House Amendment 1
H 4189 - Session 125 (2023-2024)
Captive Insurance Companies

The Committee on Labor, Commerce and Industry proposes the following amendment (LC-4189.PH0003H):

Amend the bill, as and if amended, SECTION 2, Section 38-90-20(G)(1), by adding a subitem to read:

   (d) The non-U.S. currency may only be the currency of the country in which the owner or insured of the captive insurance company or protected cell is located.

Amend the bill further, SECTION 2, by striking Section 38-90-20(G)(2) and (3) and inserting:

  (2) Notwithstanding the foregoing, all amounts paid to the department pursuant to this chapter shall be paid in United States currency, and all reports and other information required to be submitted to the department pursuant to this chapter must be converted to United States currency, based on such exchange rate as may be approved by the department.
  (3) In determining the exchange rate between United States currency and the non-U.S. currency, the captive insurance company shall use the applicable exchange rate as published by the United States Department of the Treasury as of the applicable date of conversion.

Amend the bill further, SECTION 10, by striking Section 38-90-175(A) and inserting:

 (A) There is created a fund to be known as the "Captive Insurance Regulatory and Supervision Fund" for the purpose of providing the financial means for the director to administer Chapter 87 and Chapter 90 of this title and for reasonable expenses incurred in promoting the captive insurance industry in the State. The transfer of twentyforty percent of the taxes collected by the department pursuant to Chapter 90 of this title, and all fees and assessments received by the department pursuant to the administration of this chapter must be credited to this fund. All fees received by the department from reinsurers who assume risk only from captive insurance companies, must be deposited into the Captive Insurance Regulatory and Supervision Fund. All fines and administrative penalties must be deposited directly into the South Carolina general fund.