Bill S. 220 seeks to amend the South Carolina Code of Laws to strengthen the regulatory framework governing insurance holding companies. Key changes include the definition of terms in Section 38-21-10, the inclusion of health maintenance organizations under investment authority in Section 38-21-30, and the requirement for individuals acquiring control of a domestic insurer to maintain or restore capital as outlined in Section 38-21-90. The bill also establishes the responsibilities of the director regarding insurance system transactions and mandates confidentiality for certain financial calculations and stress test results. Additionally, it revises the annual enterprise risk report requirements in Section 38-21-225, allowing exemptions for group capital calculations while requiring the filing of liquidity stress test results for some insurers.

Further amendments clarify that the definition of materiality for registration statements does not apply to group capital calculations or liquidity tests. The bill sets standards for transactions within insurance holding company systems, ensuring fairness and proper expense allocation, while protecting the confidentiality of records and data held by affiliates. It emphasizes that the group capital calculation and liquidity stress test are regulatory tools for risk assessment, not for ranking insurers, and prohibits misleading representations in public communications. The act will take effect upon the Governor's approval, aiming to enhance regulatory oversight and ensure the financial stability of insurance holding companies in South Carolina.

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
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