South Carolina was one of the thirteen original colonies of the United States, known for its Civil War history and being the first state to secede, its southern hospitality, its political independence and its palmettos. The proprietary colony of Carolina was first settled at Charles Town (modern day Charleston) in 1670. In modern times, South Carolina has become one of the pre-eminent captive insurance domiciles in the country. South Carolina’s captive insurance law was passed in 2000. Risk Retention Groups formed in the state are governed by the captive act.
South Carolina has licensed over 200 captives, and the Department is committed to making South Carolina the onshore domicile of choice. They cover a number of industries including health care and elder services, real estate, commercial automobile, construction, banking and financial services, and shipping/transport and logistics. Coverage provided includes workers’ compensation, general liability and umbrella, medical malpractice and professional liability, business interruption, property, DIC, premises and event liability, terrorism, environmental/pollution clean-up, employment practices, D&O, and fidelity and surety. Approximately 40% of the captives formed in South Carolina are healthcare related.
The Commissioner of the Department of Insurance has regulatory authority over captive insurers. With a dedicated staff of twelve employees and the use of outside examination firms, the department is able to regulate captive insurers from regulatory compliance to on-site examination. Its progressive, business-friendly regulatory environment is one of its many strengths and South Carolina has one of the best insurance regulatory environments in the Southeast. They recognize that competition is a vital component of any insurance regulatory process.
USA Risk Group services the South Carolina clients from its offices in Charleston and Greenville.
- Direct Insurance Permitted: All commercial lines and excess workers’ compensation insurance, except that no captive insurer may provide personal motor vehicle or homeowner’s insurance coverage or any component thereof. Reinsurance Permitted: A captive insurer may provide reinsurance on risks ceded by any other insurer or reinsurer.
- Policy Form and Rating Organizations: Policy forms are not required to be approved by the Department, except for reciprocals and certain designated lines.
- Investment Restrictions: Very few restrictions for pure captives. There are restrictions for other forms of group captives, which are required to follow NAIC guidelines.
- Local Office and Meeting Requirements: The Insurer must have a principal place of business in the state, be subject to service of process, and maintain the books and records of the captive insurer's business, transactions and affairs at a location that is accessible to the Commissioner. The insurer’s board of directors, or subscribers’ advisory committee if a reciprocal, is required to have at least one (1) meeting each year in the state.
- Organizational Types: Corporation, Limited Liability Company, partnership, or reciprocal. Structure & Voting: Stock, mutual, or reciprocal.
Our Charleston and Greenville offices are authorized to manage captives in South Carolina and offer:
- An executive staff with experience in multiple domiciles, including South Carolina, who have formed numerous captives and serve or have served on industry associations
- Strong relationships with South Carolina regulators and service providers
- Strict internal controls over all our processes including disaster recovery and state of the art information technology
Paul Newton, CPA
Senior Vice President
USA Risk Group of South Carolina, Inc.
1327 Ashley River Road
Building C, Suite 200
Charleston, SC 29407