South Carolina § 38-21-50 - Determining compliance with provision authorizing investments in securities of subsidiaries; disposition of investments upon ceasing to control subsidiary.

§ 38-21-50. Determining compliance with provision authorizing investments in securities of subsidiaries; disposition of investments upon ceasing to control subsidiary.

Whether an investment meets the applicable requirements of Section 38-21-30 is to be determined before the investment is made by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends.

If an insurer ceases to control a subsidiary, it must dispose of any investment made pursuant to Section 38-21-30 within three years from the time of the cessation of control or within such further time that the director or his designee may prescribe unless, at any time after the investment has been made, the investment has met the requirements for investment under any other section of this title and the insurer has notified the director or his designee.

HISTORY: Former 1976 Code SECTION 38-21-50 [1947 (45) 322; 1952 Code SECTION 37-855; 1962 Code SECTION 37-855] recodified as SECTION 38-37-50 by 1987 Act No. 155, SECTION 1; Former 1976 Code SECTION 38-29-50 [1962 Code SECTION 37-1404; 1971 (57) 351; 1986 Act No. 426, SECTION 3] recodified as SECTION 38-21-50 by 1987 Act No. 155, SECTION 1; 1993 Act No. 181, SECTION 564.