reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-120. Record of business done; inspection by Director or designee.

All companies doing any kind of insurance business in this State shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums, and the person to whom issued of every policy or certificate of renewal. This information must be furnished to the director or his designee on demand, and the original books or record must be open to the inspection of the director or his designee on demand. These records must be kept for a minimum of five years.
HISTORY: Former 1976 Code Section 38-13-120 [1947 (45) 322; 1952 Code Section 37-612; 1962 Code Section 37-612] recodified as Section 38-15-90 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1210 [1947 (45) 322; 1952 Code Section 37-290; 1962 Code Section 37-290] recodified as Section 38-13-120 by 1987 Act No. 155, Section 1; 1988 Act No. 357, Section 2; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-130. Records of losses and claims.

Every insurer doing business in this State shall maintain a record of losses paid under its policies and notices as provided in its policies which may normally result in claim or loss. The records must be maintained until the next regular examination by an insurance department or for a period of five years from the date of payment of the loss or receipt of the notice.
HISTORY: Former 1976 Code Section 38-13-130 [1947 (45) 322; 1952 Code Section 37-613; 1962 Code Section 37-613] recodified as Section 38-15-100 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1340 [1956 (49) 1740; 1962 Code Section 37-290.1] recodified as Section 38-13-130 by 1987 Act No. 155, Section 1; 1988 Act No. 357, Section 3; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-140. Refusal to exhibit records; false statements; confidentiality of replies.

A person who has in his possession or control any books, accounts, or papers of a company licensed under this title shall exhibit them to the director or to any deputy, actuary, accountant, or person acting with or for the director. A person who refuses, on demand, to exhibit any books, accounts, or papers or knowingly or wilfully makes a false statement in regard to them is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned for not more than three years, or both. All replies are strictly confidential except for the purposes of prosecution for any false or fraudulent statement made to the director or his designee.
HISTORY: Former 1976 Code Section 38-13-140 [1947 (45) 322; 1952 Code Section 37-614; 1962 Code Section 37-614] has no comparable provisions in 1987 Act No. 155; Former 1976 Code Section 38-5-1370 [1947 (45) 322; 1952 Code Section 37-291; 1962 Code Section 37-291] recodified as Section 38-13-140 by 1987 Act No. 155, Section 1; 1993 Act No. 184, Section 210; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-150. Returns of reinsurance by insurers; effect of refusal.

Every insurer shall file a return, on a form and at times prescribed by the director or his designee, showing all reinsurance or cessions of risk or liability contracted for or effected by it, whether by issue of policy, entry, or bordereau, general participation agreement, excess loss reinsurance, or in any manner whatsoever, upon property located in this State or covering, whether specified or otherwise, any risk or liability upon property so located. The return must be certified by the oath of its president and secretary, if a company of the United States, and, if a company of a foreign country, by the oath of its managers in the United States as to reinsurance or cessions effected through its branch office in the United States and by the oath of its president and secretary or by officers corresponding thereto, at its home office, wherever located, as to reinsurance or cessions contracted for or effected through the foreign office. The refusal of an insurer to file the required return is presumptive evidence that it is guilty of violating the provisions of Section 38-9-190.
HISTORY: Former 1976 Code Section 38-13-150 [1947 (45) 322; 1952 Code Section 37-615; 1962 Code Section 37-615] has no comparable provision in 1987 Act No. 155; Former 1976 Code Section 38-5-1350 [1947 (45) 322; 1952 Code Section 37-292; 1962 Code Section 37-292] recodified as Section 38-13-150 by 1987 Act No. 155, Section 1; 1988 Act No. 374, Section 7; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-160. Director or designee may require special reports; confidentiality of replies.

The director or his designee may require any authorized insurer or its officers to answer any inquiry in relation to its transactions, condition, or any connected matter necessary to the administration of the insurance laws of the State. Every corporation or person must reply in writing to the inquiry promptly and truthfully, and the reply must be verified, if required by the director or his designee, by the individual or by the officer or officers of a corporation as he designates. These replies are strictly confidential.
HISTORY: Former 1976 Code Section 38-13-160 [1947 (45) 322; 1952 Code Section 37-616; 1962 Code Section 37-616] has no comparable provisions in 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1360 [1947 (45) 322; 1952 Code Section 37-294; 1962 Code Section 37-294] recodified as Section 38-13-160 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-170. Penalties for making or aiding in making false statement.

If an insurer, in its annual or other statement required by law, wilfully misstates the facts, the insurer and the person signing the statement and any person aiding, abetting, or participating in the making of the statement are guilty of a felony, and upon conviction, must be fined not more than two thousand dollars or imprisoned not more than five years, or both. The insurer, upon conviction, forfeits its right to do business in this State.
HISTORY: Former 1976 Code Section 38-13-170 [1947 (45) 322; 1952 Code Section 37-617; 1962 Code Section 37-617] has no comparable provisions in 1987 Act No. 155; Former 1976 Code Section 38-5-1380 [1947 (45) 322; 1952 Code Section 37-295; 1956 (49) 1834; 1962 Code Section 37-295] recodified as Section 38-13-170 by 1987 Act No. 155, Section 1; 1993 Act No. 184, Section 66; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-180. Insurance reserve fund defined.

For purposes of Sections 38-13-190 and 38-13-200, "insurance reserve fund" or "funds" means the insurance reserve funds administered by the State Fiscal Accountability Authority to provide liability and property insurance, as authorized under Section 1-11-140, Chapter 7 of Title 10, and the regulations prescribed by the State Fiscal Accountability Authority.
HISTORY: Former 1976 Code Section 38-5-840 [En, 1983 Act No. 151, Part II, Section 55] recodified as Section 38-13-180 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 537.
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.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-190. Commissioner to examine affairs and methods of operations of insurance reserve fund; reports of findings.

(1) At the end of each three years of operation, and at any other time considered prudent, the director or his designee shall examine the affairs of the insurance reserve funds and make findings and recommendations as provided by this section. For purposes of examination, the director or person making the examination has free access to all relevant records, books, and papers in the possession of any person or entity and may summon, administer oaths to, and examine as witnesses any persons in relation to matters relevant to the examination.
(2) The director or his designee shall examine all methods of operation of the insurance reserve funds to determine whether the funds are being administered in accordance with sound insurance practices and in the best interest of the State. Following the examination, the director or his designee shall prepare a report for submission, through the State Fiscal Accountability Authority, to the Office of the Governor, the Speaker of the House of Representatives, and the President of the Senate containing his findings and conclusions and any recommendations to improve the efficiency, effectiveness, and overall operation of the funds.
HISTORY: Former 1976 Code Section 38-5-850 [1983 Act No. 151, Part II, Section 55] recodified as Section 38-13-190 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 537.
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.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-200. Penalty for refusal to be examined under oath.

Any person or entity having possession or control of any records, books, or papers relevant to an insurance reserve fund examination who fails or refuses to be examined under oath is guilty of a misdemeanor and upon conviction must be punished by a fine of not more than ten thousand dollars or imprisonment for not more than one year and is subject to suspension or revocation of any insurance licenses issued by the director or his designee.
HISTORY: Former 1976 Code Section 38-5-860 [En, 1983 Act No. 151, Part II, Section 55] recodified as Section 38-13-200 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-300. Regulations requiring insurer to report its loss and expense experience and other data.

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.
HISTORY: 1987 Act No. 166, Section 11; 1993 Act No. 181, Section 537; 1997 Act No. 68, Section 2.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-310. Supplemental report.

The supplemental report required by Section 38-13-300 may include, but is not limited to, the following types of insurance written by the insurer:
(a) political subdivision liability insurance reported separately in the following categories:
(1) municipalities;
(2) school districts;
(3) other political subdivisions;
(b) public official liability insurance;
(c) dram shop liability insurance;
(d) day care center liability insurance;
(e) labor, fraternal, or religious organizations liability insurance;
(f) errors and omissions liability insurance;
(g) officers and directors liability insurance reported separately as follows:
(1) nonprofit entities;
(2) for-profit entities;
(h) products liability insurance;
(i) medical malpractice insurance;
(j) attorney malpractice insurance;
(k) architects and engineers malpractice insurance; and
(l) motor vehicle insurance reported separately for commercial and private passenger vehicles as follows:
(1) motor vehicle liability insurance first-party benefits;
(2) motor vehicle bodily injury liability insurance;
(3) motor vehicle property liability insurance;
(4) uninsured motorist insurance; and
(5) underinsured motorist insurance.
HISTORY: 1987 Act No. 166, Section 12; 1993 Act No. 181, Section 537; 1997 Act No. 68, Section 3.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-320. Data in supplemental report.

The supplemental report may include, but is not limited to, the following data both as to this State and the United States for the previous year ending on December thirty-first:
(a) direct premiums written,
(b) direct premiums earned,
(c) net investment income, including net realized capital gains and losses, using appropriate estimates where necessary,
(d) incurred claims, developed as the sum of the following (the report shall include data for each of the following categories used to develop the sum of incurred claims):
(1) dollar amount of claims closed with payment, plus
(2) dollar amount of payments on claims still open, plus
(3) reserves for reported claims at the end of the current year, minus
(4) reserves for reported claims at the end of the previous year, plus
(5) reserves for incurred but not reported claims at the end of the current year, minus
(6) reserves for incurred but not reported claims at the end of the previous year, plus
(7) loss adjustment expenses for claims closed, plus
(8) reserves for loss adjustment expense at the end of the current year, minus
(e) actual incurred expenses allocated separately to loss adjustment, commissions, other acquisition costs, advertising, general office expenses, taxes, licenses and fees, and all other expenses;
(f) net underwriting gain or loss;
(g) net operation gain or loss, including net investment income;
(h) the number and dollar amount of claims closed with payment, by year incurred and the amount reserved for them;
(i) the number of claims closed without payment and the dollar amount reserved for those claims;
(j) federal income tax recoverable; and
(k) any other information requested by the director or his designee.
HISTORY: 1987 Act No. 166, Section 13; 1993 Act No. 181, Section 537; 1997 Act No. 68, Section 4.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-340. Review of supplemental reports.

The department shall annually compile and review reports submitted by insurers pursuant to this article by order of the director to determine the appropriateness of premium rates for property and casualty insurance in this State. Any findings and filings of the department must be published, provided to the General Assembly, and made available to any interested insured or citizen, subject to the cost of copying. If the director or his designee finds at any time that any rate is excessive, inadequate, or unfairly discriminatory, he shall issue an order withdrawing its approval. The order shall specify reasons for withdrawal of approval and must be furnished to each affected insurer and rating organization. Any such order is effective not less than sixty days from its issuance unless an affected insurer meets the burden of showing that the rate is fair and appropriate.
HISTORY: 1987 Act No. 166, Section 15; 1993 Act No. 181, Section 537; 1997 Act No. 68, Section 5.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-350. Filing of required information.

Each insurance company shall file all of the information required under Sections 38-13-300 through 38-13-360 with the department as a prerequisite to obtaining permission to write coverage, to continue to do business, or to file for rate increases.
HISTORY: 1987 Act No. 166, Section 16; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-360. Penalty for failure to comply with provisions of article.

Each insurer who fails to comply with the terms of Sections 38-13-300 through 38-13-350 shall pay a civil penalty of a fine of twenty thousand dollars and thereafter a fine of one thousand dollars daily until the named sections of the article are complied with.
HISTORY: 1987 Act No. 166, Section 17; 1993 Act No. 181, Section 537.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-400. Report disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions; when due; confidentiality.

(A) Effective January 1, 1995, each insurer domiciled in this State and, effective July 1, 2006, each health maintenance organization domiciled in this State, shall file a report with the director or his designee disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements, unless these acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the director or his designee for review, approval, or information purposes pursuant to other provisions of the insurance laws, regulations, or other requirements.
(B) The report required in subsection (A) is due within fifteen days after the end of the calendar month in which any of the foregoing transactions occur.
(C) All reports obtained by or disclosed to the director or his designee, pursuant to this section or Section 38-13-410 or 38-13-420 must be given confidential treatment and are not subject to subpoena and may not be made public by the director, his designee, or any other person, except to insurance departments of other states, without the prior written consent of the insurer or health maintenance organization to which it pertains, unless the director or his designee, after giving the insurer or health maintenance organization that is affected notice and an opportunity to be heard, determines that the interest of policyholders, shareholders, or the public is best served by the publication of the reports, then the director or his designee may publish all or any part of them in the manner as the director or his designee considers appropriate.
HISTORY: 1994 Act No. 372, Section 1; 2006 Act No. 332, Section 3, eff June 1, 2006.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-700. Periodic examination of unemployment compensation fund; duties of director.

(A) At least every five years, or upon request pursuant to Section 38-13-710, the director must conduct an examination of the unemployment compensation fund administered by the Department of Employment and Workforce. Examinations scheduled by the director must include at least a detailed accounting of the revenue and expenditures of the fund and an analysis of the current and future solvency of the fund.
(B) In scheduling and determining the nature, scope, and frequency of examinations, the director shall consider compliance with relevant federal and South Carolina laws and regulations, the results of previous examinations, changes in management, and reports of the audits performed by the Legislative Audit Council.
(C) For purposes of completing an examination of an insurer under this article, the director may examine or investigate the Department of Employment and Workforce in a manner considered necessary or material by the director.
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-710. Who may request examination; contents of request.

(A) An examination of the unemployment compensation fund may be initiated upon the request of either:
(1) the Chairman of the Senate Labor, Commerce and Industry Committee or the Chairman of the Senate Finance Committee and the President of the Senate; or
(2) the Chairman of the House of Representatives Labor, Commerce and Industry Committee or the Chairman of the House of Representatives Ways and Means Committee and the Speaker of the House of Representatives.
(B) The request must describe the issues upon which the requestor would like for the examination to focus.
(C) The director must consult with the requestors to determine the appropriate scope of the examination.
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
Editor's Note
2019 Act No. 1, Section 97, provides as follows:
"SECTION 97. The Code Commissioner is directed to change all references to 'President Pro Tempore', 'President Pro Tempore of the Senate', or 'President of the Senate Pro Tempore' not specifically addressed in this act to 'President of the Senate'."
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-720. Free access to books, records, and other materials relating to examination; powers of director.

(A) The Department of Employment and Workforce must provide timely, convenient, and free access to all books, records, accounts, papers, documents, and computer or other recordings relating to the subject of the examination. If the director considers it necessary to the conduct of the examination, he may require that the Department of Employment and Workforce furnish the original books and records. The Executive Director of the Department of Employment and Workforce shall facilitate the examination and aid in the examination.
(B) The director 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 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.
(C) When making an examination pursuant to this article, the director 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 Department of Employment and Workforce. Examination fees must be retained by the department and are considered "other funds".
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-730. Verification of data provided by department; sample data testing.

In addition to any other recognized and appropriate examination methodologies, when conducting an examination, the department must utilize sample data testing to verify the accuracy of information provided by the Department of Employment and Workforce.
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-740. Examination reports; contents; submission to General Assembly; availability on Internet websites.

The results of each examination must be compiled in a report. Examination reports must be comprised of only facts appearing on the books, records, or other documents maintained by the Department of Employment and Workforce and as ascertained from the testimony of the executive director and any other employees examined concerning the subject of the examination, and the conclusions and recommendations of the director that he finds warranted from the facts. The reports must be submitted to the General Assembly, the Review Committee, and the Governor, and made available on the Internet websites maintained by the Department of Insurance and the Department of Employment and Workforce.
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-760. Department to pay charges.

The Department of Employment and Workforce shall pay the charges incurred in the examination, including the expenses of the director and the expenses and compensation of his examiners and assistants.
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-770. Inquiries regarding administration of unemployment compensation fund; prompt written reply.

The director may require the Department of Employment and Workforce to answer any inquiry in relation to the administration of the unemployment compensation fund. The Executive Director of the Department of Employment and Workforce must promptly reply in writing.
HISTORY: 2010 Act No. 146, Section 117, eff March 30, 2010.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-810. Purpose; application; findings.

(A) The purpose of this article is to provide the requirements for maintaining a risk management framework and completing an Own Risk and Solvency Assessment (ORSA) and provide guidance and instructions for filing an ORSA Summary Report with the insurance director of this State.
(B) The requirements of this article apply to all insurers domiciled in this State unless exempt pursuant to Section 38-13-860.
(C) The General Assembly finds and declares that an ORSA Summary Report contains confidential and sensitive information related to an insurer or insurance group's identification of risks material and relevant to the insurer or insurance group filing the report. This information includes proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if the information is made public. It is the intent of the General Assembly that:
(1) an ORSA Summary Report, including all documents, materials, or other information related to its preparation, is a confidential document filed with the director and only may be shared as stated in this article;
(2) an ORSA Summary Report will be used to assist the director in the performance of his duties; and
(3) in no event may an ORSA Summary Report and its accompanying documents be subject to public disclosure.
(D) Nothing in this section prohibits an order from a court of competent jurisdiction requiring an insurance company that is subject to this article to produce an ORSA Summary Report.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
Code Commissioner's Note
At the direction of the Code Commissioner in 2017, in (A), "this article" was substituted for "this act" to correct a clerical error.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-820. Definitions.

For purposes of this article, the term:
(1) "Director" means the Director of the Department of Insurance.
(2) "Insurance group" means insurers and affiliates included within an insurance holding company system.
(3) "Insurer" has the same meaning as set forth in Section 38-1-20, except the term does not include 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.
(4) "Own Risk and Solvency Assessment" or "ORSA" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan, and the sufficiency of capital resources to support those risks.
(5) "ORSA Guidance Manual" means the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners (NAIC) and as amended from time to time. A change in the ORSA Guidance Manual is effective on January first of the following calendar year in which the changes have been adopted by the NAIC.
(6) "ORSA Summary Report" means a confidential high-level summary of an insurer or insurance group's ORSA.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-830. Risk management framework.

An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-840. Insurers required to conduct ORSA on no less than an annual basis.

Subject to Section 38-13-860, an insurer, or the insurance group of which the insurer is a member, regularly shall conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual. The ORSA must be conducted no less than annually but also when significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member occur.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-850. ORSA Summary Reports.

(A) Upon the director's request, and no more than once each year, an insurer shall submit to the director an ORSA Summary Report or a combination of reports that contain the information described in the ORSA Guidance Manual, applicable to the insurer and/or the insurance group of which it is a member. Notwithstanding a request from the director, if the insurer is a member of an insurance group, the insurer shall submit the reports required by this subsection if the director is the lead state director of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.
(B) The reports must include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of his belief and knowledge that the insurer applies the enterprise risk management process described in the ORSA Summary Report and that a copy of the report has been provided to the insurer's board of directors or other appropriate committees.
(C) An insurer may comply with subsection (A) by providing the most recent and substantially similar reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA Guidance Manual. A report in a language other than English must be accompanied by a translation of that report into the English language.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-870. Preparation of ORSA Summary Report; review; requests for information.

(A) The ORSA Summary Report must be prepared consistent with the ORSA Guidance Manual, subject to the requirements of subsection (B). Documentation and supporting information must be maintained and made available upon examination or upon request by the director.
(B) The review of the ORSA Summary Report and additional requests for information must be made using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-890. Penalties.

An insurer who, without just cause, fails to timely file the ORSA Summary Report shall, after notice and hearing, pay a penalty of one thousand dollars for each day's delay, to be recovered by the director. The penalty funds recovered must be paid into the General Revenue Fund of this State. The maximum penalty under this section is thirty thousand dollars. The director may reduce the penalty if the insurer demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the insurer.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-900. Effective date.

The requirements of this article become effective on January 1, 2018. The first filing of an ORSA Summary Report must take place in 2018 pursuant to Section 38-13-850.
HISTORY: 2017 Act No. 48 (S.254), Section 1, eff January 1, 2018.
Code Commissioner's Note
At the direction of the Code Commissioner in 2017, in (A), "this article" was substituted for "this act" to correct a clerical error.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1000. Purpose; construction; application.

(A) The purpose of this article is to:
(1) provide the director a summary of an insurer's or insurance group's corporate governance structure, policies, and practices to permit the director to gain and maintain an understanding of the insurer's corporate governance framework;
(2) outline the requirements for completing a corporate governance annual disclosure and submitting the disclosure to the director; and
(3) provide for the confidential treatment of the corporate governance annual disclosure and related information that will contain confidential and sensitive information related to an insurer or insurance group's internal operations and proprietary and trade secret information which, if made public, could potentially cause the insurer or insurance group competitive harm or disadvantage.
(B) Nothing in this article may be construed to prescribe or impose corporate governance standards and internal procedures beyond what is required under applicable state corporate law. Notwithstanding the foregoing, nothing in this article may be construed to limit the director's authority or the rights or obligations of third parties, pursuant to Section 38-13-10, et seq.
(C) The requirements of this article apply to all insurers domiciled in this State and do not apply to risk retention groups or captive insurance companies.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1010. Definitions.

For the purposes of this article:
(1) "Corporate Governance Annual Disclosure" or "CGAD" means a confidential report filed by an insurer or insurance group made in accordance with the requirements of this article.
(2) "Director" means the Director of the Department of Insurance or his designee.
(3) "Insurance group" means insurers and affiliates included within an insurance holding company system as defined in Section 38-21-10.
(4) "Insurer" has the same meaning as set forth in Section 38-1-20, except the term does not include 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.
(5) "NAIC" means the National Association of Insurance Commissioners.
(6) "ORSA summary report" means the report filed in accordance with Article 8 of this chapter.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1020. Submission of Corporate Governance Annual Disclosure.

(A) An insurer or the insurance group of which the insurer is a member must submit to the director a Corporate Governance Annual Disclosure (CGAD) that contains the information required pursuant to the provisions of this article no later than June first of each calendar year. Notwithstanding a request from the director, if the insurer is a member of an insurance group, the insurer shall submit the report to the director of the lead state for the insurance group in accordance with the laws of the lead state, as determined by the procedures outlined in the most recent Financial Analysis Handbook adopted by the NAIC.
(B) The CGAD must include a signature of the insurer's or insurance group's chief executive officer or corporate secretary attesting to the best of that individual's belief and knowledge that the insurer has implemented the corporate governance practices and that a copy of the disclosure has been provided to the insurer's board of directors of the appropriate committee thereof.
(C) An insurer not required to submit a CGAD under this section shall do so upon the director's request.
(D) For purposes of completing the CGAD, the insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level, an intermediate holding company level and the individual legal entity level, depending upon how the insurer or insurance group has structured its system of corporate governance. The insurer or insurance group is encouraged to make the CGAD disclosures at the level at which the insurer's or insurance group's risk appetite is determined, or at the level at which the earnings, capital, liquidity, operations, and reputation of the insurer are overseen collectively and at which the supervision of those factors are coordinated and exercised, or the level at which legal liability for failure of general corporate governance duties would be placed. If the insurer or insurance group determines the level of reporting based on these criteria, it shall indicate which of the three criteria was used to determine the level of reporting and explain any subsequent changes in the level of reporting.
(E) The review of the CGAD and any additional requests for information must be made through the lead state as determined by the procedures within the most recent Financial Analysis Handbook.
(F) Insurers providing information substantially similar to the information required by this article in other documents provided to the director, including proxy statements filed in conjunction with Form B requirements or other state or federal filings provided to this department, are not required to duplicate that information in the CGAD, but are required to cross reference the document in which the information is included.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1030. Rules, regulations, and orders.

The director may, upon notice and opportunity for all interested persons to be heard, issue such rules, regulations, and orders necessary to carry out the provisions of this article.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1040. Discretion over responses to inquiries; examination of documentation and supporting information.

(A) The insurer or insurance group has discretion over the responses to the CGAD inquiries, provided the CGAD shall contain the material information necessary to permit the director to gain an understanding of the insurer's or group's corporate governance structure, policies, and practices. The director may request additional information that he deems material and necessary to provide him with a clear understanding of the corporate governance policies the reporting or information system or controls implementing those policies.
(B) The CGAD must be prepared consistent with the Corporate Governance Annual Disclosure Model Regulation, Regulation 69-80. Documentation and supporting information must be maintained and made available upon examination or upon request of the director.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1060. Retention of third-party consultants.

(A) The director may retain, at the insurer's expense, third-party consultants, including attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as may be reasonably necessary to assist the director in reviewing the CGAD and related information or the insurer's compliance.
(B) Any persons retained are under the direction and control of the director and shall act in a purely advisory capacity.
(C) The NAIC and third-party consultants are subject to the same confidentiality standards and requirements as the director.
(D) As part of the retention process, a third-party consultant shall verify to the director, with notice to the insurer, that it is free of a conflict of interest and that it has internal procedures in place to monitor compliance with a conflict and to comply with the confidentiality standards and requirements of this article.
(E) A written agreement with the NAIC or a third-party consultant governing sharing and the use of information provided pursuant to this article shall contain the following provisions and expressly require the written consent of the insurer prior to making public information provided pursuant to this article:
(1) specific procedures and protocols for maintaining the confidentiality and security of CGAD-related information shared with the NAIC or a third-party consultant;
(2) procedures and protocols for sharing by the NAIC only with other state regulators from states in which the insurance group has domiciled insurers. The agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the CGAD-related documents, materials, or other information and has certified in writing the legal authority to maintain confidentiality;
(3) a provision specifying that ownership of the CGAD-related information shared with other NAIC or a third-party consultant remains with the Department of Insurance and the NAIC's or third-party consultant's use of the information is subject to the direction of the director;
(4) a provision that prohibits the NAIC or a third-party consultant from storing the information shared pursuant to this article in a permanent database after the underlying analysis is completed;
(5) a provision requiring the NAIC or third-party consultant to provide prompt notice to the director and to the insurer or insurance group regarding any subpoena, request for disclosure, or request for production of the insurer's CGAD-related information; and
(6) a requirement that the NAIC or a third-party consultant to consent to intervention by an insurer in any judicial or administrative action in which the NAIC or third-party consultant may be required to disclose confidential information about the insurer shared with the NAIC or a third-party consultant.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1070. Penalties.

Any insurer who, without just cause, fails to timely file the CGAD shall, after notice and an opportunity for a hearing, pay a penalty of one thousand dollars for each day's delay, to be recovered by the director. The penalty funds recovered must be paid into the general fund of this State. The maximum penalty under this section is twenty thousand dollars. The director may reduce the penalty if the insurer demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the insurer.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 13 - Examinations, Investigations, Records, And Reports › Section 38-13-1080. Effective date of this article.

The requirements of this article become effective on January 1, 2020. The first filing of the corporate governance annual disclosure must take place on June 1, 2020.
HISTORY: 2019 Act No. 3 (S.75), Section 1, eff March 20, 2019.