South Carolina Senate Bill 210 Updates Captive Insurance Statutes

South Carolina Senate Bill 210 (S.210), passed during the 2025 legislative session and currently awaiting the governor's signature, updates several provisions in the state's captive insurance code. The bill includes changes to capital requirements, examination procedures, filing deadlines, governance provisions, and definitions.

Key updates in the bill include the following.

• Regulatory examinations. The bill amends Section 38–90–80 to remove the requirement that certain captives be examined following licensure. For captives that are not risk retention groups or industrial insured captives, all examinations are now at the discretion of the director. The statute replaces "must be examined" with "may be examined" following the date of licensure.
• Protected cell capital requirements. Previously, South Carolina law required protected cells to meet the same capital and surplus standards as special purpose captive insurance companies. The bill removes that requirement. The director of insurance will now determine the capital and surplus required for each protected cell—both incorporated and unincorporated—based on the cell's business plan, feasibility study, pro formas, and the nature, scale, and complexity of the risks.
• Sponsored captive capital requirements. The bill amends Section 38–90–40 to eliminate the $250,000 minimum capital requirement for sponsored captive insurance companies. The required amount will now be set by the director based on the company's business plan, feasibility study, and the nature, scale, and complexity of the risks to be insured.
• Annual reporting timeline. The bill amends Section 38–90–70 to extend the filing deadline for captives—other than risk retention groups—that have received approval to report on a fiscal year-end basis. The filing period is increased from 60 days to 180 days after the end of the fiscal year.
• Premium tax allocation. The bill increases the share of premium tax revenue directed to the Captive Insurance Regulatory and Supervision Fund from 20 percent to 40 percent, as amended in Section 38–90–175.
• Definition of foreign captives. The bill updates the definition of "alien captive insurance company" to include the term "or foreign," clarifying that captives formed in other US jurisdictions are included. The definition also permits the inclusion of protected cells or their equivalents.
• Non-US currency transactions. With approval from the director, captives may receive premiums, pay claims, and hold assets in specified non-US currencies. All filings and tax payments must still be made in US dollars, using approved exchange rates.
• Physical presence requirement. The bill amends meeting requirements for captive insurers by changing the in-state presence rule. Instead of requiring a majority of board or advisory members to be physically present in South Carolina, the statute now requires only two members to attend the annual meeting in person.