What is the effective date for the new captives law?
• Will the new SC Captives Companies be members of the Wind Pool? No. • Will these companies need to file rates and forms? Yes. • What is a “South Carolina coastal captive insurance company?” A coastal captive insurance company is a company, as defined by Section 38-90-10(8), to address the specific issues of affordability and availability regarding wind and storm surge coverage in South Carolina. By statute, a coastal captive insurance company may only provide coverage against the perils of wind and storm surge. • Who can purchase insurance from a coastal captive insurance company? While anyone in South Carolina can purchase insurance from a South Carolina coastal captive insurance company, the geographic areas of the state most prone to catastrophic losses from the perils of wind and storm surge are likely to be affected. PURCHASE OF INSURANCE FROM CAPTIVE INSURANCE COMPANIES IS VIEWED BY THE DEPARTMENT AS A “SOPHISTICATED TRANSACTION BETWEEN TWO KNOWLEDGABLE PARTIES” AND SHOULD ONLY
