reglab/housing_qa huggingface dataset:
SC Code § 38-90-220 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-220. Requirements applicable to sponsors.

 (A) The sponsored captive insurance company shall attribute all insurance obligations, assets, and liabilities relating to a participant's risks to the participant's protected cell.  (B) The protected cell assets of a protected cell may not be charged with liabilities arising out of any other business the sponsored captive insurance company may conduct. All contracts or other documentation reflecting protected cell liabilities shall clearly indicate that only the protected cell assets are available for the satisfaction of those protected cell liabilities. Under no circumstances may a protected cell be authorized to issue insurance or reinsurance contracts directly to policyholders or reinsureds or have any obligation to the policyholders or reinsureds of the sponsored captive insurance company's general account.  (C) The income, gains and losses, realized or unrealized, from protected cell assets and protected cell liabilities must be credited to or charged against the protected cell without regard to other income, gains or losses of the sponsored captive insurance company, including income, gains or losses of other protected cells. Investments must be handled pursuant to Section 38-90-100(B).  (D) In all sponsored captive insurance company transactions, the contracts or other documentation effecting the transaction shall contain provisions identifying the protected cell to which the transaction will be attributed. In addition, the contracts or other documentation must clearly disclose that the assets of that protected cell, and only those assets are available to pay the obligations of that protected cell. Notwithstanding the provisions of this subsection and subject to the provisions of this chapter and any other applicable law or regulation, the failure to include such language in the contracts or other documentation may not be used as the sole basis by creditors, reinsurers, or other claimants to circumvent the provisions of this chapter.  (E) Assets attributed to a protected cell must be valued at their market value on the date of valuation or if there is no readily available market, as provided in the contract or the rules or other written documentation applicable to the protected cell.  (F) At the cessation of business of a protected cell in accordance with the plan approved by the director, the sponsored captive insurance company voluntarily shall close out the protected cell account.  HISTORY: 2000 Act No. 331, Section 1; 2001 Act No. 58, Section 13, eff May 29, 2001; 2014 Act No. 282 (S.909), Section 20, eff June 10, 2014; 2018 Act No. 251 (H.4675), Section 1, eff May 18, 2018.  Effect of Amendment  2014 Act No. 282, Section 20, rewrote the section.  2018 Act No. 251, Section 1, reenacted the section with no apparent changes.
SC Code § 38-90-225 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-225. Participants in a sponsored captive insurance company.

 (A) The following may be participants in a sponsored captive insurance company formed or licensed pursuant to this chapter:  (1) an association, corporation, limited liability company, partnership, trust, or other business entity; and  (2) a sponsor.  (B) A participant does not need to be a shareholder of the sponsored captive insurance company or an affiliate of the company.  (C) A participant shall insure only its own risks through a sponsored captive insurance company unless otherwise approved by the director.  (D) A risk retention group may not be a sponsor or participant in a sponsored captive insurance company.  HISTORY: 2018 Act No. 251 (H.4675), Section 1, eff May 18, 2018.
SC Code § 38-90-230 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-230. Protected cell assets; availability to creditors.

 (A) Protected cell assets are only available to the creditors of the sponsored captive insurance company that are creditors with respect to that protected cell and are therefore entitled, in conformity with this chapter, to have recourse to the protected cell assets attributable to that protected cell. Protected cell assets are absolutely protected from the creditors of the sponsored captive insurance company that are not creditors with respect to that protected cell and who, therefore, are not entitled to have recourse to the protected cell assets attributable to that protected cell. Creditors with respect to a protected cell are not entitled to have recourse against the protected cell assets of other protected cells or the assets or the sponsored captive insurance company's general account. Protected cell assets only are available to creditors of a sponsored captive insurance company after all protected cell liabilities have been extinguished or otherwise provided for in accordance with the plan of operation relating to that protected cell.  (B) When an obligation of a sponsored captive insurance company to a person arises from a transaction, or is otherwise imposed, with respect to a protected cell:  (1) that obligation of the sponsored captive insurance company extends only to the protected cell assets attributable to that protected cell, and the person, with respect to that obligation, is entitled to have recourse only to the protected cell assets attributable to that protected cell; and  (2) that obligation of the sponsored captive insurance company does not extend to the protected cell assets of any other protected cell or the assets of the sponsored captive insurance company's general account, and that person, with respect to that obligation, is not entitled to have recourse to the protected cell assets of any other protected cell or the assets of the sponsored captive insurance company's general account.  (C) When an obligation of a sponsored captive insurance company relates solely to the general account, the obligation of the sponsored captive insurance company extends only to the sponsored captive insurance company, and that person, with respect to that obligation, is entitled to have recourse only to the assets of the sponsored captive insurance company's general account.  (D) The establishment of one or more protected cells alone does not constitute, and may not be deemed to be, a fraudulent conveyance, an intent by the sponsored captive insurance company to defraud creditors, or the carrying out of business by the sponsored captive insurance company for any other fraudulent purpose.  HISTORY: 2000 Act No. 331, Section 1; 2001 Act No. 58, Section 14, eff May 29, 2001; 2014 Act No. 282 (S.909), Section 21, eff June 10, 2014; 2018 Act No. 251 (H.4675), Section 1, eff May 18, 2018.  Effect of Amendment  2014 Act No. 282, Section 21, rewrote the section.  2018 Act No. 251, Section 1, reenacted the section with no apparent changes.
SC Code § 38-90-240 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-240. Reserved.

 HISTORY: Former Section, titled Eligibility of licensed captive insurance companies for certificate of authority to act as insurer, had the following history: 2000 Act No. 331, Section 1; 2014 Act No. 282 (S.909), Section 22, eff June 10, 2014. Reserved by 2018 Act No. 251, Section 1, eff May 18, 2018.
SC Code § 38-90-250 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-250. Certificate of authority.

 A licensed captive insurance company that meets the necessary requirements of this title imposed upon an insurer must be considered for issuance of a certificate of authority to act as an insurer in this State.  HISTORY: 2014 Act No. 282 (S.909), Section 3, eff June 10, 2014; 2018 Act No. 251 (H.4675), Section 1, eff May 18, 2018.  Effect of Amendment  2018 Act No. 251, Section 1, reenacted the section with no apparent changes.
SC Code § 38-90-410 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-410. Purpose.

 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.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004.
SC Code § 38-90-430 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-430. Relation to other Title 38 provisions.

 (A) No provisions of Title 38, other than those specifically referenced in this article and regulations applicable to them, apply to a SPFC, and those provisions apply only as modified by this article. If a conflict occurs between a provision of Title 38 and a provision of this article, the latter controls.  (B) Sections 38-3-110 through 38-3-240, 38-5-130, 38-55-510 through 38-55-590, 38-57-200, and 38-90-175 apply to SPFCs.  (C) The director, by rule, regulation, or order, may exempt a SPFC or their protected cells, on a case-by-case basis, from provisions of this article that he determines to be inappropriate given the nature of the risks to be insured.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004; 2006 Act No. 332, Section 21, eff June 1, 2006; 2010 Act No. 217, Section 13, eff June 7, 2010.
SC Code § 38-90-450 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-450. Organization requirements; privileges and restrictions.

 (A) A SPFC may be established as a stock corporation, limited liability company, mutual, partnership, or other form of organization approved by the director.  (B) The SPFC's organizational documents must limit the SPFC's authority to transact the business of insurance or reinsurance to those activities the SPFC conducts to accomplish its purpose as expressed in this article.  (C) The SPFC may not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for another existing business name registered in this State.  (D) The organizational documents and the required organization fees must be transmitted to the Secretary of State, who shall record the relevant organizational documents.  (E) At least one of the members of the management of the SPFC must be a resident of this State.  (F) A SPFC formed pursuant to the provisions of this article has the privileges of and is subject to the provisions of the 1976 Code, applicable to its formation, as well as the applicable provisions contained in this article. If a conflict occurs between a provision of the applicable law and a provision of this article, the latter controls. Nothing contained in this provision with respect to a SPFC shall abrogate, limit, or rescind in any way the authority of the Securities Commissioner pursuant to the provisions of Title 35.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004; 2006 Act No. 332, Section 23, eff June 1, 2006; 2009 Act No. 28, Section 13, eff June 2, 2009; 2014 Act No. 282 (S.909), Section 23, eff June 10, 2014.  Effect of Amendment  2014 Act No. 282, Section 23, deleted former subsections (D) and (E), relating to SPFC incorporators and a certification to be sent to the Secretary of State; redesignated the subsections accordingly; and in subsection (D), substituted "documents" for "documents, the certificate issued pursuant to subsection (E),".
SC Code § 38-90-460 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-460. Capitalization.

 (A) A SPFC initially shall possess and after that maintain minimum capitalization of not less than two hundred and fifty thousand dollars. All of the minimum initial capitalization must be in cash. All other funds of the SPFC in excess of its minimum initial capitalization must be in the form of cash, cash equivalent, or securities invested as provided in Section 38-90-530 and approved by the director.  (B) Additional capitalization for the SPFC must be determined, if so required, by the director after giving due consideration to the SPFC's business plan, feasibility study, pro formas, and the nature of the risks being insured or reinsured, which may be prescribed in formulas approved by the director.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004.
SC Code § 38-90-470 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-470. Authorized contracts.

 (A) A SPFC may insure only the risks of a counterparty.  (B) A SPFC may not issue a contract for assumption of risk or indemnification of loss other than a SPFC contract. However, the SPFC may cede risks assumed through a SPFC contract to third party reinsurers through the purchase of reinsurance or retrocession protection on terms approved by the director.  (C) A SPFC may enter into contracts and conduct other commercial activities related or incidental to and necessary to fulfill the purposes of the SPFC contract, insurance securitization, and this article. Those activities may include, but are not limited to: entering into SPFC contracts; issuing securities of the SPFC in accordance with applicable securities law; complying with the terms of these contracts or securities; entering into trust, swap, tax, administration, reimbursement, or fiscal agent transactions; or complying with trust indenture, reinsurance, or retrocession, and other agreements necessary or incidental to effectuate an insurance securitization in compliance with this article or the plan of operation approved by the director.  (D)(1) A SPFC may discount its reserves at discount rates as approved by the director.  (2) A SPFC shall file annually an actuarial opinion on reserves provided by an approved independent actuary.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004.
SC Code § 38-90-490 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-490. Issuance of securities.

 (A) A SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with applicable law, its approved plan of operation, and its organizational documents.  (B) A SPFC, in connection with the issuance of securities, may enter into and perform all of its obligations under any required contracts to facilitate the issuance of these securities.  (C) Subject to the approval of the director, a SPFC may lawfully:  (1) account for the proceeds of surplus notes as surplus and not as debt for purposes of statutory accounting;  (2) submit for prior approval of the director periodic written requests for payments of interest on and repayments of principal of surplus notes.  (D) Surplus notes issued by a SPFC constitutes surplus or contribution notes of the type described at Section 38-27-610(9).  (E) The director, without otherwise prejudicing the director's authority, may approve formulas for an ongoing plan of interest payments or principal repayments, or both, to provide guidance in connection with his ongoing reviews of requests to approve the payments on and principal repayments of the surplus notes.  (F) The obligation to repay principal or interest, or both, on the securities issued by the SPFC must reflect the risk associated with the obligations of the SPFC to the counterparty under the SPFC contract.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004.
SC Code § 38-90-500 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-500. Swap agreements and other forms of asset management agreements.

 A SPFC may enter into swap agreements, or other forms of asset management agreements, including guaranteed investment contracts, or other transactions that have the objective of leveling timing differences in funding of up-front or ongoing transaction expenses or managing asset, credit, or interest rate risk of the investments in the trust to ensure that the investments are sufficient to assure payment or repayment of the securities, and related interest or principal payments, issued pursuant to a SPFC insurance securitization transaction or the obligations of the SPFC under the SPFC contract.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004.
SC Code § 38-90-515 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-515. Securities issued by SPFC as insurance contract; underwriters or selling agents as insurance producers.

 Securities issued by a SPFC pursuant to an insurance securitization may not be considered to be insurance or reinsurance contracts. An investor in these securities or a holder of these securities, by sole means of this investment or holding, may not be considered to be transacting the business of insurance in this State. The underwriter's placement or selling agents and their partners, directors, officers, members, managers, employees, agents, representatives, and advisors involved in an insurance securitization pursuant to this article may not be considered to be insurance producers or brokers or conducting business as an insurance or reinsurance company or agency, brokerage, intermediary, advisory, or consulting business only by virtue of their activities in connection with them.  HISTORY: 2006 Act No. 332, Section 2, eff June 1, 2006.
SC Code § 38-90-540 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-540. Payment of dividends.

 (A) A SPFC may not declare or pay dividends in any form to its owners other than in accordance with the insurance securitization transaction agreements, and in no extent shall the dividends decrease the capital of the SPFC below two hundred fifty thousand dollars, and, after giving effect to the dividends, the assets of the SPFC, including assets held in trust pursuant to the terms of the insurance securitization, must be sufficient to satisfy the director that it can meet its obligations. Approval by the director of an ongoing plan for the payment of dividends or other distribution by a SPFC must be conditioned upon the retention, at the time of each payment, of capital or surplus equal to or in excess of amounts specified by, or determined in accordance with formulas approved for the SPFC by the director.  (B) The dividends may be declared by the management of the SPFC if the dividends do not violate the provisions of this article or jeopardize the fulfillment of the obligations of the SPFC or the trustee pursuant to the SPFC insurance securitization agreements, the SPFC contract, or any related transaction and other provisions of this article.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004.
SC Code § 38-90-560 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-560. Examinations by director; confidentiality of examination reports.

 (A) At least once every five years, and whenever the director determines it to be prudent, the director or his designee shall visit each SPFC and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with this article. 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.  (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 pursuant to the provisions of 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 written consent of the company, except to the extent provided in this subsection. Nothing in this subsection prevents the director from using this information in furtherance of the director's regulatory authority as provided by the provisions of this title. The director may grant access to this information to public officers having jurisdiction over the regulation of insurance in another state or country, or to law enforcement officers of this State, including the Securities Commissioner, or another state or agency of the federal government at any time, if the officers receiving the information agree in writing to hold it in a manner consistent with this section.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004; 2009 Act No. 28, Section 14, eff June 2, 2009.
SC Code § 38-90-570 (2021)
2021 South Carolina Code of Laws|Title 38 - Insurance|Chapter 90 - Captive Insurance Companies|Section 38-90-570. Expiration of authority granted by director on cessation of business; suspension or revocation of license; penalties; administrative hearing.

 (A) At the cessation of business of a SPFC following termination or cancellation of a SPFC contract and the redemption of any related securities issued in connection with them, the authority granted by the director expires or, in the case of retiring and surviving protected cells, be modified, and the SPFC is no longer authorized to conduct activities unless and until a new or modified license is issued pursuant to a new filing pursuant to the provisions of Section 38-90-440 or as agreed by the director.  (B) The director may suspend or revoke the license of a SPFC in this State for:  (1) insolvency;  (2) failure to meet the provisions of Section 38-90-460, 38-90-480(D), or 38-90-580;  (3) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public, the holders of the securities, or policyholders of the SPFC; or  (4) failure to otherwise comply in any material respect with applicable laws of this State.  (C) If the director finds, upon examination or other evidence, that a SPFC has committed any of the acts specified in subsection (B), the director may impose the penalties provided in Section 38-2-10 if the director considers it in the best interest of the public, the holders of the securities, and the policyholders of the SPFC.  (D) Unless the grounds for suspension or revocation relate only to the financial condition or soundness of the SPFC or to a deficiency in its assets, the director shall notify the SPFC not less than thirty days before revoking its authority to do business in this State and specify in the notice the particulars of the alleged violation of the law or its organizational documents or grounds for revocation and a proper opportunity must be offered the SPFC to be heard before the Administrative Law Court.  HISTORY: 2004 Act No. 291, Section 28, eff July 29, 2004; 2006 Act No. 332, Section 26, eff June 1, 2006.