The South Carolina Captive Insurer Application is the form a business files with the South Carolina Department of Insurance Captive Insurance Division to get a license to run its own insurance company. Any company that wants to insure its own risks through a pure, association, sponsored, special purpose, industrial insured, branch, risk retention group, or special purpose financial captive must file this form and win a Certificate of Authority before it writes a single policy.
Getting this form right matters because the Division will not finish its review or grant a license until every required item is in the package, and a thin or sloppy filing can stall your captive for weeks. South Carolina is one of the largest captive homes in the country, with hundreds of licensed captives, and the Division aims to review a complete application in just 30 to 45 days. The form you want is the April 2026 fillable version, and the matching General Instructions are dated March 2026.
Here is what you will learn in this guide:
- 📋 How to complete all 15 numbered fields on the application, one line at a time
- 📁 Which 16 supporting documents must ride along with the form and why each one counts
- 💵 The exact fees, where to send them, and how to prove you paid
- 🧩 Three full walkthroughs for a pure captive, an association captive, and a sponsored captive
- ⚠️ The field-level mistakes that delay licenses and how to dodge each one
What the Form Is and Who Must File It
The Captive Insurer Application is the master licensing document for South Carolina captive insurance companies. A captive is an insurance company that a business owns and uses to insure its own risks instead of buying every policy from an outside carrier. The form tells the Division who owns the captive, what it will insure, how much money backs it, and who will run it. The Division uses the answers to decide whether the proposed captive can pay its future claims.
You must file this form if you plan to license any captive under S.C. Code Title 38, Chapter 90. That includes a pure captive that insures only its parent and affiliates, an association captive that insures members of a group, a sponsored captive that runs protected cells, a special purpose captive approved for special risks, an industrial insured captive, a branch of a foreign captive, a risk retention group, or a special purpose financial captive (SPFC). Each type checks a different box in Field 4, and some types add extra documents on top of the base list.
The Division receives the form, but the Director of the Department of Insurance makes the final call. Under S.C. Code Section 38-90-20, the captive must obtain a license, keep its principal place of business in South Carolina, and appoint a resident registered agent before it can do business. One of the company’s directors or managers must also be a South Carolina resident. Skip any of these, and the Director can refuse the license no matter how strong the rest of the file looks.
A quick note on a common misconception: people think filling out the form is the first step. It is not. The Division asks you to meet with them first, hire an approved captive manager, and send an Executive Summary at least five days before that meeting. The form comes after those talks, not before.
Before You Start: Documents and Information You Need
Captive licensing fails most often because the package shows up missing pieces. The Division will not issue a decision until all required materials are in hand, so gather everything below before you open the PDF. A written explanation is required for any item you believe does not apply, because leaving a blank with no note reads as an oversight.
Here is your pre-filing checklist:
- Approved captive manager. South Carolina expects you to work with a manager from its approved list; the manager signs the form and often hosts your principal place of business, and without one your filing usually stalls.
- Executive Summary. This short overview is due five days before your pre-application meeting, and skipping it means the Division will not schedule the meeting that unlocks the rest of the process.
- Parent company financial statements. The Division checks whether the parent can fund the captive, and weak or missing financials raise doubts about your ability to pay claims.
- Federal Employer Identification Number (FEIN). The captive needs its own EIN from the IRS, and an entity with no EIN cannot finish its tax and banking setup.
- Names, addresses, and titles of all officers and directors. Each one needs a biographical affidavit, so missing names mean missing affidavits and a held file.
- Capital and surplus plan. You must know the dollar amount and the form of capital (cash or letter of credit), because the minimum for a pure captive is $250,000 and under-capitalizing blocks the license.
- Actuarial funding study and five-year pro formas. A signed actuary must support your premiums and reserves, and a filing without this study cannot show it will meet policy obligations.
- Service provider agreements. Draft contracts for your manager, actuary, auditor, and attorney are needed, and named actuaries, auditors, and managers must appear on South Carolina’s approved lists.
- Registered agent details. You need a South Carolina registered agent with a physical street address, since the law bars a P.O. box here.
- Fee payment. Have a check ready for $4,500, because the Division flags the file once it knows the fee is coming.
Gather these first and the form itself takes only an afternoon. Chase them after you start, and you risk weeks of back-and-forth.
Where to Get the Form and How to Access It
The application lives on the Division’s Captive Filing Forms page. Download the SCDOI Captive Application fillable PDF, which is marked Revised April 2026 in the footer. That revision date matters, so check it before you type a word; an older form may ask for outdated items and trigger a request to refile.
The Division recommends opening and completing the form in Adobe Acrobat, because it is a true fillable PDF and other readers can drop your entries. The form has signature fields marked SIGN near the bottom, and these work best in Acrobat. A printed and scanned copy is acceptable, but it is not required and it slows things down.
You will also want the companion documents from the same page. Grab the General Instructions for Captive Application, the Biographical Affidavit form, the Uniform Consent to Service of Process, and the sample Irrevocable Letter of Credit. Each one pairs with a numbered item in the supplemental list, so pulling them now saves a second trip.
One edge case: SPFCs do not download a public application. The Division hands you the SPFC application form only after an initial meeting about the transaction. If you are forming an SPFC, expect a custom path and a longer review of up to 60 days.
Step-by-Step: How to Fill Out the SC Captive Insurer Application Line by Line
The application has 15 numbered fields followed by a certification block. Below, each field gets its own walkthrough. Use the exact field labels printed on the April 2026 form, and remember that the manager and at least one owner must sign at the end.
Field 1: Name of Proposed Captive
This field asks for the legal name your new insurance company will use. Type the full name exactly as it will appear on the Articles of Incorporation or Articles of Organization, including any required word like Inc., LLC, or Corporation. For example, Palmetto Risk Insurance Company, Inc. goes on the line in full.
Match this name to the name you reserve or register with the South Carolina Secretary of State. A nuance shows up with sponsored captives: under S.C. Code Section 38-90-210, the name must include Sponsored Captive or SC, so a sponsored captive might read Lowcountry Sponsored Captive, LLC.
The most common mistake here is choosing a name that is too close to an existing South Carolina business. S.C. Code Section 38-90-30 bars a name that is deceptively similar to a registered name, and a clash means the Secretary of State rejects your formation and your license waits. A misconception is that you can lock a name on the application alone; the application does not reserve anything, so clear the name with the Secretary of State first.
Field 2: Name and Address of Parent Company
This field asks who owns the captive at the top. Enter the legal name and full street address of the immediate parent, the company whose risks the captive will insure. For instance, Carolina Manufacturing Holdings, Inc., 410 Gervais Street, Columbia, SC 29201 fills the block.
Use the entity that directly owns the captive, not a brand name or a division. A nuance: if a holding company sits above the operating parent, the Division may ask for the ultimate parent’s financials too, depending on how strong the immediate parent is. List the immediate parent here and be ready to explain the chain in Field 12.
A common mistake is naming an individual owner when a company actually owns the captive, which muddles the ownership picture and slows the financial review. The consequence is a follow-up request that adds days. A misconception is that the parent must be a South Carolina company; it does not, because the parent can sit in any state as long as the captive itself is domiciled here.
Field 3: Name and Address of Contact Person
This field has two parts: the contact for the application and the contact for premium tax. Enter the name, address, phone, and e-mail for each. In most filings, Field 3a is your captive manager and Field 3b may be the same person or the parent’s tax contact.
Give a real person who answers fast, because the Division routes questions here during the 30-to-45-day review. A nuance: the application contact and the premium tax contact can be the same, and writing same as above in 3b is fine when they match. Many filers list the captive manager for both.
The common mistake is listing a busy executive who never checks the inbox, which means review questions sit unanswered and the clock keeps running. The consequence is a slower license. A misconception is that this contact must be an attorney; any informed contact works, and the manager is usually the best choice.
Field 4: Captive Type
This field asks you to check the box for your captive’s type. The choices are Pure, Association, Sponsored, Special Purpose, Industrial Insured, Risk Retention Group, Branch, SPFC, and Other. Check the single box that fits your structure, and write a short label if you pick Other.
Pick the type that matches what the captive will insure. A pure captive insures only its parent, affiliates, and controlled unaffiliated business under S.C. Code Section 38-90-20. For example, a single company insuring its own deductibles checks Pure.
The common mistake is checking Pure when the captive will actually insure unrelated members, which is really an association captive; the wrong box leads to the wrong capital test and a rejected plan. The consequence is a redo of much of the file. A misconception is that the type is cosmetic; it is not, because each type carries its own minimum capital, from $250,000 for pure to $750,000 for association captives under S.C. Code Section 38-90-40.
Field 5: Organizational Form
This field asks how the captive is legally built. The options are Stock, Mutual, Reciprocal, LLC, Non-Profit, and Other. Check one box that matches your formation documents.
Match this box to what you file with the Secretary of State. A nuance ties to the resident requirement: a corporation needs a resident director, an LLC needs a resident manager, and a reciprocal needs a resident on the subscribers’ advisory committee, all under S.C. Code Section 38-90-60. Most modern captives choose LLC for its flexible governance.
The common mistake is checking a form that does not match the organizational documents you later file, which creates a mismatch the Division must clear before licensing. The consequence is a held Certificate of Authority. A misconception is that an LLC escapes the resident rule; it does not, because an LLC still needs at least one South Carolina resident manager.
Field 6: Location of Books and Records
This field asks where the captive’s complete books and records will sit. Enter the South Carolina street address where the Director can examine them. Often this is your captive manager’s office, such as 1320 Main Street, Suite 300, Columbia, SC 29201.
This address defines your principal place of business under S.C. Code Section 38-90-20. A nuance: many captives meet this rule by contracting with an approved South Carolina manager who keeps the records, so the manager’s address often goes here. The records must be physically available in-state for exam.
The common mistake is listing an out-of-state parent address, which breaks the principal-place-of-business rule and can void the license basis. The consequence is denial until you fix it. A misconception is that cloud storage alone satisfies the rule; the law wants the records available in South Carolina, so an in-state location is the safe answer.
Field 7: Lines of Coverage Written or Assumed
This field asks what insurance the captive will sell or reinsure. List each line, such as general liability, property, workers’ compensation excess, medical stop-loss, or warranty. Be specific and match this list to your Plan of Operation.
Describe both direct lines and assumed reinsurance. A nuance and a hard limit: a captive cannot write workers’ compensation on a direct basis, and it cannot sell personal auto or homeowners on a direct basis under S.C. Code Section 38-90-20. For example, a captive can insure a parent’s excess workers’ compensation but not first-dollar workers’ comp directly.
The common mistake is listing a line the captive is barred from writing directly, which forces the Division to reject that coverage. The consequence is a revised plan and a delay. A misconception is that a captive can write any line it wants; the statute blocks several direct lines, so check the limits before you list.
Field 8: Jurisdictions Where the Majority of Risks Reside
This field asks where the insured risks physically sit. List the states or countries where most of the covered property, people, or operations are located. For example, a manufacturer with plants in three states lists South Carolina, Georgia, and North Carolina.
Base this on where the exposure actually is, not where the parent is headquartered. A nuance: this answer can affect premium tax and whether the captive needs fronting in states where it is not licensed. List the true locations of risk.
The common mistake is listing only the parent’s home state when risks span many states, which understates the captive’s footprint and can raise tax and fronting questions later. The consequence is a correction during review. A misconception is that this field controls licensing in other states; it does not, but it signals where you may need a fronting carrier.
Field 9: Capital and Surplus
This field captures the money behind the captive. Enter the Initial capitalization, the Additional surplus, and the Total C&S, then describe the form of the minimum capital and surplus and name the bank holding or issuing it. If the captive issues stock, also give the type or class, the number of shares authorized and issued, the par value, and the location of the stock register.
Meet or beat the statutory minimum for your type under S.C. Code Section 38-90-40: $250,000 for a pure captive, $750,000 for an association captive, and $500,000 for an industrial insured captive or risk retention group. For example, a pure captive might enter Initial capitalization $250,000, Additional surplus $100,000, Total C&S $350,000, held as cash at a named bank.
The common mistake is funding below the minimum for the chosen type, which is an automatic bar to the license under the statute. The consequence is a denied or held application. A misconception is that pledged future funds count; the capital must be free and unimpaired and in place no later than 30 days after the Certificate of Authority, proven by a bank statement.
Field 10: Fiscal Year End Date
This field asks for the captive’s fiscal year end. Enter the month and day the captive will close its books, such as December 31. This date drives your annual report and audit deadlines.
Pick a date that lines up with your parent’s reporting if that helps your accounting. A nuance: the fiscal year end sets when your audited financials and actuarial opinion are due each year, so choose with your auditor in mind. Most captives use a calendar year end.
The common mistake is leaving this blank or guessing, which throws off every future filing deadline the Division tracks. The consequence is missed annual reports later. A misconception is that you can change it freely; a change usually needs Division approval as a plan-of-operation change, so set it thoughtfully now.
Field 11: Name and Address of Beneficial Owner(s)
This field lists the real human or entity owners behind the captive. For each beneficial owner, give the name, address, phone, e-mail, and percentage of ownership. Attach extra sheets if you have more owners than the form’s slots.
Show ownership that adds up to 100 percent across all owners. A nuance: control is presumed at 10 percent or more of voting securities under S.C. Code Section 38-90-10, so list every owner at or above that line. For example, two equal partners each show 50%.
The common mistake is listing the operating company instead of the people who ultimately own it, which hides the true beneficial owners the Division must vet. The consequence is a request to refile this field. A misconception is that minority owners can be left off; anyone with a meaningful stake belongs here, and omissions look like concealment.
Field 12: Explain the Relationship Among Parents, Sponsors, or Beneficial Owners
This field asks you to describe in words how the owners connect. Write a short, plain explanation of the corporate family, such as which holding company owns which operating company and how the captive fits in. Pair this with the organizational chart you attach as a supplemental item.
Keep it clear enough that a reviewer with no prior knowledge can follow the chain. A nuance: for a sponsored captive, explain the sponsor’s role and how participants relate to the cells. For a pure captive, a few sentences usually cover it.
The common mistake is writing a vague line like all commonly owned with no detail, which forces the Division to ask for the full structure. The consequence is a follow-up and lost days. A misconception is that the org chart alone is enough; the form wants a written explanation and the chart, so provide both.
Field 13: Name and Address of Registered Agent for Service of Process
This field names your South Carolina agent for legal papers. Enter the agent’s name, physical street address, phone, and e-mail. The form states plainly: Do not use postal box numbers.
Use a registered agent with a real South Carolina street address, because S.C. Code Section 38-90-20 requires a resident agent to accept service. For example, CT Corporation System, 2 Office Park Court, Columbia, SC 29223 works.
The common mistake is entering a P.O. box, which the form bans outright and which will bounce the field back to you. The consequence is a corrected resubmission. A misconception is that the parent’s lawyer out of state can serve as the agent; the agent must be a South Carolina resident or a registered in-state service.
Field 14: Officers and Directors
This field lists the people who run the captive. For each officer and director, give the name and address, the current employer and title, and the title with the captive. Attach extra sheets if you have more people than the slots allow.
Include everyone, because each name here must match a biographical affidavit you attach. A nuance: at least one director (or manager for an LLC) must be a South Carolina resident under S.C. Code Section 38-90-60, so make sure one listed person is in-state. For example, Jane Carter, Columbia, SC; Captive Manager at Palmetto Captive Management; Director satisfies the resident rule.
The common mistake is listing an officer here but forgetting their biographical affidavit, which leaves the package incomplete and unreviewable. The consequence is a held file. A misconception is that the resident can be a paper figurehead; the Division reviews each affidavit for real expertise and character, so the resident director should be qualified.
Field 15: Service Providers
This field lists the firms that support the captive. Provide the captive management firm, legal firm, auditing firm, and actuarial firm, each with a contact name, address, phone, and e-mail. There is room for other firms like a third-party administrator or investment manager.
Use providers that appear on South Carolina’s approved lists for managers, actuaries, and auditors. A nuance: a named actuary, auditor, or manager who is not on the approved Service Providers list must get approved first, which can add time. For example, list your manager as Palmetto Captive Management, Columbia, SC.
The common mistake is naming an actuary or auditor who is not yet approved in South Carolina, which forces a separate approval before licensing can finish. The consequence is a delay tied to that approval. A misconception is that any national firm qualifies automatically; the Division keeps its own list, so confirm approval before you write the name.
Certification and Signatures
The form ends with a certification block that the manager and at least one owner must sign. The signers certify that all information is true, that estimates are honest, and that they will notify the Director within 30 days of any material change. Enter each signer’s printed name and the date next to the signature.
The form requires the captive manager’s signature plus at least one owner’s signature, with room for several owners. A nuance: an officer or director of the owner must certify, so a junior staffer cannot sign for the owner. Use the SIGN fields in Acrobat for clean digital signatures.
The common mistake is submitting the form with the manager’s signature but no owner signature, which makes the certification invalid and the filing incomplete. The consequence is a bounced application. A misconception is that signing is a formality; the 30-day change-notice promise is binding, and ignoring it later can put your license at risk.
Three Filled-Out Examples Using Real Scenarios
These three scenarios show how different filers complete the core fields. Each follows one named filer through the most important parts of the form.
Scenario 1: Marcus Forms a Pure Captive for His Manufacturing Company
Marcus owns a mid-size manufacturer and wants a captive to insure his high deductibles and some uninsured risk. He files as a pure captive with the minimum capital.
| Form Section | What Marcus Enters |
|---|---|
| Field 1 — Name of proposed captive | Carolina Forge Insurance Company, LLC |
| Field 2 — Parent company | Carolina Forge Holdings, Inc., 410 Gervais St., Columbia, SC |
| Field 4 — Captive type | Checks Pure |
| Field 5 — Organizational form | Checks LLC |
| Field 6 — Books and records | Palmetto Captive Management, 1320 Main St., Columbia, SC |
| Field 7 — Lines of coverage | General liability, property, excess workers’ compensation |
| Field 9 — Capital and surplus | Initial $250,000; Additional $50,000; Total $300,000 (cash) |
| Field 11 — Beneficial owner | Marcus Bell, 100% ownership |
| Field 14 — Officers and directors | Lists himself plus a resident SC manager as director |
| Certification | Signed by the captive manager and by Marcus as owner |
Scenario 2: Aisha Forms an Association Captive for a Trade Group
Aisha leads a trade association whose members want shared coverage. She files as an association captive, which carries a higher capital floor.
| Form Section | What Aisha Enters |
|---|---|
| Field 1 — Name of proposed captive | Southeast Contractors Mutual Captive, Inc. |
| Field 2 — Parent company | Southeast Contractors Association, Charleston, SC |
| Field 4 — Captive type | Checks Association |
| Field 5 — Organizational form | Checks Mutual |
| Field 7 — Lines of coverage | General liability and professional liability for members |
| Field 8 — Jurisdictions of risk | South Carolina, Georgia, North Carolina |
| Field 9 — Capital and surplus | Total C&S $750,000 (cash and letter of credit) |
| Field 11 — Beneficial owners | Member organizations listed with their percentages |
| Field 12 — Relationship | Explains members collectively control the captive |
| Certification | Signed by the manager and an association officer as owner |
Scenario 3: David Forms a Sponsored Captive With Protected Cells
David runs a program business and wants protected cells for unrelated participants. He files as a sponsored captive and adds the cell-specific items.
| Form Section | What David Enters |
|---|---|
| Field 1 — Name of proposed captive | Lowcountry Sponsored Captive, LLC (name includes Sponsored Captive) |
| Field 4 — Captive type | Checks Sponsored |
| Field 5 — Organizational form | Checks LLC |
| Field 7 — Lines of coverage | Various, by participant program, through protected cells |
| Field 9 — Capital and surplus | Amount set by the Director for a sponsored captive |
| Field 11 — Beneficial owners | The sponsor entity and its ownership share |
| Field 12 — Relationship | Explains sponsor, cells, and participant contracts |
| Supplemental items | Adds participant agreements and the cell accounting plan |
| Field 15 — Service providers | Manager, actuary, auditor, and attorney, all SC-approved |
| Certification | Signed by the manager and the sponsor as owner |
How to File the Completed Form
South Carolina runs captive filing through e-mail, with fee checks mailed separately. There is only one real submission channel for the application package, plus a mail step for payment.
Electronic submission (primary channel). Submit the completed application and all supplemental materials in PDF format by e-mail to captivemail@doi.sc.gov, copying Ann Cunniffe at acunniffe@doi.sc.gov. Even Excel spreadsheets should be sent as PDF. There is no online portal and no fax filing for the package. Keep the sent e-mail and any read receipt as your proof of filing.
Mail (for fees and the original letter of credit). Send one check for $4,500 — the $200 application fee, the $300 review fee, and the $4,000 licensing fee combined — to the South Carolina Department of Insurance, 1201 Main Street, Suite 1000, Columbia, SC 29201. Write the captive name on the check or include a copy of the check with the application, and tell the License Coordinator when the fee is sent. Payment is by check; keep a copy of the check as proof. If you fund capital with a letter of credit, mail the original LOC, because it is the only document the Division needs in original form.
Secretary of State step. You must legally form the entity with the South Carolina Secretary of State and send the certified formation documents to the Division, because a Certificate of Authority cannot issue until the entity exists. Keep the stamped, certified copies as proof.
Expect the review to take 30 to 45 days for most captives after a complete package arrives, or up to 60 days for an SPFC. A thinner package takes longer because the clock effectively pauses while the Division waits for missing items.
What Happens After You File
After your package lands, one of the actuarial review firms appointed by the Director reviews it, but that firm only advises. The final approval or denial comes from the Director alone, so a positive actuarial read is not yet a license. The Division may send questions to your application contact, which is why a responsive contact in Field 3 speeds everything up.
Once the Director is satisfied that your documents comply with Chapter 90, the Division issues a Certificate of Authority and a licensing letter. You may begin writing business only after you receive the letter of approval, not before. A few items, such as the bank statement proving capital and the executed service agreements, can come within 30 days after the Certificate issues, but executed organizational documents must be in before the Certificate.
The license runs until March 1, when it renews. Going forward, the captive must hold at least one board meeting each year with a quorum physically present in South Carolina, and at least two board members must attend in-state, under S.C. Code Section 38-90-20. The annual renewal fee is $500, and you must report any material change in your plan of operation to the Director for approval before you act on it.
A common misconception is that the license is permanent once granted. It is not; it depends on yearly renewal, in-state meetings, and ongoing compliance, and the Director can act against a captive that drifts from its approved plan.
Mistakes to Avoid When Filling Out the Form
- Filing before the pre-application meeting. Skipping the meeting and Executive Summary means the Division will not engage your file, so the process never really starts.
- Using an outdated form. An old version may ask for the wrong items, and the Division can send it back for a refile on the current April 2026 form.
- Checking the wrong captive type in Field 4. The wrong type applies the wrong capital test, which can sink your plan of operation.
- Under-funding capital in Field 9. Funding below the statutory minimum is an automatic bar, so the Director cannot license you.
- Entering a P.O. box in Field 13. The form bans postal boxes for the registered agent, and this kicks the field back every time.
- Listing an out-of-state books-and-records address in Field 6. This breaks the principal-place-of-business rule and undermines the whole license basis.
- Naming unapproved service providers in Field 15. An actuary or auditor not on the approved list triggers a separate approval and stalls licensing.
- Forgetting biographical affidavits for listed officers. Each name in Field 14 needs an affidavit, and a missing one leaves the package incomplete.
- Leaving items blank with no explanation. A blank with no note reads as an oversight, so write why an item does not apply.
- Submitting with only the manager’s signature. The certification needs both the manager and at least one owner, or it is invalid.
- Choosing a name too similar to an existing entity. The Secretary of State will reject the formation, which holds the license.
- Answering “n/a” on a biographical affidavit. The Division rejects n/a on affidavit questions, so every line needs a real answer.
Do’s and Don’ts
Do’s
- Do meet with the Division first. Early talks shape a cleaner filing and a faster review.
- Do hire an approved captive manager. The manager signs the form and keeps your records in-state, which satisfies key rules.
- Do confirm the April 2026 revision date. Using the current form avoids a refile.
- Do fund at or above the statutory minimum. Adequate capital is the heart of the Director’s decision.
- Do match every name in Field 14 to an affidavit. Complete affidavits keep the file moving.
- Do keep proof of filing and payment. Saved e-mails and check copies protect you if a question arises.
Don’ts
- Don’t list a P.O. box for the registered agent. The form forbids it and will bounce.
- Don’t under-capitalize to save cash. Below-minimum funding blocks the license outright.
- Don’t name unapproved providers. It forces a side approval and a delay.
- Don’t leave fields blank without a note. Explain any item you treat as not applicable.
- Don’t start writing business before approval. You may bind no policies until the letter of approval arrives.
- Don’t ignore the 30-day change notice. Material changes need Director approval, and silence can risk your license.
Pros and Cons of Filing on Your Own vs. With Help
Most South Carolina captives file with an approved manager, partly because the manager often supplies the in-state principal place of business. Here is how the two paths compare.
Pros of filing with professional help
- Approved standing. Managers, actuaries, and auditors on the approved list smooth the review.
- In-state presence. The manager hosts your books and records, satisfying the principal-place rule.
- Stronger actuarial study. A seasoned actuary builds pro formas the Division trusts.
- Fewer rejections. Experienced filers know the field traps and avoid them.
- Faster review. A complete, polished package moves toward the 30-to-45-day target.
Cons of filing with professional help
- Higher cost. Manager and provider fees add to the $4,500 in state fees.
- Less direct control. You rely on the manager’s pace and judgment.
- Sharing of detail. You must hand sensitive financials to outside firms.
- Ongoing dependence. The relationship continues for annual filings and renewals.
- Selection effort. You still must vet and choose approved providers.
FAQs
Is the South Carolina captive application filed online?
No. The application package is filed by e-mail to captivemail@doi.sc.gov in PDF format. There is no online portal or fax filing, and fee checks are mailed separately to the Division.
Is there a minimum capital amount I must show in Field 9?
Yes. A pure captive needs at least $250,000, an association captive needs $750,000, and an industrial insured captive or risk retention group needs $500,000 under S.C. Code Section 38-90-40.
Do I write a P.O. box for the registered agent in Field 13?
No. The form states plainly not to use postal box numbers. You must enter a physical South Carolina street address for the resident registered agent.
Do I check more than one box in Field 4 for captive type?
No. Check the single box that matches your structure. If none fit, check Other and write a short label, since each type carries its own capital and review rules.
Is a South Carolina resident director required?
Yes. A corporation needs a resident director, an LLC needs a resident manager, and a reciprocal needs a resident on the advisory committee, all under S.C. Code Section 38-90-60.
Do I list the operating company or the people in Field 11?
Yes, list the real beneficial owners. Field 11 wants the humans or entities that ultimately own the captive, with each owner’s percentage, not just the operating company name.
Can I answer “n/a” on a biographical affidavit?
No. The Division does not accept n/a or not applicable on any affidavit question. Each officer and director must complete the affidavit in full, even if one is already on file elsewhere.
Is the application fee refundable?
No. The $200 application fee is nonrefundable under S.C. Code Section 38-90-20. The total of $4,500 covers the application, review, and first-year licensing fees combined.
Do I need to form the entity before I get a license?
Yes. A Certificate of Authority cannot issue until the entity is legally formed with the South Carolina Secretary of State and the certified documents are sent to the Division.
Can I begin writing insurance once I mail the form?
No. You may write business only after the Division sends a letter of approval and Certificate of Authority. Binding policies before approval violates the licensing rules.
Is a letter of credit accepted for capital, and must it be original?
Yes. A letter of credit from a qualified bank can meet capital needs, and you must mail the original LOC, since it is the only document the Division requires in original form.
Do both the manager and the owner have to sign?
Yes. The certification requires the captive manager’s signature and at least one signature from an officer or director of the owner. A manager-only signature makes the filing incomplete.
How long does the review take after I file?
Yes, there is a target: about 30 to 45 days from receipt of a complete application for most captives, and up to 60 days for a special purpose financial captive.
Can I change my fiscal year end later?
No, not freely. A change to the fiscal year end in Field 10 is a plan-of-operation change that needs the Director’s approval before you act on it.
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