The South Carolina General Assembly has passed legislation for the purpose of providing additional options to businesses interested in domiciling in the state.
The revised law will aid in attracting new business to the Palmetto state, keeping it competitive with other US captive domiciles.
Senate Bill 909, drafted by the South Carolina Department of Insurance, makes technical amendments to the current law to clarify that all risk retention groups domiciled in the state must comply with NAIC accreditation standards.
In addition to this clarification, S. 909 amends South Carolina’s current protected cell legislation to allow for these individual cells to incorporate. This allows the assets and liabilities of these protected cells to integrate, which adds a layer of protection from potential adverse experiences of other cells in the structure.
The passage of this legislation further strengthens and supports South Carolina’s position as a leading domicile for captive insurance companies in the US and worldwide, demonstrating its commitment in keeping pace with the changing needs of the captive industry while maintaining its reputation as a strong and supportive regulatory environment.
South Carolina Captive Insurance Association (SCCIA) president, Chris Stormer, says, “We are very excited about the opportunities the passage of this legislation means for the membership of the SSCIA and others serving the captive industry here in South Carolina.”
There are more than 30 states with captive insurance legislation that currently serve as US domiciles for captive insurance companies. South Carolina is one of the industry’s premier domiciles and is one of the most mature onshore domiciles. Each year the captive industry contributes over a billion dollars to the state’s economy. Since the passage of the original captive insurance legislation in 2000, over 240 captives have been licensed in South Carolina.
Stormer continues, “A special thanks to the leadership of the SCDOI – Ray Farmer, Gwen McGriff, Jay Branum and their entire team for sponsoring this legislation and for their tireless efforts. I also cannot forget to thank the leadership of the South Carolina Senate and House of Representatives who continue to proactively position South Carolina as a leading domicile for captive insurance companies. To echo our governor’s catch phrase – ‘it’s a great day in South Carolina’.”
South Carolina, incorporated cell legislation, captive, domicile, SSCIA, SCDOI