As used in this chapter, unless the context requires otherwise:

1. (1) "Alien captive insurance company" means an insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the director on companies transacting the business of insurance in such jurisdiction.
2. (2) "Affiliated company" means a company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management.

3. (3) "Association" means a legal association of individuals, corporations, partnerships, or associations that has been in continuous existence for at least one year:

   1. (a) the member organizations of which collectively, or which does itself;

      1. (i) own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; or
      2. (ii) have complete voting control over an association captive insurance company incorporated as a mutual insurer; or
   2. (b) the member organizations of which collectively constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer.
4. (4) "Association captive insurance company" means a company that insures risks of the member organizations of the association and their affiliated companies.
5. (5) "Branch business" means any insurance business transacted by a branch captive insurance company in this State.
6. (6) "Branch captive insurance company" means an alien captive insurance company licensed by the director to transact the business of insurance in this State through a business unit with a principal place of business in this State.
7. (7) "Branch operations" means any business operations of a branch captive insurance company in this State.
8. (8) "Captive insurance company" means a pure captive insurance company, association captive insurance company, sponsored captive insurance company, or industrial insured captive insurance company formed or licensed under this chapter. For purposes of this chapter, a branch captive insurance company must be a pure captive insurance company with respect to operations in this State, unless otherwise permitted by the director.

9. (9) "Controlled unaffiliated business" means a company:

   1. (a) that is not in the corporate system of a parent and affiliated companies;
   2. (b) that has an existing contractual relationship with a parent or affiliated company; and
   3. (c) whose risks are managed by a pure captive insurance company in accordance with Section 38-90-190.
10. (10) "Director" means the Director of the South Carolina Department of Insurance or the director's designee.
11. (11) "Department" means the South Carolina Department of Insurance.
12. (12) "Industrial insured" means an insured as defined in Section 38-25-150(8).
13. (13) "Industrial insured captive insurance company" means a company that insures risks of the industrial insureds that comprise the industrial insured group and their affiliated companies.

14. (14) "Industrial insured group" means a group that meets either of the following criteria:

    1. (a) a group of industrial insureds that collectively:

       1. (i) own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer; or
       2. (ii) have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; or
    2. (b) a group which is created under the Product Liability Risk Retention Act of 1981, 15 U.S.C. Section 3901 et seq., as amended, as a corporation or other limited liability association taxable as a stock insurance company or a mutual insurer under this title.
15. (15) "Member organization" means a individual, corporation, partnership, or association that belongs to an association.
16. (16) "Parent" means a corporation, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty per cent of the outstanding voting securities of a pure captive insurance company.
17. (17) "Participant" means an entity as defined in Section 38-90-230, and any affiliates of that entity, that are insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the assets of a protected cell.
18. (18) "Participant contract" means a contract by which a sponsored captive insurance company insures the risks of a participant and limits the losses of the participant to the assets of a protected cell.
19. (19) "Protected cell" means a separate account established and maintained by a sponsored captive insurance company for one participant.
20. (20) "Pure captive insurance company" means a company that insures risks of its parent and affiliated companies.
21. (21) "Sponsor" means an entity that meets the requirements of Section 38-90-220 and is approved by the director to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurance company.

22. (22) "Sponsored captive insurance company" means a captive insurance company:

    1. (a) in which the minimum capital and surplus required by applicable law is provided by one or more sponsors;
    2. (b) that is formed or licensed under this chapter;
    3. (c) that insures the risks of separate participants through the contract; and
    4. (d) that segregates each participant's liability through one or more protected cells.