee, in his sole discretion, considers appropriate.
S.C. Code Ann. § 38-29-140 — SC Code / Title 38 / Chapter 29 / Section 38-29-140
SECTION 38-29-140. Examination and regulation of Association; annual reports.
Status: in_force

The association is subject to examination and regulation by the department. The board of directors shall annually submit to the department, by May first, a financial report for the preceding calendar year in a form approved by the director or his designee and a report of its activities during the preceding calendar year. Editor's Note 2020 Act No. 121, SECTION 1.B, provides as follows: "[1.]B. The amendments made by this act do not apply to a member insurer that has been placed under an order of rehabilitation or liquidation before July 1, 2020." Effect of Amendment 2020 Act No. 121, SECTION 1.A, reenacted the section with no apparent changes.
S.C. Code Ann. § 38-74-10 — SC Code / Title 38 / Chapter 74 / Section 38-74-10
SECTION 38-74-10. Definitions.
Status: in_force

As used in this chapter: (1) "Pool" means the South Carolina Health Insurance Pool. (2) "Board" means the board of directors of the pool. (3) "Insured" means any individual resident of this State who is eligible to receive benefits from any insurer. (4) "Insurer" means any entity that provides health insurance in this State. For purposes of this section, insurer includes an insurance company, a health maintenance organization, and any other entity providing health insurance which is licensed to engage in the business of insurance in this State and which is subject to state insurance regulation. (5) "Health insurance" or "health insurance coverage" means benefits consisting of medical care provided directly, through insurance or reimbursement, or otherwise and including items and services paid for as medical care under a hospital or medical service policy or certificate, hospital, or medical service plan contract, or health maintenance organization contract offered by an insurer, except: (a) coverage only for accident or disability income insurance, or any combination thereof; (b) coverage issued as a supplement to liability insurance; (c) liability insurance, including general liability insurance and automobile liability insurance; (d) workers' compensation or similar insurance; (e) automobile medical payment insurance; (f) credit-only insurance; (g) coverage for on-site medical clinics; (h) other similar insurance coverage, specified in regulations, under which benefits for medical care are secondary or incidental to other insurance benefits; (i) if offered separately: (i) limited scope dental or vision benefits; (ii) benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; (iii) such other similar, limited benefits as are specified in regulations; (j) if offered as independent, noncoordinated benefits: (i) coverage only for a specified disease or illness; and (ii) hospital indemnity or other fixed indemnity insurance; (k) if offered as a separate insurance policy, coverage supplement to the coverage provided under Chapter 55, Title 10 of the United States Code. (6) "Medicare" means Title XVIII of the Social Security Act, 42 U.S.C. 1395, et seq., as amended. (7) "Physician" means any practitioner of the healing arts, other than an insured person or a person related to an insured person, who is legally licensed to perform any service for which benefits are provided by the insurance policy issued by the pool. (8) "Hospital" means an institution operated pursuant to law under the supervision of a staff of duly licensed physicians which is primarily and continuously engaged in providing or operating, either on its premises or in facilities available to the public on a prearranged basis, medical, diagnostic, and major surgical facilities for the medical care and treatment of sick or injured persons on an inpatient basis for which a charge is made and provides twenty-four hour nursing service under the supervision of registered nurses. (9) "Health maintenance organization" means an organization as defined in Section 38-33-20(7). (10) "Plan of operation" means the plan of operation of the pool, including articles, bylaws, and operating rules adopted by the board. (11) "Benefits plan" means the coverages to be offered by the pool to eligible persons. (12) "Department" means the South Carolina Insurance Department. (13) "Director" means the person who is appointed by the Governor upon the advice and consent of the Senate and who is responsible for the operation and management of the Department of Insurance, including all of its divisions. The director may appoint or designate the person or persons who shall serve at the pleasure of the director to carry out the objectives or duties of the department as provided by law. Furthermore, the director may bestow upon his designee or deputy director any duty or function required of him by law in managing or supervising the Insurance Department. (14) "Member" means each insurer participating in the pool. (15) "Net loss" means the excess of incurred claims plus expenses over the sum of earned premiums, accrued investment income, and other appropriate gains and losses. (16) "Affiliation period" means a period which, under the terms of the health insurance coverage offered by a health maintenance organization, must expire before the health insurance coverage becomes effective. The organization is not required to provide health care services or benefits during this period and no premium shall be charged to the participant or beneficiary for any coverage during the period. The period begins on the enrollment date and runs concurrently with any waiting period under the plan. (17) "Beneficiary" has the meaning given under Section 3(8) of the Employee Retirement Income Security Act of 1974. (18) "COBRA continuation provision" means: (a) Part 6 of subtitle B of Title I of the Employee Retirement Income Security Act of 1974, other than Section 609 of the act; (b) Section 4908B of the Internal Revenue Code of 1986, other than subsection (f)(1) of the section insofar as it relates to pediatric vaccines; or (c) Title XXII of the Public Health Service Act. (19) "Church plan" has the meaning given the term under Section 3(33) of the Employee Retirement Income Security Act of 1974. (20) "Creditable coverage" means, with respect to an individual, coverage of the individual under: (a) a group health plan; (b) health insurance; (c) Part A or B of Title XVIII of the Social Security Act; (d) Title XIX of the Social Security Act, other than coverage consisting solely of benefits under Section 1928; (e) Chapter 55, Title 10 of the United States Code; (f) a medical care program of the Indian Health Service or of a tribal organization; (g) a state health benefits risk pool, including the South Carolina Health Insurance Pool; (h) a health plan offered under Chapter 89, Title 5 of the United States Code; (i) a public health plan, as defined in regulations; (j) a health benefit plan under Section 5(e) of the Peace Corps Act (22 U.S.C. 2504(e)); or (k) Title XXI of the Social Security Act (State Children's Health Insurance Program). The term does not include coverage consisting only of those benefits excepted from the definition of health insurance. A period of creditable coverage is not counted if, after such period and before the enrollment date, there was a sixty-three day period during all of which the individual was not covered under any creditable coverage. However, in determining whether there has been continuous coverage, no period must be taken into account during which the individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period. Periods of creditable coverage with respect to an individual must be established through presentation of certifications as described in Section 38-71-850(D) or in a manner specified in regulations. (21) "Employee" has the meaning given the term under Section 3(6) of the Employee Retirement Income Security Act of 1974. (22) "Enrollment date" means, with respect to an individual covered under a group health plan or health insurance coverage, the date of enrollment of the individual in the plan or coverage or, if earlier, the first day of the waiting period for the enrollment. (23) "Federally defined eligible individual" means an individual: (a) for whom, as of the date on which the individual seeks coverage under this chapter, the aggregate of the periods of creditable coverage is eighteen or more months; (b) whose most recent prior creditable coverage was under a group health plan, governmental plan, or church plan or health insurance coverage offered in connection with one of these plans; (c) who is not eligible for coverage under a group health plan, part A or part B of Title XVIII of the Social Security Act, or a state plan under Title XIX of the Social Security Act or any successor program and who does not have other health insurance coverage; (d) with respect to whom the most recent coverage within the period of aggregate creditable coverage was not terminated based on a factor relating to nonpayment of premiums or fraud; (e) who, if offered the option of continuation coverage under a COBRA continuation provision or under a similar state program, elected the coverage; and (f) who, if the individual elected the continuation coverage, has exhausted the continuation coverage under the provision or program. (24) "Governmental plan" has the meaning given the term under Section 3(32) of the Employee Retirement Income Security Act of 1974 and any governmental plan established or maintained for its employees by the government of the United States or by an agency or instrumentality of the government. (25) "Group health insurance coverage" means, in connection with a group health plan, health insurance offered by an insurer in connection with the plan. (26) "Group health plan" means an employee welfare benefit plan, as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, to the extent that the plan provides medical care, including items and services paid for as medical care, to employees or their dependents, as defined under the terms of the plan, directly or through insurance, reimbursement, or otherwise. (27) "Individual market" means the market for health insurance coverage offered to individuals other than in connection with a group health plan. The term includes coverage offered in connection with a group health plan that has fewer than two participants as current employees on the first day of the plan year unless the State elects to regulate the coverage as coverage issued to small employers as defined in Section 38-71-1330. (28) "Medical care" means amounts paid for: (a) the diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body; (b) amounts paid for transportation primarily for and essential to medical care referred to in subitem (a); and (c) amounts paid for insurance covering medical care referred to in subitems (a) and (b). (29) "Participant" has the meaning given the term under Section 3(7) of the Employee Retirement Income Security Act of 1974. (30) "Preexisting condition exclusion" means, with respect to coverage, a limitation or exclusion of benefits relating to a condition based on the fact that the condition was present before the date of enrollment for the coverage, whether or not any medical advice, diagnosis, care, or treatment was recommended or received before the date. Genetic information may not be treated as a preexisting condition in the absence of a diagnosis of the condition related to the information. (31) "Waiting period" means, with respect to a group health plan and an individual who is a potential participant or beneficiary in the plan, the period that must pass with respect to the individual before the individual is eligible to be covered for benefits under the terms of the plan. (32) "Qualified TAA eligible individual" means an individual who is eligible for the credit for health insurance costs under Section 35 of the Internal Revenue Code of 1986.
S.C. Code Ann. § 38-73-80 — SC Code / Title 38 / Chapter 73 / Article 1 / Section 38-73-80
SECTION 38-73-80. Withholding or giving false or misleading information.
Status: in_force

No person or organization may wilfully withhold information from or knowingly give false or misleading information to the director or his designee, any statistical agency designated by the director or his designee, any rating organization, or any insurer which will affect the rates or premiums chargeable under this chapter. A violation of this section subjects the one guilty of the violation to the penalties provided in Chapter 2 of this title.
S.C. Code Ann. § 38-77-154 — SC Code / Title 38 / Chapter 77 / Article 3 / Section 38-77-154
SECTION 38-77-154. Department of Insurance to supervise and control Uninsured Motorists Fund; purpose of fund.
Status: in_force

The Uninsured Motorists Fund shall be under the supervision and control of the Department of Insurance. Payments from the Uninsured Motorists Fund shall be made on warrants of the Comptroller General issued on vouchers signed by a person designated by the director. The purpose of the Uninsured Motorists Fund is to reduce the cost of the insurance required by Section 38-77-150 and to protect and educate consumers as provided by Section 38-77-151.
S.C. Code Ann. § 38-12-240 — SC Code / Title 38 / Chapter 12 / Article 2 / Section 38-12-240
SECTION 38-12-240. Investment pools; qualification requirements; pooling agreements.
Status: in_force

(A) An insurer may acquire investments in investment pools that invest only in: (1) obligations that are rated 1 or 2 by the SVO or have an equivalent of a SVO 1 or 2 rating, or in the absence of a 1 or 2 rating or equivalent rating the issuer has outstanding obligations with a SVO 1 or 2 or an equivalent rating by a nationally recognized statistical rating organization recognized by the SVO and have a remaining maturity of: (a) three hundred ninety-seven days or less or a put which entitles the holder to receive the principal amount of the obligation that may be exercised through maturity at specified intervals not exceeding three hundred ninety-seven days; or (b) three years or less and a floating interest rate that resets no less frequently than quarterly on the basis of a current short-term index, such as federal funds, prime rate, Treasury bills, London InterBank Offered Rate (LIBOR) or commercial paper, and is subject to no maximum limit, if the obligations do not have an interest rate that varies inversely to market interest rate changes; (2) government money market mutual funds or class one money market mutual funds; or (3) securities lending, repurchase transactions, and reverse repurchase transactions that meet all the requirements of Section 38-12-280, except the quantitative limitations of Section 38-12-280(4); or (4) invest only in investments that an insurer may acquire pursuant to this chapter, if the insurer's proportionate interest in the amount invested in these investments, when combined with the amounts of the investments made directly or indirectly through an investment affiliate or other insurer investment pool permitted pursuant to this item does not exceed the applicable limits of this chapter for those investments. (B) For an investment in an investment pool to be qualified pursuant to this chapter, the investment pool may not: (1) acquire securities issued, assumed, guaranteed, or insured by the insurer or an affiliate of the insurer; (2) borrow or incur indebtedness for borrowed money, except for securities lending and reverse repurchase transactions that meet the requirements of Section 38-12-280, except the quantitative limitations of Section 38-12-280(4); or (3) acquire an investment if as a result of and after giving effect to the transaction the aggregate value of securities then loaned or sold to, purchased from, or invested in any one business entity pursuant to this section exceed ten percent of the total assets of the investment pool. (C) The limitations of Section 38-12-220(A) do not apply to an investment by an insurer in an investment pool, except that an insurer may not acquire an investment in an investment pool pursuant to this section if as a result of and after giving effect to the investment the aggregate amount of investments then held by the insurer pursuant to this section: (a) in all investment pools that invest in investments permitted pursuant to subsection (A)(4) exceeds twenty-five percent of its admitted assets; or (b) in all investment pools exceeds thirty-five percent of its admitted assets. (D) For an investment in an investment pool to be qualified pursuant to this chapter, the manager of the investment pool must: (1) be organized under the laws of the United States or one of its states or the District of Columbia and designated as the pool manager in a pooling agreement; (2) be the insurer, an affiliated insurer, or a business entity affiliated with the insurer, a qualified bank, a business entity registered under the Investment Advisors Act of 1940 (15 U.S.C. Sections 80a-1 et seq., as amended), or any other similar applicable state statute, or, in the case of a reciprocal insurer or interinsurance exchange, its attorney-in-fact, or in the case of a United States branch of an alien insurer, its United States manager or an affiliate or subsidiary of its United States manager; (3) compile and maintain, or cause to be compiled and maintained, detailed accounting records including: (a) the cash receipts and disbursements reflecting the proportionate investment of each participant in the investment pool; (b) a complete description of all underlying assets of the investment pool including amount, interest rate, maturity date, if any, and other appropriate designations; and (c) other records that allow third parties to verify the investment of each participant in the investment pool on a daily basis; and (4) maintain the assets of the investment pool in one or more accounts, in the name of or on behalf of the investment pool either under a custody agreement or a trust agreement with a qualified bank or at the principal office of the pool manager. The applicable agreement must: (a) state and recognize the claims and rights of each participant; (b) acknowledge that the underlying assets of the investment pool are held for the sole benefit of each participant in proportion to the aggregate amount of its investments in the investment pool; and (c) contain an agreement that the underlying assets of the investment pool must not be commingled with the general assets of the qualified bank or any other person. (E) The pooling agreement for each investment pool must be in writing and must provide that: (1) an insurer and its affiliated insurers or, in the case of an investment pool investing only in investments permitted under subsections (A)(1), (2), and (3) the insurer and its subsidiaries, affiliates, or any pension or profit sharing plan of the insurer, its subsidiaries and affiliates, or, in the case of a United States branch of an alien insurer, affiliates or subsidiaries of its United States manager, shall hold one hundred percent of the interests in the investment pool at all times; (2) the underlying assets of the investment pool must not be commingled with the general assets of the pool manager or any other person; (3) in proportion to the aggregate amount of the interest of each participant in the investment pool: (a) each participant owns an undivided interest in the underlying assets or the investment pool; and (b) the underlying assets of the investment pool are held for the sole benefit of each participant; (4) a participant, or his trustee, receiver, conservator, or other successor-in-interest, if a participant is insolvent, bankrupt, or in receivership, may withdraw all or a portion of its investment from the investment pool pursuant to the terms of the pooling agreement; (5) withdrawals may be made on demand without penalty or other assessment on any business day, but settlement of funds must occur within a reasonable and customary period after the date on which the withdrawal is made, not to exceed ten business days. Distributions pursuant to this item must be calculated in each case net of all fees and expenses of the investment pool then applicable. The pooling agreement must provide that the pool manager shall distribute to a participant, at the discretion of the pool manager: (a) the then fair market value of the participant's pro rata share of each underlying asset of the investment pool, in cash; (b) a pro rata share of each underlying asset, in kind; or (c) a pro rata share in each underlying asset, in a combination of cash and in-kind distributions; and (6) the pool manager shall make the records of the investment pool available for inspection by the director. (F) Except for the formation of an investment pool, transactions between a domestic insurer and an affiliated insurer investment pool are not subject to the requirements of Section 38-21-250.
S.C. Code Ann. § 38-9-160 — SC Code / Title 38 / Chapter 9 / Article 1 / Section 38-9-160
SECTION 38-9-160. Enforcement of trust created by deposit.
Status: in_force

An insurer which has made a deposit in this State, pursuant to this title, its trustees or resident managers in the United States, the director or his designee, or any creditor of the insurer may, at any time, bring an action in the Circuit Court for the County of Richland against the State and other parties properly joined to enforce, administer, or terminate the trust created by the deposit. The process in the action must be served on the officer of the State having the deposit, who must appear and answer in behalf of the State and perform any orders and judgments the court may make in the action.
S.C. Code Ann. § 38-29-60 — SC Code / Title 38 / Chapter 29 / Section 38-29-60
SECTION 38-29-60. Board of directors.
Status: in_force

(1) The board of directors of the association shall consist of not less than five nor more than eleven members serving terms as established in the plan of operation. Member insurers shall select the members of the board subject to the director's approval. Any vacancies on the board must be filled for the remaining period of the term by a person elected by a majority vote of the remaining board members and subject to approval by the director. (2) In approving selections or in appointing members to the board, the director shall consider, among other things, whether all member insurers are fairly represented. (3) Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors, but members of the board may not otherwise be compensated by the association for their services. Editor's Note 2020 Act No. 121, SECTION 1.B, provides as follows: "[1.]B. The amendments made by this act do not apply to a member insurer that has been placed under an order of rehabilitation or liquidation before July 1, 2020." Effect of Amendment 2020 Act No. 121, SECTION 1.A, in (1), in the first sentence, substituted "eleven members" for "nine members", and in the third sentence, substituted "by a person elected by a majority vote of the remaining board members and subject to approval by the director" for "in the manner described in the plan of operation".
S.C. Code Ann. § 38-19-460 — SC Code / Title 38 / Chapter 19 / Article 5 / Section 38-19-460
SECTION 38-19-460. Enforcement of contingent liability on assessment premium plan.
Status: in_force

The contingent liability of members of a domestic mutual insurer doing business on the assessment premium plan must be called upon and enforced by its directors as provided in its bylaws.
S.C. Code Ann. § 38-7-35 — SC Code / Title 38 / Chapter 7 / Section 38-7-35
SECTION 38-7-35. Portion of tax on fire insurers to be used for training, certification, and continuing education program for building codes enforcement officers; annual report.
Status: in_force

(A) One hundred seventy-five thousand dollars of the revenue collected annually pursuant to Section 38-7-30 must be transferred to the Department of Labor, Licensing and Regulation for the purpose of implementing the training, certification, and continuing education program for building codes enforcement officers as provided by law. (B) The Department of Labor, Licensing and Regulation shall report annually to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee detailing actual program expenditures including, but not limited to, the number of instructors employed, the number of training sessions conducted, and the number of certifications issued. This report must be submitted to the respective chairmen no later than July fifteenth of each year. (C) One hundred thousand dollars of the revenue collected annually pursuant to Section 38-7-30 must be transferred to the Department of Insurance for the purpose of implementing the program as provided in Section 38-75-480. (D) Subsection (C) of this section ceases to be of any force or effect after June 30, 2002.
S.C. Code Ann. § 38-71-870 — SC Code / Title 38 / Chapter 71 / Article 5 / Section 38-71-870
SECTION 38-71-870. Coverage in small or large group market in connection with group health plan; nonrenewal or discontinuance; restrictions; modification of coverage; plan sponsor.
Status: in_force

(A) Except as provided in this section, if a health insurance issuer offers health insurance coverage in the small or large group market in connection with a group health plan, the issuer must renew or continue in force such coverage for all eligible employees and dependents at the option of the plan sponsor of the plan. (B) A health insurance issuer may nonrenew or discontinue health insurance coverage offered in connection with a group health plan in the small or large group market based only on one or more of the following: (1) The plan sponsor has failed to pay premiums or contributions in accordance with the terms of the health insurance coverage or the issuer has not received timely premium payments. (2) The plan sponsor has performed an act or practice that constitutes fraud or made an intentional misrepresentation of material fact under the terms of the coverage or, with respect to coverage of an insured individual, fraud, or intentional misrepresentation by the insured individual or the individual's representative. If the fraud or intentional misrepresentation is made by a person with respect to any person's prior health condition, the insurer has the right also to deny coverage to that person or to impose as a condition of continued coverage the exclusion of the condition misrepresented. (3) The plan sponsor has failed to comply with a material plan provision relating to employer contribution or group participation rules as permitted under Section 38-71-1360(A)(4) in the case of the small group market or pursuant to applicable state law in the large group market. (4) The issuer is ceasing to offer coverage in such market in accordance with subsection (C) and applicable state law. (5) In the case of a health insurance issuer that offers health insurance coverage in the market through a network plan, there is no longer any enrollee in connection with such plan who lives, resides, or works in the service area of the issuer or in the area for which the issuer is authorized to do business and, in the case of the small group market, the issuer would deny enrollment with respect to such plan under Section 38-71-1360(C)(1). (6) In the case of health insurance coverage that is made available in the small or large group market only through one or more bona fide associations, the membership of an employer in the association, on the basis of which the coverage is provided, ceases but only if such coverage is terminated under this item uniformly without regard to any health status-related factor relating to any covered individual. (C)(1) In any case in which an issuer decides to discontinue offering a particular type of group health insurance coverage offered in the small or large group market, coverage of such type may be discontinued by the issuer in accordance with applicable state law in such market only if the issuer: (a) provides notice to each plan sponsor provided coverage of this type in such market, and participants and beneficiaries covered under the coverage, of the discontinuation at least ninety days before to the date of the discontinuation of the coverage; (b) offers to each plan sponsor provided coverage of this type in the market, the option to purchase all or, in the case of the large group market, any other health insurance coverage currently being offered by the issuer to a group health plan in such market; and (c) in exercising the option to discontinue coverage of this type and in offering the option of coverage under subitem (b), the issuer acts uniformly without regard to the claims experience of those sponsors or any health status-related factor relating to any participants or beneficiaries covered or new participants or beneficiaries who may become eligible for the coverage. (2)(a) In any case in which a health insurance issuer elects to discontinue offering all health insurance coverage in the small group market or the large group market, or both markets, in this State, health insurance coverage may be discontinued by the issuer only in accordance with applicable state law and if: (i) the issuer provides notice to the Director of Insurance and to each plan sponsor, and participants and beneficiaries covered under the coverage, of the discontinuation at least one hundred eighty days before the date of the discontinuation of the coverage; and (ii) all health insurance coverage issued or delivered for issuance in the State in such market is discontinued and coverage under the health insurance coverage in the market is not renewed. (b) In the case of a discontinuation under subitem (a) in a market, the issuer may not provide for the issuance of any health insurance coverage in the market in this State during the five-year period beginning on the date of the discontinuation of the last health insurance coverage not so renewed. (D) At the time of coverage renewal, a health insurance issuer may modify the health insurance coverage for a product offered to a group health plan in the: (1) large group market; or (2) small group market if, for coverage that is available in the market other than only through one or more bona fide associations, the modification is consistent with state law and effective on a uniform basis among group health plans with that product. (E) In applying this section in the case of health insurance coverage that is made available by a health insurance issuer in the small or large group market to employers only through one or more associations, a reference to "plan sponsor" is deemed, with respect to coverage provided to an employer member of the association, to include a reference to such employer.
S.C. Code Ann. § 38-103-90 — SC Code / Title 38 / Chapter 103 / Section 38-103-90
SECTION 38-103-90. Annual report to legislature.
Status: in_force

The department shall provide an annual report to the legislature and the public beginning on January 1, 2025, and each year thereafter, with information regarding the utilization of family leave insurance as authorized in this section, including: (1) the number of insurers in the State who are currently offering family leave insurance; (2) the total number of employers in the State who have purchased family leave insurance; and (3) a breakdown of which employers in the State have purchased family leave insurance by industry and employer size.
S.C. Code Ann. § 38-31-160 — SC Code / Title 38 / Chapter 31 / Section 38-31-160
SECTION 38-31-160. Stay of proceedings involving insolvent insurers; rights of Association in these proceedings.
Status: in_force

All proceedings involving covered claims in which the insolvent insurer is a party or is obligated to defend a party in any court in this State must be stayed ninety days from the date insolvency is determined to permit proper defense by the association. The court may stay the proceedings for a longer period of time if the court finds the additional time is necessary to permit proper defense by the association. As to any judgment, decision, order, verdict, or finding based on the insurer's default or failure to defend the insured, the association may apply to have the judgment, decision, order, verdict, or finding set aside by the same court or administrator which made it and must be permitted to defend against the claim on its merits.
S.C. Code Ann. § 38-71-1110 — SC Code / Title 38 / Chapter 71 / Article 11 / Section 38-71-1110
SECTION 38-71-1110. "Franchise accident and health insurance" defined.
Status: in_force

"Accident and health insurance on a franchise plan" is that form of accident and health insurance issued to: (1) three or more employees of any corporation, copartnership, or individual employer or any governmental corporation, agency, or department; or (2) ten or more members of any trade or professional association, labor union, or any other association having had an active existence for at least two years when the association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance, when: (a) the insureds, with or without their dependents, are issued the same form of an individual policy varying only as to amounts and kinds of coverage applied for by the insureds; and (b) the employer, union, or association has approved and endorsed the policy being sold to its employees or members. Accident and health insurance on a franchise plan may be written under rates less than the usual rates for the insurance, but all premium rates and discounts the insurer proposes to use must be filed with the department and approved by the director or his designee as required by Section 38-71-310.
S.C. Code Ann. § 38-71-146 — SC Code / Title 38 / Chapter 71 / Article 1 / Section 38-71-146
SECTION 38-71-146. Required coverage for contraceptives.
Status: in_force

All individual and group health insurance and health maintenance organization policies in this State shall include coverage for contraceptives. For purposes of this section, "contraceptive" means the same as in Section 44-41-610(4). A contraceptive may prevent ovulation, fertilization, or implantation in the uterus. A contraceptive does not include any drug, device, or medication used with the intent of terminating a pregnancy of a woman known to be pregnant. This section does not apply if an individual or entity asserts a sincerely held religious belief regarding the use of contraception. Editor's Note 2023 Act No. 70, SECTIONS 11 and 12, provide as follows: "SECTION 11. The Public Employee Benefit Authority and the State Health Plan shall cover prescribed contraceptives for dependents under the same terms and conditions that the Plan provides contraceptive coverage for employees and spouses. The State Health Plan shall not apply patient cost sharing provisions to covered contraceptives. "SECTION 12. The President of the Senate, on behalf of the Senate, and the Speaker of the House of Representatives, on behalf of the House of Representatives have an unconditional right to intervene on behalf of their respective bodies in a state court action and may provide evidence or argument, written or oral, if a party to that court action challenges the constitutionality of this act. In a federal court action that challenges the constitutionality of this act the Legislature may seek to intervene, to file an amicus brief, or to present arguments in accordance with federal rules of procedure. Intervention by the Legislature pursuant to this provision does not limit the duty of the Attorney General to appear and prosecute legal actions or defend state agencies, officers or employees as otherwise provided. In any action in which the Legislature intervenes or participates, the Senate and the House of Representatives shall function independently from each other in the representation of their respective clients."
S.C. Code Ann. § 38-5-190 — SC Code / Title 38 / Chapter 5 / Section 38-5-190
SECTION 38-5-190. Copy and reproduction of records; effect and admissibility into evidence of printed reproduction.
Status: in_force

Any member of South Carolina Property and Casualty Insurance Guaranty Association or South Carolina Life and Accident and Health Guaranty Association, any eligible surplus lines insurer, any insurance premium service company, any authorized reinsurer, any title insurance company, any licensed adjuster, any licensed insurance agent, any licensed insurance broker, any insurance rating or statistical agent, South Carolina Reinsurance Facility, South Carolina Wind and Hail Underwriting Association, South Carolina Property and Casualty Insurance Guaranty Association, South Carolina Health Insurance Pool, South Carolina Commercial Auto Insurance Plan, South Carolina Medical Malpractice Joint Underwriting Association, South Carolina Workers' Compensation Commission, Second Injury Fund, South Carolina Department of Insurance, or South Carolina State Fiscal Accountability Authority Insurance Reserve Fund may cause records relating to policy applications, changes, refunds, terminations, claims, or premium payments kept by the insurer, premium service company, adjuster, agent, or broker to be copied or reproduced by: (1) photostatic, photographic, or microfilming process; or (2) electronic or graphic imaging through scanning, digitizing, or other means. These processes or means must correctly copy, reproduce, or form a medium for copying or reproducing the original record so that an accurate facsimile of the original can be printed or otherwise reproduced on paper, film, or similar medium. The printed reproduction must be considered an original record for all purposes and must be treated as an original record in all courts or administrative agencies for the purpose of its admissibility into evidence, regardless of whether the institution retains or disposes of the original; provided, that: (a) the original document otherwise qualifies as a business record pursuant to the South Carolina Uniform Business Records as Evidence Act or the appropriate state or federal rules of evidence; and (b) a custodian or other qualified witness, as those terms are used in the appropriate state or federal rules of evidence, certifies that the printed reproduction is a true and correct copy of the original. The Director of the Department of Insurance may, by order, apply the provisions of this section to any additional insurance or insurance-related organizations or entities or insurance or insurance-related records, as the director in his discretion considers necessary. Code Commissioner's Note At the direction of the Code Commissioner, references in this section to the offices of the former State Budget and Control Board, Office of the Governor, or other agencies, were changed to reflect the transfer of them to the Department of Administration or other entities, pursuant to the directive of the South Carolina Restructuring Act, 2014 Act No. 121, SECTION 5(D)(1), effective July 1, 2015.
S.C. Code Ann. § 38-85-60 — SC Code / Title 38 / Chapter 85 / Section 38-85-60
SECTION 38-85-60. Premiums.
Status: in_force

If an insurer charges debtors the same premium for the new coverage that they were paying for the old coverage, and, as a result, insured debtors of a financial institution are charged different premium rates for the same coverage, the rate differences do not constitute unfair discrimination under Sections 38-55-50 and 38-57-120, so long as all the applicable requirements of this chapter are met.
S.C. Code Ann. § 38-17-170 — SC Code / Title 38 / Chapter 17 / Section 38-17-170
SECTION 38-17-170. Violations of chapter; conditional permit to organize.
Status: in_force

Any attorney who exchanges any contract for indemnity specified in this chapter or directly or indirectly solicits or negotiates any applications for this contract without first complying with this chapter is guilty of a misdemeanor. The director or his designee, in his discretion and on terms he may prescribe, may issue a permit for organization purposes which must continue in force or be canceled at his pleasure.
S.C. Code Ann. § 38-3-160 — SC Code / Title 38 / Chapter 3 / Article 1 / Section 38-3-160
SECTION 38-3-160. Administration of oaths.
Status: in_force

The director or his duly appointed assistants or agents shall administer all oaths required in the discharge of his official duties.
S.C. Code Ann. § 38-21-40 — SC Code / Title 38 / Chapter 21 / Section 38-21-40
SECTION 38-21-40. Investments in securities of subsidiaries are not subject to other restrictions.
Status: in_force

Investments in common stock, preferred stock, debt obligations, or other securities of subsidiaries made pursuant to Section 38-21-30 are not subject to any other investment restrictions or prohibitions contained in this title.
S.C. Code Ann. § 38-83-10 — SC Code / Title 38 / Chapter 83 / Section 38-83-10
SECTION 38-83-10. Definitions.
Status: in_force

As used in this chapter: (1) "Association" means any joint underwriting association established pursuant to this chapter. (2) "Professional liability insurance" means insurance protection against the legal liability of the insured and against loss, damage, or expense incident to a claim arising out of service to or representation of any person as the result of negligence or malpractice in rendering or failing to render a professional service. (3) "Net direct premiums" means gross direct premiums written on bodily injury liability insurance, other than automobile liability insurance, homeowners liability insurance, and farmowners liability insurance, including the liability component of multiple peril package policies, as computed by the director or his designee less return premiums or the unused or unabsorbed portions of premium deposits.
S.C. Code Ann. § 38-73-130 — SC Code / Title 38 / Chapter 73 / Article 1 / Section 38-73-130
SECTION 38-73-130. Hearing procedure; judicial review.
Status: in_force

Any insurer or rating organization aggrieved by any order or decision of the director or his designee made without a hearing may, within thirty days after notice of the order to the insurer or organization, make written request to the Administrative Law Court for a hearing. The Administrative Law Court shall hear the party or parties within twenty days after receipt of the request and shall give not less than ten days' written notice of the time and place of the hearing. Within fifteen days after the hearing the Administrative Law Court shall affirm, reverse, or modify the previous action, specifying his reasons therefor. Pending the hearing and decision thereon the director or his designee may suspend or postpone the effective date of his previous action.
S.C. Code Ann. § 38-35-30 — SC Code / Title 38 / Chapter 35 / Section 38-35-30
SECTION 38-35-30. Assessments.
Status: in_force

Assessments must be made by a mutual association at the time an individual becomes a member or at the time of death or sickness of a member and for the purpose of paying benefits due the member because of death or sickness.
S.C. Code Ann. § 38-38-420 — SC Code / Title 38 / Chapter 38 / Article 9 / Section 38-38-420
SECTION 38-38-420. Assets to be held for use and benefit of society; special funds and accounts.
Status: in_force

(A) All assets must be held, invested, and disbursed for the use and benefit of the society, and a member or beneficiary may not have or acquire individual rights in the assets or become entitled to an apportionment on the surrender of a part of the assets, except as provided in the benefit contract. (B) A society may create, maintain, invest, disburse, and apply a special fund or funds necessary to carry out a purpose permitted by the bylaws of the society. (C) A society may, pursuant to resolution of its supreme governing body, establish and operate one or more separate accounts and issue contracts on a variable basis, subject to the provisions of law regulating life insurers establishing these accounts and issuing these contracts. To the extent the society considers it necessary in order to comply with applicable federal or state laws or regulations issued pursuant to federal or state laws, the society may (1) adopt special procedures for the conduct of the business and affairs of a separate account; (2) for persons having beneficial interests in the separate accounts, provide special voting and other rights including, without limitation, special rights and procedures relating to investment policy, investment advisory services, selection of certified public accounts, and selection of a committee to manage the business and affairs of the account; and (3) issue contracts on a variable basis, in which case Section 38-38-340(B) and (D) do not apply.
S.C. Code Ann. § 38-103-30 — SC Code / Title 38 / Chapter 103 / Section 38-103-30
SECTION 38-103-30. Family leave insurance.
Status: in_force

(A) Family leave insurance may be written as: (1) an amendment or rider to a group disability income policy or life insurance policy, included in a group disability income policy or life insurance policy; or (2) a separate group insurance policy purchased by an employer. (B) An insurer licensed to sell life insurance or disability income insurance in this State may issue a policy of family leave insurance in accordance with the bulletins adopted by the department. (C) The commissioner may publish bulletins to administer this title and authorize the sale of family leave insurance in this State.
S.C. Code Ann. § 38-17-60 — SC Code / Title 38 / Chapter 17 / Section 38-17-60
SECTION 38-17-60. Director shall be appointed agent for service of process on exchanges.
Status: in_force

When filing the declaration provided for in Section 38-17-30, the attorney shall also file with the department a written instrument executed by him for the subscribers stipulating that upon the issuance of a certificate of authority provided for in Section 38-17-70 service of process may be had upon the director in all suits in this State arising out of the policies, contracts, or agreements and that this service is valid and binding upon all subscribers exchanging at any time reciprocal or interinsurance contracts through the attorney.
S.C. Code Ann. § 38-78-30 — SC Code / Title 38 / Chapter 78 / Section 38-78-30
SECTION 38-78-30. Appointment of administrator; requirements for sale of contracts; registration and fees; financial security requirements; right to return contract; cancellation.
Status: in_force

(A) A provider may, but is not required to, appoint an administrator or other designee to be responsible for any or all of the administration of service contracts and compliance with this chapter. (B) A service contract must not be issued, sold, or offered for sale in this State unless the provider or its designee has: (1) provided a receipt for, or other written evidence of, the purchase of the service contract to the contract holder; (2) provided a copy of the service contract to the service contract holder within a reasonable period of time from the date of purchase; and (3) complied with this chapter. (C) Each provider of service contracts sold in this State shall file a registration with the director on a form prescribed by the director. Each provider shall pay to the department a fee of two hundred dollars annually. (D) In order to assure the faithful performance of a provider's obligations to its contract holders each provider shall be responsible for complying with the requirements of item (1), (2), or (3): (1) insure all service contracts under a reimbursement insurance policy issued by an insurer authorized to transact insurance business in this State or issued pursuant to Section 38-45-110; or (2)(a) maintain a funded reserve account for its obligations under its service contracts issued and outstanding in this State. The reserves may not be less than forty percent of gross consideration received, less claims paid, on the sale of the service contract for all in-force contracts. The reserve account is subject to examination and review by the director; and (b) place in trust with the director a financial security deposit having a value of not less than five percent of the gross consideration received, less claims paid, on the sale of the service contract for all service contracts issued and in force, but not less than twenty-five thousand dollars, consisting of one of the following: (i) a surety bond issued by an authorized surety; (ii) securities of the type eligible for deposit by authorized insurers in this State; (iii) cash; (iv) a letter of credit issued by a qualified financial institution; or (v) another form of security prescribed by regulations promulgated by the director; or (3)(a) maintain, or its parent company maintain, a net worth or stockholder's equity of one hundred million dollars; and (b) upon request, provide the director with a copy of the provider's, or the provider's parent company's, most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission (SEC) within the last calendar year, or if the provider or the provider's parent company does not file with the SEC, a copy of the provider's or the provider's parent company's audited financial statements which show a net worth of the provider or its parent company of at least one hundred million dollars. If the provider's parent company's Form 10-K, Form 20-F, or audited financial statements are filed to meet the provider's financial stability requirement, then the parent company shall agree to guarantee the obligations of the provider relating to service contracts sold by the provider in this State. (E) Except for the requirements specified in subsection (D), no other financial security requirements shall be required by the director for service contract providers. Service contract providers that establish their financial security to pay claims by insuring their obligations under a reimbursement insurance policy as provided in subsection (D)(1) are not required to file financial statements in connection with an application for registration or the renewal of a registration. (F) Service contracts shall require the provider to permit the service contract holder to return the service contract within twenty days of the date the service contract was mailed to the service contract holder or within ten days of delivery if the service contract is delivered to the service contract holder at the time of sale or within a longer time period permitted under the service contract. Upon return of the service contract to the provider within the applicable time period, if no claim has been made under the service contract prior to its return to the provider, the service contract is void and the provider shall refund to the service contract holder, or credit the account of the service contract holder, with the full purchase price of the service contract. The right to void the service contract provided in this subsection is not transferable and shall apply only to the original service contract purchaser and only if no claim has been made prior to its return to the provider. A ten percent penalty per month shall be added to a refund that is not paid or credited within forty-five days after return of the service contract to the provider. (G) If the provider cancels the service contract, the provider shall mail a written notice to the contract holder at the last known address of the service contract holder contained in the records of the provider at least fifteen days prior to cancellation by the provider. Prior notice is not required if the reason for cancellation is nonpayment of the provider fee, a material misrepresentation by the service contract holder to the provider, or a substantial breach of duties by the service contract holder relating to the covered product or its use. The notice shall state the effective date of the cancellation and the reason for the cancellation. (H) Provider fees collected on service contract are not subject to premium taxes. (I) Except for the registration requirements in subsection (C), providers and related service contract sellers, administrators, and other persons marketing, selling, or offering to sell service contracts are exempt from state licensing requirements. (J) The marketing, sale, offering for sale, issuance, making, proposing to make, and administration of service contracts by providers and related service contract sellers, administrators, and other persons shall be exempt from all other provisions of Title 38. Effect of Amendment 2020 Act No. 115, SECTION 2, in (E), added the second sentence, excluding a service contract provider that insures their obligations under a reimbursement insurance policy from the financial statement requirement for registration.
S.C. Code Ann. § 38-99-20 — SC Code / Title 38 / Chapter 99 / Section 38-99-20
SECTION 38-99-20. Information security program; compliance.
Status: in_force

(A) Commensurate with the size and complexity of the licensee, the nature and scope of the licensee's activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by the licensee or in the licensee's possession, custody, or control, each licensee shall develop, implement, and maintain a comprehensive written information security program based on the licensee's risk assessment and that contains administrative, technical, and physical safeguards for the protection of nonpublic information and the licensee's information system. (B) A licensee's information security program must be designed to: (1) protect the security and confidentiality of nonpublic information and the security of the information system; (2) protect against threats or hazards to the security or integrity of nonpublic information and the information system; (3) protect against unauthorized access to or use of nonpublic information, and minimize the likelihood of harm to a consumer; and (4) define and periodically reevaluate a schedule for retention of nonpublic information and a mechanism for its destruction when no longer needed. (C) The licensee shall: (1) designate one or more employees, an affiliate, or an outside vendor designated to act on behalf of the licensee as responsible for the information security program; (2) identify reasonably foreseeable internal or external threats that could result in the unauthorized access to or transmission, disclosure, misuse, alteration, or destruction of nonpublic information including the security of information systems and nonpublic information that are accessible to or held by third-party service providers; (3) assess the likelihood and potential damage of these threats, considering the sensitivity of the nonpublic information; (4) assess the sufficiency of policies, procedures, information systems, and other safeguards in place to manage these threats, taking into consideration threats in each relevant area of the licensee's operations, including: (a) employee training and management; (b) information systems, including network and software design, and information classification, governance, processing, storage, transmission, and disposal; and (c) detecting, preventing, and responding to attacks, intrusions, or other systems failures; and (5) implement information safeguards to manage the threats identified in its ongoing assessment, and at least annually assess the effectiveness of the safeguards' key controls, systems, and procedures. (D) Based on its risk assessment, the licensee shall: (1) design its information security program to mitigate the identified risks, commensurate with the size and complexity of the licensee's activities, including its use of third-party service providers, and the sensitivity of the nonpublic information used by the licensee or in the licensee's possession, custody, or control; (2) determine the appropriateness of and implement the following security measures: (a) placing access controls on information systems, including controls to authenticate and permit access only to authorized individuals to protect against the unauthorized acquisition of nonpublic information; (b) identifying and managing the data, personnel, devices, systems, and facilities that enable the organization to achieve business purposes in accordance with their relative importance to business objectives and the organization's risk strategy; (c) restricting access at physical locations containing nonpublic information to authorized individuals; (d) protecting by encryption or other appropriate means, all nonpublic information while being transmitted over an external network and all nonpublic information stored on a laptop computer or other portable computing or storage device or media; (e) adopting secure development practices for in-house developed applications used by the licensee and procedures for evaluating, assessing, and testing the security of externally developed applications used by the licensee; (f) modifying the information system in accordance with the licensee's information security program; (g) utilizing effective controls, which may include multifactor authentication procedures for an individual accessing nonpublic information; (h) regularly testing and monitoring systems and procedures to detect actual and attempted attacks on, or intrusions into, information systems; (i) including audit trails within the information security program designed to detect and respond to cybersecurity events and designed to reconstruct material financial transactions sufficient to support normal operations and obligations of the licensee; (j) implementing measures to protect against destruction, loss, or damage of nonpublic information due to environmental hazards such as fire and water damage or other catastrophes or technological failures; and (k) developing, implementing, and maintaining procedures for the secure disposal of nonpublic information in any format; (3) include cybersecurity risks in the licensee's enterprise risk management process; (4) stay informed regarding emerging threats or vulnerabilities and use reasonable security measures when sharing information relative to the character of the sharing and the type of information shared; (5) provide its personnel with cybersecurity awareness training that is updated as necessary to reflect risks identified by the licensee in the risk assessment. (E)(1) If the licensee has a board of directors, the board or an appropriate committee of the board shall, at a minimum: (a) require the licensee's executive management or its delegates to develop, implement, and maintain the licensee's information security program; and (b) require the licensee's executive management or its delegates to report in writing at least annually: (i) the overall status of the information security program and the licensee's compliance with this chapter; and (ii) material matters related to the information security program addressing issues such as risk assessment, risk management and control decisions, third-party service provider arrangements, testing results, cybersecurity events or violations and management's responses, and recommendations for changes in the information security program. (2) If the executive management of a licensee delegates any of its responsibilities under this chapter, it shall oversee the development, implementation, and maintenance of the licensee's information security program prepared by the delegates and receive a report from the delegates which must comply with the requirements of the report to the board of directors. (F) A licensee shall: (1) exercise due diligence in selecting its third-party service provider; and (2) require a third-party service provider to implement appropriate administrative, technical, and physical measures to protect and secure the information systems and nonpublic information that are accessible to, or held by, the third-party service provider. (G) The licensee shall monitor, evaluate and adjust the information security program consistent with any relevant changes in technology, the sensitivity of its nonpublic information, internal or external threats to information, and the licensee's own changing business arrangements including, but not limited to, mergers and acquisitions, alliances and joint ventures, outsourcing arrangements, and changes to information systems. (H)(1) As part of its information security program, a licensee must establish a written incident response plan designed to promptly respond to, and recover from, a cybersecurity event that compromises the confidentiality, integrity, or availability of nonpublic information in its possession, the licensee's information systems, or the continuing functionality of any aspect of the licensee's business or operations. (2) An incident response plan required in item (1) must address: (a) the internal process for responding to a cybersecurity event; (b) the goals of the incident response plan; (c) the definition of clear roles, responsibilities and levels of decision-making authority; (d) external and internal communications and information sharing; (e) identification of requirements for the remediation of any identified weaknesses in information systems and associated controls; (f) documentation and reporting regarding cybersecurity events and related incident response activities; and (g) the evaluation and revision as necessary of the incident response plan following a cybersecurity event. (I) Annually, each insurer domiciled in this State shall submit to the director, a written statement by February fifteenth, certifying that the insurer is in compliance with the requirements set forth in this section. Each insurer shall maintain for examination by the department all records, schedules, and data supporting this certificate for a period of five years. To the extent an insurer has identified areas, systems, or processes that require material improvement, updating or redesign, the insurer shall document the identification and the remedial efforts planned and underway to address such areas, systems, or processes. Such documentation must be available for inspection by the director. Editor's Note 2018 Act No. 171, SECTIONS 1 to 2, and 4, provide as follows: "SECTION 1. The purpose and intent of this act is to establish standards for data security and standards for the investigation of and notification to the director of a cybersecurity event applicable to licensees. This act may not be construed to create or imply a private cause of action for a violation of its provisions nor may it be construed to curtail a private cause of action which would otherwise exist in the absence of this act. "SECTION 2. This act is known and may be cited as the 'South Carolina Insurance Data Security Act'." "SECTION 4. Licensees have until July 1, 2019, to implement Section 38-99-20 of this act and until July 1, 2020, to implement Section 38-99-20(F) of this act."
S.C. Code Ann. § 38-21-120 — SC Code / Title 38 / Chapter 21 / Section 38-21-120
SECTION 38-21-120. Jurisdiction of courts; service of process.
Status: in_force

The courts of this State, including Administrative Law Court as provided by law, are vested with jurisdiction over each person not resident, domiciled, or authorized to do business in this State who files a statement with the department under this chapter and over all actions involving the person arising out of violations of Sections 38-21-60 through 38-21-120. This person must be considered to have performed acts equivalent to and constituting an appointment by him of the director to be his true and lawful attorney upon whom all lawful process may be served in any action, suit, or proceeding arising out of violations of Sections 38-21-60 through 38-21-120. Copies of all lawful process must be served on the director and transmitted by registered or certified mail by the director or his designee to the person at his last known address.
S.C. Code Ann. § 38-55-730 — SC Code / Title 38 / Chapter 55 / Article 7 / Section 38-55-730
SECTION 38-55-730. Posting an insurance policy or endorsement by electronic means.
Status: in_force

Notwithstanding another provision of this section, if a standard property and casualty insurance policy or endorsement does not contain personally identifiable information, an insurer may mail, deliver, or post the policy or endorsement on the insurer's website. If the insurer elects to post an insurance policy or endorsement on the insurer's website in lieu of mailing or delivering the document to the insured, the insurer must comply with the following conditions: (1) The policy and endorsement must be accessible as long as the policy or endorsement is in force. (2) After the policy expires, the insurer must maintain and archive the policy and endorsement for five years after the expiration of the policy and shall make the documents available to the party upon request. (3) The insurer must post the policy and endorsement in a manner that allows the insured to print and save the policy and endorsement using a program or application that is widely available on the Internet and free to use. (4) The insurer provides the following information in, or simultaneous with, each declarations page provided at the time of issuance of the initial policy and any renewals of that policy: (a) a description of the exact policy and endorsement form purchased by the insured; (b) a method by which the insured may obtain, upon request and without charge, a paper copy of the policy; and (c) the Internet address where the insured's policy and endorsement is posted. (5) The insurer provides notice, in the format preferred by the insured, of any changes to the form or endorsement, the insured's right to obtain, upon request without charge, a paper copy of a form, and the Internet address where the form and endorsement is posted.
S.C. Code Ann. § 38-45-40 — SC Code / Title 38 / Chapter 45 / Section 38-45-40
SECTION 38-45-40. Reciprocal agreements as to licensing nonresidents.
Status: in_force

The director or his designee may enter into reciprocal agreements with the insurance commissioners of other states in regard to licensing of nonresident brokers if in his judgment the arrangements or agreements are in the best interest of the State and if the applicant for the license meets the minimum statutory requirements of this State for the issuance of a broker's license. However, the director or his designee may not enter into or continue any reciprocal agreement unless the other state is as liberal as this State in licensing nonresident brokers.
S.C. Code Ann. § 38-73-545 — SC Code / Title 38 / Chapter 73 / Article 5 / Section 38-73-545
SECTION 38-73-545. Applicability to self-insurers.
Status: in_force

Nothing in Section 38-73-540 applies to self-insurers.
S.C. Code Ann. § 38-55-80 — SC Code / Title 38 / Chapter 55 / Article 1 / Section 38-55-80
SECTION 38-55-80. Loans to directors or officers.
Status: in_force

(A) An insurer doing business in this State may not make a loan to any of its directors or officers, either directly or indirectly, except as provided in this section, and its director or officer may not accept any loan, directly or indirectly. The insurer may not make an advance to any of its directors or officers for future services to be performed beyond a period of one year from the date of making the advance. This section does not prohibit a life insurer from making a policy loan upon its policy or contract in an amount not exceeding the net reserve or cash value of the policy or contract. (B) This section does not prohibit an insurer in connection with the relocation of the place of employment of an officer, including any relocation in connection with the initial employment of the officer, from making, or the officer from accepting, a mortgage loan to the officer on real property owned by the officer which is to serve as his residence or acquiring, or the officer from selling to it, at not more than the fair market value, the residence of the officer. Mortgage loans made or residences acquired under this section are subject to the limitations imposed on investments by Chapter 12 of this title. In addition, this section does not prohibit an insurer from making a loan to its directors or officers if the loan is first approved in writing by the director or his designee. (C) An officer or director of an insurer who violates this section by participating in making the loan or accepting a loan except as authorized in this section, is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than three years, or both. (D) A loan made by an insurer to its officers, directors, or employees bears the same rate of interest as is available to the public on loans from the insurer.
S.C. Code Ann. § 38-90-10 — SC Code / Title 38 / Chapter 90 / Article 1 / Section 38-90-10
SECTION 38-90-10. Definitions.
Status: in_force

As used in this chapter, unless the context requires otherwise: (1) "Alien or foreign captive insurance company" means an insurance company or protected cell, or its equivalent, of an insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien or foreign jurisdiction which imposes statutory or regulatory standards in a form acceptable to the director on companies transacting the business of insurance in such jurisdiction, but may not include a corporation controlled by an alien adversary. (2) "Affiliate of" or "affiliated with" means a specific person who directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person specified. (3) "Association" means a legal association of individuals, corporations, limited liability companies, partnerships, political subdivisions, or associations: (a) the member organizations of which collectively, or which does itself: (i) own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer or organized as a limited liability company; or (ii) have complete voting control over an association captive insurance company organized as a mutual insurer; or (b) the member organizations of which collectively constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer. (4) "Association captive insurance company" means a company that insures risks of the member organizations of the association and their affiliated companies. (5) "Branch business" means any insurance business transacted by a branch captive insurance company in this State. (6) "Branch captive insurance company" means an alien or foreign captive insurance company licensed by the director to transact the business of insurance in this State through a business unit with a principal place of business in this State. (7) "Branch operations" means any business operations of a branch captive insurance company in this State. (8) "Captive insurance company" means a pure captive insurance company, association captive insurance company, sponsored captive insurance company, special purpose captive insurance company, risk retention group, or industrial insured captive insurance company formed or licensed under this chapter. For purposes of this chapter, a branch captive insurance company must be a pure captive insurance company with respect to operations in this State, unless otherwise permitted by the director. (9) "Consolidated GAAP net worth" means the consolidated owners' equity determined in accordance with GAAP for reporting to the United States Securities and Exchange Commission. (10) "Control", including the terms "controlling," "controlled by", and "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by Section 38-21-220 that control does not exist in fact. The director may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support his determination, that control exists in fact, notwithstanding the absence of a presumption to that effect. (11) "Controlled unaffiliated business" means a person that: (a) is not an affiliate of a parent company; and (b) has an existing contractual relationship pursuant to which a parent or affiliated company exercises control of the risk management function of the person. (12) "Director" means the Director of the South Carolina Department of Insurance or the director's designee. (13) "Department" means the South Carolina Department of Insurance. (14) "GAAP" means generally accepted accounting principles. (15) "General account" means the assets and liabilities of a sponsored captive insurance company other than protected cell assets and protected cell liabilities. (16) "Industrial insured" means an insured as defined in Section 38-25-150(8). (17) "Industrial insured captive insurance company" means a company that insures risks of the industrial insureds that comprise the industrial insured group and their affiliated companies. (18) "Industrial insured group" means a group that meets either of the following criteria: (a) a group of industrial insureds that collectively: (i) own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer or limited liability company; or (ii) have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; or (b) a risk retention group. (19) "Member organization" means any individual, corporation, limited liability company, partnership, or association that belongs to an association. (20) "Parent" means any corporation, limited liability company, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent of the outstanding voting interests of a captive insurance company. (21) "Participant" means an entity as defined in Section 38-90-225, and any affiliates of that entity, that are insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the assets of a protected cell. (22) "Participant contract" means a contract by which a sponsored captive insurance company insures the risks of a participant and limits the losses of the participant to the assets of a protected cell. (23) "Person" means an individual, corporation, partnership, association, joint stock company, trust, unincorporated organization, or any similar entity or combination thereof. (24) "Principal place of business" means the physical location in the State of South Carolina where the complete books and records of the captive company are available for examination by the director. (25) "Protected cell" means an identified pool of assets and liabilities of a sponsored captive insurance company for one or more participants that is segregated and insulated from the remainder of the sponsored captive insurance company's assets and liabilities as set forth in this chapter. A protected cell may be unincorporated or incorporated. (26) "Protected cell account" means a specifically identified bank or custodial account established by a sponsored captive insurance company for the purpose of segregating the protected cell assets of one protected cell from the protected cell assets of other protected cells and from the assets of the sponsored captive insurance company's general account. (27) "Protected cell assets" means all assets, contract rights, and general intangibles, identified with and attributable to a specific protected cell of a sponsored captive insurance company. (28) "Protected cell liabilities" means all liabilities and other obligations identified with and attributable to a specific protected cell of a sponsored captive insurance company. (29) "Pure captive insurance company" means a company that insures risks of its parent, affiliated companies, controlled unaffiliated business, or a combination thereof or cedes or assumes business from a risk pool for the purpose of risk sharing. (30) "Risk retention group" means a captive insurance company formed under the Liability Risk Retention Act of 1986, 15 U.S.C. Section 3901, et seq., as amended. (31) "Special purpose captive insurance company" means a captive insurance company that is formed or licensed under this chapter that does not meet the definition of any other type of captive insurance company defined in this section. (32) "Sponsor" means an entity that is approved by the director to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurance company. (33) "Sponsored captive insurance company" means a captive insurance company: (a) in which the minimum capital and surplus required by applicable law is provided by one or more sponsors; (b) that is formed or licensed under this chapter; (c) that segregates liability through one or more protected cells; and (d) that insures the risks of participants through participant contracts. (34) "Alien adversary" means any alien government or nongovernment person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or the security and safety of United States citizens. (35) "Corporation controlled by an alien adversary" means a legal entity engaged in commerce that: (a) is wholly owned by an alien adversary; (b) has an alien adversary as a dominant shareholder, directly or indirectly; (c) is wholly owned by a citizen of an alien adversary; or (d) has one or a number of citizens of an alien adversary whose cumulative ownership is as a dominant shareholder. (36) "Dominant shareholder" means the single owner of ten percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership; or multiple owners of twenty percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership. Effect of Amendment 2014 Act No. 282, SECTION 4, added paragraph (16), definition of "general account"; rewrote paragraph (24), definition of "protected cell"; added paragraph (25), definition of "protected cell account"; added paragraph (26), definition of "protected cell assets"; added paragraph (27), definition of "protected cell liabilities"; added paragraph (30), definition of "risk retention group"; in paragraph (32), definition of "sponsor", deleted reference to Section 38-90-220; in paragraph (33), definition of "sponsored captive insurance company", rewrote paragraphs (c) and (d); and redesignated the paragraphs accordingly. 2018 Act No. 251, SECTION 1, rewrote the section. 2025 Act No. 62, SECTION 1, replaced the definition of "Alien captive insurance company" with the definition of "Alien or foreign captive insurance company"; in the definition for "Branch captive insurance company", inserted "or foreign" preceding captive; in the definition for "Participant", substituted "38-90-225" for "38-90-240". 2025 Act No. 62, SECTION 2, added (34) to (36), the definitions for "Alien adversary", "Corporation controlled by an alien adversary", and "Dominant shareholder".
S.C. Code Ann. § 38-63-530 — SC Code / Title 38 / Chapter 63 / Article 5 / Section 38-63-530
SECTION 38-63-530. Minimum cash surrender values.
Status: in_force

(1) In event of default. Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary, whether or not required by SECTION 38-63-520, must be an amount not less than the excess, if any, of the present value on such anniversary of the future guaranteed benefits which would have been provided for by the policy, including any existing paid-up additions, if there had been no default, over the sum of (a) the then present value of the adjusted premiums as defined in SECTIONS 38-63-570 to 38-63-600, corresponding to premiums which would have fallen due on and after such anniversary, and (b) the amount of indebtedness to the insurer on the policy. Any policy issued on or after the operative date of SECTION 38-63-600, as defined therein, which provides supplemental life insurance or annuity benefits at the option of the insured and for an identifiable additional premium by rider or supplemental policy provision, the cash surrender value referred to in the first paragraph of this section must be an amount not less than the sum of the cash surrender value as defined in that paragraph for an otherwise similar policy issued at the same age without the rider or supplemental policy provision and the cash surrender value as defined in that paragraph for a policy which provides only the benefits otherwise provided by the rider or supplemental policy provision. Any family policy issued on or after the operative date of SECTION 38-63-600, as defined therein, which defines a primary insured and provides term insurance on the life of the spouse of the primary insured expiring before the spouse's age of seventy-one, the cash surrender value referred to in the first paragraph of this section must be an amount not less than the sum of the cash surrender value as defined in that paragraph for an otherwise similar policy issued at the same age without the term insurance on the life of the spouse and the cash surrender value as defined in that paragraph for a policy which provides only the benefits otherwise provided by the term insurance on the life of the spouse. (2) On paid-up policies. Any cash surrender value available within thirty days after any policy anniversary under any policy paid up by completion of all premium payments or any policy continued under any paid-up nonforfeiture benefit, whether or not required by SECTION 38-63-620, must be an amount not less than the present value on such anniversary of the future guaranteed benefits provided for by the policy, including any existing paid-up additions, decreased by any indebtedness to the insurer on the policy.
S.C. Code Ann. § 38-17-90 — SC Code / Title 38 / Chapter 17 / Section 38-17-90
SECTION 38-17-90. Maximum indemnity on fire risk; statement required.
Status: in_force

The attorney shall file a sworn statement with the department showing the maximum amount of indemnity upon any single fire insurance risk. The attorney shall also file, whenever required, a sworn statement with the department that he has examined the commercial rating of the subscribers as shown by the reference book of a commercial agency having at least one hundred thousand subscribers and that from this examination or other information in his possession it appears that no subscriber has assumed more than ten percent of its net worth on any single fire insurance risk.
S.C. Code Ann. § 38-39-80 — SC Code / Title 38 / Chapter 39 / Section 38-39-80
SECTION 38-39-80. Premium service companies may not write insurance or sell other services or commodities; service charges.
Status: in_force

(a) A premium service company may not write any insurance or sell any other service or commodity in connection with a premium service contract, except as approved by the director or his designee for mitigation purposes. (b) A premium service company may not charge, contract for, receive, or collect a service charge other than as permitted by this chapter. (c) The service charge must be computed on the balance of the premiums due (after subtracting the down payment made by the insured in accordance with the premium service agreement) from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final installment of the premium service agreement is payable, unless the service charge is computed as a fixed amount for each installment. (d) An initial charge up to twenty dollars for each premium service contract, addendum, and revision is permitted, which may not be refunded upon cancellation or prepayment. The amount of the initial charge must be filed with the department. (e) The service charge is the greater of the rate of one percent for each month computed on the remainder of the outstanding balance or an amount for each installment filed with and approved or promulgated by the department. However, if there is a cancellation by the borrower before maturity of the contract, the unearned service charge must be refunded on a short rate basis as determined by the department. With respect to the service charge for a premium service agreement which is for other than personal, family, or household purposes, the parties may contract for the payment by the debtor of a service charge at any rate, but no rate charged pursuant to the provisions of this subsection may be unconscionable. "Unconscionable" is defined as a rate substantially exceeding the usual and customary charge for financing insurance premiums. (f) A premium service company may not induce an insured to become obligated under more than one premium service agreement for the purpose of obtaining more than one nonrefundable initial charge, and a premium service company may not intentionally cancel an insurance contract for the purpose of obtaining an additional nonrefundable initial charge on a new premium service agreement accepted within sixty days of the cancellation on the prior agreement. (g) A premium service agreement may provide for the payment by the insured of a delinquency charge on each installment in default for a period of not less than five days of one dollar to a maximum of five percent of the installment. However, if the loan is primarily for personal family and household purposes, the amount of the delinquency charge must be filed with and approved or promulgated by the department, and may be charged on each installment in default for one or more days. Only one delinquency charge may be collected on an installment regardless of the period during which it remains in default. (h) A premium service company may charge an amount for payments made by the borrower or on the borrower's behalf through alternative payment mechanisms. This amount must be filed with and approved or promulgated by the department. Effect of Amendment 2015 Act No. 47, SECTION 2, in (a), inserted ", except as approved by the director or his designee for mitigation purposes".
S.C. Code Ann. § 38-26-30 — SC Code / Title 38 / Chapter 26 / Section 38-26-30
SECTION 38-26-30. Insurers to which chapter applies.
Status: in_force

The provisions of this chapter apply to: (1) domestic insurers; (2) an insurer doing business in this State whose state of domicile has asked the director or his designee to apply the provisions of this chapter as regards the insurer.
S.C. Code Ann. § 38-43-102 — SC Code / Title 38 / Chapter 43 / Article 1 / Section 38-43-102
SECTION 38-43-102. Temporary insurance producer license; limitation of temporary licensee authority.
Status: in_force

(A) The director or his designee may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the director or his designee considers the temporary license is necessary for the servicing of an insurance business in the following cases: (1) to the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer's business; (2) to a member or employee of an agency licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license; (3) to the designee of a licensed insurance producer entering active service in the armed forces of the United States of America; or (4) except for continuing education purposes, in any other circumstance where the director or his designee considers the public interest will best be served by the issuance of this license. (B) The director or his designee may by order limit the authority of any temporary licensee in any way considered necessary to protect insureds and the public. The director or his designee may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The director or his designee may by order revoke a temporary license if the interest of insureds or the public are endangered. A temporary license may not continue after the owner or the personal representative disposes of the business for which the temporary license was issued.
S.C. Code Ann. § 38-39-20 — SC Code / Title 38 / Chapter 39 / Section 38-39-20
SECTION 38-39-20. License required; fee; interrogatories.
Status: in_force

(a) No person may engage in the business of servicing insurance premiums in this State without first obtaining a license from the director or his designee. Any person who engages in the business of servicing insurance premiums in this State without obtaining a license is guilty of a misdemeanor. Each transaction constitutes a separate offense. (b) The biennial license fee is one thousand dollars payable to the department by March 1, 2010, and biennially after that time. These funds are to be deposited in the general fund of the State. (c) The person to whom the license is issued shall file sworn answers, subject to the penalties of perjury, to any interrogatories the director or his designee may require. The director or his designee has authority to require the applicant to disclose the identity of all stockholders, partners, officers, and employees. He may refuse to issue or renew a license in the name of any firm, partnership, or corporation if he is not satisfied that any officer, employee, stockholder, or partner of it who may materially influence the applicant's conduct meets the standards of this chapter.
S.C. Code Ann. § 38-57-150 — SC Code / Title 38 / Chapter 57 / Section 38-57-150
SECTION 38-57-150. Inducements prohibited; exception.
Status: in_force

(1) No policy or annuity contract may provide for, and no person may engage in any of the following, as an inducement to the purchaser or in connection with or as reference to the policy or annuity contract, directly or indirectly: (a) Paying, allowing, giving, or offering any paid employment or contract for services of any kind. (b) Giving, selling, or purchasing or offering or agreeing to give, sell, purchase, allow, or provide for any agreement promising returns and profits, or any stock, bonds, or other securities, including trading stamps or other properties or present or contingent interest therein of any insurer or other corporation, association, partnership, or person, or any dividends or profits accrued thereon. (c) Giving, allowing, arranging for, or offering any advisory board contract, or similar contract, promising returns and profits. (2) Subsection (1) does not prohibit a licensed agent who is registered under Chapter 1, Title 35 from offering to sell shares of or interests in mutual funds in connection with or as reference to a policy or annuity contract if the agent, at the time of the offer, gives the prospective buyer a written prospectus which has been filed with and approved by the director or his designee and the Securities Commissioner. (3) Nothing in this section may be construed to: (a) permit an unfair method of competition or an unfair or deceptive act or practice; or (b) prohibit an insurer, by or through employees, affiliates, or third-party representatives, from offering or giving an insured, for free or at a discounted price, services or other offerings that directly and reasonably relate to the loss control of the risks covered under the policy. Effect of Amendment 2019 Act No. 6, SECTION 8.C, added (3), clarifying that certain practices are prohibited. 2022 Act No. 195, SECTION 7, in (3)(b), inserted ", by or through employees, affiliates, or third-party representatives," following "prohibit an insurer".
S.C. Code Ann. § 38-21-10 — SC Code / Title 38 / Chapter 21 / Section 38-21-10
SECTION 38-21-10. Definitions.
Status: in_force

In this chapter, unless the context otherwise requires: (1) An "affiliate" of, or person "affiliated" with, a specific person means a person who directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person specified. (2) The term "control" (including the terms "controlling," "controlled by," and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if any person, directly, or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by Section 38-21-220 that control does not exist in fact. The director or his designee may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support his determination, that control exists in fact, notwithstanding the absence of a presumption to that effect. (3) The term "director" means the Director of the South Carolina Department of Insurance or his designee. (4) The term "group-wide supervisor" means the regulatory official authorized to engage in conducting or coordinating group-wide supervision activities who is determined or acknowledged by the director pursuant to Section 38-21-295 to have sufficient significant contacts with the internationally active insurance group. (5) "Group Capital Calculation instructions" means the Group Capital Calculation instructions as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. (6) An "insurance holding company system" consists of two or more affiliated persons, one or more of which is an insurer. (7) The term "insurer" has the same meaning as set forth in Section 38-1-20 except that it does not include (a) agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state or (b) nonprofit medical and hospital service associations. (8) The term "internationally active insurance group" means an insurance holding company system that includes an insurer registered pursuant to Sections 38-21-143 through 38-21-240 and meets the following criteria: (a) premiums written in at least three countries; (b) the percentage of gross premiums written outside the United States is at least ten percent of the insurance holding company system's total gross written premiums; and (c) based on a three-year rolling average, the total assets of the insurance holding company system are at least fifty billion dollars or the total gross written premiums of the insurance holding company systems are at least ten billion dollars. (9) "NAIC" means the National Association of Insurance Commissioners. (10) "NAIC Liquidity Stress Test Framework" is a separate NAIC publication which includes a history of the NAIC's development of regulatory liquidity stress testing, the Scope Criteria applicable for a specific data year, and the Liquidity Stress Test instructions and reporting templates for a specific data year, such Scope Criteria, instructions and reporting template being as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC. (11) A "person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the foregoing acting in concert, but does not include any joint venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property. (12) "Scope criteria," as detailed in the NAIC Liquidity Stress Test Framework, are the designated exposure bases along with minimum magnitudes thereof for the specified data year, used to establish a preliminary list of insurers considered scoped into the NAIC Liquidity Stress Test Framework for that data year. (13) A "securityholder" of a specified person is one who owns any security of that person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing. (14) A "subsidiary" of a specified person is an affiliate controlled by that person directly, or indirectly through one or more intermediaries. (15) The term "voting security" includes any security convertible into or evidencing a right to acquire a voting security. (16) "Enterprise risk" means an activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, likely is to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole including, but not limited to, anything that would cause the insurer's risk-based capital to fall into company action level as provided in Section 38-9-330 or would cause the insurer to be in hazardous financial condition as provided in Section 38-5-120. (17) A "supervisory college" is a meeting or joint meeting of insurance regulators or supervisors with company officials where the topic of discussion is regulatory oversight of one specific insurance group that is writing significant amounts of insurance in other jurisdictions. It may involve detailed discussions about financial data, corporate governance, and enterprise risk management functions. Supervisory colleges are intended to facilitate the oversight of internationally active insurance companies at the group level. Effect of Amendment 2015 Act No. 2, SECTION 3, added (9). 2017 Act No. 48, SECTION 2, added (10), relating to the definition of "supervisory college". 2019 Act No. 3, SECTION 3, inserted (3) and (4), relating to the definitions of "director" and "group-wide supervisor"; renumbered (3) to (4) as (5) to (6); inserted (7), relating to the definition of "internationally active insurance group"; renumbered (5) to (10) as (8) to (13); and made nonsubstantive changes. 2025 Act No. 17, SECTION 1, inserted (5), relating to the definition of "Group Capital Calculation instructions"; renumbered (5) to (7) as (6) to (8); inserted (9) and (10), relating to the definitions of "NAIC" and "NAIC Liquidity Stress Test Framework"; renumbered (8) as (11); inserted (12), relating to the definition of "Scope criteria"; and renumbered (9) to (13) as (13) to (17).
S.C. Code Ann. § 38-19-430 — SC Code / Title 38 / Chapter 19 / Article 5 / Section 38-19-430
SECTION 38-19-430. Validity of guaranty against liability.
Status: in_force

No person may insure against or agree or promise any member of a domestic mutual insurer holding a policy which provides for contingent liability to save him harmless from the contingent liability or any assessment under the policy. Any insurance, agreement, or promise attempted of this nature is void.
S.C. Code Ann. § 38-5-120 — SC Code / Title 38 / Chapter 5 / Section 38-5-120
SECTION 38-5-120. Revocation or suspension of certificate of authority; publication of notice; hearing.
Status: in_force

(A) The director or his designee shall revoke or suspend certificates of authority granted to an insurer and its officers and agents if he is of the opinion upon examination or other evidence that one or more of the following exist: (1) The insurer is in an unsound condition. (2) The insurer has not complied with the law or with the provisions of its charter. (3) The officers or agents of an insurer refuse to submit to examination or to perform a legal obligation relative to an examination. (4) The insurer has not complied with a lawful order of the director or his designee. (5) The condition of the insurer renders the continuance of its business hazardous to the general public, its creditors, or its policyholders. The director or his designee may consider one or more of the following standards to determine whether the continued operation of an insurer transacting insurance business in this State is hazardous to the general public, its creditors, or its policyholders: (a) adverse findings reported in financial condition and market conduct examination reports, audit reports, and actuarial opinions, reports, or summaries; (b) the National Association of Insurance Commissioners Insurance Regulatory Information System and its other financial analysis solvency tools and reports; (c) whether the insurer has made adequate provision, according to presently accepted actuarial standards of practice, for the anticipated cash flows required by the contractual obligations and related expenses of the insurer, when considered in light of the assets held by the insurer with respect to such reserves and related actuarial items including, but not limited to, the investment earnings on such assets, and the considerations anticipated to be received and retained under such policies and contracts; (d) whether the ability of an assuming reinsurer to perform and the reinsurance program of the insurer provides sufficient protection for the remaining surplus of the insurer after taking into account the cash flow of the insurer, the classes of business written, and the financial condition of the assuming reinsurer; (e) whether the operating loss of the insurer in the immediately preceding twelve month period or less is greater than fifty percent of the remaining surplus of the insurer regarding policyholders in excess of the minimum required, provided that for the purposes of this section, the operating loss of an insurer includes, but is not limited to, net capital gain or loss, change in nonadmitted assets, and cash dividends paid to shareholders; (f) whether the operating loss, excluding net capital gains, of the insurer in the immediately preceding twelve month period or less is greater than twenty percent of the remaining surplus of the insurer regarding policyholders in excess of the minimum required; (g) whether a reinsurer, obligor, or any entity within the insurance holding company system of the insurer is insolvent, threatened with insolvency, or delinquent in payment of its monetary or other obligations, and which in the opinion of the director or his designee may affect the solvency of the insurer; (h) contingent liabilities, pledges, or guaranties which individually or collectively involve a total amount which in the opinion of the director or his designee may affect the solvency of the insurer; (i) whether a controlling person of an insurer is delinquent in the transmitting to or payment of net premiums to the insurer; (j) the age and collectability of receivables; (k) whether the management of an insurer, including officers, directors, or other people who directly or indirectly control the operation of the insurer, fails to possess and demonstrate the competence, fitness, and reputation necessary to serve the insurer in that position; (l) whether management of an insurer has failed to respond to inquiries relative to the condition of the insurer or has furnished false and misleading information concerning an inquiry; (m) whether management of an insurer has filed a false or misleading sworn financial statement, released a false or misleading financial statement to lending institutions or to the general public, made a false or misleading entry, or omitted an entry of a material amount in the books of the insurer; (n) whether the insurer has failed to meet financial and holding company filing requirements in the absence of a reason satisfactory to the director or his designee; (o) whether the insurer has grown so rapidly and to an extent that it lacks adequate financial and administrative capacity to meet its obligations in a timely manner; (p) whether the insurer has experienced or will experience in the foreseeable future cash flow or liquidity problems; (q) whether management has established reserves that do not comply with minimum standards established by state insurance laws, regulations, statutory accounting standards, sound actuarial principles, and standards of practice; (r) whether management persistently engages in material underreserving that results in adverse development; (s) whether transactions among affiliates, subsidiaries, or controlling persons for which the insurer receives assets or capital gains, or both, do not provide sufficient value, liquidity, or diversity to assure the ability of the insurer to meet its outstanding obligations as they mature; and (t) any other finding determined by the director or his designee to be hazardous to the insurer's policyholders, creditors, or general public. (B) For the purposes of making a determination of the financial condition of an insurer under this section, the director or his designee may: (1) disregard any credit or amount receivable resulting from transactions with a reinsurer that is insolvent, impaired, or otherwise subject to a delinquency proceeding; (2) make appropriate adjustments including disallowance to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates consistent with the NAIC Accounting Policies and Procedures Manual, state laws, and state regulations; (3) refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor; or (4) increase the liability of the insurer in an amount equal to any contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve month period. (C) The department must publish notice of revocation and suspension in a newspaper of general circulation in this State. The insurer and its agents may not conduct any new business in this State while the default or disability continues and until the director or his designee restore the authority of the insurer to transact business in this State. (D)(1) The insurer may request a hearing on an order or a decision made by the director or his designee pursuant to the provisions of this title. The insurer or other parties must be served with notice of the hearing stating the time and place of the hearing and the grounds upon which the director based the order; the hearing must occur not less than ten days nor more than thirty days following the notice and must be conducted at the offices of the South Carolina Department of Insurance unless otherwise designated by the director. The director or his designee shall hold all hearings in private unless the insurer requests a public hearing. After a hearing by the director or his designee, an order or a decision made, issued, or executed by the director or his designee is subject to review in accordance with Section 38-3-210 under the appellate procedures of the South Carolina Administrative Law Court, as provided by law. (2) Notwithstanding the provisions of subsection (A), if the director or his designee determines that an insurer is in an unsound condition or in a hazardous condition as provided in subsection (A)(1) or (A)(5), he may issue an order requiring the insurer to: (a) reduce the total amount of present and potential liability for policy benefits by reinsurance; (b) reduce, suspend, or limit the volume of business being accepted or renewed; (c) reduce general insurance and commission expenses by specified methods; (d) increase the insurer's capital and surplus; (e) suspend or limit the declaration and payment of dividends by an insurer to its stockholders or to its policyholders; (f) file reports in a form acceptable to the director or his designee concerning the market value of an insurer's assets; (g) limit or withdraw from certain investments or discontinue certain investment practices to the extent the director or his designee considers necessary; (h) document the adequacy of premium rates in relation to the risks insured; (i) file, in addition to regular annual statements, interim financial reports on the form adopted by the National Association of Insurance Commissioners or in a format approved by the director or his designee; (j) correct corporate governance practice deficiencies, and adopt and utilize governance practices acceptable to the director or his designee; (k) provide a business plan to the director or his designee in order to continue to transact business in the State; or (l) adjust rates for any nonlife insurance product written by the insurer that the director or his designee considers necessary to improve the financial condition of the insurer, notwithstanding any other provision of law limiting the frequency or amount of premium rate adjustments. (3) The order of the director or his designee may be limited to the extent provided by law if the insurer is a foreign insurer.
S.C. Code Ann. § 38-55-75 — SC Code / Title 38 / Chapter 55 / Article 1 / Section 38-55-75
SECTION 38-55-75. Confidentiality of information received by Department of Insurance.
Status: in_force

The Department of Insurance may receive and shall maintain as confidential any documents or information furnished to the department by the National Association of Insurance Commissioners or regulatory officials of any state, federal agency, or foreign countries which are classified as confidential by that association or state. The Department of Insurance may share documents or information, including confidential documents or information, with the National Association of Insurance Commissioners or regulatory officials of any state, federal agency, or foreign countries if the association, state, federal agency, or foreign country agrees to maintain the same level of confidentiality as is provided under South Carolina law. Documents or information received or exchanged pursuant to this section are not subject to subpoena or subpoena duces tecum in any civil, criminal, or administrative proceeding.
S.C. Code Ann. § 38-43-130 — SC Code / Title 38 / Chapter 43 / Article 1 / Section 38-43-130
SECTION 38-43-130. Probation, revocation, suspension of license, or denial of reissuance.
Status: in_force

(A) The director or his designee may place on probation, revoke, or suspend a producer's license after ten days' notice or refuse to issue or reissue a license when it appears that a producer has been convicted of a crime involving moral turpitude, has violated this title or any regulation promulgated by the department, or has wilfully deceived or dealt unjustly with the citizens of this State. (B) For purposes of this section, "convicted" includes a plea of guilty or a plea of nolo contendere, and the record of conviction, or a copy of it, certified by the clerk of court or by the judge in whose court the conviction occurred is conclusive evidence of the conviction. (C) The words "deceived or dealt unjustly with the citizens of this State" include, but are not limited to, action or inaction by the producer as follows: (1) providing incorrect, misleading, incomplete, or materially untrue information in the license application; (2) violating insurance laws, or violating any regulation, subpoena, or order of the director or of another state's director or his designee; (3) obtaining or attempting to obtain a license through misrepresentation or fraud; (4) improperly withholding, misappropriating, or converting any monies or properties received in the course of doing insurance business; (5) intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance; (6) having been convicted of a felony; (7) having admitted or been found to have committed any insurance unfair trade practice or fraud; (8) using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or elsewhere; (9) having an insurance producer license, or its equivalent, denied, suspended, or revoked in another state, province, district, or territory; (10) forging another's name to an application for insurance or to any document related to an insurance transaction; (11) improperly using notes or any other reference material to complete an examination for an insurance license; (12) knowingly accepting insurance business from an individual who is not licensed; (13) failing to comply with an administrative or court order imposing a child support obligation; or (14) failing to pay state income tax or comply with any administrative or court order directing payment of state income tax. (D) If upon investigation the director or his designee finds that a producer has obtained a license by fraud or misrepresentation, he may suspend immediately the license. The director or his designee, in an order suspending a license, shall specify the period during which the suspension is to be in effect. The period may not exceed two years. A licensee whose license has been revoked or an applicant who has been refused a license by the director or his designee may not reapply for another license until a two-year period of time has lapsed from the effective date of the revocation or refusal or, if judicial review before the Administrative Law Court of the revocation or refusal is sought, after two years from the date of a final court order or decree affirming the revocation or suspension. (E) If, after notice of a hearing before the Administrative Law Court or notice of an opportunity for hearing before the Administrative Law Court, the director or his designee finds that one or more grounds exist for the revocation or suspension of, or the refusal to issue or reissue a license, the director or his designee, in his discretion, instead of revocation, suspension, or refusal, may impose upon the producer or applicant an administrative penalty as provided in Section 38-2-10 for each offense or ground. (F) The director or his designee may allow the producer or applicant a reasonable period, not to exceed thirty days, within which to pay to the director or his designee the amount of the penalty imposed. If the producer or applicant fails to pay the penalty in its entirety to the director or his designee at his office in Columbia within the period allowed, the license or application stands revoked, suspended, or renewal refused, as the case may be, upon expiration of the period and without any further proceedings. (G) Whenever the director or his designee nonrenews or denies an application for a license, the director or his designee shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the Administrative Law Judge within thirty days for a hearing before the Administrative Law Judge to determine the reasonableness of the director or his designee's action. The hearing must be held pursuant to the Administrative Procedures Act. (H) The license of an agency may be placed on probation, suspended, revoked or refused if the director or his designee finds, upon an investigation, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the agency and the violation was neither reported to the director or his designee nor corrective action taken. (I) In addition to or in lieu of any applicable denial, probation, suspension, or revocation of a license, a person violating this title may, after a hearing, be subject to an administrative penalty according to Section 38-2-10. (J) The director shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this chapter and title against any person who is under investigation for or charged with a violation of this title even if the person's license or registration has been surrendered or has lapsed by operation of law.
S.C. Code Ann. § 38-71-10 — SC Code / Title 38 / Chapter 71 / Article 1 / Section 38-71-10
SECTION 38-71-10. Coverages which may be written by licensed accident and health insurers.
Status: in_force

All licensed accident and health insurers are entitled to: (a) issue and deliver service benefit contracts to provide for prepayment of any health care service and to make payment directly to the provider of the services, in whole or in part, including, but not limited to, professional services, any institutional care, personal services, and supplies; (b) issue and deliver contracts of indemnity or contracts providing for payment of money directly to the insureds or for them for health care services.
S.C. Code Ann. § 38-19-1050 — SC Code / Title 38 / Chapter 19 / Article 11 / Section 38-19-1050
SECTION 38-19-1050. Limit of amount insurance.
Status: in_force

The aggregate amount of insurance by said corporation shall not be less than ($25,000) twenty-five thousand dollars nor more than ($1,000,000) one million dollars.
S.C. Code Ann. § 38-5-30 — SC Code / Title 38 / Chapter 5 / Section 38-5-30
SECTION 38-5-30. Kinds of insurance for which an insurer may be licensed.
Status: in_force

The director or his designee may license insurers, subject to other requirements of existing insurance laws, to transact the following kinds of insurance in this State: (a) life insurance and annuities; (b) accident and health insurance; (c) property insurance; (d) casualty insurance; (e) surety insurance; (f) marine insurance; (g) title insurance; (h) multiple lines insurance, meaning any two or more of the kinds of insurance listed in items (b), (c), (d), (e), and (f). Each license issued is for an indefinite term unless revoked or suspended.
S.C. Code Ann. § 38-53-80 — SC Code / Title 38 / Chapter 53 / Section 38-53-80
SECTION 38-53-80. License required of bail bondsman and runners.
Status: in_force

No person may act in the capacity of a professional bondsman, surety bondsman, or runner or perform any of the functions, duties, or powers prescribed for professional or surety bondsmen or runners under the provisions of this chapter unless that person is qualified, except for an accommodation bondsman, licensed in accordance with the provisions of this chapter. No license may be issued to a professional bondsman, surety bondsman, or runner except as provided in this chapter. The applicant shall apply for a license or renewal of a license on forms prepared and supplied by the director or his designee. The director or his designee may ask the applicant any questions, written or otherwise, relating to his qualifications, residence, prospective place of business, and any other inquiries which, in the opinion of the director or his designee, are necessary in order to protect the public and ascertain the qualifications of the applicant. The director or his designee shall request that the State Law Enforcement Division conduct any reasonable investigation relative to the determination of the applicant's fitness to be licensed or to continue to be licensed. The failure of the applicant to secure approval of the director or his designee does not preclude him from applying as many times as he desires, but no application may be considered by the director or his designee within one year subsequent to the date upon which the director or his designee denied the applicant's last application.
S.C. Code Ann. § 38-77-124 — SC Code / Title 38 / Chapter 77 / Article 3 / Section 38-77-124
SECTION 38-77-124. Refusal to issue or renew automobile insurance policy on basis of location of residence.
Status: in_force

(A) Notwithstanding the provisions of Sections 38-77-122 and 38-77-123, an insurer may refuse to issue or renew an automobile insurance policy as defined in Section 38-77-30 on the basis of location of residence where the insurer has filed with the director a territorial plan setting forth the precise geographic areas of the state in which it will issue or renew policies. This territorial plan may not limit issuances or renewals to areas at any level smaller than a county, except that an insurer may include in its territorial plan an area smaller than a county which is contiguous to a whole county contained within the territorial plan provided, that the inclusion in the territorial plan of any such area at a level smaller than a county does not have the effect of excluding populations based upon any factors set out in Section 38-77-122(A) or Section 38-77-123(A)(1). The director must reject any territorial plan which violates the provisions of this section. (B) No insurer or agent shall refuse to issue or fail to renew a policy of motor vehicle liability insurance solely because of the age of the motor vehicle to be insured, provided the motor vehicle is licensed.
S.C. Code Ann. § 38-9-390 — SC Code / Title 38 / Chapter 9 / Article 3 / Section 38-9-390
SECTION 38-9-390. Prohibited use of information; publication of materially false or inappropriate statement.
Status: in_force

(A) The comparison of a licensee's Total Adjusted Capital to any of its RBC Levels is a regulatory tool for corrective action. It is not intended as a means to rank licensees. Therefore, except as otherwise specifically required under the provisions of this article, the making, publishing, disseminating, circulating, or placing before the public, or, causing to be directly or indirectly made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station, or in another way, an advertisement, announcement, or statement containing an assertion or representation with regard to the RBC Levels of a licensee or of a component derived in the calculations by a licensee or agent engaged in the business of insurance is considered misleading and is prohibited. (B) If a materially false or inappropriate comparison of a licensee's Total Adjusted Capital to its RBC Levels or any RBC Level is published in any written publication and the licensee is able to demonstrate with substantial proof the falsity or the inappropriateness of the statement to the director, then the licensee may publish an announcement approved by the director in that written publication solely to rebut the materially false or inappropriate statement. Effect of Amendment 2014 Act No. 164, SECTION 10, substituted "licensee" for "insurer" throughout, and made other nonsubstantive changes.
S.C. Code Ann. § 38-75-40 — SC Code / Title 38 / Chapter 75 / Article 1 / Section 38-75-40
SECTION 38-75-40. Validity of additional or coinsurance clause.
Status: in_force

No insurer or agency licensed to do business in this State may issue any policy or contract of insurance covering property in this State which contains any clause or provision requiring the insured to take or maintain a larger amount of insurance than that expressed in the policy or in any way provides that the insured is liable as a coinsurer with the insurer issuing the policy for any part of the loss or damage to the property described in the policy. Any such clause or provision is void. However, such a clause or provision may be used if there is stamped on the filing face of the policy or printed in bold type at the top of the clause the words "coinsurance clause". If there is a difference in the rate for insurance with and without the coinsurance clause, the rates for each must be furnished the insured upon request.
S.C. Code Ann. § 38-71-1990 — SC Code / Title 38 / Chapter 71 / Article 19 / Section 38-71-1990
SECTION 38-71-1990. External review decisions final; exceptions.
Status: in_force

(A) An external review decision is binding on the health carrier. (B) An external review decision is binding on the covered person except to the extent the covered person has other remedies available under applicable federal or state law. If such other remedies are available, the covered person or his authorized representative may not, in these proceedings, utilize, disclose, or introduce in evidence information generated during or findings reached by the independent review organization. (C) A covered person or his authorized representative may not file a subsequent request for external review involving the same adverse determination or final adverse determination.
S.C. Code Ann. § 38-17-150 — SC Code / Title 38 / Chapter 17 / Section 38-17-150
SECTION 38-17-150. Annual report of business.
Status: in_force

Each attorney shall annually make and file by March first with the department a sworn statement, upon a form to be prescribed and furnished by the director or his designee, showing that the financial condition of affairs at the office where the reciprocal or interinsurance contracts are issued is in accordance with the standard of solvency provided for in this chapter and stating: (1) the amount of all premiums or deposits collected from subscribers in this State during the previous calendar year; (2) the amounts actually paid subscribers on losses; (3) the total amounts returned to subscribers as savings and the amounts retained for expenses; (4) the amount of insurance reinsured in other insurers licensed in this State, naming them and the amount of premiums paid; (5) the amount of insurance reinsured in insurers not licensed in this State, naming them and the amount of premiums paid; and (6) the amount of reinsurance accepted from admitted companies and the premiums received for that reinsurance on risks located in this State, with the names of the insurers so reinsured. However, the attorney may not be required to furnish the names and addresses of any subscribers.
S.C. Code Ann. § 38-19-620 — SC Code / Title 38 / Chapter 19 / Article 7 / Section 38-19-620
SECTION 38-19-620. Loans may not be part of legal liabilities but must be reflected in financial statements.
Status: in_force

Any money so borrowed may not form a part of the insurer's legal liabilities or be the basis of any setoff but, until it is repaid, financial statements filed or published by the insurer shall show as a footnote the amount of the loan then unpaid together with interest accrued but unpaid.
S.C. Code Ann. § 38-99-90 — SC Code / Title 38 / Chapter 99 / Section 38-99-90
SECTION 38-99-90. Regulations.
Status: in_force

The director is authorized to promulgate regulations necessary for the administration of this chapter. Editor's Note 2018 Act No. 171, SECTIONS 1 and 2, provide as follows: "SECTION 1. The purpose and intent of this act is to establish standards for data security and standards for the investigation of and notification to the director of a cybersecurity event applicable to licensees. This act may not be construed to create or imply a private cause of action for a violation of its provisions nor may it be construed to curtail a private cause of action which would otherwise exist in the absence of this act. "SECTION 2. This act is known and may be cited as the 'South Carolina Insurance Data Security Act'."
S.C. Code Ann. § 38-33-200 — SC Code / Title 38 / Chapter 33 / Section 38-33-200
SECTION 38-33-200. Implementation of regulations.
Status: in_force

The department may, after notice and hearing, promulgate regulations to carry out the provisions of this chapter.
S.C. Code Ann. § 38-73-736 — SC Code / Title 38 / Chapter 73 / Article 7 / Section 38-73-736
SECTION 38-73-736. Rate reductions for nonyouthful operator completing approved driver training course.
Status: in_force

(A) As used in this section: (1) "Approved driver training course" means a driver's training course that: (a) is approved by the Department of Motor Vehicles or exempt pursuant to Chapter 23, Title 56; (b) is administered by a driver's training school that is licensed or approved by the Department of Motor Vehicles or exempt pursuant to Chapter 23, Title 56; (c) is conducted by a person holding a valid driver's instructor permit pursuant to Chapter 23, Title 56; and (d) includes a minimum of four hours of classroom instruction. (2) "Satisfactory evidence of course completion" means a certificate signed by an official of the licensed driver's training school or the Department of Motor Vehicles, which certifies that: (a) the person has successfully completed the course; and (b) the course is an approved driver training course and meets the requirements of Chapter 23, Title 56. (3) "Youthful operator" means a person under the age of twenty-five for which premium rates charged for liability coverages and collision coverage under a private passenger automobile insurance policy are determined by a youthful driver classification. (B) Premium rates charged for liability coverages and collision coverage under a private passenger automobile insurance policy are subject to an appropriate driver training course credit once satisfactory evidence of course completion is presented by an applicant for the credit that is the named insured or principal operator of the vehicle and is not a youthful operator. The amount of the credit may be determined by each individual insurer based upon factually or statistically supported data and is subject to prior approval or review by the director. The credit must be afforded for a minimum of thirty-six months from the date the approved driver training course was completed. The insurer may require, as a condition of providing and maintaining the credit, that the applicant not be involved in an accident for which the applicant is at fault for a three-year period after course completion. The credit must be afforded by each insurer in a nondiscriminatory manner to all applicants, other than those considered youthful operators. (C) Only the vehicle driven by an applicant that has completed successfully an approved driver training course qualifies for the insurance credit required by this section. Other vehicles under the private passenger automobile insurance policy do not qualify for the insurance credit required by this section unless the named insured or principal operator of the additional vehicle has successfully completed an approved driver training course. (D) The insurer must provide the driver training course credit upon receipt of satisfactory evidence of course completion. Nothing in this section may be construed so as to require the insurer to provide the credit for any period of time before the date of receipt of satisfactory evidence of course completion. (E) An applicant qualifying for the insurance credit required by this section only may claim the credit for successful completion of one approved driver training course during any private passenger automobile insurance policy period. (F) Only an approved driver training course taken on a voluntary basis qualifies for the insurance credit. A driver training course taken as a requirement of a driving offense including, but not limited to, ADSAP or driver training courses taken to reduce the number of traffic violation points against a driver's license, do not qualify for the insurance credit provided in this section. (G) A schedule of rates, rate classification, or rating plan for private passenger automobile insurance must provide for an appropriate reduction in premium charges for an insured person who is not a youthful operator and who qualifies as provided in this section. Effect of Amendment 2015 Act No. 26, SECTION 1, in (A)(1)(d), substituted "four hours" for "six hours"; deleted former (2), definition of "Approved driver training refresher course"; redesignated the paragraphs accordingly; and deleted references to "approved driver training refresher course" throughout.
S.C. Code Ann. § 38-19-60 — SC Code / Title 38 / Chapter 19 / Article 1 / Section 38-19-60
SECTION 38-19-60. Quorum for conduct of business at annual meeting; form and approval of voting proxies.
Status: in_force

At any annual meeting of a domestic mutual insurer all business including the election of directors must be conducted pursuant to majority vote of those members present and voting either in person or by proxy of nonpresent members as provided in Section 38-19-50. No other quorum requirements may limit the conduct of this business.
S.C. Code Ann. § 38-13-300 — SC Code / Title 38 / Chapter 13 / Article 3 / Section 38-13-300
SECTION 38-13-300. Regulations requiring insurer to report its loss and expense experience and other data.
Status: in_force

The director may require insurers licensed to write property or casualty insurance in the State to record and report loss and expense experience and any other data necessary to determine whether rates are excessive, inadequate, or unfairly discriminatory. The director or his designee may designate one or more statistical agents, organizations, or advisory organizations to gather and compile this experience and data. In addition, the director may require each insurer licensed to write property and casualty insurance in this State, as a supplement to its annual statement, to submit a report on a form furnished by the department showing the insurer's direct writings in this State and the United States and any information required by Sections 38-13-310 and 38-13-320. The director may adopt data disclosure requirements developed by the National Association of Insurance Commissioners. If adopted, the NAIC disclosure requirements must be deemed to be in full compliance with the reporting requirements of Sections 38-13-300 through 38-13-360.
S.C. Code Ann. § 38-9-420 — SC Code / Title 38 / Chapter 9 / Article 3 / Section 38-9-420
SECTION 38-9-420. Regulatory power of director.
Status: in_force

The director may promulgate regulations necessary for the implementation of this article.
S.C. Code Ann. § 38-51-40 — SC Code / Title 38 / Chapter 51 / Section 38-51-40
SECTION 38-51-40. Written agreement required.
Status: in_force

No administrator may act as such without a written agreement between the administrator and the insurer, and the written agreement must be retained as part of the official records of both the insurer and the administrator for the duration of the agreement and five years thereafter. The written agreement shall contain provisions which include the requirements of Sections 38-51-60 through 38-51-110, except insofar as those requirements do not apply to the functions performed by the administrator. Where a policy is issued to a trustee, a copy of the trust agreement and any amendments thereto must be furnished to the insurer by the administrator and must be retained as part of the official records of both the insurer and the administrator for the duration of the policy and five years thereafter.
S.C. Code Ann. § 38-71-1450 — SC Code / Title 38 / Chapter 71 / Article 13 / Section 38-71-1450
SECTION 38-71-1450. Promulgation of regulations.
Status: in_force

The Director of Insurance may promulgate regulations as may be necessary or appropriate to carry out the provisions of this article.