A South Carolina risk can only be insured by an alien insurer if it:

In South Carolina, an alien insurer, which is an insurance company that is based outside of the United States, can only underwrite risks that are listed on the NAIC IID List (National Association of Insurance Commissioners Interstate Insurance Product Regulation Commission). This list serves as a benchmark that identifies those alien insurers that have met specific regulatory and financial standards, allowing them to operate within the state.

By requiring the insurer to be on the NAIC IID List, South Carolina ensures that these foreign companies are recognized as solvent and compliant with the necessary regulatory frameworks, thereby protecting consumers and maintaining a stable insurance market. This criteria underscores the importance of verification and adherence to quality standards in the industry, emphasizing the role of the NAIC in overseeing the operation of insurers operating across state lines.

The other choices do not capture the specific regulatory framework in place for alien insurers. For instance, simply having a local office does not guarantee an insurer's reliability or compliance with state laws, and compliance with state laws is a broader criterion that applies to all insurers, not just alien ones. Offering lower premiums than local insurers could be an attractive feature, but it does not affect the eligibility of the alien insurer to operate in South Carolina without being on the approved list. Thus, the emphasis on