South Carolina General Assembly
117th Session, 2007-2008

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Bill 589

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Indicates Matter Stricken

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COMMITTEE REPORT

May 30, 2007

S. 589

Introduced by Senator Thomas

S. Printed 5/30/07--H.

Read the first time April 10, 2007.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (S. 589) to amend Section 38-90-110, Code of Laws of South Carolina, 1976, relating to a captive insurance company taking credit for reserves on risks or portions, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

HARRY F. CATO for Committee.

            

A BILL

TO AMEND SECTION 38-90-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A CAPTIVE INSURANCE COMPANY TAKING CREDIT FOR RESERVES ON RISKS OR PORTIONS OF RISKS CEDED TO REINSURERS COMPLYING WITH THE PROVISIONS OF SECTIONS 38-9-200, 38-9-210, AND 38-9-220, SO AS TO PROVIDE THAT AN INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY MAY NOT TAKE CREDIT IF NOT IN COMPLIANCE WITH THOSE PROVISIONS OF LAW, AND PROVIDE THAT ALL OTHER CAPTIVE INSURANCE COMPANIES MAY NOT TAKE CREDIT FOR RESERVES PURSUANT TO THOSE PROVISIONS UNLESS SPECIFIC APPROVAL HAS BEEN GRANTED BY THE DIRECTOR OF INSURANCE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 38-90-110 of the 1976 Code is amended to read:

"Section 38-90-110.    (A)    A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer.

(B)(1)    A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with the provisions of Sections 38-9-200, 38-9-210, and 38-9-220.         (2)    A An industrial insured captive insurer insurance company may not take credit for reserves on risks or portions of risks ceded to a reinsurer if the reinsurer is not in compliance with Sections 38-9-200, 38-9-210, and 38-9-220.

(3)    All other captive insurance companies may not take credit for reserves on risks or portions of risks ceded to a reinsurer if the reinsurer is not in compliance with Sections 38-9-200, 38-9-210, and 38-9-220, unless specific approval has been granted for this credit or the reinsurer by order of the director."

SECTION    2.    This act takes effect upon approval by the Governor.

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