For an alien insurer to cover a risk in South Carolina, it must meet which of the following requirements?

For an alien insurer to cover a risk in South Carolina, the requirement to meet certain minimum capital requirements is essential. This ensures that the insurer has a solid financial foundation to fulfill its obligations to policyholders. Such requirements are in place to provide consumer protection by ensuring that the insurer is financially capable of paying claims and maintaining operations.

This requirement is part of the regulatory framework that governs insurance practices, as it helps to identify insurers that are stable and responsible. Meeting these minimum capital requirements is critical for maintaining a trustworthy insurance market, which ultimately benefits both consumers and the insurance industry itself.

In contrast, while obtaining a federal charter and establishing a trust fund may also be components of regulatory compliance, they are not universal requirements for all alien insurers operating in South Carolina. Having no outstanding claims is not a requirement for eligibility, but rather a state of the insurer's current claims situation.