S.C. Code Ann. § 38-90-220
A sponsor of a sponsored captive insurance company must be an insurer licensed under the laws of any state, a reinsurer authorized or approved under the laws of any state, or a captive insurance company formed or licensed under this chapter. The business written by a sponsored captive insurance company must be fronted by an insurance company licensed under the laws of any state. A risk retention group may not be either a sponsor or a participant of a sponsored captive insurance company.