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Posted 7/23/2020

Captive organisations file brief for IRS Supreme Court case

EXCLUSIVE: Almost two dozen captive organisations will today file a brief with the Supreme Court in the CIC Services LLC vs IRS ‘CIC’ case.

Twenty captive organisations from a range of domiciles, as well as national organisations Captive Insurance Company Association (CICA) and the Self-Insurance Institute of America (SIIA), have signed the brief.

The case challenges Notice 2016-66 that had compelled owners of certain 831(b) captive arrangements (known as micro captives) to report details of their tax structure to the IRS.

“This broad coalition formed with the goal of demonstrating through an amicus brief to the U.S. Supreme Court the broader concerns of the larger captive insurance industry with recent actions by the Internal Revenue Service (‘IRS’) and in support of the CIC Services case,” a statement from the group of associations said.  Read more...

Click here for SCCIA's Press Release

Posted 12/12/2019

Director Farmer Promoted to President of the NAIC

South Carolina Department of Insurance (SCDOI) Director Raymond G. Farmer was promoted to president of the National Association of Insurance Commissioners (NAIC) Tuesday, December 10th at the 2019 NAIC Fall National Meeting in Austin, Texas.

“It is an honor to serve as president of the NAIC and I look forward to leading insurance regulators from around the country and continuing to ensure the South Carolina industry is well regulated and our consumers are well protected,” said Director Farmer. 


Posted 4/4/2018

Federal Legislative Win for Enterprise Risk Captives 

In a major legislative victory for the captive industry, Congress passed, and the President signed into law, several key tax clarifications for Enterprise Risk Captives (ERCs). This legislation, the Consolidated Appropriations Act of 2018, is the final result of ongoing spending and appropriations debates within Congress. The omnibus bill includes much needed clarification in the tax code for IRC 831(b) captives pertaining to various reporting requirements included in the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).

ERCs, sometimes referred to 831(b) captives, are a self-insurance solution used by increasing number of smaller and mid-sized companies to insure a variety of risks for which coverage in the traditional market is difficult to obtain or too expensive. Many of these companies separately sponsor self-insured group health plans and/or workers’ compensation programs, highlighting the growing trend of companies incorporating multiple self-insurance solutions as part their overall risk management strategy.

The legislative changes included in the omnibus bill, effective retroactively, include changes to the policyholder “look through provisions” in the first diversification test, clarification of “specified asset” under the second diversification test, and changes to the spousal ownership definition to address community property and attribution issues.

Source: SIIA

Posted 3/19/2018

Energy Insurance Services, Inc., (EIS) is Awarded the CICA 2018 Outstanding Captive Award

At its annual International Conference, the Captive Insurance Companies Association (CICA) honored Energy Insurance Services, Inc., (EIS) with the CICA 2018 Outstanding Captive Award.   
The Outstanding Captive Award is presented to a captive insurance company or risk retention group that has shown creative uses for a captive, been successful in managing the captive in terms of net results and usefulness to its owners, has prevailed over difficult times or situations, and has gained acceptance, recognition, and a positive reputation among rating agencies, regulators and colleagues in the captive industry.


Posted 4/23/2017

South Carolina DOI Captive Team to exhibit at RIMS...

The annual RIMS Conference & Exhibition is by far the world’s largest gathering of risk and insurance management professionals.  This year’s conference will take place April 23-26 in Philadelphia, PA, and is expected to attract close to 10,000 industry professionals and feature over 160 educational sessions as well as over 400 exhibitors. 

Representing the South Carolina DOI Captive Team at this year’s conference will be:

Jay Branum, Captive Director –

Jeff Kehler, Captive Program Administrator – - and

Joseph McDonald, Associate Licensing Coordinator –

Jay, Jeff, and Joseph will be on hand at exhibition booth # 305 and would be happy to answer your captive-related questions.  Stop by their booth and introduce yourself, or contact them for an appointment, and find out why so many great companies have chosen to make South Carolina their captive home.  

Posted 3/7/2017

Meet the South Carolina DOI Captive Team at CICA

The Captive Insurance Companies Association’s annual International Conference is the captive industry’s premier domicile-neutral convocation.  This year’s conference will take place March 12-14 in San Diego, CA, and will be attended by three members of the SCDOI Captive Team: 

Jay Branum, Captive Director
Jeff Kehler, Captive Program Administrator, and
Joseph McDonald, Associate Captive License Coordinator

Jay, Jeff, and Joe will be on hand at Booth #49 in the CICA exhibition hall and would be happy to meet and address your captive-related questions.  Drop by their booth and introduce yourself, or contact them for an appointment at:

Jay at, or 803-737-6109, or
Jeff at, or 803-737-6118 or
Joe at, or 843-577-3415


Click here to visit the CICA website for more information. 


South Carolina DOI to unveil new exhibition booth at World Captive Forum

The World Captive Forum will hold its 26th conference on January 29-31, 2017 in Boca Raton, Florida. This will be the first captive conference of the new year, and is expected to draw a large crowd of captive experts and thought leaders, including service providers and practitioners from many disciplines, as well as both long-time and first-time captive owners.

Representing South Carolina at this year’s WCF will be the DOI’s Jay Branum, Jeff Kehler, and Joe McDonald. They are especially excited at the prospect of unveiling the domicile’s new exhibition booth.

“We can’t wait to get to Boca and showcase our new booth”, said Branum. “It’s a very vibrant design with eye-grabbing imagery that really pops. People are going to love it. As a well-established and highly respected domicile, South Carolina already has a great story to tell, and this new, purpose-built booth allows us to accentuate and complement that story in a way that not only is visually arresting but also conveys an element of the quality and class that we have come to be identified with.”

Stop by BOOTH # 14 and see what they’re so excited about. They would welcome your captive-related questions, and would love to hear about your business. Or, if you prefer to schedule a meeting in advance, you can contact them at:

Jay at, or 803-737-6109
Jeff at, or 803-737-6118
Joe at, or 843-577-3415

Posted 5.31.16

SPECIAL ANNOUNCEMENT: SC's 300th Captive Licensed

The South Carolina Department of Insurance (DOI) marked a major milestone in the ongoing development of its highly regarded captive insurance program now in its 16th year.  The Department issued captive license number 300 to Velocity Insurance Company, a Risk Retention Group owned by various subsidiaries of Roadrunner Transportation Systems, headquartered in Cudahy, Wisconsin. 

Velocity was formed to provide automobile liability coverage to the Roadrunner companies and will be managed by SCCIA Member USA Risk Group, a subsidiary of Spencer Capital Holdings, Ltd.  A leading asset-light transportation and logistics service provider, Roadrunner offers a comprehensive suite of global supply chain solutions.  The company posted operating income of $96.7 million in 2015 on revenues of $1.995 billion and is publicly traded on the New York Stock Exchange. 

“We are pleased to welcome Roadrunner to the growing list of impressive companies which have chosen to make South Carolina their captive home,” said Jay Branum, Director of Captives at the SCDOI.  “Captives provide substantial advantages to owners who want to take their risk management and risk financing programs to a higher level of sophistication and control.”  SCDOI Director Raymond Farmer added that “Today’s announcement reinforces South Carolina’s reputation as a domicile that is well established and well respected and further signifies our long-term commitment to the captive industry.”

USA Risk Group President Gary Osborne stated, “As the nation’s leading independent provider of alternative risk management services, we are proud to have been chosen to manage Roadrunner’s new captive, and gratified to be recognized for having brought South Carolina its 300th captive.  We look forward to working with Roadrunner and its business partners on this new captive program.  These are exciting times for USA Risk Group.  We are in a period of dynamic growth, and appreciate the continued good relationship we enjoy with the South Carolina Department as well as with the regulators of the 19 other onshore and offshore domiciles in which we operate.”

The SCCIA wishes a warm welcome to Roadrunner and extends its congratulations to our current members who helped to make this momentous occasion a reality.

Posted 4.28.16


Actuarial Review Fee Increase effective July 1, 2016


Effective with all new captive license applications received on or after July 1, 2016, the application review fee for outside actuarial firms engaged by the South Carolina Department of Insurance will increase from $3200 to $4000.

Background (From W. Jay Branum, Director of Captives, SC Department of Insurance)

Pursuant to Section 38-90-20 (D)(1) of the South Carolina Code of Laws, it is the Department’s standard practice to refer new captive license applications to an outside actuarial firm for a review of the actuarial and financial components of the application and an opinion on the soundness of the financial aspects of the captive’s plan of operation. We place great reliance on the analysis and opinions of the actuarial professionals to whom we make such referrals, and it is extremely important that we be able to access high quality actuarial services of properly credentialed and experienced actuaries – and, that we be able to do so on an expedited or priority basis during the critical 4th Quarter application crunch.

Section 38-90-20 (D)(1) fixes the fee for such reviews at $2400 “or such other amount that is determined to be appropriate by the director or his designee given the nature of the application being investigated”.

In 2006 the review fee was increased from $2400 to $3200, which remains in effect to this day. In other words, there has been no increase in the outside actuarial referral fee for ten years.

At our recommendation SCDOI Director Ray Farmer has taken cognizance of this situation and determined that an increase of $800 is warranted and appropriate. Accordingly, effective with all new captive license applications received on or after July 1, 2016, the application review fee for outside actuarial firms engaged by the SCDOI will increase from $3200 to $4000.

We believe this new fee will provide the actuarial firms we engage an appropriate level of compensation for today’s market for the overwhelming majority of assignments in connection with the vetting of new captive license applications. The Department reserves the prerogative to establish a different fee in any specific case in which, in the determination of the Director, the nature of the application being investigated and the extent of the actuarial review work occasioned thereby so warrant.

Along with other start-up costs, this $4000 charge to the captive applicant is a one-time threshold cost, and should not deter prospective captive owners or their advisers from choosing South Carolina as their captive domicile.

Director Farmer and I will continue to pay close attention to each element of the regulatory review and compliance costs to prospective and incumbent owners of South Carolina domiciled captives to ensure that those costs remain at reasonable levels going forward.

Posted 12.28.15 

Interview with South Carolina Captive Director Jay Branum featured in US Captive

In the just released 2015 edition of US Captive, published by Newton Media in the UK, South Carolina DOI Captive Director Jay Branum discusses the dynamics at work in the ongoing proliferation of onshore captive domiciles, and highlights some of the features of the South Carolina captive scene that make the state such an unusually attractive domicile for captive owners who are seeking a regulatory approach that is responsible, fair, pragmatic, and extremely business-savvy. 

Titled “A winner in the domiciles sweepstakes”, the article also appears in the publication Captive International, and may be found at:


Press Releases

SCCIA Response to NAIC Proposed Multistate Insurer Language

The Honorable Governor Nikki R. Haley Addresses Crowd at South Carolina Captive Insurance Association Annual Conference & Signs New Captive Legislation



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