South Carolina is to amend its captive insurance legislation to accommodate for protected cell companies, according to Jeffrey Kehler of the South Carolina Captive Insurance Division.
The legislation will also serve to modernise some of the other areas of the statutes.
The amendments to the captive bill are currently on the way to governor Nikki Haley’s desk for signature, after passing the third reading in the Senate.
The Senate concurred with and enrolled the House of Representatives’ amendments on 29 March 2014 which state: “An unincorporated protected cell must meet the paid-in capital and free surplus requirements applicable to a special purpose captive insurance company.”
The amendments also maintain that a PCC must: “Either establish loss and loss expense reserves for business written through the unincorporated protected cell or the business written through the unincorporated protected cell must be fronted by an insurance company.”
Under the amendments, an authorised reinsurer can reinsure PCC risks, while US trust funds are able to secure them.
The amendments also include provisions for incorporated cell legislation. This step has been taken to better protect the integrity of each cell's separated risks.
