The South Carolina legislature has amended both the South Carolina Insurance Holding Company Regulatory Act (Chapter 21 of Title 38) and the South Carolina Investments of Insurers Act (Chapter 12 of Title 38).

The Insurance Holding Company Regulatory Act has been amended to implement a group capital calculation in addition to a liquidity stress test for macroprudential supervision in order to improve the Department’s ability to assess the enterprise risk for insurers in a holding company. Risk retention groups are subject to the group capital calculation, but they are not required to undergo the liquidity stress test.

The South Carolina Investments of Insurers Act was amended to clarify that the definition of a “person,” in the context of a single issuer limitation, includes the person’s affiliates and subsidiaries. Under S.C. Code Ann. §38-12-220(A)(1) and (2), no more than five percent of a life and health insurer’s admitted assets may be “issued, assumed, accepted, insured, or guaranteed by a single person, including its affiliates and subsidiaries,” excluding the aggregated amount insured by a single financial guaranty insurer.