“Section 389010. As used in this chapter, unless the context requires otherwise: (1) ‘Alien captive insurance company’ means an insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the director on companies transacting the business of insurance in such jurisdiction. (2) ‘Affiliated company’ means a company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management. (3) ‘Association’ means a legal association of individuals, corporations, limited liability companies, partnerships, political subdivisions, or associations that has been in continuous existence for at least one year: (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 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, captive reinsurance company, sponsored captive insurance company, special purpose captive insurance company, 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) ‘Captive reinsurance company’ means a reinsurance company that is formed or licensed pursuant to this chapter and is wholly owned by a qualifying reinsurance parent company. A captive reinsurance company is a stock corporation. (10) ‘Consolidated debt to total capital ratio’ means the ratio of the sum of (a) all debts and hybrid capital instruments including, but not limited to, all borrowings from banks, all senior debt, all subordinated debts, all trust preferred shares, and all other hybrid capital instruments that are not included in the determination of consolidated GAAP net worth issued and outstanding to (b) total capital, consisting of all debts and hybrid capital instruments as described in subitem (a) plus owners’ equity determined in accordance with GAAP for reporting to the United States Securities and Exchange Commission. (11) ‘Consolidated GAAP net worth’ means the consolidated owners’ equity determined in accordance with GAAP for reporting to the United States Securities and Exchange Commission. (12) ‘Controlled unaffiliated business’ means a company: (a) that is not in the corporate system of a parent and affiliated companies; (b) that has an existing contractual relationship with a parent or affiliated company; and (c) whose risks are managed by a captive insurance company in accordance with Section 3890190. (13) ‘Director’ means the Director of the South Carolina Department of Insurance or the director’s designee. (14) ‘Department’ means the South Carolina Department of Insurance. (15) ‘GAAP’ means generally accepted accounting principles. (16) ‘Industrial insured’ means an insured as defined in Section 3825150(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