Last week, the South Carolina Insurance Department issued a press release (which you can review by clicking here) announcing a proposed Bulletin that will provide guidelines for captive management companies. Specifically, the proposed Bulletin will create reputation, character, financial responsibility and industry experience requirements for prospective captive insurance company managers.
Currently, prospective managers are required to submit a “Notification to the Director,” and meet with regulators, who will assess their credentials and determine whether they are sufficiently qualified. The proposed Bulletin will contain more concrete assessment standards, and if signed by Director Scott Richardson, will apply to all existing managers and future management companies.
Insurance company managers have 30 days to comment on the proposed Bulletin.