Bulletin 2009-16 - 2009 Producer Licensing Changes

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South Carolina Department of Insurance Bulletins › Bulletin 2009-16 - 2009 Producer Licensing Changes

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Text

South Carolina

Department of Insurance

MARK SANFORD

Governor

Capitol Center

1201 Main Street Suite 1000

Columbia, South Carolina 29201

SCOTT H. RICHARDSON

Director of Insurance

TO:

FROM:

Mailing Address

P 0 Box 100105, Columbia, S.C 29202-3105

Telephone (803) 737-6160

BULLETIN NUMBER 2009-16

All Insurers, Producers, Agencies and Brokers Transacting the Business of Insurance in

South Carolina

Scott H. Richardson, CPCU

Director

SUBJECT:

2009 Producer Licensing Changes

DATE:

September 9, 2009

PURPOSE AND SCOPE OF THIS BULLETIN

The purpose of this bulletin is to highlight some of the more significant producer licensing changes

effected by 2009 S.C. Act No. 69 (Act) and Budget Proviso 62.3 1• These laws implement additional

segments of uniform and reciprocal licensing standards adopted by the National Association of Insurance

Commissioners.

Additional bulletins will be issued to address the Act's changes relating to S.C. Code § 38-39-20(b),

license renewal requirements for premium service companies; S.C. Code § 38-43-80(B), initial and

biennial appointment renewal requirements; S.C. Code § 38-43-200, splitting commissions and payments

to unlicensed persons; and S.C. Code§ 38-45-10 and§ 38-45-20, broker licensing requirements.

II.

PRODUCER LICENSE REQUIREMENTS

Fees for Licenses

Proviso 62.3 and S.C. Code § 38-43-80 as amended by Act No. 69 identify the fees that may be charged

for an insurance producer license, appointment of a producer by an insurer, and an insurance agency

license.

Initial Producer License: Twenty-five Dollars ($25)

The new law increases the initial producer license fee to $25. This fee must be paid by all applicants at

the time of application for producer licensure. An application for licensure will not be processed until this

fee is paid in fulL

1 Included in 2009 S.C. Act No. 23 (R.49, H. 3560), the General Appropriations Act for Fiscal Year 2009-10

itial Producer License: Twenty-five Dollars ($25)

The new law increases the initial producer license fee to $25. This fee must be paid by all applicants at

the time of application for producer licensure. An application for licensure will not be processed until this

fee is paid in fulL

1 Included in 2009 S.C. Act No. 23 (R.49, H. 3560), the General Appropriations Act for Fiscal Year 2009-10

The $25 license rene\val fee must be paid upon renewal of a producer's license. The deadline for license

renewals and payment of the $25 license renewal

is May L 2010. Failure to pay the renewal fee by

the renewal deadline will result in the lapse of

producer's license, appointment(s), and any other

license tied to the producer license (i.e. broker's

license).

Insurers may appoint a producer to act on the insurer's behalf in a capacity designated by the type of

appointment. An appointment may be a (1) general appointment, (2) local appointment, or (3) special

appointment as those terms are defined in S.C. Code§ 38-1-20(8). The fees for initial appointment and

biennial appointment renewals remain unchanged and are as follows:

Local appointment initial and biennial fee

Forty Dollars ($40)

Special appointment initial and biennial fee- One-hundred Dollars ($1 00)

General appointment initial and biennial fee- One-hundred Dollars ($1 00)

The initial appointment fee must be paid in advance. The Department will be issuing a separate bulletin

by October 1, 2009 to address the requirements for biennial appointment renewals as they relate to the

September 30, 2010 compliance deadline.

Insurance Agency License: Forty Dollars ($40)

The fees for an initial agency license and the biennial agency license renewal remain unchanged

$1 00)

The initial appointment fee must be paid in advance. The Department will be issuing a separate bulletin

by October 1, 2009 to address the requirements for biennial appointment renewals as they relate to the

September 30, 2010 compliance deadline.

Insurance Agency License: Forty Dollars ($40)

The fees for an initial agency license and the biennial agency license renewal remain unchanged.

Insurance Producer with Travel/ Baggage Authority License and Appointment: Twenty Dollars ($20)

The license and appointment fee applicable to a producer of a common carrier who sells only

transportation ticket policies on accident and health insurance or baggage insurance on personal effects

continues to be twenty dollars ($20).

Continuing Insurance Education Requirements

2010 Compliance Period

S.C. Code § 38-43-106(B)(l) provides the deadline for compliance with the State's continuing insurance

education (CE) requirements and is based on NAIC uniformity standards. Previously, the statute required

all producers to comply with CE requirements for the two-year period ending May 1 in even-numbered

years. The final May 1st compliance deadline is May l, 2010. Additional information regarding the

May 1, 2010 compliance deadline is detailed in Section III, beginning on Page 4, of this bulletin.

Birth Month/ Birth Year Compliance Periods

The statute has been amended to provide individualized deadlines based on the licensee's birth month and

birth year. Beginning January 2011, producers will be required to comply with continuing education and

license renewal requirements by the last day of the producer's month of birth. An individual born in an

odd-numbered year must comply every odd-numbered year. An individual born in an even-numbered

year must comply every even-numbered year

zed deadlines based on the licensee's birth month and

birth year. Beginning January 2011, producers will be required to comply with continuing education and

license renewal requirements by the last day of the producer's month of birth. An individual born in an

odd-numbered year must comply every odd-numbered year. An individual born in an even-numbered

year must comply every even-numbered year.

For example, a producer born in May 1971 will be

required to comply by May 31, 2011 and every odd-numbered year thereafter whereas a producer born in

May 1970 will be required to comply by May 31, 2012 and every even-numbered year thereafter.

Additional information regarding the transition process and birth month/ birth year compliance

requirements will be posted on the Department's website under the "Continuing Education" and

"Producer" sections by October 31, 2009.

Insurance Producer License Duration and Renewal Requirements

Resident Producers

section sets forth license renewal requirements for South Carolina resident producers.

a. 2010 Compliance Period

For the 2008-2010 biennial compliance period, a producer must fulfill the following requirements

by May 1, 2010 in order for the producer's license to continue:

(1) renew the producer license;

(2) pay the $25 biennial license renewal fee to the Department;

(3) comply with the state's continuing education requirements; and

(4) pay the $15 recordkeeping fee to Prometric, the CE Administrator.

Additional information regarding compliance requirements for the 2008-2010 biennial compliance period

is detailed in Section III, beginning on Page 4, of this bulletin.

b. Birth Month/ Birth Year Compliance Periods

Beginning January 2011, a producer's license is effective for a two-year term based on the individual's

birth month and birth year

rdkeeping fee to Prometric, the CE Administrator.

Additional information regarding compliance requirements for the 2008-2010 biennial compliance period

is detailed in Section III, beginning on Page 4, of this bulletin.

b. Birth Month/ Birth Year Compliance Periods

Beginning January 2011, a producer's license is effective for a two-year term based on the individual's

birth month and birth year. In order for a producer's license to continue, a producer must (1) renew the

license; (2) pay the biennial license renewal fee to the Department; (3) comply with the state's continuing

education requirements; and (4) pay the recordkeeping fee to Prometric, the CE Administrator. The

license will remain active if renewed by the last day of the licensee's month of birth on a biennial basis so

long as the license has not been suspended or revoked.

Non-Resident Producers

This section sets forth license renewal requirements for South Carolina non-resident producers.

a. 2010 Compliance Period

For the 2008-2010 biennial compliance period, a producer must fulfill the following requirements

bv May 1, 2010 in order for the producer's license to continue:

(1) renew the producer license;

(2) pay the $25 biennial license renewal fee to the Department; and

(3) pay the $15 recordkeeping fee to Prometric, the CE Administrator.

Additional information regarding compliance requirements for the 2008-2010 biennial compliance period

is detailed in Section III, beginning on Page 4, of this bulletin.

b. Birth Month/ Birth Year Compliance Periods

Beginning January 201 L a producer's license is effective for a two-year term based on the individual's

birth month and birth year. In order for a producer's license to continue, a producer must (1) renew the

license; (2) pay the biennial license renewal fee to the Department; and (3) pay the recordkeeping fee to

Prometric, the CE Administrator

b. Birth Month/ Birth Year Compliance Periods

Beginning January 201 L a producer's license is effective for a two-year term based on the individual's

birth month and birth year. In order for a producer's license to continue, a producer must (1) renew the

license; (2) pay the biennial license renewal fee to the Department; and (3) pay the recordkeeping fee to

Prometric, the CE Administrator. The license will remain active if renewed by the last day of the

licensee's month of birth on a biennial basis so long as the license has not been suspended or revoked.

III.

MAY 1, 2010 PRODUCER LICENSE RENEWAL AND CE COMPLIANCE

Vv'hat follows is an explanation of the producer license renewal and continuing insurance education

compliance requirements that must be met by May 1, 2010. Attached and labeled as Exhibit A is an

overview of the compliance requirements detailed below.

FOR THE 2008-2010 BIENNL4L COlJ,fPLL4NCE PERIOD, A PRODUCER MUST FULFILL

THE FOLLOWING REQUIREtEENTS BY MAY 1. 2010 IN ORDER FOR THE PRODUCER'S

LICE'VSE TO CONTINUE:

(1) RENEW THE PRODUCER LICENSE

All producers licensed as of June 2, 2009 must renew their producer license and pay the $25 biennial

license renewal fee. The deadline for all producer license renewals is May 1, 2010 to coincide with the

deadline for compliance with the state's continuing insurance education requirements. The Department

encourages producers to renew their licenses as soon as possible.

License renewals will be processed electronically. All producers licensed as of June 2, 2009 were mailed

a written notice with instructions on the license renewal process on June 19, 2009. If you have not

received this notice, your address on file with the Department may be incorrect. By law, all producers

must have on file with the Department an up-to-date mailing address

as soon as possible.

License renewals will be processed electronically. All producers licensed as of June 2, 2009 were mailed

a written notice with instructions on the license renewal process on June 19, 2009. If you have not

received this notice, your address on file with the Department may be incorrect. By law, all producers

must have on file with the Department an up-to-date mailing address.

For additional information

regarding how to update a licensee's mailing address and the state's change of address notification

requirements, please refer to Bulletin 2009-05 or visit the Address Change Request section of the

"Producer" page on the Department's website.

Producers that did not receive the notice dated June 19, 2009 and were licensed as of June 2, 2009 are still

required to comply with license renewal requirements.

A copy of the notice is available on the

Department's website under the "Producer" section or by clicking here.

A demonstration of the online license renewal process is available on the Department's homepage and is

labeled "License Renewal Demonstration." For assistance with completing the license renewal process,

please call (803) 737-6095 or email agntmail@doi.sc.gov.

(2) PAY THE $25 BIENNIAL LICENSE RENEWAL FEE TO DOl

The $25 license renewal fee must be paid upon renewal of a producer's license. Producer license renewal

fees can be paid online as a part of the license renewal application. As noted above, all producers

licensed as of June 2, 2009 are required to comply with this requirement and should have received a

notice with instructions on how to access the online licensing process. A demonstration of the online

license renewal process is also available on the Department's homepage, \V\Vw.doi.sc.gov, and is labeled

"License Renewal Demonstration."

Fees may be paid by electronic check, credit card, debit card, or prepaid card. Credit, debit, and prepaid

cards must bear the VISA, MasterCard or Discover Card logo in order to be used

ow to access the online licensing process. A demonstration of the online

license renewal process is also available on the Department's homepage, \V\Vw.doi.sc.gov, and is labeled

"License Renewal Demonstration."

Fees may be paid by electronic check, credit card, debit card, or prepaid card. Credit, debit, and prepaid

cards must bear the VISA, MasterCard or Discover Card logo in order to be used. Please note that a

$1.43 processing and portal fee applies to all credit, debit, and prepaid card transactions.

For assistance with payment of the biennial license renewal fee, please call (803) 737-6095 or email

agntmail@doi.sc.gov.

(3) COMPLY \VITH THE STATE'S CONTINUING EDUCATION REQUIREMENTS

a. Resident Producers

Resident producers subject to a

requirement and licensed through April 30, 2009 must comply by

earning twenty-tour (24) hours of credit, including three (3) hours of ethics, and paying the two-year

recordkeeping

of $15 as set forth in Item (4) on Page 7 by May 1, 2010. Multi-line producers must

complete a minimum of eight (8) credit hours in each line of authority in addition to meeting the ethics

hours requirement.

Resident producers subject to a CE requirement and licensed on or after May 1, 2009 and before

November 1, 2009 must comply by earning three (3) hours of ethics and paying the one-year

recordkeeping fee of$7.50 as set forth in Item (4) on Page 7 by May 1, 2010.

Resident producers licensed on or after November 1, 2009 and before May 1, 201 0 do not have to comply

with CE requirements or pay the CE recordkeeping tee for the biennial compliance period ending May 1,

2010.

b. Non-Resident Producers

Non-resident producers may comply by paying the recordkeeping fee as set forth in Item ( 4) on Page 7

and meeting the requirements of their home state. Non-resident producers are no longer required to

certify their credit hours compliance to Prometric, South Carolina's CE Administrator.

he CE recordkeeping tee for the biennial compliance period ending May 1,

2010.

b. Non-Resident Producers

Non-resident producers may comply by paying the recordkeeping fee as set forth in Item ( 4) on Page 7

and meeting the requirements of their home state. Non-resident producers are no longer required to

certify their credit hours compliance to Prometric, South Carolina's CE Administrator.

c. Limited Lines Producers

Producers licensed for limited lines insurance are exempt from compliance with the state's CE

requirements, including payment of the CE recordkeeping fee. This exemption applies to producers

licensed solely for one or more of the below forms of insurance:

(1) Limited line insurance: crop, travel, surety, marine, preneed, title, and Federal Crop Insurance

Program; and

(2) Limited line credit insurance: credit life, credit disability, credit property, credit unemployment,

involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, and guaranteed

automobile protection insurance.

d. Requests for Exemptions, Reduced Compliance

S.C. Code § 38-43-106(0) includes "age" exemptions from compliance with the state's CE requirements

for the following:

(1) a licensed producer reaching the age of fifty-five (55), for any lines of authority for which he has a

minimum of twenty (20) years of continuous licensure in that line or lines of authority; and

(2) a licensed producer reaching the age of sixty (60), for any lines of authority for which he has a

minimum of twenty (20) years of active licensure in that line or lines of authority.

Requests for exemptions based upon age and years of licensure pursuant to Subsection {G) of S.C.

Code § 38-43-106 must be submitted in writing to the Department and must be received bv

December 31, 2009. This subsection has been repealed effective January 1, 2010. No requests

submitted after the December 31, 2009 deadline will be honored.

ctive licensure in that line or lines of authority.

Requests for exemptions based upon age and years of licensure pursuant to Subsection {G) of S.C.

Code § 38-43-106 must be submitted in writing to the Department and must be received bv

December 31, 2009. This subsection has been repealed effective January 1, 2010. No requests

submitted after the December 31, 2009 deadline will be honored.

Written requests for

information:

exemptions must be submitted by the deadline usmg the following

Departmentoflnsurance

Fax: (803) 737-6100

Attn:

Licensing

Email: agntmail@doi.sc.gov

Post Office Box 1 00105

Columbia, South Carolina 29202-3105

S.C. Code § 38-43-106(H) provides "professional designation" reduced compliance requirements as set

forth below:

(1) a licensed producer, for any lines of authority for which he has a minimum of twenty (20) years of

continuous licensure in that line or lines of authority, is required to complete twelve (12) hours of

continuing education biennially;

(2) a licensed producer, for any lines of authority for which he has a minimum of twenty-five (25) years

of active licensure in that line or lines of authority, is required to complete twelve (12) hours of

continuing education biennially; and

(3) a licensed producer, for any lines of authority for which he has been continuously licensed for ten

(10) years and has achieved one of the following designations, is required to complete twelve (12) hours

of continuing education biennially:

(a) if applying for a life, accident, and health license:

(i)

Chartered Life Underwriter (CLU);

(ii)

Fellow, Life Management Institute (FLMI);

(iii) Certified Financial Planner (CFP);

(iv) Registered Health Underwriter (RHU);

(v)

Registered Employee Benefit Consultant (REBC);

(vi) Life Underwriter Training Council Fellow (LUTCF); or

(vii) Chartered Financial Consultant (CHFC); and

(b) if applying for a Property, Casualty, Surety, and Marine license:

hartered Life Underwriter (CLU);

(ii)

Fellow, Life Management Institute (FLMI);

(iii) Certified Financial Planner (CFP);

(iv) Registered Health Underwriter (RHU);

(v)

Registered Employee Benefit Consultant (REBC);

(vi) Life Underwriter Training Council Fellow (LUTCF); or

(vii) Chartered Financial Consultant (CHFC); and

(b) if applying for a Property, Casualty, Surety, and Marine license:

(i)

Chartered Property and Casualty Underwriter (CPCU); or

(ii)

Certified Insurance Counselor (CIC).

Producers receiving reduced compliance requirements are still required to pay the CE recordkeeping fee

to Prometric as detailed in Item (4) on Page 7. Multi-line producers subject to the requirements of

Subsection (H) must complete a minimum of six (6) hours of CE for each line of authority and a

minimum ofthree (3) hours of ethics.

Requests for reduced compliance requirements based upon professional designation and years of

licensure pursuant to Subsection (H) of S.C. Code § 38-43-106 must be submitted in writing to

Prometric and must be received by December 31, 2009. If the request is based upon achieving a

professional designation as detailed in item (3) above, such a request must include proof that the

producer has achieved and currently holds the professional designation in order to be processed.

This subsection has been repealed effective January 1, 2010. No requests submitted after the

December 31, 2009 deadline will be honored.

Written requests for "professional designation" reduced compliance requirements must be submitted by

the deadline using the following information:

Pro metric

Attn: South Carolina CE

1260 Energy Lane

St. Paul, Minnesota 55108

Fax: (800) 735-7977

Email: pro.ce-services@prometric.com

ed effective January 1, 2010. No requests submitted after the

December 31, 2009 deadline will be honored.

Written requests for "professional designation" reduced compliance requirements must be submitted by

the deadline using the following information:

Pro metric

Attn: South Carolina CE

1260 Energy Lane

St. Paul, Minnesota 55108

Fax: (800) 735-7977

Email: pro.ce-services@prometric.com

Subsections (G) and (H) of S.C. Code § 38-43-106 have been repealed effective January 1, 2010.

Producers eligible for exemption or reduced compliance on or before December 31, 2009 must submit

a written request as specified above in order to obtain the exemption or reduced compliance

requirement. 1n order to receive tlte "age" exemptioll pursuallt to Subsection (G), the Departmellt

must receive the writtell request by December 31, 2009.

11l order to receive the "professiollal

desig11atioll ''reduced compliallce requiremellt pursuallt to Subsectioll (H), Prometric must receive the

writte11 request by December 31, 2009. Eligible producers that do llOt submit a writtell request by the

deadli11e will llot receive the respective exemptioll or reduced compliallce requiremellt. Exemptiolls

a11d reduced compliallce requiremellts grallted pursuallt to these subsectiolls will be ltoflored as lollg as

the producer mailltaifls colltilluous licellsure. A producer receivi11g reduced compliallce requiremellts

based upoll achievi11g a professiollal desigllatioll pursuallt to Subsectioll (H) must also mailltain the

professional desigllatioll ill order to mailltaill the reduced compliallce requiremellt. The callcellatioll

of a producer's licellse will result ill the permallellt revocatioll of the exemptioll or reduced compliallce

requirement.

d. Requests for Extensions or Waivers

Requests for extensions and hardship waivers must be received by May 1, 2010. Producers that submit a

request for extension or hardship waiver must still pay the CE recordkeeping fee by May 1. 201 0 as

specified in Item ( 4) below

of a producer's licellse will result ill the permallellt revocatioll of the exemptioll or reduced compliallce

requirement.

d. Requests for Extensions or Waivers

Requests for extensions and hardship waivers must be received by May 1, 2010. Producers that submit a

request for extension or hardship waiver must still pay the CE recordkeeping fee by May 1. 201 0 as

specified in Item ( 4) below.

Requests for extensions must be submitted in \\Titing to Prometric and may be submitted via facsimile to

(800) 735-7977, via email to pro.ce-services@prometric.com, or via postal service to:

Pro metric

Attn: South Carolina CE

1260 Energy Lane

St. Paul, Minnesota 55108

Requests for hardship waivers must be submitted in writing to the Department and must include

documentation or other appropriate information to demonstrate the need for such a waiver. Requests may

be submitted via facsimile to (803) 737-6100, via email to agntmail@doi.sc.gov, or via postal service to:

Department of Insurance

Attn: Agent Licensing

Post Office Box 100105

Columbia, South Carolina 29202-3105

(4) PAY THE $15 RECORDKEEPING FEE TO PROMETRIC, THE CE ADMINISTRATOR

Resident and non-resident producers are required to pay the CE recordkeeping fee of $15 for the biennial

compliance period. This fee is separate and distinct from the biennial license renewal fee and is due to

Prometric, the CE Administrator, by May 1, 2010.

For the 2008-2010 biennial compliance period, producers licensed as of April 30, 2009 are required to pay

the two-year recordkeeping fee of$15. Producers licensed on or after May 1, 2009 and before November

1, 2009 must pay the one-year recordkeeping fee of $7 .50. Producers licensed on or after November 1,

2009 and before May 1, 2010 do not have to pay aCE recordkeeping fee for the 2008-2010 biennial

compliance period.

liance period, producers licensed as of April 30, 2009 are required to pay

the two-year recordkeeping fee of$15. Producers licensed on or after May 1, 2009 and before November

1, 2009 must pay the one-year recordkeeping fee of $7 .50. Producers licensed on or after November 1,

2009 and before May 1, 2010 do not have to pay aCE recordkeeping fee for the 2008-2010 biennial

compliance period.

Limited lines producers and producers exempt from CE compliance pursuant to S.C. Code § 38-43-

1 06( G) are not required to pay the recordkeeping fee.

FAILURE TO COMPLETE THE ABOVE REQUIREMENTS BY iJ:IAY 1, 2010 WILL RESULT

LV THE LAPSE OF THE PRODUCER'S LICENSE, APPOL'VTMElVT(S), AND A1VY OTHER

LICENSE TIED TO THE PRODUCER LICENSE (LE., BROKER'S LICENSE, AGENCY

LICENSE).

Producers whose license(s) and appointment(s) have lapsed for failure to comply with the state's producer

license renewal and CE requirements as detailed above will have until November 1, 2010 to reinstate the

license(s) and appointment(s). Additional information regarding the reinstatement process \Vill be posted

on the Department's website following the May 1, 2010 compliance deadline.

Producers whose license(s) and appointments(s) have lapsed are prohibited from transacting any

insurance business until the license(s) and appointment(s) have been reinstated. To do so constitutes a

violation of South Carolina law and the unauthorized transaction of insurance business. A producer who

fails to demonstrate compliance by November 1, 2010 will have their producer license, appointment(s).

and any other license(s) tied to the producer license immediately canceled.

IV.

QUESTIONS

Questions regarding this bulletin may be submitted to the Agent Mailbox at agntmail@doi.sc.gov or by

contacting the Office ofindividual Licensing and Continuing Education at (803) 737-6095.

APPENDIX

The following exhibits are attached:

Exhibit A:

Exhibit B:

May 1, 2010 Producer License Renewal and CE Compliance Requirements Chart

2009 S.C. Act No

e immediately canceled.

IV.

QUESTIONS

Questions regarding this bulletin may be submitted to the Agent Mailbox at agntmail@doi.sc.gov or by

contacting the Office ofindividual Licensing and Continuing Education at (803) 737-6095.

APPENDIX

The following exhibits are attached:

Exhibit A:

Exhibit B:

May 1, 2010 Producer License Renewal and CE Compliance Requirements Chart

2009 S.C. Act No. 69

Bulletins are the method by which the Director of Insurance formally communicates with persons and entities regulated by the Department.

Bulletins are departmental interpretations of South Carolina insurance laws and regulations and provide guidance on the Department's

enforcement approach. Bulletins do not provide legal advice. Readers should consult applicable statutes and regulations or contact an

attorney for legal advice or for additional information on the impact of that legislation on their specific situation.

Exhibit A

Producer Licensure Date

License

Renewal

Requirement

Biennial

License

Renewal

Fee

Requirement

Recordkeeping

Fee

Through April 30, 2009

Yes

$25

24 hrs

$15

May 1 - June 2, 2009

Yes

$25

3 hrs ethics

$7.50

June 3 - October 31, 2009

n/a

3 hrs ethics

$7.50

November 1, 2009 - April 30, 2010

n/a

Producer Licensure Date

License

Renewal

Requirement

Biennial

License

Renewal

Fee

Requirement

Recordkeeping

Fee

Through April 30, 2009

Yes

$25

n/a

$15

May 1 - June 2, 2009

Yes

$25

n/a

$7.50

June 3 - October 31, 2009

n/a

$7.50

November 1, 2009 - April 30, 2010

n/a

Producer Licensure Date

License

Renewal

Requirement

Biennial

License

Renewal

Fee

Requirement

Recordkeeping

Fee

Through June 2, 2009

Yes

$25

n/a

June 3, 2009 - April 30, 2010

n/a

Producer Licensure Date

License

Renewal

Requirement

Biennial

License

Renewal

Fee

Requirement

Recordkeeping

Fee

Through June 2, 2009

Yes

$25

n/a

June 3, 2009 - April 30, 2010

n/a

Resident Producers with a CE Requirement

Non-Resident Prod

ewal

Fee

Requirement

Recordkeeping

Fee

Through June 2, 2009

Yes

$25

n/a

June 3, 2009 - April 30, 2010

n/a

Producer Licensure Date

License

Renewal

Requirement

Biennial

License

Renewal

Fee

Requirement

Recordkeeping

Fee

Through June 2, 2009

Yes

$25

n/a

June 3, 2009 - April 30, 2010

n/a

Resident Producers with a CE Requirement

Non-Resident Producers

Limited Lines Producers

Resident Producers Receiving an Exemption from CE Requirements

May 1, 2010 Producer License Renewal and CE Compliance Requirements Chart

What follows is a brief overview of the producer license renewal and continuing insurance education

compliance requirements for the 2008-2010 biennial compliance period. Additional details are provided

in Bulletin 2009-16. The deadline for compliance is May 1, 2010.

NOTE: THIS COPY IS A TEMPORARY VERSION. THIS

DOCUMENT WILL REMAIN IN THIS VERSION UNTIL

PUBLISHED IN THE ADVANCE SHEETS TO THE ACTS AND

JOINT RESOLUTIONS. WHEN THIS DOCUMENT IS

PUBLISHED IN THE ADVANCE SHEET, THIS NOTE WILL

BE REMOVED.

(A69, R106, H3562)

AN ACT TO AMEND SECTION 38-1-20, AS AMENDED, CODE

OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO

DEFINITIONS

USED

TITLE

PERTAINING

INSURANCE, SO AS TO ADD THE DEFINITIONS OF

“GENERAL APPOINTMENT”, “LOCAL APPOINTMENT”,

“SPECIAL APPOINTMENT”, “CROP INSURANCE”, AND

“TRAVEL INSURANCE”, CORRECT ARCHAIC LANGUAGE,

AND MAKE CONFORMING AMENDMENTS; TO AMEND

SECTION 38-39-20, RELATING TO PREMIUM SERVICE

COMPANIES, SO AS TO PROVIDE THAT THE FEE FOR

LICENSURE TO ENGAGE IN SERVICING INSURANCE

PREMIUMS IN THIS STATE IS DUE ON A BIENNIAL BASIS

RATHER THAN ON AN ANNUAL BASIS; TO AMEND

SECTION 38-43-80, AS AMENDED, RELATING TO LICENSE

FEES FOR INSURANCE PRODUCERS AND AGENCIES, SO AS

TO PROVIDE FOR A BIENNIAL PRODUCER LICENSE

RENEWAL FEE OF TWENTY-FIVE DOLLARS, INCREASE

THE INITIAL PRODUCER LICENSE RENEWAL FEE FROM

TWENTY DOLLARS TO TWENTY-FIVE DOLLARS, AND

PROVIDE FOR THE REQUIREMENTS RELATING TO THE

PAYMENT OF

N A BIENNIAL BASIS

RATHER THAN ON AN ANNUAL BASIS; TO AMEND

SECTION 38-43-80, AS AMENDED, RELATING TO LICENSE

FEES FOR INSURANCE PRODUCERS AND AGENCIES, SO AS

TO PROVIDE FOR A BIENNIAL PRODUCER LICENSE

RENEWAL FEE OF TWENTY-FIVE DOLLARS, INCREASE

THE INITIAL PRODUCER LICENSE RENEWAL FEE FROM

TWENTY DOLLARS TO TWENTY-FIVE DOLLARS, AND

PROVIDE FOR THE REQUIREMENTS RELATING TO THE

PAYMENT OF APPOINTMENT FEES; TO AMEND SECTION

38-43-106, AS AMENDED, RELATING TO CONTINUING

EDUCATION

REQUIREMENTS

FOR

INSURANCE

PRODUCERS, SO AS TO PROVIDE THAT THE BIENNIAL

COMPLIANCE PERIOD IS BASED ON THE LICENSEE’S

MONTH AND YEAR OF BIRTH; TO AMEND SECTION

38-43-110, AS AMENDED, RELATING TO THE DURATION OF

AN INSURANCE PRODUCER’S LICENSE, SO AS TO

PROVIDE

THAT

INDIVIDUAL

LICENSES

MUST

RENEWED BIENNIALLY BASED ON THE LICENSEE’S

MONTH AND YEAR OF BIRTH AND PROVIDE FOR THE

REQUIREMENTS RELATING TO RENEWAL; TO AMEND

SECTION 38-43-200, AS AMENDED, RELATING TO THE

PROHIBITION ON SPLITTING COMMISSIONS WITH AN

Exhibit B

2009 S.C. Act No. 69

UNLICENSED PERSON BY AN INSURANCE PRODUCER, SO

AS TO DELETE THE EXISTING PROVISIONS AND PROVIDE

FOR THE REQUIREMENTS RELATING TO THE SPLITTING

AND SHARING OF COMMISSIONS; TO AMEND SECTION

38-45-10,

RELATING

THE

DEFINITIONS

INSURANCE BROKER, SO AS TO PROVIDE FOR THE

QUALIFYING DUTIES AND PROVIDE FOR EXCEPTIONS;

AND TO AMEND SECTION 38-45-20, AS AMENDED,

RELATING TO THE REQUIREMENTS FOR LICENSURE AS

AN INSURANCE BROKER, SO AS TO DELETE THE

REQUIREMENTS THAT A BROKER HOLD AT LEAST ONE

APPOINTMENT.

Be it enacted by the General Assembly of the State of South Carolina:

Definitions

SECTION 1. Section 38-1-20 of the 1976 Code, as last amended by

Act 290 of 2004, is further amended to read:

“Section 38-1-20. As used in this title, unless the context otherwise

requires:

ENSURE AS

AN INSURANCE BROKER, SO AS TO DELETE THE

REQUIREMENTS THAT A BROKER HOLD AT LEAST ONE

APPOINTMENT.

Be it enacted by the General Assembly of the State of South Carolina:

Definitions

SECTION 1. Section 38-1-20 of the 1976 Code, as last amended by

Act 290 of 2004, is further amended to read:

“Section 38-1-20. As used in this title, unless the context otherwise

requires:

(1) ‘Accident and health insurance’ means insurance of human

beings against death or personal injury by accident, and each insurance

of human beings against sickness, ailment, and any type of physical

disability resulting from accident or disease, and prepaid dental service,

but not including coverages required by the Workers’ Compensation

Law of this State.

(2) ‘Accommodation bondsman’ means as defined in Section

38-53-10.

(3) ‘Adjuster’ means an individual who determines the extent of

insured losses and assists in settling or attempts to settle claims.

(4) ‘Admitted assets’ means assets of an insurer considered

admitted under Section 38-11-100.

(5) ‘Admitted insurer’ means an insurer licensed to do business in

this State.

(6) ‘Alien insurer’ means an insurer incorporated or organized

under the laws of a country other than the United States of America, its

states, commonwealths, territories, or insular possessions.

(7) ‘Annuity’ means each contract or agreement to make periodic

payments, whether in fixed or variable dollar amounts, or both, at

specified intervals.

(8)(a) ‘Appointment’ means an individual designated by an official

or authorized representative of an authorized insurer to act on its behalf

as a producer.

America, its

states, commonwealths, territories, or insular possessions.

(7) ‘Annuity’ means each contract or agreement to make periodic

payments, whether in fixed or variable dollar amounts, or both, at

specified intervals.

(8)(a) ‘Appointment’ means an individual designated by an official

or authorized representative of an authorized insurer to act on its behalf

as a producer.

(b) ‘General appointment’ means an appointment of a person

who, as a representative of an insurer or insurers, is vested with

authority to supervise producers and to exercise this management

authority as is delegated to him by the principal. A producer appointed

as a general also may perform the duties of a producer who holds a

local or special appointment.

who has been authorized by an insurer to sell, solicit, or negotiate

policies on an insurer’s behalf.

(d) ‘Special appointment’ means an individual designated by an

insurer to supervise and assist other producers in the proper discharge

of their duties under an insurer’s policy contract. A special

appointment grants no authority to sell, solicit, or negotiate policies of

insurance on behalf of an insurer.

(9) ‘Bail bondsman’ means as defined in Section 38-53-10.

(10) ‘By’ means on or before.

(11) ‘Casualty insurance’ means each insurance against legal liability

of the insured for bodily injury to or death of another person, including

workers’ compensation insurance, and for damages to or loss or

destruction of the property of another person; medical payments

insurance when written in conjunction with insurance covering liability

for the deaths or bodily injuries of another person; guaranteeing the

fidelity of a person holding a position of public or private trust; loss of

or damage to property caused by burglary, theft, larceny, robbery,

fraud, or unlawful taking or secretion of property owned by or

entrusted to the insured; loss of or damage to property of the insured

conjunction with insurance covering liability

for the deaths or bodily injuries of another person; guaranteeing the

fidelity of a person holding a position of public or private trust; loss of

or damage to property caused by burglary, theft, larceny, robbery,

fraud, or unlawful taking or secretion of property owned by or

entrusted to the insured; loss of or damage to property of the insured

resulting from the explosion of or damage to a fired or unfired boiler or

other pressure vessel, engine, turbine, compressor, pump, wheel, or an

apparatus generating, transmitting, or using electric power, and

machinery or equipment connected with any of them; loss resulting

from nonpayment of debts owed to merchants or another person

extending credit.

(12) ‘Certificate of insurance’ means a memorandum copy, complete

or abbreviated, of an insurance contract.

(13) ‘Coinsurance’ means a stipulation or requirement that the

insured undertakes to be his own insurer to the extent that he fails to

maintain insurance of a given percentage of the value of the property

against loss or damage.

(14) ‘Commission’ means the part of the premium paid to the

producer as compensation for his services.

(15) ‘Company’ includes a corporation, fraternal organization, burial

association, other association, partnership, society, order, individual, or

aggregation of individuals engaging or proposing or attempting to

engage as principals in any kind of insurance or surety business,

including the exchanging of reciprocal or interinsurance contracts

between individuals, partnerships, and corporations.

(16) ‘Crop insurance’ includes insurance providing protection

against damage to crops from unfavorable weather conditions, fire,

lightning, flood, hail, insect infestation, disease, or other yield-reducing

conditions or perils provided by the private insurance market, or that is

subsidized by the Federal Crop Insurance Corporation, including

Multi-Peril Crop Insurance.

, and corporations.

(16) ‘Crop insurance’ includes insurance providing protection

against damage to crops from unfavorable weather conditions, fire,

lightning, flood, hail, insect infestation, disease, or other yield-reducing

conditions or perils provided by the private insurance market, or that is

subsidized by the Federal Crop Insurance Corporation, including

Multi-Peril Crop Insurance.

(17) ‘Department’ means the Department of Insurance of South

Carolina.

(18) ‘Designee or deputy director’ means the person or persons

appointed by the director, serving at the will and pleasure of the

director as his designee, to supervise and carry out the functions and

duties of the department as provided by law. A duty or function of the

director to manage and supervise the department may be conferred by

the director’s authority upon his designee or deputy director.

(19) ‘Director’ means the person who is appointed by the Governor

upon the advice and consent of the Senate and who is responsible for

the operation and management of the department. The director has the

authority to appoint or designate the person or persons who shall serve

at the pleasure of the director to carry out the objectives or duties of the

department as provided by law. Furthermore, the director may bestow

upon his designee or deputy director a duty or function required of him

by law to manage and supervise the department.

(20) ‘Domestic insurer’ means an insurer incorporated or organized

under the laws of this State.

(21) ‘Eligible surplus lines insurer’ means a nonadmitted insurer

with which a licensed broker may place surplus lines insurance.

(22) ‘Exempt commercial policies’ means policies for commercial

insureds as may be provided for in regulation issued by the director.

Exempt commercial policies include all property and casualty

coverages except for insurance related to credit transactions written

through financial institutions.

’ means a nonadmitted insurer

with which a licensed broker may place surplus lines insurance.

(22) ‘Exempt commercial policies’ means policies for commercial

insureds as may be provided for in regulation issued by the director.

Exempt commercial policies include all property and casualty

coverages except for insurance related to credit transactions written

through financial institutions.

(23) ‘Foreign insurer’ means an insurer incorporated or organized

under the laws of the United States or of any jurisdiction within the

United States other than this State.

(24) ‘Home state’ means the District of Columbia and a state or

territory of the United States in which an insurance producer maintains

his principal place of residence or principal place of business and is

licensed to act as an insurance producer.

(25) ‘Insurance’ means a contract where one undertakes to

indemnify another or pay a specified amount upon determinable

contingencies. The term ‘insurance’ includes annuities.

(26) ‘Insurance

agency’

means

corporation,

association,

partnership, limited liability company, limited liability partnership, or

other legal entity in which more than one person has a financial

interest.

(27) ‘Insurance broker’ means an individual licensed by the

department to represent citizens of this State in placing their insurance.

An insurance broker may place that insurance either with an eligible

surplus lines insurer or with a licensed insurance producer in an

insurance carrier licensed in this State.

(28) ‘Insurance company’ means an ‘insurer’.

(29) ‘Insurance premium service company’ means a person engaged

in the business of entering into insurance premium service agreements.

(30) ‘Insurance producer’ or ‘producer’ means a person who

represents an insurance company and is required to be licensed

pursuant to Section 38-43-10.

(31) ‘Insurance rate’ means the price of insurance for each unit of

exposure.

’ means an ‘insurer’.

(29) ‘Insurance premium service company’ means a person engaged

in the business of entering into insurance premium service agreements.

(30) ‘Insurance producer’ or ‘producer’ means a person who

represents an insurance company and is required to be licensed

pursuant to Section 38-43-10.

(31) ‘Insurance rate’ means the price of insurance for each unit of

exposure.

(32) ‘Insurance-support organization’ means a person who regularly

engages, in whole or in part, in the practice of assembling or collecting

information about natural persons for the primary purpose of providing

the information to an insurer or agent for insurance transactions,

including: (i) the furnishing of consumer reports or investigative

consumer reports to an insurer or agent for use in connection with an

insurance transaction; or (ii) the collection of personal information

from insurers, agents, or other insurance-support organizations for the

purpose of detecting or preventing fraud, material misrepresentation, or

material nondisclosure in connection with insurance underwriting or

insurance claim activity. However, the following are not considered

insurance-support organizations for purposes of this chapter: agents,

governmental institutions, insurers, modeling organizations, consumer

reporting agencies, medical care institutions, and medical professionals.

(33) ‘Insurer’ includes a corporation, fraternal organization, burial

association, other association, partnership, society, order, individual, or

aggregation of individuals engaging or proposing or attempting to

engage as principals in any kind of insurance or surety business,

including the exchanging of reciprocal or interinsurance contracts

between individuals, partnerships, and corporations.

rer’ includes a corporation, fraternal organization, burial

association, other association, partnership, society, order, individual, or

aggregation of individuals engaging or proposing or attempting to

engage as principals in any kind of insurance or surety business,

including the exchanging of reciprocal or interinsurance contracts

between individuals, partnerships, and corporations.

(34) ‘License’ means a document issued by the state’s director or his

designee authorizing a person to act as an insurance producer for the

lines of authority specified in the document. The license itself does not

create any authority, actual, apparent or inherent, in the holder to

represent or commit an insurance carrier.

(35) ‘Life insurance’ means a contract of insurance upon the lives of

human beings. The following contracts are considered to be contracts

of life insurance within the meaning of this definition:

(a) a contract providing acceleration of life benefits, beginning

on the contract’s original effective date, in advance of the time they

otherwise would be payable for long-term care as defined in Section

38-72-40;

(b) a contract providing acceleration of life benefits, beginning

on the contract’s original effective date, in advance of the time they

otherwise would be payable for a life-threatening illness or a terminal

illness as specified in the contract.

(36) ‘Limited line credit insurance’ includes credit life, credit

disability,

credit

property,

credit

unemployment,

involuntary

unemployment, mortgage life, mortgage guaranty, mortgage disability,

guaranteed automobile protection insurance, and another form of

insurance offered in connection with an extension of credit that is

limited to partially or wholly extinguishing that credit obligation that

the director or his designee determines should be designated a form of

limited line credit insurance.

nt,

involuntary

unemployment, mortgage life, mortgage guaranty, mortgage disability,

guaranteed automobile protection insurance, and another form of

insurance offered in connection with an extension of credit that is

limited to partially or wholly extinguishing that credit obligation that

the director or his designee determines should be designated a form of

limited line credit insurance.

(37) ‘Limited line credit insurance producer’ means a person who

sells, solicits, or negotiates one or more forms of limited line credit

insurance coverage to individuals through a master, corporate, group,

or individual policy.

(38) ‘Limited line insurance’ includes crop, travel surety, Federal

Crop Insurance Program, and any other form of insurance that the

director considers necessary in order to ensure compliance with the

reciprocal provisions of this chapter.

(39) ‘Limited line insurance producer’ means a person authorized by

the director or his designee to sell, solicit, or negotiate limited line

insurance.

(40) ‘Marine insurance’ means each insurance against loss or

destruction of or damage to aircraft, vessels, or watercraft and their

cargoes; insurance covering the risks or perils of navigation, transit, or

transportation of all forms of property, including the liability of a

carrier for hire for the loss of property of shippers delivered for

transporting; marine builder’s risks; bridges, tunnels, piers, wharves,

docks and slips, dry docks, marine railways, and other aids to

navigation and transportation, precious stones, precious metals, and

jewelry, whether in the course of transportation or otherwise; coverage

of personal property by all risk forms known as the ‘Personal Property

Floater’; and coverage of mobile machinery and equipment.

ine builder’s risks; bridges, tunnels, piers, wharves,

docks and slips, dry docks, marine railways, and other aids to

navigation and transportation, precious stones, precious metals, and

jewelry, whether in the course of transportation or otherwise; coverage

of personal property by all risk forms known as the ‘Personal Property

Floater’; and coverage of mobile machinery and equipment.

(41) ‘Modeling organization’ means a corporation, unincorporated

association, partnership, or individual, whether located within or

outside this State, that prepares a catastrophe model that is used by an

insurer in a rate filing. A catastrophe model is a computer program that

estimates losses from a potential upcoming disaster. Catastrophe

modeling combines data on property exposures with information on

hazards, such as storms or earthquakes, to generate estimates of

potential losses.

(42) ‘Negotiate’ means the act of conferring directly with or offering

advice directly to a purchaser or prospective purchaser of a particular

contract of insurance concerning substantive benefits, terms, or

conditions of the contract, provided that the person engaged in that act

either sells insurance or obtains insurance from insurers for purchasers.

(43) ‘Nonadmitted insurer’ means an insurer not licensed to do an

insurance business in this State.

(44) ‘Person’ means a corporation, agency, partnership, association,

voluntary organization, individual, or another entity, organization, or

aggregation of individuals.

(45) ‘Policy’ means a contract of insurance.

(46) ‘Premium’ means payment given in consideration of a contract

of insurance.

nadmitted insurer’ means an insurer not licensed to do an

insurance business in this State.

(44) ‘Person’ means a corporation, agency, partnership, association,

voluntary organization, individual, or another entity, organization, or

aggregation of individuals.

(45) ‘Policy’ means a contract of insurance.

(46) ‘Premium’ means payment given in consideration of a contract

of insurance.

(47) ‘Premium service agreement’ means an agreement by which an

insured or prospective insured promises to pay to an insurance

premium service company the amount advanced or to be advanced

under the agreement to an insurer or to an insurance producer or

insurance broker in payment of premiums on an insurance contract

together with a service charge as authorized by Chapter 39 of this title.

(48) ‘Probation’ means allowing a licensed person the director has

found to have violated South Carolina, any United States territory, or

another state’s laws to continue selling, soliciting, or negotiating

insurance on behalf of an insurer. A person convicted of a felony or

those crimes listed in 18 U.S.C. 1033 or 1034 does not qualify for

probation.

(49) ‘Professional bondsman’ means as defined in Section 38-53-10.

(50) ‘Property insurance’ means each insurance against direct or

indirect loss of or damage to a property resulting from fire, smoke,

weather disturbances, climatic conditions, earthquake, volcanic

eruption, rising waters, insects, blight, animals, war damage, riot, civil

commotion, destruction by order of civil authority to prevent spread of

conflagration or for other reason, water damage, vandalism, glass

breakage, explosion of a water system, collision, theft of automobiles,

and personal effects in them (but no other forms of theft insurance),

loss of or damage to domestic or wild animals, and any other perils to

property which in the discretion of the director or his designee form

proper subjects of property insurance, if not specified in items (1), (7),

water damage, vandalism, glass

breakage, explosion of a water system, collision, theft of automobiles,

and personal effects in them (but no other forms of theft insurance),

loss of or damage to domestic or wild animals, and any other perils to

property which in the discretion of the director or his designee form

proper subjects of property insurance, if not specified in items (1), (7),

(11), (35), (40), (54), or (59) of this section.

(51) ‘Runner’ means as defined in Section 38-53-10.

(52) ‘Sell’ means to exchange a contract of insurance by any means,

for money or its equivalent, on behalf of an insurance company.

(53) ‘Solicit’ means attempting to sell insurance or asking or urging

a person to apply for a particular kind of insurance from a particular

company.

(54) ‘Surety’ includes insurance or a bond that covers obligations to

pay the debts, or answer for the default, of another, including

faithlessness in a position of public or private trust.

(55) ‘Surety bondsman’ means as defined in Section 38-53-10.

(56) ‘Surplus lines insurance’ means insurance in this State of risks

located or to be performed in this State, permitted to be placed through

a licensed broker with a nonadmitted insurer eligible to accept the

insurance, other than reinsurance, wet marine and transportation

insurance, insurance independently procured, and life and health

insurance and annuities. Excess and stop-loss insurance coverage upon

group life, accident, and health insurance or upon a self-insured’s life,

accident, and health benefits program may be approved as surplus lines

insurance.

(57) ‘Surplus to policyholders’ is the excess of total admitted assets

over the liabilities of an insurer which is the sum of all capital and

surplus accounts minus any impairment of them.

(58) ‘Terminate’ means the cancellation of the relationship between

an insurance producer and the insurer or the termination of a producer’s

authority to transact insurance.

surplus lines

insurance.

(57) ‘Surplus to policyholders’ is the excess of total admitted assets

over the liabilities of an insurer which is the sum of all capital and

surplus accounts minus any impairment of them.

(58) ‘Terminate’ means the cancellation of the relationship between

an insurance producer and the insurer or the termination of a producer’s

authority to transact insurance.

(59) ‘Title insurance’ means insurance of the owners of real property

and other persons lawfully interested in the title insurance against loss

by reason of defective titles and undisclosed liens and encumbrances

affecting the property.

(60) ‘Travel insurance’ includes insurance coverage for trip

cancellation, trip interruption, baggage, life, sickness and accident,

disability, and personal effects when limited to a specific trip and sold

in connection with transportation provided by a common carrier.

(61) ‘Uniform agency application’ means the current version of the

National Association of Insurance Commissioners Uniform Business

Entity Application for resident and nonresident business entities.

(62) ‘Uniform application’ means the current version of the National

Association of Insurance Commissioners Uniform Application for

resident and nonresident producer licensing.”

License fee

SECTION 2. Section 38-39-20(b) of the 1976 Code is amended to

read:

“(b) The biennial license fee is one thousand dollars payable to the

department by March 1, 2010, and biennially after that time. These

funds are to be deposited in the general fund of the State.”

Certain fees altered

SECTION 3. Section 38-43-80 of the 1976 Code, as last amended by

Act 326 of 2008, is further amended to read:

“Section 38-43-80. (A)(1) Unless otherwise changed by regulation

or statute, the following fees are applicable to producer licenses,

agency licenses, and insurer appointments:

at time. These

funds are to be deposited in the general fund of the State.”

Certain fees altered

SECTION 3. Section 38-43-80 of the 1976 Code, as last amended by

Act 326 of 2008, is further amended to read:

“Section 38-43-80. (A)(1) Unless otherwise changed by regulation

or statute, the following fees are applicable to producer licenses,

agency licenses, and insurer appointments:

(a) initial producer license fee: twenty-five dollars; biennial

producer license renewal fee: twenty-five dollars;

(b) local appointment initial and biennial fee: forty dollars;

special appointment initial and biennial fee: one hundred dollars;

general appointment initial and biennial fee: one hundred dollars;

(2) However, the license and appointment fee applicable to a

producer of a common carrier who sells only transportation ticket

policies on accident and health insurance or baggage insurance on

personal effects is twenty dollars.

(B) The fees provided for in subsection (A)(1)(b) are subject to the

following requirements on each appointment basis:

(1) initial fees are due and payable in advance of the

appointment;

(2) fees are due on a biennial basis and must be paid to the

department by September thirtieth of an even-numbered year;

(3) if a fee is not paid by September thirtieth of an

even-numbered year, the appointment must be canceled; and

ion (A)(1)(b) are subject to the

following requirements on each appointment basis:

(1) initial fees are due and payable in advance of the

appointment;

(2) fees are due on a biennial basis and must be paid to the

department by September thirtieth of an even-numbered year;

(3) if a fee is not paid by September thirtieth of an

even-numbered year, the appointment must be canceled; and

(4) an appointment must be reactivated if by December first of

the even-numbered year the appointment fee and a two hundred

fifty-dollar penalty has been paid to the department.

regulations specifying the time and manner of payment of fees. If

payment is rejected by the bank, the producer has thirty days from the

rejection date to pay the license fee. If payment is not made to the

department within this period, the license must be canceled. To

reinstate the license, the producer is required to pay a license fee plus

any charges resulting from rejection by the bank.

(D) Fees provided for in subsection (A)(1)(a) and (B)(4) are to be

retained by the department as other funds for purposes of implementing

and administering individual licensing requirements and the provisions

of this title. License and appointment fees must be deposited into the

general fund of this State.

(E) A fee provided for in this section may be paid by credit card.”

Continuing education requirements, administration of

SECTION 4. Section 38-43-106(B)(1) of the 1976 Code, as last

amended by Act 326 of 2008, is further amended to read:

“(1) The director or his designee shall administer these continuing

education requirements and shall approve courses of instruction which

qualify for these purposes

ed for in this section may be paid by credit card.”

Continuing education requirements, administration of

SECTION 4. Section 38-43-106(B)(1) of the 1976 Code, as last

amended by Act 326 of 2008, is further amended to read:

“(1) The director or his designee shall administer these continuing

education requirements and shall approve courses of instruction which

qualify for these purposes. However, the director may enter into

reciprocal agreements with the insurance commissioners of other states

regarding the approval of continuing education courses, sponsors,

instructors, or proctors if, in his judgment, the arrangements or

agreements are in the best interest of the State and if the proposed

courses, sponsors, instructors, or proctors submitted meet the minimum

statutory requirements of this State for approval. However, the director

or his designee may not enter into or continue a reciprocal agreement

unless the other state has requirements similar to this State in approving

courses, sponsors, instructors, or proctors. In administering this

program, the department, in its discretion, may promulgate regulations

producers provide to a continuing education administrator established

within the department proof of compliance with continuing education

requirements as a condition of license renewal or, in the alternative,

contract with an outside service provider to provide recordkeeping

services as the continuing education administrator. The costs of the

continuing education administrator must be paid from the continuing

insurance education fees paid by producers in the manner provided by

this section, except that course approval responsibilities may not be

designated to the continuing education administrator. The continuing

education administrator shall compile and maintain, in conjunction with

insurers and producers, records reflecting the continuing insurance

dministrator must be paid from the continuing

insurance education fees paid by producers in the manner provided by

this section, except that course approval responsibilities may not be

designated to the continuing education administrator. The continuing

education administrator shall compile and maintain, in conjunction with

insurers and producers, records reflecting the continuing insurance

education status of all licensed or qualified producers subject to the

requirements of this section. The continuing education administrator

shall furnish to the insurer, as specified by regulation, a report of the

continuing insurance education status of all of its producers. All

licensed producers shall provide evidence of their continuing insurance

education status to the continuing education administrator by the last

day of the individual’s month of birth. An individual born in an

odd-numbered year shall comply every odd-numbered year. An

individual born in an even-numbered year shall comply every

even-numbered year.”

Producer’s license

SECTION 5. Section 38-43-110 of the 1976 Code, as last amended by

Act 326 of 2008, is further amended to read:

“Section 38-43-110. (A) A producer’s license continues on a

biennial basis unless revoked or suspended subject to the following

requirements:

(1) an individual producer license must be renewed by the last

day of the licensee’s month of birth based on the producer’s year of

birth as provided for in regulation;

(2) an individual producer license may not be renewed unless the

continuing education requirements of Section 38-43-106 are met; and

n a

biennial basis unless revoked or suspended subject to the following

requirements:

(1) an individual producer license must be renewed by the last

day of the licensee’s month of birth based on the producer’s year of

birth as provided for in regulation;

(2) an individual producer license may not be renewed unless the

continuing education requirements of Section 38-43-106 are met; and

(3) an individual producer license may not be renewed unless the

biennial license renewal fee is paid as provided in Section 38-43-80.

(B) A producer who allows his license to lapse for failure to comply

with Section 38-43-106, within six months from the compliance

deadline, may reinstate the same license if continuing education

requirements have been met and a penalty fee set forth by regulation is

paid.

license renewal procedures due to active military service or some other

extenuating circumstance (e.g., a long-term medical disability) may

request a waiver of those procedures. The producer also may request a

waiver of any examination requirement or any other fine or sanction

imposed for failure to comply with renewal procedures.”

Prohibition of certain commissions, fees, etc.

SECTION 6. Section 38-43-200 of the 1976 Code, as last amended by

Act 291 of 2004, is further amended to read:

“Section 38-43-200. (A) An insurance company or insurance

producer may not pay a commission, service fee, brokerage, or other

valuable consideration to a person for selling, soliciting, or negotiating

insurance in this State if that person is required to be licensed pursuant

to the provisions of this chapter and is not licensed.

(B) A person may not accept a commission, service fee, brokerage,

or other valuable consideration for selling, soliciting, or negotiating

insurance in this State if that person is required to be licensed pursuant

to the provisions of this chapter and is not licensed

surance in this State if that person is required to be licensed pursuant

to the provisions of this chapter and is not licensed.

(B) A person may not accept a commission, service fee, brokerage,

or other valuable consideration for selling, soliciting, or negotiating

insurance in this State if that person is required to be licensed pursuant

to the provisions of this chapter and is not licensed.

person for selling, soliciting, or negotiating insurance in this State if the

person was required to be licensed pursuant to the provisions of this

chapter at the time of the sale, solicitation, or negotiation and was

licensed at that time.

(D) An insurer or insurance producer may pay or assign service fees

or other valuable consideration to an insurance agency or to a person

who does not sell, solicit, or negotiate insurance in this State, unless the

payment violates another provision of Title 38. A payment made

pursuant to the provisions of this subsection must not be based on

completion of the sale of the insurance policy.

(E) Nothing in this section may be construed to prohibit a licensed

insurance producer from rebating a portion of his commission collected

on automobile insurance premiums to the insured upon that automobile

insurance policy.

(F) This section does not prohibit the payment of a fee to a trade or

professional association exempt from income tax under Section 501(c)

of the Internal Revenue Code.”

Insurance broker, definition

SECTION 7. Section 38-45-10 of the 1976 Code is amended to read:

“Section 38-45-10. (A)(1) An ‘insurance broker’, as used in this

chapter, means a property and casualty insurance producer licensed by

the director or his designee who:

(a) sells, solicits, or negotiates insurance on behalf of an

insured;

(b) takes or transmits other than for himself an application for

insurance or a policy of insurance to or from an insured;

is amended to read:

“Section 38-45-10. (A)(1) An ‘insurance broker’, as used in this

chapter, means a property and casualty insurance producer licensed by

the director or his designee who:

(a) sells, solicits, or negotiates insurance on behalf of an

insured;

(b) takes or transmits other than for himself an application for

insurance or a policy of insurance to or from an insured;

transmits a surplus lines application or policies;

(d) receives or delivers a policy of surplus lines insurance for

an insured on behalf of a surplus lines insurer;

(e) receives, collects, or transmits a premium of surplus lines

insurance; or

(f) performs another act in the making of a surplus lines

insurance contract for or with an insured.

(2) However, an insurance broker’s license is not required of a

broker’s office employee acting within the confines of the broker’s

office, under the direction and supervision of the licensed broker and

within the scope of the broker’s license, in the acceptance of request for

insurance and payment of premiums and the performance of clerical,

stenographic, and similar office duties.

(B) An insurance broker may place that insurance either with an

eligible surplus lines insurer or with a licensed insurance producer

appointed by an insurance carrier licensed in this State.”

Licensing of insurance broker, requirements

SECTION 8. Section 38-45-20 of the 1976 Code, as last amended by

Act 326 of 2008, is further amended to read:

“Section 38-45-20. A resident property and casualty-licensed

insurance producer may be licensed as an insurance broker by the

director or his designee if the following requirements are met:

(1) licensure of the resident as an insurance producer for the same

lines of insurance for which he proposes to apply as a broker of this

State;

(2) successfully passed the South Carolina broker licensing

examination;

resident property and casualty-licensed

insurance producer may be licensed as an insurance broker by the

director or his designee if the following requirements are met:

(1) licensure of the resident as an insurance producer for the same

lines of insurance for which he proposes to apply as a broker of this

State;

(2) successfully passed the South Carolina broker licensing

examination;

(3) payment of a biennial license fee of two hundred dollars which

is earned fully when received, not refundable;

(4) filing of a bond with the department in a form approved by the

Attorney General in favor of South Carolina of ten thousand dollars

executed by a corporate surety licensed to transact surety insurance in

this State and personally countersigned by a licensed resident agent of

the surety. The bond must be conditioned to pay a person insured or

seeking insurance through the broker who sustains loss as a result of:

(a) the broker’s violation of or failure to comply with an

insurance law or regulation of this State;

(b) the broker’s failure to transmit properly a payment received

by him, cash or credit, for transmission to an insurer or an insured; or

insurance transaction. Instead of a bond, the broker may file with the

department certificates of deposit of ten thousand dollars of building

and loan associations or federal savings and loan associations located

o transmit properly a payment received

by him, cash or credit, for transmission to an insurer or an insured; or

insurance transaction. Instead of a bond, the broker may file with the

department certificates of deposit of ten thousand dollars of building

and loan associations or federal savings and loan associations located

within the State in which deposits are guaranteed by the Federal

Savings and Loan Insurance Corporation, not to exceed the amount of

insurance, or of banks located within the State in which deposits are

guaranteed by the Federal Deposit Insurance Corporation, not to exceed

the amount of insurance. An aggrieved person may institute an action

in the county of his residence against the broker or his surety, or both,

to recover on the bond or against the broker to recover from the

certificates of deposit, and a copy of the summons and complaint in the

action must be served on the director, who is not required to be made a

party to the action;

(5) payment to the department, within thirty days after March

thirty-first, June thirtieth, September thirtieth, and December thirty-first

each year, of a broker’s premium tax of four percent upon premiums

for policies of insurers not licensed in this State. In computing total

premiums, return premiums on risks and dividends paid or credited to

policyholders are excluded. Such credit must be refunded to the

policyholder.”

Time effective

SECTION 9. This act takes effect upon approval by the Governor.

Ratified the 27th day of May, 2009.

Approved the 2nd day of June, 2009.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.