H 4789

South Carolina General Assembly
126th Session, 2025-2026
Bill 4789
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION 38-21-225, RELATING TO THE ANNUAL GROUP CAPITAL CALCULATION FILING
DEADLINE IN THE INSURANCE HOLDING COMPANY REGULATORY ACT, SO AS TO ESTABLISH
THE DEADLINE AS MAY FIRST.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Section 38-21-225(B) of the S.C. Code is amended to
read:
    (B) Except as provided below, the
ultimate controlling person of every insurer subject to registration must file
concurrently with the registration an annual group capital calculation as
directed by the lead state commissioner.  The report must be completed in
accordance with NAIC Group Capital Calculation instructions, which may permit
the lead state commissioner to allow a controlling person that is not the
ultimate controlling person to file the group capital calculation.  The report
must be filed with the lead state commissioner of the insurance holding company
system as determined by the director in accordance with the procedures within
the Financial Analysis Handbook adopted by the NAIC before
May first.  The following insurance holding company systems are exempt
from filing the group capital calculation:
       (1)
an insurance holding company system that has only one insurer within its
holding company structure, that only writes business in its domestic state, and
assumes no business from any other insurer;
       (2)
an insurance holding company system that is required to perform a group capital
calculation specified by the United States Federal Reserve Board.  The lead
state commissioner must request the calculation from the Federal Reserve Board
under the terms of information-sharing agreements in effect.  If the Federal
Reserve Board cannot share the calculation with the lead state commissioner,
the insurance holding company system is not exempt from the group capital
calculation filing;
       (3)
an insurance holding company system whose non-U.S. group-wide supervisor is
located within a reciprocal jurisdiction as described in Section 38-9-200 that
recognizes the U.S. state regulatory approach to group supervision and group
capital;
       (4)
an insurance holding company system:
  (a)
that provides information to the lead state that meets the requirements for
accreditation under the NAIC financial standards and accreditation program,
either directly or indirectly through the group-wide supervisor, who has
determined such information is satisfactory to allow the lead state to comply
with the NAIC group supervision approach, as detailed in the NAIC Financial
Analysis Handbook, and
  (b)
whose non-U.S. group-wide supervisor that is not in a reciprocal jurisdiction
recognizes and accepts, as specified by the director in regulation, the Group
Capital Calculation as the worldwide group capital assessment for U.S.
insurance groups who operate in that jurisdiction.
       (5)
Notwithstanding the provisions of this subsection, a lead state commissioner
must require the group capital calculation for U.S. operations of any
non-U.S.-based insurance holding company system where, after any necessary
consultation with other supervisors or officials, it is deemed appropriate by
the lead state commissioner for prudential oversight and solvency monitoring
purposes or for ensuring the competitiveness of the insurance marketplace.
       (6)
Notwithstanding the exemptions from filing the group capital calculation stated
in this section, the lead state commissioner has the discretion to exempt the
ultimate controlling person from filing the annual group capital calculation or
to accept a limited group capital filing or report in accordance with criteria
as specified by the director in regulation.
       (7)
If the lead state commissioner determines that an insurance holding company
system no longer meets one or more of the requirements for an exemption from
filing the group capital calculation under this section, the insurance holding
company system must file the group capital calculation at the next annual
filing date unless given an extension by the lead state commissioner based on
reasonable grounds shown.
SECTION 2.  This act takes effect upon approval
by the Governor.
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This web page was last updated on December 17, 2025 at 01:49 PM