South Carolina Code 38-12-460. Equity interests in domestic business entities; limitations
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(A) Subject to the limitations of § 38-12-430, an insurer may acquire directly, or through an investment affiliate, equity interests in business entities organized pursuant to the laws of any domestic jurisdiction.
(B) An insurer may not acquire directly, or through an investment affiliate, an investment pursuant to this section if as a result of and after giving effect to the investment the aggregate amount of investments then held by the insurer pursuant to this section exceeds the greater of twenty-five percent of its admitted assets, or one hundred percent of its surplus as regards policyholders.
Terms Used In South Carolina Code 38-12-460
- Affiliate: means , in respect to a person, another person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person. See South Carolina Code 38-12-30
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- directly: when used in connection with an obligation, means that the designated obligor is primarily liable on the instrument representing the obligation. See South Carolina Code 38-12-30
- Equity interest: means any of the following that are not rated credit instruments:
(a) common stock;
(b) preferred stock;
(c) trust certificate;
(d) equity investment in an investment company other than a money market mutual fund or a class one bond mutual fund;
(e) investment in a common trust fund of a bank regulated by a federal or state agency;
(f) an ownership interest in minerals, oil, or gas, the rights to which have been separated from the underlying fee interest in the real estate where the minerals, oil, or gas are located;
(g) instruments which are mandatorily, or at the option of the issuer, convertible to equity;
(h) limited partnership interests and those general partnership interests authorized by § 38-12-60(A)(4);
(i) member interests in limited liability companies;
(j) warrants or other rights to acquire equity interests that are created by the owner or issuer of the equity to be acquired; or
(k) instruments that would be rated credit instruments except for the provisions of item (73)(b). See South Carolina Code 38-12-30 - Insurer: includes a corporation, fraternal organization, burial association, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations. See South Carolina Code 38-1-20
- Investment affiliate: means a subsidiary of an insurer or a direct or indirect subsidiary of the insurer's parent company (parent) that is engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer, if the affiliate agrees to limit its investment in any asset so that its investments will not cause the amount of the total investment of the insurer to exceed the investment limitations or avoid other provisions of this chapter applicable to the insurer. See South Carolina Code 38-12-30
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Sell: means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company. See South Carolina Code 38-1-20
(C) An insurer may not acquire pursuant to this section investments that the insurer may acquire pursuant to § 38-12-480 or pursuant to Chapter 21 of this title.
(D) An insurer may not short sell an equity interest unless the insurer covers the short sale by owning the equity interest or an unrestricted right to the equity interest exercisable within six months of the short sale.