S.C. Code Regs. 67-1504 - Proof of Compliance, Reserve Account, and Other Accounts

A. Each proposed self-insurance fund shall establish a reserve account and other accounts as necessary. To provide proof of a reserve account, an officer of the fund shall file an affidavit with the Self-Insurance Division within the time provided in R.67-1502B.

(1) The affidavit shall state the name of the bank, the account number and the current account balance.

(2) The fund initially shall deposit into the reserve account not less than twenty-five percent of the first year's total estimated annual standard premium.

(3) The fund initially shall deposit into accounts other than its reserve account seventy-five percent of the first year's total estimated annual standard premium from which expenses may be paid.

(4) After the self-insurance fund's first year, the fund shall maintain the reserve at no less than twenty-five percent of the total estimated annual standard premium for all members of the fund.

B. The fund shall neither distribute nor pay a dividend from the reserve account or any part thereof to any member without approval of the Self-Insurance Division.

Notes

S.C. Code Regs. 67-1504