S.C. Code Regs. § § 69-45
The purpose of this regulation is to provide standards for both the reporting of the loss and expense experience data required by South Carolina Code Section 38-13-300 (1976), as amended, as well as for the determination of the calculation of excess profits required by South Carolina Code Sections 38-73-1100 and 38-73-1110 (1976), as amended.
South Carolina Code Section 38-13-300 requires that all licensed property or casualty insurers record and report to the Chief Insurance Commissioner, loss and expense experience and any other data which may be necessary to determine that rates are not excessive, inadequate or unfairly discriminatory.
The loss and expense experience report required by this regulation and Section 38-13-300 shall be used, in addition to the supplemental report required by Section 38-13-310, and any other data which the Commissioner may find necessary, to determine whether an insurer has, pursuant to the provisions of Section 38-73-1100 and Section 38-73-1110, earned an aggregate operating profit in excess of a reasonable amount.
If the Commissioner determines that an insurer writing property, casualty, surety, marine, title or allied lines of insurance in South Carolina has earned an aggregate operating profit in excess of either 15% of earned premiums or 25% of the average policyholder surplus over a five-year period, he may:
S.C. Code Regs. § 69-45