Senate Banking & Insurance Committee Amendment
H 4189 - Session 125 (2023-2024)
Captive Insurance Companies

The Committee on Banking and Insurance proposes the following amendment (LC-4189.PH0004S):

Amend the bill, as and if amended, SECTION 1, by striking Section 38-90-10(1) and inserting:

 (1) "Alien or foreign captive insurance company" means an insurance company or protected cell, or its equivalent, of an insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien or foreign jurisdiction which imposes statutory or regulatory standards in a form acceptable to the director on companies transacting the business of insurance in such jurisdiction, but may not include a corporation controlled by an alien adversary.

Amend the bill further, by adding an appropriately numbered SECTION to read:

SECTION X. Section 38-90-10 of the S.C. Code is amended by adding:

 (34) "Alien adversary" means any alien government or nongovernment person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or the security and safety of United States citizens.
 (35) "Corporation controlled by an alien adversary" means a legal entity engaged in commerce that:
  (a) is wholly owned by an alien adversary;
  (b) has an alien adversary as a dominant shareholder, directly or indirectly;
  (c) is wholly owned by a citizen of an alien adversary; or
  (d) has one or a number of citizens of an alien adversary whose cumulative ownership is as a dominant shareholder.
 (36) "Dominant shareholder" means the single owner of ten percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership; or multiple owners of twenty percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership.

Amend the bill further, SECTION 2, by striking Section 38-90-20(G)(1)(d) and inserting:

   (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 and may not be the currency of an alien adversary.