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# South Carolina Seeks Court Control of Two A-CAP Insurers
- URL: https://www.theamericanquorum.com/state-news-south-carolina-2026-09-17-a/
- Published: 2026-09-17T22:23:49.000Z
- Updated: 2026-09-17T22:23:49.000Z
- Description: South Carolina’s insurance director has asked a state court to place two affiliated life insurers into rehabilitation, a court-supervised process intended to protect policyholders while regulators examine their finances.
- Author: News Desk
- Tags: State News, Florida, South Carolina

South Carolina’s insurance director has asked a state court to place two affiliated life-insurance companies into rehabilitation, a court-supervised process that would give regulators control of the businesses while they examine their finances and try to protect policyholders.

Director Michael Wise filed the petition Sept. 15 in Richland County Court of Common Pleas for Atlantic Coast Life Insurance Company and Southern Atlantic Re Inc. The [Department of Insurance announcement](https://www.doi.sc.gov/DocumentCenter/View/15442/SC-DOI-Director-Michael-Wise-Files-Petition-to-Place-ACL-and-SAR-into-Rehabilitation?ref=theamericanquorum.com) says no hearing date has been set. Filing the petition did not itself transfer control, and the court had not granted the requested rehabilitation when the department announced the action.

If the judge approves the request, the department would operate the insurers under court oversight, investigate their condition and pursue a plan intended to restore them to sound financial footing. Rehabilitation is a receivership proceeding, not an immediate liquidation order. The companies are indirectly owned by Miami-based Advantage Capital Partners, commonly known as A-CAP, and controlled by Kenneth King, according to the department.

The filing follows regulatory concerns about the companies’ investment exposure. [Insurance Journal, reporting with Bloomberg](https://www.insurancejournal.com/news/southeast/2026/09/16/885325.htm?ref=theamericanquorum.com), said the petition alleges that Atlantic Coast Life carried assets connected to the failed investment firm 777 Partners at inflated values and made undisclosed investments involving affiliates. The report says A-CAP affiliates may be owed nearly $1.3 billion in the 777 bankruptcy.

The same report, citing the regulator’s filing, said Atlantic Coast Life’s capital and surplus fell 42% during the first half of 2026 as policyholders withdrew a gross $463 million from annuities. It also said roughly 30% of the insurer’s cash and invested assets at the end of 2025 were in sub-investment-grade private credit or unrated collateral loans, above a 10% private-placement limit in its management agreements. Those figures are allegations presented to the court and have not yet been adjudicated.

The insurers dispute the department’s claims and said they will contest the petition. They also said policyholder obligations continue. According to [their response reported by Insurance Journal](https://www.insurancejournal.com/news/southeast/2026/09/16/885325.htm?ref=theamericanquorum.com), the companies contend that the proceeding could create unnecessary fear among customers. The [Wall Street Journal](https://www.wsj.com/pro/bankruptcy/a-cap-insurers-face-state-takeover-bid-over-high-risk-debt-exposure-290e08ae?ref=theamericanquorum.com) described the requested rehabilitation as a form of insurer restructuring overseen by the court.

For policyholders, the immediate development is the court filing rather than a cancellation of contracts. The Department of Insurance has posted case information on its [official website](https://www.doi.sc.gov/?ref=theamericanquorum.com) and lists a policyholder hotline at 844-408-0842 in the United States and Canada, or 332-219-0117 internationally. Customers should use those official channels for updates and should not assume that the petition, by itself, changes an annuity or life-insurance contract.

The next decisive step will be the court’s response. Until a hearing is scheduled and an order is entered, the companies remain outside the rehabilitation structure the director has requested.