2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 5 - Authority And Requirements To Transact Business › Section 38-5-80. Additional requirements for issuance of certificate or license to domestic insurer; grounds for revocation or suspension of license.

Before granting the original certificate of authority or license to a domestic insurer to do business in this State, the director or his designee must be satisfied by proper evidence that:
(a) The insurer is duly qualified to transact business under the laws of this State.
(b) The insurer has filed with him an affidavit of its president or other chief officer that it has not violated this title in the past year and that it accepts the terms and obligations of this title as part of the consideration for license.
(c) The insurer pays all taxes and performs all duties required by law.
(d) The reserves of the insurer are adequate for the protection of policyholders of this State.
(e) The insurer's directors and officers are competent, trustworthy, and have a good business reputation and that none of the directors and officers have been convicted of a crime in any jurisdiction involving fraud, dishonesty, or like moral turpitude or convicted of violating an insurance statute of any jurisdiction.
(f) The insurer has employed one or more persons residing in this State with adequate experience and training to manage properly its business and affairs.
(g) The insurer has not entered into any management contract, agency agreement, or other agreement which may materially affect its financial condition so as to render its proceedings hazardous to the public or to its policyholders.
(h) The insurer has made adequate reinsurance arrangements if required.
(i) The insurer's proposed method of operation, when considered in light of its financial condition and the absence of any prior operating experience, will not likely render its proceedings hazardous to the public or to its policyholders.
(j) The reserve basis to be used by the insurer will be adequate for the protection of policyholders in this State.
(k) The insurer's principal place of business and primary executive, administrative, and home offices and all original books and records of the insurer are located and maintained in this State. The provisions of this subsection apply to domestic health maintenance organizations. For purposes of this section, original books and records mean corporate bylaws, charters, articles of incorporation, and any other records deemed to constitute original records by the director or his designee. Insurers desiring to move business records or operations outside of the State shall apply to the director or his designee for approval. Approvals or denials of request to move records or operations fall within the discretion of the director or his designee. The director may also rescind approval of a request if in his discretion it is considered to be in the best interest of the consumers and citizens of the State. Insurers must comply with the records requirements of Section 38-5-190 and the requirements for domestic insurers set forth in this chapter. The director or his designee shall outline via bulletin or order the information required in such an application. Item (k) of this section does not apply to any domestic insurer whose primary executive, administrative, and home offices were located outside this State on July 1, 1987. If subsequently the director or his designee is of the opinion that a condition exists which would have prohibited him from issuing the original certificate of authority or license to the insurer, then that condition also constitutes a ground for license revocation under Section 38-5-120.
HISTORY: Former 1976 Code Section 38-5-80 [1947 (45) 322; 1952 Code Section 37-105; 1962 Code Section 37-105, recodified as Section 38-5-70 by 1987 Act No. 155, Section 1; Former 1976 Code Sections 38-5-50 [1947 (45) 322; 1952 Code Section 37-102; 1962 Code Section 37-102], 38-5-60 [1947 (45) 322; 1952 Code Section 37-103; 1962 Code Section 37-103], 38-5-70 [1947 (45) 322; 1952 Code Section 37-104; 1962 Code Section 37-104], 38-5-90 [1947 (45) 322; 1952 Code Section 37-106; 1962 Code Section 37-106], and 38-5-100 [1962 Code Section 37-106.1; 1971 (57) 314] recodified as Section 38-5-80 by 1987 Act No. 155, Section 1; 1987 Act No. 8, Section 2; 1990 Act No. 364, Section 1; 1993 Act No. 181, Section 533; 2001 Act No. 82, Section 7, eff July 20, 2001.