summary
Introduced
01/15/2025
01/15/2025
In Committee
04/03/2025
04/03/2025
Crossed Over
04/02/2025
04/02/2025
Passed
05/02/2025
05/02/2025
Dead
Signed/Enacted/Adopted
05/16/2025
05/16/2025
Introduced Session
126th General Assembly
Bill Summary
Amend The South Carolina Code Of Laws By Amending Section 38-21-10, Relating To Definitions, So As To Define Terms; By Amending Section 38-21-30, Relating To The Authority Of Insurers To Invest In Securities Of Subsidiaries, So As To Include Health Maintenance Organizations; By Amending Section 38-21-70, Relating To Contents Of Statements, So As To Further Explain The Requirements Of Reporting The Description Of Transactions; By Amending Section 38-21-90, Relating To Approval By Commissioners Of Acquisition Of Control, So As To Require The Person Acquiring Control Of A Domestic Insurer To Maintain Or Restore Capital; By Amending Section 38-21-160, Relating To Information Which Need Not Be Disclosed In Registration Statements, So As To Designate That The Definition Does Not Apply For Other Purposes; By Amending Section 38-21-225, Relating To The Annual Enterprise Risk Report, So As To Identify Exemptions For Filing The Group Capital Calculation And To Require Filing Results Of The Liquidity Stress Test For Some Insurers; By Amending Section 38-21-250, Relating To Standards For Transactions Within Insurance Systems, So As To Outline Responsibilities Of The Director, Among Other Things; By Amending Section 38-21-290, Relating To Confidential Information, So As To Require The Director To Keep Group Capital Calculations, Group Capital Ratio And Liquidity Stress Test Results, And Supporting Disclosures Confidential, And To Add References To Third-party Consultants; By Amending Section 38-12-30, Relating To Definitions, So As To Add Affiliates And Subsidiaries To The Definition Of "person"; To Amend Section 38-12-220, Relating To Restrictions On Investments, So As To Include Affiliates And Subsidiaries; And By Amending Section 38-12-430, Relating To Asset Limitations For Insurer Holdings, So As To Include Affiliates And Subsidiaries. - Ratified Title
AI Summary
This bill updates South Carolina's Insurance Holding Company Regulatory Act with several key provisions that enhance oversight and reporting requirements for insurance companies. The bill adds new definitions, including terms related to "group capital calculation" and "liquidity stress test" from the National Association of Insurance Commissioners (NAIC), and expands the Director of Insurance's authority to review and regulate insurance holding company systems. It requires insurers to file an annual enterprise risk report and group capital calculation, with specific exemptions for certain types of insurance holding company systems. The bill also mandates that insurers meeting certain criteria submit liquidity stress test results, introduces new confidentiality provisions for sensitive financial information, and allows the insurance director to share confidential information with other regulatory agencies under specific conditions. Additionally, the bill increases the investment limit from three to five percent for insurers investing in a single person or business entity, and establishes more detailed standards for transactions within insurance holding company systems, including requirements for fairness, cost-sharing, and maintaining adequate financial reserves. The changes aim to improve regulatory transparency, risk management, and financial oversight in the insurance industry.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Act No. 17 (on 05/16/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...