# S.C. Code Ann. § 38-41-60: SECTION 38-41-60. Funds must be held in trust

> South Carolina · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SC_T38_C41_S38-41-60

## Section

- **Citation:** S.C. Code Ann. § 38-41-60
- **Heading:** SECTION 38-41-60. Funds must be held in trust
- **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 38-41-60

## Text

Funds collected from the participating employers under multiple employer self-insured health plans must be held in trust subject to the following requirements: (a) A board of trustees elected by participating employers must serve as fund managers on behalf of participants. Trustees must be plan participants. No participating employer may be represented by more than one trustee. A minimum of three and a maximum of seven trustees may be elected. Trustees may not receive remuneration but they may be reimbursed for actual and reasonable expenses incurred in connection with duties as trustee. (b) Trustees must be bonded in an amount not less than one hundred fifty thousand dollars from a licensed surety company. (c) Investment of plan funds is subject to the same restrictions which are applicable to insurers pursuant to Sections 38-12-10 through 38-12-320. All investments must be managed by a bank or other investment organization licensed to operate in South Carolina. (d) Trustees, on behalf of the plan, shall file an annual report with the department by March first showing the condition and affairs of the plan as of the preceding thirty-first day of December. The report must be made on forms prescribed by the director or his designee. The report shall summarize the financial condition of the fund, itemize collections from participating employers, detail all fund expenditures, and provide any additional information which the director or his designee requires.

## 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_S38-41-60. Check the current official text before relying on it. Not legal advice.