The bill S. 220 seeks to amend the South Carolina Code of Laws to strengthen the regulatory framework for insurance holding companies, particularly in relation to the Insurance Holding Company Regulatory Act. Key amendments include clarifying definitions for terms such as "affiliate," "control," and "internationally active insurance group" in Section 38-21-10. It also allows domestic insurers to invest in health maintenance organizations under specific conditions outlined in Section 38-21-30, and mandates that individuals acquiring control of a domestic insurer must maintain or restore its capital as specified in Section 38-21-90. Additionally, the bill requires the ultimate controlling person of an insurer to file an annual enterprise risk report and group capital calculation, while ensuring the confidentiality of sensitive financial information.

Further provisions in the bill establish that the Financial Stability Task Force will annually review the Liquidity Stress Test Framework, with changes taking effect the following January. It sets standards for transactions within insurance holding company systems to ensure fairness and reasonable terms, while also requiring insurers to notify the department of significant transactions. The bill emphasizes the confidentiality of information shared with the director or their designee, clarifying that such sharing does not delegate regulatory authority. It also specifies that group capital calculations and liquidity stress tests are regulatory tools for risk assessment, prohibiting misleading representations in public communications. The act will take effect upon the Governor's approval.

Statutes affected:
01/15/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
01/29/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
03/04/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
03/05/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
04/01/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
04/03/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
04/30/2025: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290
Latest Version: 38-21-10, 38-21-30, 38-21-70, 38-21-90, 38-21-160, 38-21-225, 38-21-250, 38-21-290