# S.C. Code Ann. § 38-21-30: SECTION 38-21-30. Authority of insurers to invest in securities of subsidiaries > South Carolina · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-30 ## Section - **Citation:** S.C. Code Ann. § 38-21-30 - **Heading:** SECTION 38-21-30. Authority of insurers to invest in securities of subsidiaries - **Jurisdiction:** South Carolina - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** SC Code / Title 38 / Chapter 21 / Section 38-21-30 ## Text In addition to investment in common stock, preferred stock, debt obligations, and other securities permitted under this title, a domestic insurer may also: (1) invest, in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, amounts which do not exceed the lesser of ten percent of the insurer's assets or fifty percent of the insurer's surplus as regards policyholders if, after these investments, the insurer's surplus as regards policyholders must be reasonable in relation to the insurer's outstanding liabilities and adequate to meet its financial needs. In calculating the amount of the investments, investments in domestic or foreign insurance subsidiaries and health maintenance organizations must be excluded, and there must be included (a) total net monies or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities, and (b) all amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus of a subsidiary after its acquisition or formation; (2) invest any amount in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer if each subsidiary agrees to limit its investments in any asset so that the investments will not cause the total investment of the insurer to exceed any of the investment limitations specified in item (1) or in the investment laws or regulations of this State. For the purpose of this item, "the total investment of the insurer" includes (a) any direct investment by the insurer in an asset, and (b) the insurer's proportionate share of any investment in an asset by a subsidiary of the insurer, which must be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary; (3) with the approval of the director or his designee, invest any greater amount in common stock, preferred stock, debt obligations, or other securities of one or more subsidiaries if after such investment the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs. Effect of Amendment 2025 Act No. 17, SECTION 2, in (1), in the second sentence, inserted "and health maintenance organizations" following subsidiaries; and made other nonsubstantive changes. ## Nearby sections - [S.C. Code Ann. § 38-21-10 SECTION 38-21-10. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-10.md) - [S.C. Code Ann. § 38-21-20 SECTION 38-21-20. Authority of insurers to organize or acquire subsidiaries.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-20.md) - [S.C. Code Ann. § 38-21-30 SECTION 38-21-30. Authority of insurers to invest in securities of subsidiaries.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-30.md) - [S.C. Code Ann. § 38-21-40 SECTION 38-21-40. Investments in securities of subsidiaries are not subject to other restrictions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-40.md) - [S.C. Code Ann. § 38-21-50 SECTION 38-21-50. Determining compliance with provision authorizing investments in securities of subsidiaries; disposition of investments upon ceasing to control subsidiary.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-50.md) - [S.C. Code Ann. § 38-21-60 SECTION 38-21-60. Statement required by person seeking to acquire control of insurer; notice to director.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-60.md) - [S.C. Code Ann. § 38-21-70 SECTION 38-21-70. Contents of statement; amendment.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-70.md) - [S.C. Code Ann. § 38-21-80 SECTION 38-21-80. Use of certain documents required by other laws in furnishing information called for in statement.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-80.md) - [S.C. Code Ann. § 38-21-90 SECTION 38-21-90. Approval of Commissioner of acquisition of control; hearing.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-90.md) - [S.C. Code Ann. § 38-21-95 SECTION 38-21-95. Approval for acquisition of domestic insurer by controlling producer; conditions and requirements.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-95.md) - [S.C. Code Ann. § 38-21-100 SECTION 38-21-100. Certain transactions exempt from Sections 38-21-60 to 38-21-120.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-100.md) - [S.C. Code Ann. § 38-21-110 SECTION 38-21-110. Violations of Sections 38-21-60 to 38-21-120.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-110.md) - [S.C. Code Ann. § 38-21-120 SECTION 38-21-120. Jurisdiction of courts; service of process.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-120.md) - [S.C. Code Ann. § 38-21-125 SECTION 38-21-125. Acquisitions of insurers not covered by the Insurance Holding Company Regulatory Act.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-125.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C21_S38-21-30. Check the current official text before relying on it. Not legal advice.