# S.C. Code Ann. § 38-41-20: SECTION 38-41-20. License required; transaction of business; exemptions

> South Carolina · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-20

## Section

- **Citation:** S.C. Code Ann. § 38-41-20
- **Heading:** SECTION 38-41-20. License required; transaction of business; exemptions
- **Jurisdiction:** South Carolina
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SC Code / Title 38 / Chapter 41 / Section 38-41-20

## Text

It is unlawful for any multiple employer self-insured health plan to transact business in this State without a license issued by the director or his designee. Any of the acts described in items (1) through (8) of Section 38-25-110, effected by mail or otherwise by or on behalf of a multiple employer self-insured health plan, constitutes the transaction of business in this State. Any multiple employer self-insured health plan which transacts business in this State without the license required by this chapter is considered to be an unauthorized insurer within the meaning of Chapter 25 of this title and all remedies and penalties prescribed therein are fully applicable. This Chapter 41 does not apply to any plan or arrangement established or maintained by municipalities, counties, or other political subdivisions of the state or any multiple employer self-insured health plan which is not subject to the application of state insurance laws under the provisions of the Employee Retirement Income Security Act of 1974 (29 U.S.C., Sections 1001, et seq.). A multiple employer self-insured health plan which was in existence prior to July 1, 1985, and which is associated with or organized or sponsored by a homogenous association exempt from taxation under United States Code, Title 26, Section 501(c)(6), and controlled by a board of directors a majority of whom are members of the association, is exempt from the requirements of this chapter and the insurance laws of this State. To prove exemption from taxation under 26 U.S.C., Section 501(c)(6), the association shall provide to the director or his designee a certificate issued by the United States Internal Revenue Service demonstrating the association's tax-exempt status.

## Nearby sections

- [S.C. Code Ann. § 38-41-10 SECTION 38-41-10. Multiple employer self-insured health plan defined.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-10.md)
- [S.C. Code Ann. § 38-41-20 SECTION 38-41-20. License required; transaction of business; exemptions.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-20.md)
- [S.C. Code Ann. § 38-41-25 SECTION 38-41-25. Agent, broker or administrator must give notice of transacting business.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-25.md)
- [S.C. Code Ann. § 38-41-30 SECTION 38-41-30. License application; fee.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-30.md)
- [S.C. Code Ann. § 38-41-35 SECTION 38-41-35. Hold harmless agreements.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-35.md)
- [S.C. Code Ann. § 38-41-40 SECTION 38-41-40. Filing of bylaws, schedules of benefits, and agreements.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-40.md)
- [S.C. Code Ann. § 38-41-45 SECTION 38-41-45. Definitions; denial of continued access to coverage.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-45.md)
- [S.C. Code Ann. § 38-41-50 SECTION 38-41-50. Excess stop-loss coverage required.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-50.md)
- [S.C. Code Ann. § 38-41-60 SECTION 38-41-60. Funds must be held in trust.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-60.md)
- [S.C. Code Ann. § 38-41-70 SECTION 38-41-70. Loss reserve; surplus account.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-70.md)
- [S.C. Code Ann. § 38-41-80 SECTION 38-41-80. Records; inspection and examination.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-80.md)
- [S.C. Code Ann. § 38-41-90 SECTION 38-41-90. Dissolution of plan.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-90.md)
- [S.C. Code Ann. § 38-41-100 SECTION 38-41-100. Regulations.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-100.md)
- [S.C. Code Ann. § 38-41-110 SECTION 38-41-110. Revocation or suspension of license; commencement of delinquency proceedings.](https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-110.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-20. Check the current official text before relying on it. Not legal advice.