Source: http://scsafehome.sc.gov/FAQ.aspx
Timestamp: 2018-12-11 16:45:59
Document Index: 104706365

Matched Legal Cases: ['§38', '§38', '§38', '§38', '§38', '§38', '§38', '§38', '§38', '§ 38', '§38', '§38', '§38', '§38', '§38', '§38', '§38', '§38']

1. What are the minimum limits of liability coverage and uninsured motorist Coverage required in South Carolina? Is underinsured motorist coverage required?
$50,000 bodily injury per accident
Underinsured motorist coverage is not required.
2. What is the minimum requirement of insurance on a vehicle of any type besides your own personal automobile? For example, a dump truck?
The South Carolina Department of Transportation (877-349-7190) requires liability and uninsured motorist with limits of 25/50/25 for oversize/overweight vehicles. Also, check with the Public Service Commission at 803-896-5230 for additional information on vehicles for hire such as taxis, buses, etc.
3. Is South Carolina a no fault or at fault state?
South Carolina is a tort liability state, which means the not-at-fault person can pursue a claim against the at-fault party. South Carolina is also comparative negligence, which means you can be barred from collecting for the percentage you contributed to the accident.
4. Can a company refuse to insure me?
Yes, as of 3/1/99, there is no mandate to write automobile insurance. You must shop around to find a company that will insure you. If you cannot find a company to insure you, then you will need to contact the Associated Auto Insurers Plan of South Carolina (AAIPSC) at .866-560-4100.
5. When can my automobile liability insurance be canceled?
Automobile liability insurance can be canceled if you fail to pay your premiums on time and between the 61-90 day of a new policy for any reason.
6. When can my automobile comprehensive and collision coverage be canceled?
This coverage can be canceled for any reason during the first 90 days.
7. Does my liability insurance cover my broken windshield?
No, comprehensive insurance covers broken windshields. The deductible is waived
for private passenger vehicles only.
8. Does the insurance company have to notify you when your renewal insurance premium is due?
Yes, the law requires 15 days prior notice. Most companies mail renewal notices 30-45 days before the policy renewal effective date.
9. Does the automobile policy contain a grace period for paying the renewal premium?
No. There is no required grace period for the payment of a renewal premium. The policy actually expires at the end of the policy period if the premium is not received by that date.
10. The agent quoted me one premium and the company sent me a bill for $500 more. Must I pay?
Agents can bind coverage: however, the final rate is determined by a company's underwriting guidelines.
11. Are there any specific time limits for an insurance company to pay claims?
In general, insurance companies should pay all claims in a prompt and reasonable amount of time. However, what constitutes "prompt and reasonable" may vary from claim to claim. Claims that require a special or extended investigation may take longer to resolve. Inclement weather conditions, coverage issues, and the number of vehicles involved in an accident can slow the process down.
12. May I keep my auto if I have a collision, limited collision or comprehensive claim and my insurance company declares it a total loss?
After your vehicle has been declared a total loss, you can retain the salvage; however, the value of the salvaged vehicle must be deducted from the actual cash value of the vehicle when the insurer pays you. The Department of Motor Vehicles, in these cases, do require the insurer to obtain your title from you and send it to them. The Department of Motor Vehicles will reissue your title to you with salvage on the title.
13. Can the insurance company pay me less than Blue Book for my totaled vehicle?
Yes. The Blue Book is only a guide. The company is required to pay you what your vehicle was actually worth (as a used car) the moment before the crash. The adjuster will find out how much used cars like yours (same make, model, year, and milege) are going for in your area. It's a good idea for you to independently research the value of your car too.
14. The adjuster recommended a specific body shop. Can I use a different shop?
You can have it repaired wherever you choose. But no matter what shop you choose, the adjuster will base your claim payment on market price for the repairs and pay the local average rates for parts & labor.
15. Who pays for the rental car while my car is in the body shop?
When the claim is against the other driver's company, the other driver’s company is required by law to reimburse your loss of use for what is reasonable and necessary. However, some insurers will do a direct bill with a rental car company.
If the car is totaled, many companies pay for your rental or reimburse you until a settlement has been offered.
16. The insurance company put the leinholder's name on the check for repairing my car. Why?
Because your car is collateral for your loan, the leinholder (or whoever is financing the car) has an interest in making sure the money is used to repair the car and not for something else. In most situations, you have listed your financial institution as leinholder per their requirement.
17. An uninsured driver demolished my car! Who pays?
The South Carolina Department of Motor Vehicles requires you to carry uninsured motorist coverage. This coverage has a $200.00 deductible. If your carrier collects back their payout from the uninsured motorist, you should be refunded your deductible.
18. I've been sued by the other driver. Will my policy cover that?
Yes. Your liability insurance covers lawsuits. Your company has a duty to provide a lawyer to represent you in lawsuits accusing you of negligence in driving your car. If you receive a summons or notice of a lawsuit, notify your company right away. Although the company pays for the lawyer, the lawyer's ethical duty is to represent your best interest. There is no policy limit on how much the company must pay the lawyer to represent you.
If the case is settled or there is a judgment against you, the company will pay up to the policy limit . But if the court judgment or settlement is more than your policy limits, you will have to pay the difference. The company may refuse to defend you if you are accused of intentionally injuring someone or intentionally damaging property.
1. What are the types of bondsman licenses issued in South Carolina?
There are three types of bondsman licenses issued by the South Carolina Department of Insurance:
Surety Bondsman
Runner Bondsman
2. What are the requirements to become licensed as a bondsman or runner in the state of South Carolina?
An applicant must be 18 years old or older, a resident of South Carolina, and a person of good moral character who has not been convicted of a felony or crime involving moral turpitude within the last 10 years, has knowledge, training, or experience of sufficient duration and extent to satisfy reasonably the director of insurance that he or she possesses the competence necessary to fulfill the responsibilities of a licensee. (South Carolina Code Section 38-53-90)
3. Are there any educational requirements?
Yes. The total number of pre-licensing educational hours required for a professional bondsman and runner is 20 hours. The total number of pre-licensing educational hours for a surety bondsman is 60 hours, since these bondsmen are licensed as insurance agents. (South Carolina Code Section 38-53-85)
4. Are there any fees required of bondsmen?
Yes. Professional bondsmen and surety bondsmen are required to pay the clerk of court of his or her home county the sum of $150 annually for each licensee. There are no fees for runner bondsmen in their home county. Each professional bondsman, surety bondsman, and runner is required to pay any other county where he or she is doing business the sum of $100 to the clerk of court. (South Carolina Code Section 38-53-100)
5. How much money must a professional bondsman pledge to his or her home county to write bail bonds?
Each professional bondsman must maintain a minimum of $10,000 in the form of a cash deposit or certificates of deposit. (South Carolina Code Section 38-53-270)
6. If a professional bondsman pledges the minimum deposit of $10,000, how much can he/she write in bail bonds?
A bondsman can write four times the amount of collateral pledged to his/her home county clerk of court. Example: $10,000 pledged as collateral will allow the bondsman to write up to $40,000 in bail bonds. (South Carolina Code Section 38-53-270)
7. Are surety bondsmen required to pledge collateral?
Yes, surety bondsmen pledge a power of attorney that is issued by the surety insurance company. (South Carolina Code Section 38-53-260)
8. Can I become a surety without obtaining a license from the Department of Insurance?
Yes, you can become a surety on a bond without being issued a license from the Department of Insurance. This is called an "accommodation bondsman" However, you must be 18 years of age, a resident of this state, and provide satisfactory evidence of ownership, value, and marketability of real property by pledging your collateral with the clerk of court. You cannot receive or promise money or other things of value for this service. (South Carolina Code Section 38-53-10(1)
9. What is the fee for a bondsman license?
The fee for a professional bondsman license is $400 and $200 for a runner bondsman license. (South Carolina Code Section 38-53-100(A & B).
10. What fee may a bondsman charge to the public?
The fee that a bondsman can charge to the public may not be less than $25 and may not exceed 15% of the face amount of the bond. (South Carolina Code Section 38-53-170 (E))
11. Can a bondsman accept collateral?
Yes, a bondsman is permitted to accept collateral security or other indemnity from the principal, which must be returned to the principal once the case has been disposed of by the court. A written receipt (full description) for the collateral taken must be given. (South Carolina Code Section 38-53-170 (E))
12. Is it required that a bondsman furnish a listing of bail bonds written to the clerk of court?
Yes, each professional bondsman is required to furnish his/her home county clerk of court and any other county where he/she is doing business a written report of all bonds he/she is liable for as of the first day of each month. This report must be submitted to the county clerk of court by the 15th day of each month. (South Carolina Code Section 38-53-230)
13. Can a person be licensed as both a professional bondsman and a surety bondsman?
Yes, however, if you desire to become license as a surety bondsman, you must first obtain a producer license and receive an appointment from a licensed insurance carrier.
14. When does a bondsman or runner license expire?
All licenses expire on June 30 of each year. (South Carolina Code Section 38-53-140)
15. What happens if a bondsman exceeds his bonding limitation?
A bondsman who exceeds his limitation may not sign, endorse, execute, or become a surety on any additional bail bonds or pledge or deposit any cash, check, or other security of any nature in lieu of a bail bond in any county in this state until he has made the additional deposit of securities. (South Carolina Code Section 38-53-300)
16. Who has the power to enforce the laws that govern bail bondsmen?
The Department of Insurance, clerk of court, and the State Law Enforcement Division (SLED) have full power and authority to enforce the provisions of Chapter 53. (South Carolina Code Section 38-53-20)
17. Can a runner bondsman work for more than one bail bondsman?
No. A runner bondsman can only work for one bail bondsman at a time who shall supervise the work of the runner and is responsible for the runner's conduct in the bail bond business. (South Carolina Code Section 38-53-120)
18. Are bondsmen subject to be audited by the Department of Insurance?
Yes. All bondsmen are subject to the same examination procedures prescribed by law for domestic insurance companies. The Department of Insurance has free access to all books and records of the bondsman as it relates to his bail bond business. (South Carolina Code Section 38-53-110)
19. What happens if a bondsman stops writing bail bonds?
A bondsman who discontinues writing bail bonds during the period he/she is licensed should notify the clerk of court(s) with whom he/she is registered and return his/her license to the Department of Insurance within 30 days after discontinuance of writing bail bonds. (South Carolina Code Section 38-53-220)
20. What is the total number of continuing educational hours required for a bondsman or runner to renew their license?
In addition to other requirements, each bondsman and runner is required to complete 6 hours of continuing education to renew their license. (South Carolina Section Code 38-53-85)
21. Can runners write bonds?
Yes. Runners are given a power of attorney from professional bondsmen to write bonds on their behalf. (South Carolina Code section38-53-10)
22. Is bounty hunting legal in South Carolina?
No. No one can perform bail bondsman functions without first being licensed.
23. Are there any educational requirements?
Yes. The total number of hours required for a bondsman or runner is 20 pre-licensing hours.(South Carolina Code Section 38-53-85). The total number of continuing education hours for a bondsman or runner is 6 CE hours. (South Carolina Code Section 38-53-85)
24. Are there any educational requirements?
Yes. The total number of pre-licensing educational hours required for a bondsman or runner is 20 pre-licensing hours. (South Carolina Code Section 38-53-85)
25. Are there any pre-educational requirements?
Yes. The total number of pre-licensing educational hours required for a bondsman or runner is 20 hours. (South Carolina Code Section 38-53-85)
26. Are there any fees required for a bondsman or runner?
Yes. a professional and surety bondsman is required to pay the clerk of court of his home county the sum of $150 annually for each licensee. There are no fees for a runner bondsman in his home county. Each bondsman, and runner is required to pay any other county where he is doing business the sum of $100 to the clerk of court. (South Carolina Code Section 38-53-100)
27. Are there any fees required of a bondsman or runner?
Yes. A professional and surety bondsman are required to pay the clerk of court of his home county the sum of $150 annually for each licensee. There are no fees for a runner bondsman in his home county. Each bondsman and runner is required to pay any other county where he or she is doing business the sum of $100 to the clerk of court. (South Carolina Code Section 38-53-100)
28. If a professional bondsman pledge $10,000, how much can he write in bail bonds?
A bondsman must maintain one-fourth the value of each bond written in securities with his home county clerk of court. Example: $10,000 bond executed will require a professional bondsman to have $2,500 in securities held in trust by the clerk of court. (South Carolina Code Section 38-53-270)
29. Are surety bondsmen required to pledge collateral?
No. All bonds written by a surety bondsman must attach a power of attorney in the amount of the bond set by the court. (South Carolina Code Section 38-53-260)
30. Can runners execute a bonds?
Yes. A runners can execute a bond only when a power of attorney has been recorded with the clerk of court issued by a professional bondsman on his behalf. (South Carolina Code section38-53-10)
31. Is bounty hunting legal in South Carolina?
No. No person may act in the capacity of a professional, surety or runner bondsman or perform any of the functions, duties, or powers prescribed for a professional, surety or runner bondsman without first being licensed. (South Carolina Code 38-53-80).
1. What are the types of bail bondsmen licensed in South Carolina?
There are three types of bail bondsmen licensed in South Carolina:
Learn more about the different types by viewing the types of bail bondsmen page.
2. What are the requirements to become licensed as a bail bondsman in South Carolina?
3. Can I become a bondsman without obtaining a license from the Department of Insurance?
Yes, you can become surety on a bond and act as an accommodation bondsman without being licensed by the Department of Insurance. However, you must be 18 years of age, a resident of this state, and provide satisfactory evidence of ownership, value, and marketability of real property by pledging your collateral with the clerk of court. You cannot receive or promise money or other things of value for this pledge. (South Carolina Code Section 38-53-10(1))
4. What is the fee for a bondsman license?
The fee for a professional bondsman license is $400, a surety bondsman license is $40, and a runner bondsman license is $200. (South Carolina Code Section 38-53-100(A)(B))
5. Can a person be licensed as both a professional bondsman and a surety bondsman?
6. When does a bondsman / runner license expire?
7. What is the total number of educational hours required for a professional bondsman, surety bondsman, and runner to retain their license?
Six hours of continuing education are needed every year for a professional bondsman, surety bondsman, and a runner to retain their licenses. (South Carolina Section Code 38-53-85)
Columbia SC 29202-3105
agntmail@doi.sc.gov
6. What is the turn-around time for paperwork submitted to the Department?
After the paperwork is received from the Department's Accounting Division, applications can be processed in 3 to 7 business days. The processing time depends on the amount of paperwork received by the Licensing Division.
7. How can I expedite the processing of my application?
To expedite processing time, non-residents may apply online at www.nipr.com.
8. Why can't I bring my money and application to the Department and receive my license on the spot?
There are several steps involved in processing an application. Paperwork with checks attached are sent to the Accounting Division for processing of the check. The Accounting Division enters the check number, name and FEIN/SSN. An invoice is generated for payment of the entity. After the invoice is generated, the licensing paperwork is forwarded to the Licensing Division. The Licensing Division must ensure each entity application meets the requirements established by state law. Once the information is verified and approved by our processors, the application is entered into the database. If all required paperwork has been submitted and additional information is not needed, the license is processed. Entities can check the status of their license on the Department’s website, https://online.doi.sc.gov/Eng/Public/Queries/AgncyLicSrch.aspx. When the license shows active, the license can be printed from the Department’s website, https://online.doi.sc.gov/Eng/Members/Companies/AgncyLicPrintTerms.aspx.
9. How do I find my entity license number?
a)	Go to the Department’s website at www.doi.sc.gov
b)	Select Online Services
c)	Select Search SCDOI Database under the General Public heading or at the top of the page
d)	Click on Search for Agencies or Search for Companies
e)	Enter the Agency or Company Name and click Search
f)	The entity’s license number will be shown there.
10. How can I obtain a copy of my license?
A copy of the agency license may be printed from the Department’s website at no cost by performing the following steps:
a.	Go to the Department’s website at: www.doi.sc.gov
b.	Select Online Services
c.	Select Print Agency License under the Registered Agency Users heading
d.	Click on the I Agree button at the bottom of the Terms of Use page
e.	Key in the FEIN and Agency Code in the format as shown next to the FEIN and Agency Code boxes and click Login;
Copies of Duplicate or Amended license can be obtained any time using steps a-f above.
Rental Car and Portable Electronics companies must contact our office for a copy of the license.
11. How do I change my address?
Agencies can change their address by using the Department’s online services. Each agency is assigned a userID and password when the agency becomes licensed in South Carolina. The userID and password is sent to the agency with the new South Carolina license. Agencies can change their address online at https://online.doi.sc.gov/Eng/Members/Login.aspx.
If the licensee is unable to change the address online, the address change must be submitted via US mail or email on the proscribed form found on our website.
The licensing division will not accept faxed address change requests. In addition, we will not accept third-party or unsigned address change requests.
12. My userID and password for my online account has expired. How can I have my userID and password reset?
You will need to send an email to the Department’s technology area at irmmail@doi.sc.gov and ask that your userID and password be reset. Make sure you include your name and your license number. Someone from the technology area will reset your information and contact you by email. The Department cannot provide you this information by phone.
13. I forgot my userID and password for my online account. How can I have my userID and password reset?
14. How do I change the name of the entity with the Department?
The entity must submit via US mail or email on the proscribed form found on our website with legal verification showing the change in the resident state.
If the name and FEIN are changing, a new license must be applied for.
15. How much are the license fees?
Agency	$40
Portable Electronics	$1000
Rental Car Company	$40
16. When do the licenses renew?
Agency	January 1-31	even numbered years
Portable Electronics	July 1-31	odd numbered years
Rental Car Company	December 1-31 even numbered years
17. How do I cancel my South Carolina license?
The entity must submit via US mail or email on the proscribed form found on our website. Only an officer may cancel the entity license.
18. How do I request a Letter of Certification?
A Letter of Certification may be requested either by mail with a $3 fee per letter or on-line at www.doi.sc.gov. “Online Services,” “Registered Agency Users”, “Generate Agency Certification Letter.” There is no fee for the online request.
19. How do I request a Letter of Clearance?
A Letter of Clearance may be requested via mail including a $3 fee per letter payable to South Carolina Insurance Department. The entity must submit a signed statement requesting the license be cancelled and a letter of clearance issued. A self-addressed stamped envelope is required with the request sent by US mail.
20. What are the basic requirements for obtaining a resident entity license in South Carolina?
The Business Entity and Rental Car Company must complete the licensing application and pay a $40 licensing fee. The Portable Electronics vendor must complete the licensing application and pay a $1000 licensing fee.
21. What are the basic requirements for obtaining a nonresident entity license in South Carolina?
The entity must be licensed for the same lines of authority in their state of domicile. The nonresident must complete an online licensing application and pay a $40 ($1000 for Portable Electronics vendor) fee at www.nipr.com.
22. How do I add a new line of authority to an existing license?
Neither an entity nor companies hold lines of authority in SC. The individual’s that are affiliated to the entity hold the lines of authority.
23. How do I transfer from resident to nonresident in South Carolina?
The entity must apply and become licensed in the new home state. Once the new home state has issued a license, the entity can apply and pay online at www.nipr.com for a nonresident license in South Carolina.
24. How do I transfer from a nonresident license to a resident license in South Carolina?
The license will need to be canceled in the previous home state. After the license is canceled, mail a completed application to South Carolina along with a $40 license fee.
25. May I send a completed application by fax?
No. The application must be completed online or mailed to the Department along with the fee.
26. Are appointments required in South Carolina?
Yes, for producers only.
27. Where may I find licensing forms?
Visit the Department’s website at www.doi.sc.gov under “Agents & Brokers” click on “Agency”, “Rental Car”, or “Portable Electronics Vendor”.
28. How can I verify my license status?
Verify license status by first clicking on “Online Services” then “Search SCDOI Database” on the Department’s home page. Click on “Search for Agencies” or “Search for Companies” enter either the SC Agency code or the name. Next click on “Search”. Once you have found the entity’s name, click on the entity’s name and this will take you to the “Agency Demographics and License Information” page. On this page you will find the license type, license status and license qualifications.
29. May an agency pay a finder's fee or referral fee to an unlicensed individual?
30. How can I obtain a copy of an entity file?
Put your request in writing to Steve Dubois at the South Carolina Department of Insurance or email to sdubois@doi.sc.gov. A fee will be charged for your request. The address is P. O. Box 100105, Columbia, SC 29202.
31. How many affiliated or designated responsible producers are required to maintain a business entity license?
According to Section 38-43-100 (H)(2) of the insurance law, a business entity is required to maintain a licensed producer responsible for the business entity license.
1. Why open a catastrophe savings account?
Catastrophe savings accounts allow you to set money aside, state income tax-free, to pay for qualified catastrophe expenses. The account is subject to dollar limitations. The amount you contribute to your catastrophe savings account can be deducted in computing your South Carolina taxable income.
Any interest earned by the catastrophe savings account will be exempt from state income tax and should be subtracted in computing your South Carolina taxable income. If you withdraw funds from your catastrophe savings account to pay for qualified catastrophe expenses, you do not have to include the withdrawal in your South Carolina taxable income.
2. What are qualified catastrophe expenses?
Qualified catastrophe expenses are expenses paid or incurred by reason of a major disaster that has been declared by the governor to be an emergency by executive order. These expenses include payment of insurance deductibles and other uninsured risks of loss from hurricane, rising flood-waters, or other catastrophic windstorm event damage.
Example: Tom has a $1,000 insurance deductible. Tom established a catastrophe savings account. Hurricane Devon made landfall in South Carolina and the governor declared a state of emergency. Tom can withdraw money from his catastrophe savings account to pay for the $1,000 insurance deductible. The $1,000 withdrawal will not be included in his South Carolina taxable income for that year.
3. What are the requirements of a catastrophe savings account?
The account must be labeled as “catastrophe savings account.” A taxpayer can establish only one catastrophe savings account and must specify that the purpose of the account is to cover insurance deductibles and other uninsured risks caused by hurricanes, rising floodwater, or other catastrophic windstorm events.
4. Who can contribute to a catastrophe savings account?
South Carolina residents who own a single family residence (house, condo, townhouse, or modular or mobile home) that qualifies as a legal residence for South Carolina property tax purposes can contribute to a catastrophe savings account.
5. Where can I establish a catastrophe savings account?
Catastrophe savings accounts can be established at a state or federally chartered bank. The account must be kept separate from all other accounts (e.g., checking or savings accounts, IRAs, medical care savings accounts, and so on). It must be maintained specifically for the purpose of qualified catastrophe expenses incurred by the account holder.
The account holder, not the financial institution, is required to maintain documentation to verify that the withdrawals from the catastrophe savings account were used exclusively for qualified catastrophe expenses.
6. Can I invest my catastrophe savings account in stocks and bonds?
No. Your catastrophe savings account can only be an interest bearing account.
7. How much can be deposited in a catastrophe savings account?
View the catastrophe savings account deposits page for information.
8. How do I report contributions to a catastrophe savings account on my South Carolina income tax return?
View the report catastrophe savings account contributions page for information.
9. How much will I save on state income taxes?
View the state income tax savings page for information.
10. Can I transfer money from my regular savings account into a catastrophe savings account?
Yes. Funds contributed to the catastrophe savings account can come from any source. Regardless of the source of the funds, the contribution can be deducted in computing your South Carolina taxable income.
11. How are interest earnings from my catastrophe savings account reported on my tax returns?
View the report interest earnings on tax returns page for information.
12. What records do I need to keep regarding withdrawals from my catastrophe savings account to pay for qualified catastrophe expenses?
Account holders who make a withdrawal from their catastrophe savings account to pay for qualified catastrophe expenses should keep records to verify, in case of an audit, that withdrawals were properly used to pay qualifying expenses.
13. What if I withdraw the money in my account for purposes other than qualified catastrophe expenses?
View the unqualified catastrophe expenses page for information.
1. When will the Quarterly Tax Application be available?
The Quarterly Tax Application is available after May 15th of each new calendar year.
2. How do I log into the Company Tax Application?
You can log into the Company Tax Application one of two methods. (A) Click on Online Services from our home page; scroll down to Registered Company Users; choose File/Amend Tax Return or File Quarterly Taxes. You will need your user id and password to log into the applications. (B) Click on SCDOI Connect Login from our home page and enter your user id and password.
1. Who is required to meet the continuing education (CE) requirements?
All licensed resident producers in South Carolina who are not exempt must complete 24 hours of continuing insurance education. Three of these hours must be in ethics; eight hours must be in each line of authority held. The remaining hours may be taken in any line of authority.
Extensions will not be granted.
2. Who is exempt from meeting the continuing education (CE) requirements?
An insurance producer licensed for limited lines is exempt from the provisions of Section 38-43-106.
1. What happens if I do not earn my continuing education (CE) credit hour requirements or pay my record-keeping fee?
View the Consequences of Failure to Comply page for information.
2. What happens if I do not renew my producer license?
Failure to renew the license will result in the lapse of the license on the day following the licensee’s compliance deadline. Producers may reinstate a license by paying a penalty fee to the South Carolina Department of Insurance. The amount of the penalty fee is based on the date the license is renewed. If renewed within 30 days, the penalty fee is $50; if renewed within 31-60 days the penalty fee is $100; if renewed 61 days and after the penalty fee is $250. If renewal is not completed within six months of the license being lapsed, the license and all appointments will be canceled. To regain licensure the producer will be required to reapply and meet all the requirements of a new applicant.
1. How many credit hours must I earn to meet the requirements?
A total of 24 hours is required by the end of your compliance period, and of those required 24 credit hours, at least three hours must be from courses categorized as Ethics.
2. What if I hold life, accident, health, property, and casualty lines of authority?
If you hold property, casualty, life, accident, and health authorities, you must complete at least eight of the 24 required hours in courses related to each of these lines of authority, plus three hours of Ethics. If you earn more than three Ethics credits, they will be applied towards your 24 hour credit requirement.
3. What if I received a reduction in continuing education (CE) hours by December 31, 2009?
Producers that received a reduction in hours will have to complete 15 hours of CE biennially by the last day of their birth month/year; three of the 15 hours must be in Ethics. Producers with reduced compliance and hold multi-lines must complete six hours in Property and Casualty; six hours in Life, Accident, and Health; and three hours of Ethics. Producers that add additional lines of authority or allow their licenses to become inactive will lose their reduction in hours.
4. Can I repeat a continuing education (CE) course within the biennial period?
A producer may repeat a continuing education course, but credit must not be given more than once for a course repeated during a biennial compliance period and within two years of its original completion date.
5. Can I carry over credits to the next biennium?
Producers who accumulate credits in excess of the continuing education requirements for a biennium may apply a maximum of 18 credits to the next compliance period.
6. How will I know which courses will qualify for continuing education credit hours?
You may access a list of approved courses on Prometric’s website. On advertisements, look for courses which have been approved for South Carolina continuing insurance education credit. If you have any doubt, call Prometric at 1-800-490-6551 and request a listing of all approved courses and sponsors.
7. Can I receive continuing education (CE) credit for maintaining an insurance designation?
Yes. Visit the Insurance Designation as CE Credits page for more information.
8. How can I contact the continuing education administrator?
Contact Prometric by email, by phone at 1-800-490-6551, or by fax at 1-800-735-7977. Program information and additional services are available on their website. The mailing address is:
Prometric Operations Center
ATTN: Continuing Education Processing
9. What is required of a proctor/disinterested third party?
In accordance with the changes to Regulation 69-50 regarding proctor approval, we are no longer approving proctors. Producers are no longer required to use a state approved proctor to proctor their continuing education courses. They may now use any disinterested third party to proctor their exam. That third party may not be their employer, employee, supervisor, relative, spouse, or minor.
1. What is the continuing education (CE) reporting fee?
The biennial fee is $15. Resident producers subject to the CE requirement must pay the CE reporting fee. The fee must be paid biennially by the last day of your birth month/year. Producers cannot be compliant if the fee is not paid even if other requirements have been met.
2. How can I pay the fee?
Prometric will send a fee notice to your address on record 90 days prior to the end of your compliance period. You may pay your reporting fees on Prometric’s website.
You may also pay by check, American Express, Visa, or MasterCard. Make checks payable to Prometric and mail to:
3. What happens if I fail to pay my fee by the last day of my birth month?
Your license will lapse. If the fee is paid late, in addition to payment of the fee a $50 late penalty fee must be paid to the South Carolina Department of Insurance. You cannot be compliant unless the fee is paid. View the Consequences of Failure to Comply page for non-compliance information.
1. What is the date by which I must complete 24 hours of South Carolina continuing education (CE)?
On June 2, 2009, the Governor signed into law Act No.69. This new law requires all licensed producers except limited lines producers and exempt producers to complete CE requirements biennially by the end of their birth month. Producers born in an odd numbered year must comply biennially by the end of their birth month every odd numbered year. Producers born in an even numbered year must comply by the end of their birth month every even numbered year. Producers must also renew their license by the end of their birth month in an odd or even numbered year. No one is exempt from renewal requirements except limited lines producers with travel baggage only.
1. How do non-resident licensed producers comply with continuing education (CE) requirements?
Non-resident producers are not required to comply with CE in South Carolina. They must meet the CE requirements of their home state.
1. How will credit hours be counted and reported?
The course sponsor must give you a certificate of course completion. They must also provide this information to Prometric, the continuing education (CE) administrator, electronically or on an approved roster. Sponsors may obtain an approved roster by contacting the department’s Continuing Education Division by calling 803-737-6223.
2. Am I required to provide my social security number to continuing education (CE) providers or to Prometric?
No. Prometric’s system only accepts your South Carolina license number. You must provide your South Carolina license number.
3. How will I demonstrate that I have completed the continuing education (CE) requirements to the CE administrator?
Producers can verify their credits and compliance status at Prometric’s website or by calling Prometric’s toll-free number at 1-800-490-6551.
4. How will I know if I have not complied with my continuing education (CE) requirement?
Approximately 90 days before your compliance deadline Prometric will mail a warning notice to the address on record for each resident who is not yet compliant. Producers should contact Prometric to find out if they have complied with CE.
5. How will my company know that I have completed the required continuing education (CE) hours?
On or about July 1, 2014, Prometric will furnish each insurer a report of the continuing education status of all of its resident producers with a CE requirement. In addition, insurers can perform a search of South Carolina's database to determine which producers have lapsed for their company.
1. What are the requirements for a newly licensed resident producer?
A total of 24 hours is required by the end of your compliance period. Of those 24 credit hours, at least three hours must be from courses categorized as Ethics. In addition, a biennial fee of $15 is required. Resident producers subject to the continuing education (CE) requirement must biennially pay the CE reporting fee by the last day of your birth month/year. Producers cannot be compliant if the fee is not paid even if other requirements have been met.
2. What are the requirements for a newly licensed non-resident producer?
Effective January 1, 2012, non-residents are no longer required to pay a continuing education (CE) fee to Prometric.
1. What is the cost for fingerprinting?
2. Do adjusters have to be fingerprinted?
Adjusters do not have to be fingerprinted. This requirement is for resident producers only.
3. Can I use fingerprints obtained for a securities license or for any other reason?
Unfortunately, no. You will have to pay for a new set of fingerprints and SLED background check.
4. Do non-resident producers have to be fingerprinted?
5. Is this a one-time requirement for renewal?
At this time, it is a one-time requirement for renewal.
6. If I fail to renew or comply with Continuing Education, will I have to be fingerprinted again?
If your resident license goes inactive, you will have to obtain fingerprints again along with a passing exam certificate, application, and license fee.
7. How do I submit my fingerprint receipt to the Department?
You may email (agntmail@doi.sc.gov) or fax (803-737-6100) your fingerprint receipt to our office with your SC license number or NPN included on the receipt.
8. Am I required to obtain fingerprints if I am moving to SC to become a resident producer?
Fingerprints will not be required as long as your previous home state license was canceled and you apply to our office for the resident license within 90 days of the cancellation.
9. If I am already licensed as a resident producer and want to apply for another type of license, do I have to submit a new SLED report?
As long as you hold an active resident producer license, our office will not require you to obtain a SLED report when applying for another resident license (adjuster, appraiser, public adjuster, or surplus lines broker).
10. If I fail to renew my license or fail to comply with my Continuing Education requirements and my license cancels, will I be required to be fingerprinted again?
If your license cancels and you have to reapply, you will have to resubmit fingerprints.
11. Does a licensee have to use IdentoGo to obtain fingerprints?
12. Can a licensee go to their local police station to obtain fingerprints?
13. Is there a fee or fine if fingerprints are not submitted by the end of my compliance period?
There is no fee or fine for failure to submit fingerprints. However, if fingerprints are not submitted by the last day of the birth month, the license will lapse for failure to comply. The producer will then have 6 months to reinstate the license. If fingerprints are not received before the lapse period is over, the license will cancel and you will have to start over with a new application, test, fingerprints, and license fee.
1. Is my employer required to offer me health insurance coverage?
There is no law on a federal or state level that requires an employer to offer health insurance coverage. An opportunity to purchase health insurance is a benefit, not a law.
2. Can my employer change our health insurance carrier and level of benefits during the year?
Yes. It is completely up to the employer whether or not they will offer health insurance to employees at all and they can change carriers and level of benefits at any time.
3. Are all group health insurance policies regulated by the South Carolina Department of Insurance?
No. Many plans are self-funded and do not fall within the jurisdiction of this department. Plans that are not regulated by the South Carolina Department of Insurance fall under the laws of the U.S. Department of Labor, Employee Benefits Security Administration. You may contact them by calling 1-866-444-3272.
4. What happens to my group health coverage if I leave my employer?
You may be eligible for protection under the Consolidated Omnibus Budget Reconciliation Act (COBRA) law and entitled to a minimum of 18 months of continuation coverage. You can find out more about COBRA continuation of group health benefits from the U.S. Department of Labor, Employee Benefits Security Administration. You may contact them by calling 1-866-444-3272.
5. After terminating employment, how long is my employer required to continue my insurance, and under the new federal law, isn't this coverage free and shouldn't it last forever?
The South Carolina Department of Insurance does not regulate employers. Most employers terminate coverage at midnight on the day you leave. The employer should offer you the option of continuing your insurance through Consolidated Omnibus Budget Reconciliation Act (COBRA) (if he has 20 or more employees) or through the State Continuation of Benefits (if he has less than 20 employees and you have been covered by the group plan for six consecutive months).
Please note that under COBRA or State Continuation of Benefits, the former employee must pay the employer's portion, the employee's portion, and on COBRA, the employer may charge a 2% surcharge. There are limitations to the periods of time one can be covered. Please call us at 803-737-6180 for more information.
6. What happens when my group health coverage ends?
You have two options. You can apply for individual health coverage. The individual health insurance company underwriters do have the right to accept or reject your application. If they chose not to accept you under their plan then you would be eligible for the South Carolina Health Insurance Pool (SCHIP). The SCHIP is a state health plan designed to provide coverage for those who either do not have or have lost medical coverage at no fault of their own and are uninsurable. The SCHIP coverage is not an insurance policy nor is it a Blue Cross Blue Shield of South Carolina policy. The SCHIP coverage is administered by Blue Cross Blue Shield of South Carolina.
7. My health insurance company has not paid my claim. What is the time frame for a company to process the claim?
If it is a fully insured group plan, then a claim should be either paid or denied within 60 days of receipt of all information needed to process the claim.
8. I asked my employer to cancel my coverage due to lack of income. He says he can't do that until January 1. Why?
Apparently, your employer is deducting your insurance premiums from your paycheck prior to assessing income taxes. There are only certain situations in which the federal government allows you to make changes in your deductions, except at the beginning of your new tax year. If you wish to have the specifics on this situation, please call the federal IRS at 1-800-829-1040. That is a tax regulation, not an insurance regulation.
9. What is a “self-insured” plan?
An employer may choose to “self-insure” by paying out benefits from its own funds. Typically, an insurance company is used to administer the program, but the liability for paying for the care of the workers rests on the employer. It is important for workers to understand that if their employer “self-insures,” state patient protections (such as access to internal and external appeals processes, assurance of certain benefits, and the right to have grievances heard by the state insurance department) do not apply. All federal protections (i.e., Health Insurance Portability and Accountability Act [HIPAA] and Consolidated Omnibus Budget Reconciliation Act [COBRA]) do remain.
1. What is Medicare supplement insurance?
The federal Medicare program pays most medical expenses for people 65 or older or for individuals under 65 receiving social security disability benefits. However, Medicare does not pay all expenses. As a result, you may want to buy a Medicare supplement policy that helps pay for certain expenses, including deductibles not covered by Medicare.
2. When should I apply for a Medicare supplement policy?
If you are 65 or older and elect coverage under Medicare Part B, either due to age or disability, you have a six-month open enrollment for a Medicare supplement policy, which guarantees you coverage with a plan and company of your choice. You may choose from a list of standardized plans – listed as A through L. If you do not purchase a plan within your six-month open enrollment, any company you apply to can deny coverage based on your health conditions. There are some limited additional open enrollment periods available to some persons disenrolling from a Medicare health maintenance organization (HMO).
3. Do Medicare supplement policies cover prescription drugs?
Medicare supplement policies may not include prescription drug coverage. Those who currently have a policy with prescription drug coverage may opt to keep that coverage or switch to the new Medicare prescription drug plans.
4. What are Medicare advantage plans?
Medicare Advantage plans (formerly known as Medicare+Choice plans) are private managed care plans that provide the standard Medicare benefits, plus additional supplemental benefits for a monthly fee. These plans may include prescription drug coverage. Medicare Advantage participants may even receive a subsidy for their prescription drug benefits in most cases.
5. What are Medicare select plans?
Medicare select plans provide supplemental benefits through a network of providers similar to a Preferred Provider Organization (PPO). If the participant received care for a provider under contract with the insurer, the cost will be lower.
1. What is the purpose of the Small Employer Health Insurance Availability Act?
The purpose of the Small Employer Health Insurance Availability Act is to promote the availability of health insurance coverage to small employers regardless of the health status or claims experience of their employees.
Under the Small Employer Health Insurance Availability Act, any eligible small employer who wishes to have group health insurance coverage for its employees, regardless of the health conditions in that employer group, can obtain health insurance coverage.
The Health Insurance Portability and Availability Act of 1996 (HIPAA) required that all products in the small employer market issued or renewed after July 1, 1997, must be guaranteed to be issued to a small employer group, regardless of the health status of its members.
An employer group of 2-50 eligible employees. The employer must have employed no more than 50 eligible employees on at least 50% of the company’s working days in the last calendar year.
Require employees to complete an application for coverage, including health history.
Impose participation requirements on the group. That is, an insurer may require that a certain percent age of eligible employees be enrolled in the insurance program in order for a group to qualify.
Require documentation from the employer concerning the business and hours worked by the employees.
Consider an employee a late enrollee if he does not enroll within 30 days of becoming eligible for the coverage.
3. What happens if I don’t enroll when I am initially eligible?
If you do not enroll in the small employer group health insurance plan when you are first eligible, and decide to get the coverage later, then you will be considered a late enrollee.
In some instances, an employee may waive coverage under a small employer group, because he has other coverage. If that coverage is later lost, then that employee will not be considered a late enrollee if all of the following requirements are met:
The employee was covered by qualified previous coverage at the time he waived initial enrollment in the employer’s group plan.
The employee lost that qualified previous coverage as the result of termination of employment or eligibility, the involuntary termination of qualifying previous coverage, death of a spouse, or divorce.
The employee requests enrollment in the employer group health plan within 30 days of the termination of the qualifying previous coverage.
4. What happens if I am a late enrollee?
The insurer may:
Exclude you from coverage for 18 months
Impose an 18-month pre-existing condition exclusion
Impose both a period of exclusion from coverage and a pre-existing condition exclusion
However, the combined period must not exceed 18 months.
5. Can a pre-existing condition be excluded from coverage under the Small Employer Health Insurance Availability Act?
Yes. However, if you were previously covered under a creditable coverage and there was less than a 63 day break in coverage, then waiting periods met under the creditable coverage will be credited toward satisfying the pre-existing waiting periods under your new group policy.
6. What is creditable coverage under Health Insurance Portability and Availability Act of 1996 (HIPAA)?
A group health plan - whether fully insured or self-funded
Comprehensive individual health insurance coverage
Note: Waiting periods imposed by a new employer before you are eligible for coverage do not constitute a break in coverage.
7. Does a husband and wife constitute a group?
Yes, if they each meet the definition of eligible employee. Each must pay an employee premium.
8. If my group purchases a guaranteed issue policy from one insurer, does that policy cost the same through all insurers?
No. Each insurer can determine its rates for a group based on the claims experience for all small employers insured by that insurer.
Your rate for your guaranteed issue policy can be affected by several factors, including: age, gender, geographic area, industry, and family composition. In addition, your group, not one individual, can be charged more due to the health conditions of members of the group.
Prior to June 10, 1997, premium rates in the small employer group market were based on a modified community rating. With the change in legislation on June 10, 1997, a carrier in the small employer market is allowed to charge no more than 25% over the index rate for a small employer group with health conditions.
9. Can an employer offer coverage only to a certain classification of employees?
No. An employer cannot “classify” employees. Eligible employees are defined as: employees of a single employer, the officers, managers, and employees of the employer and of subsidiary or affiliated corporations of a corporate employer and the individual proprietors, partners; and employees of individuals and firms the business of which is controlled by the insured employer through stock ownership, contract, or otherwise, who:
Work on a full-time basis
Have a normal work week of 30 or more hours
10. Which insurers are marketing the guaranteed issue products?
The South Carolina Department of Insurance will maintain a listing of insurers marketing to small business employers.
The listings will be updated as insurers are added to the market.
11. Whom do I contact if I have more questions?
Your agent should be able to answer your questions for you. If not, then please feel free to contact the Consumer Services Division of the South Carolina Department of Insurance in Columbia at 803-737-6180 or 1-800-768-3467. You may also write to the department at:
1. The insurance company has non-renewed my homeowner's policy. Can they do that?
Your company can non-renew for any reason so long as the two requirements mandated by law are met. First, the company is required to put in writing the precise reason for the non-renewal. Second, the company must give 60 days advance notice for any non-renewal that would be effective between November 1 and May 31 and 90 days advance notice for any non-renewal that would be effective between June 1 and October 31. Section 38-75-740
There is, however, one exception. A policy can be non-renewed for claims even if the claims have not been your fault, though the law does not allow non-renewals for claims history if your only claims have been acts of God. Acts of God claims cannot be used when determining claim frequency. Section 38-75-790.
2. I just took out a new homeowner's policy and the company has notified me they are going to cancel my policy. Can they do that?
During the first 120 days, an insurance company can cancel for any reason. The law only requires 30 days notice be given. Section 38-75-730(c)
3. When can an insurance company cancel my homeowner’s coverage during the policy term?
Generally, your policy can be canceled for these reasons:
Material misrepresentation / fraud
Conviction of a crime arising out of acts increasing the hazard insured against (for example, conviction for illegal storage of fireworks)
Discovery of willful or reckless acts or omissions by the insured increasing the hazard insured against (for example, not getting a gas leak fixed)
Physical changes in the property insured which result in the property becoming uninsurable (for example, should the home become vacant for more than 60 consecutive days, a greater exposure to vandalism and damage is assumed to exist)
A determination by the director of insurance that continuation of the policy would place the insurance company in violation of the law
4. I have had my homeowner's policy for five months and now the insurance company says they are going to cancel because I had claims with another company. Can they do that?
If you did not answer all questions correctly on the application, a company can mid-term cancel for material misrepresentation of facts. Section 38-75-730
The company must give 30 days notice and the reason must be stated.
5. I have a homeowner's policy. Is my home covered for damages caused by high winds or tornadoes?
Most homeowner policies cover damages to the dwelling caused by tornadoes or other wind damage. The homeowner policy covers the dwelling and personal contents items inside the home. The homeowner policy also covers storage buildings and other outside structures on the insured premises, including personal items inside the building.
6. Am I covered for wind damage if I have a mobile home policy?
Most mobile home policies will cover losses caused by wind. Storage buildings on the same premises of a mobile home are also generally covered under the mobile home policy. Most mobile home policies will also cover additional living expenses for the homeowner and his family if the mobile home was damaged by a covered loss such as wind.
7. Will the damages, caused to my home by flood or rising water, be covered under my homeowners policy?
Most homeowner and fire policies, with extended coverage, will not cover flood damages or claims resulting from rising water. Generally, a homeowner would need a flood insurance policy from the National Flood Insurance Plan to have protection for this type of loss.
8. What must I do after a loss occurs to my home or other property?
The homeowner's policy requires the owner to protect his property from further damage following a loss. Generally, the cost of protecting the property from further damage is covered. Examples of the expenses covered include: tarps, polyethylene, lumber, shingles, sidings, etc. The homeowner should also begin making a list of damaged items for the insurance company. This will allow for the claim to be handled in a timely manner.
9. How long should I wait for the insurance company to handle my homeowner's claim?
Most individuals with insurance claims receive contact from the insurance adjuster within 48 hours after the claim is reported. The resolution period of a claim will vary, depending upon how extensive the damage from a catastrophe. Generally, the insurance adjuster will schedule a time to meet with the homeowner and adjust the loss.
10. Will my insurance policy pay for my family to live somewhere else while my damaged home is being repaired?
Most homeowner policies include coverage for additional living expenses. This coverage is designed to cover additional living expenses while repairs are being made to the damaged home. The company / agent should be contacted immediately.
11. If the insurance company and I cannot agree on the amount that it will take to repair my home, do I have to file suit?
No, your first step should be to utilize the appraisal provision of your policy. You will find it under "Selection I - Conditions" of your policy contract.
12. Are deductibles required and, if so, what are they?
Yes, most homeowners forms contain deductible provisions applicable to losses occurring under Section I (Section I losses include (a) dwelling, (b) appurtenant structure, (c) unscheduled personal property, and (d) additional living expenses.) The type and amount of deductible varies by company. Deductible provisions do not apply to Section II losses (Section II losses include personal liability [bodily injury and property damage] and medical payments to others). Some companies offer an optional deductible applicable only to wind or hail losses. Most offer higher deductible options such as $500 or $1,000 at a reduced premium.
13. My house was completely destroyed by fire. I'm trying to collect on my personal property that I had in the house, but the insurance company is telling me I need an inventory. Can they do that?
Yes. Whether your policy pays for the replacement or just the actual cash value, the company is only obligated to pay for personal property that you can show you owned at the time of loss. It is a very good idea to keep an up-to-date inventory in a secure place. Also, to help you remember what you had, it is helpful to take pictures of each room and keep them with your inventory.
14. Our sump pump failed and the insurance company is denying our claim because the water backed up through our sewer. Can they do this?
Most insurance policies exclude water damage for water which backs up through sewers or drains. You may wish to contact your agent to inquire about putting an endorsement on your policy, which would cover sewer back up.
15. My boat was stolen and now my insurance company will not pay the claim on my homeowner’s policy. Can they deny my claim?
Theft to watercraft, including furnishings, equipment, and outboard motors, are typically excluded if the theft occurs outside your residential premises. To adequately cover your boat and its accessories, you should contact your agent regarding a separate policy covering the boat.
16. During a storm, a tree from my neighbor’s yard fell and destroyed my fence. Does my homeowner’s policy pay for the damage or does my neighbor’s policy?
Generally, your own policy should cover the loss. Your insurance company may be able to recover the amount it pays you for the loss and your deductible from the homeowner's insurance that your neighbor may have if the loss occurred as a result of your neighbor’s negligence.
1. I purchased a life insurance policy and now I have decided I don't want it. My agent told me I have a "free look" period. What does "free look" mean?
You are allowed no less than 10 days from the date a life insurance policy is delivered to review and evaluate the policy. A policy sold by mail order must provide a 30-day review period. Should you elect to return the policy for any reason during the "free look" period, the insurance company must refund any premium you paid
2. Can an insurance company void my policy if I made a mistake in completing the application?
The insurer may contest a life insurance policy during the first two years after its date of issue. If the insurer finds that a material misrepresentation was made in the application that would have affected the insurer's decision to issue the policy, the carrier may void the policy. The company would have the responsibility only to refund premiums paid.
3. A family member has died. We are sure that he had insurance policies but we cannot find any. Can you check to see what policies exist?
The National Association of Insurance Commissioners (NAIC) offers a free, secure, national service that allows you to search for a deceased person's lost life insurance policies and/or annuities. You can access the NAIC Life Insurance Policy Locator by going to doi.sc.gov/lpsearch.
4. When I bought my life insurance policy, the agent said it would be "paid up" after ten years, but it’s been that long and I’m still getting bills. Why?
Your contract (insurance policy) may provide for guaranteed interest rates and/or dividends the insurance company will pay on your premiums. But your premiums must make very high earnings before they will "pay up" your policy. The company must stand behind items that are guaranteed in the contract. Promises of "paid up" life insurance are illegal when based on non-guaranteed values. You would need documentation of the agent promising this. Documentation would include any writing containing the promise -- even an informal, handwritten note or a similar notation by an agent.
5. Who can take out a policy on my life?
6. Must my beneficiary have an insurable interest?
No. If you buy a policy on your own life, you become the owner of the policy. As the owner, you can name anyone as beneficiary... even a stranger!
Fraternal benefit policy laws differ and additional information on this issue can be referenced in Title 38, Chapter 38 of the SC Code of Laws.
7. What about companies that advertise "no physical exam?"
8. Some life insurance ads claim "you cannot be turned down." What's the catch?
9. Why is term life often called "temporary" insurance?
Insurance agents sometimes refer to term insurance as "temporary" because the term policy lasts only for a specific period. It is probably no more "temporary" than your auto or homeowner insurance. Term policies provide coverage for a specific period of time and must be renewed when that period ends.
10. Why are some insurance agents reluctant to sell term insurance?
An agent may believe term is risky, but only because you could have a hard time buying a policy in the future if your health deteriorates or you cannot afford the higher premiums. Commissions could also be a reason for an agent who discourages term. The agent often makes less money for selling term policies than for other forms of life insurance.
11. What do I get when I buy term insurance?
12. Does that mean I've wasted my money if I don't die during the term?
13. An insurance agent has suggested I switch term companies every couple of years to take advantage of the company's promotional rates in the first couple of years. Anything wrong with that?
Nothing wrong, but there is always a risk when you switch polices that you could be subject to a new contestability period. You start a new 2-year contestability period anytime you switch. If you die during that 2-year period, the insurance company can (and probably will) investigate the statements you made on your application. If you've given inaccurate or incomplete answers, the company may (and probably will) refuse to pay the death benefit.
14. I understand my permanent policy would be "fully paid up" at age 65. What does that mean?
15. What happens to the cash value after the policy is fully paid up?
16. I had a policy that was paid up; now I'm told I don't. What can I do?
You may have signed papers that permitted the cash value of your paid up policy to be used to pay for another, larger policy. If you're not sure or can't remember, call the insurance company.
17. What is a "participating" policy?
It is a policy that may pay you dividends. You have a chance to "participate" in the company's earnings. A life insurance dividend is actually a refund of part of your premium. When a company collects more money in premiums than it needs to pay death claims and maintain the insurance pool for future claims, the company may pay dividends at the end of that year.
18. How much cash value is in my policy?
19. What happens to the cash value in my policy when I die?
1. If a company already complies with a PPACA requirement, do they have to file anything with the Department of Insurance?
Yes, please review the filing requirements listed in Bulletin 2010-04. The Uniform Compliance
Summary provides for each category, including a description and page number. This, along with
the certification will confirm compliance.
2. What plans are considered grandfathered?
Plans that were in effect as of March 23, 2010, and have maintained their grandfathered status per regulation are considered grandfathered.
3. What immediate health insurance reforms affect grandfathered plans for form filing requirements?
Dependent coverage for children until age 26
Individual lifetime dollar limits on essential benefits
Prohibition of rescission
Small / Large Group
Eliminate annual dollar limits on essential benefits
Eliminate lifetime dollar limits on essential benefits
Eliminate pre-existing condition exclusions for enrollees under age 19
4. How should the changes to the grandfathered plans be submitted to the department?
The changes should be made as amendments to the original product as specified in Bulletin 2010-04.
5. What are the plans effective March 24 through September 22, 2010 considered; grandfathered or non-grandfathered?
6. What reforms affect the plans in effect March 24, 2010 through September 22, 2010?
All immediate market reforms as specified in Bulletin 2010-04 that are required of all non-grandfathered plans apply to these.
7. Can the changes to the non-grandfathered plans be made via amendment or does a new product have to be filed?
A new product must be filed because a single product number cannot offer different coverages.
A ‘me-too’ filing may be made with a new form number and the appropriate amendments.
8. What are the filing requirements for the prohibition of discrimination based on salary since it is not included on the Uniform Compliance Summary?
The same filing requirements as the other reforms must be adhered to. The category can be
manually filled in. It applies to non-grandfathered group health plans.
9. What are the filing requirements with regard to the internal and external review processes?
Internal claims appeal process:
Grandfathered plans have no filing requirements.
Non-grandfathered plans – all plans – new product must incorporate Department of Labor’s claims and appeals procedures.
Non-grandfathered plans - all plans - must meet current state law requirements.
The department has until July 1, 2011, to adopt most recent model act at which time plans must comply with the new model act.
10. How will the rates be treated for the PPACA filings?
The current rating statutes apply. However, it is important to note that the new Medical Loss Ratio standards become effective Jan. 1, 2011. These new standards must be reflected in new rate filings. Also, the Department of Health and Human Services is establishing guidelines to define ‘unreasonable’ rate increases. Additional filing requirements may be required when the new regulations are developed.
1. What is the license fee for an insurance premium service company?
The annual license fee is $1,000 payable to the department by March 1 (biennial), according to Section 38-39-20(b) of the South Carolina Code of Laws.
2. How long does a premium service company have to keep its records?
Every licensed insurance premium service company must keep and maintain its records for at least three years after making the final entry on any premium service agreement. The records must be open to examination and investigation at any time by the department, according to Section 38-39-50 of the South Carolina Code of Laws.
3. What are the cancellation procedures for an insurance premium service company?
The premium service company must deliver to the insured a 10-day notice of its intent to cancel the insurance contract. No less than five days after the expiration of the notice, the insurance premium service company may request in the name of the insured cancellation of the insurance contract by delivering the notice of cancellation to the insurer, according to Section 38-39-90 of the South Carolina Code of Laws.
4. What is the maximum fee an insurance premium service company can charge on a delinquent account?
The maximum fee of a delinquent account may not exceed 5% of the installment, according to Section 38-39-80(g) of the SC Code of Laws.
5. How much is the initial charge for an insurance premium contract?
The initial charge for an insurance premium contract can be up to $20, which may not be refunded. This is according to Section 38-39-80(d) of the SC Code of Laws.
6. Can an insurance premium service company charge the non-refundable fee twice?
An insurance premium service company cannot induce an insured to become obligated under more than one premium service agreement for the purpose of obtaining more than one nonrefundable charge. Additionally, an insurance premium service company cannot intentionally cancel an insurance contract for the purpose of obtaining an additional nonrefundable charge on a new premium service agreement accepted within sixty days of the cancellation of the prior agreement. This is according to Section 38-39-80(f) of the SC Code of Laws.
7. What happens if a policy is cancelled and there is a premium credit?
If the crediting of return premiums to the insured’s account results in a surplus over the amount due from the insured, the insurance premium service company must refund the excess to the insured or the agent of record. A refund is not required if it amounts to less that $5, according to Section 38-39-90(f) of the SC Code of Laws.
8. What are the procedures if the owner or partner of an insurance premium service company dies; withdraws from the company; is arrested, indicted or convicted by state or federal law enforcement; has t
In this case, the department must be notified by registered or certified mail no later than 10 days after the event occurs, according to Regulation 69-10-12.
1. How do I apply for a SC Safe Home Grant?
To apply for a SC Safe Home grant, please visit Apply for a Grant on the SC Safe Home webpage and submit an application via the online portal.Video tutorials are available to assist applicants with the application submission process.
2. I forgot my password, how do I reset it?
If you are having trouble logging in, click Reset Password on the login page of the SC Safe Home webpage. From there you will be prompted to enter the email address you used to sign up for the SC Safe Homewebsite. If the email address you enter is valid, a password reset link will be sent to the email address.
3. Can I go ahead and do home improvements and then get reimbursed by the department?
No, the program cannot reimburse you for retrofits you have already done, in accordance with state law. You must have an inspection and receive grant approval from the SC Safe Home before the retrofits are done to be eligible..
4. Do I qualify for a SC Safe Home Grant?
To qualify for a SC Safe Home grant, the home must meet the following requirements; the home must be located in the coastal region of South Carolina, must be owner-occupied, primary residence, site built or manufactured/modular, must not have existing previous damage, and the home and homeowner together must not have previously received and utilized a SC Safe Home grant.
5. How do I make changes or corrections to my application?
It is sometimes necessary to submit changes or corrections to an application submission. If any errors are identified in a submission they must be corrected. To make these corrections, contact the SC Safe Home staff at (803) 737-6207 and our staff will be happy to make the necessary changes for you.
6. How do I find the status of my application?
You may check the status of your application by logging into the SC Safe Home online portal.
7. How long do I have to complete a retrofit?
Approved recommended improvements must be completed within three months of the date of the Grant Award Notification letter.
8. How do I find an inspector or contractor?
It is the responsibility of the homeowner to contact a wind inspector. It is also the responsibility of the homeowner to pay the certified wind inspector for the Wind Inspection Report. Please note that wind assessments and reports will not exceed $150.00. SC Safe Home requires the estimate for the retrofit to be submitted along with the completed SC Safe Home grant application. SC Safe Home encourages homeowners to “shop” the list of participating contractors to get more than one estimate for the specified retrofits. Please request proof of insurance and licensure from the contractor of your choice.
9. Do I qualify if I rent my home?
No, the funds provided by this program are for the sole purpose of retrofitting South Carolina owner-occupied, single-family homes.
10. What does the color of the status bar mean when I log in?
If the status bar is highlighted in green, the South Carolina Safe Home program is currently accepting new applications. If the status bar is highlighted in yellow, the South Carolina Safe Home program is currently accepting limited new applications. If the status bar is highlighted in red, the South Carolina Safe Home program is not accepting new applications.
11. If my roof is already damaged, do I qualify?
No, in order to qualify for a SC Safe Home grant, the home must not have existing or previous damage.
12. Do apartments, duplexes or townhomes qualify?
No, the funds provided by this program are for the sole purpose of retrofitting owner-occupied, single-family homes.
13. I do not have internet access and/or an email address to submit my application electronically, what are my options?
SC Safe Home has implemented an online application process to ensure efficiency and to provide better customer service and communication. The online application will allow you to keep track of your application’s tasks and status throughout the process. Free internet access is available at all public library locations. In addition, there are many free, web-based email providers that are currently available to suit your needs and it only takes a few minutes to create an email account. You may submit a paper application, however, the application will be received in a timelier manner when submitted electronically.
14. Which counties are eligible to receive SC Safe Home grant funds?
Currently, the Department of Insurance SC Safe Home program awards grant funds to Beaufort, Berkeley, Charleston, Colleton, Dorchester, Florence, Georgetown, Horry, Jasper, Marion and Williamsburg counties.
15. How does the Department of Insurance determine who receives grant funds?
All grants will be determined based on the cost of the mitigation project and a percentage of the total adjusted household income of the applicant as per the most recent federal income tax return. However, once funds are exhausted for the year, the program will cease issuing new grants.
16. Do I qualify for a matching or nonmatching grant?
This is determined by your household income. To help determine which grant you may qualify for, please visit the Estimate Calculator.
17. What if the cost of the mitigation project exceeds the amount of the award I was granted?
If the cost of the mitigation project exceeds the amount of the grant award, the remaining cost is the applicant’s responsibility.
18. What do I need to apply?
You will need a, (1) a copy of your latest 1040 or other income tax return, (2) a copy of your homeowner’s insurance declaration page, (3) a SC Safe Home Inspection Report of your home completed by a participating SC Safe Home Inspector and (4) photographs of the home, supplied by the SC Safe Home Inspector.
1. How is Your Insurance Rate Determined?
Two factors determine what you pay for auto insurance. The first factor is underwriting and the second factor is rating. Insurance companies underwrite to assess the risk associated with an applicant, group the applicant with other similar risks and decide if the company will accept the application. Based on the results of the underwriting process, the rating assigns a price based on what the insurer believes it will cost to assume the financial responsibility for the applicant’s potential claim.
In order to file an insurance complaint, please complete this form.
1. What is a service contract?
A service contract is defined as a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement, or maintenance of property or indemnification for repair, replacement, or maintenance for the operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances including, but not limited to, towing, rental, and emergency road service. Service contracts may provide for the repair, replacement, or maintenance of property for damage resulting from power surges and accidental damage from handling, according to §38-78-20(12) .
2. What is a warranty?
A warranty is made solely by the manufacturer, importer, or seller of property or services without charge, is not negotiated or separated from the sale of the product, that is incidental to the sale of the product, and guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other remedial measures, such as repair or replacement of the property or repetition of services, as according to §38-78-20(14).
3. What is a provider?
A provider is defined as a person who is contractually obligated to the service contract holder under the terms of the service contract, as according to §38-78-20(9).
4. Are the fees collected by the contract service provider subject to premium taxes?
Provider fees collected on service contracts are not subject to premium taxes, as according to §38-78-30(H).
5. What are the requirements of a service contract provider insuring service contracts under a reimbursement policy?
Reimbursement insurance policies insuring service contracts issued, sold, or offered for sale in this state shall conspicuously state that the insurer that issued the policy shall either reimburse or pay on behalf of the provider any covered sums the provider is legally obligated to pay or in the event of the provider's nonperformance, shall provide the service that the provider is legally obligated to perform according to the provider's contractual obligations under the service contracts issued or sold by the provider, as according to §38-78-40.
6. What are the requirements of a service contract provider insuring service contracts not covered under a reimbursement policy?
Service contracts not insured under a reimbursement insurance policy shall contain a statement stating, "Obligations of the provider under this service contract are backed by the full faith and credit of the provider," as according to §38-78-50(C).
7. How long should a service contract provider preserve its records?
The provider should preserve its records for a period of no less than one year after the specified period of coverage has expired, as according to §38-78-70(4).
8. What are the procedures if a contract service provider cancels its reimbursement policy?
The insurer who issued the reimbursement insurance policy may not terminate the policy until a notice of termination has been mailed or delivered to the department in accordance with Chapter 75 of the SC Code of Laws (§38-78-80).
9. Is there a “free look” period in a service contract?
Yes, the service contract holder has 20 days to review the service agreement and to return the contract to the service contract provider for a full refund, as according to §38-78-30(F).
10. Is there any required language that must be disclosed in the service contracts?
Yes, service contracts marketed, issued, sold, or offered for sale should be easy to read and must disclose the requirements set forth in § 38-78-50 of the SC Code of Laws. In addition, the department requires that all service contract providers disclose the department name and address regarding disputed claims on their contracts.
11. Is a service contract an insurance policy?
No, service contract providers are restricted from using the word “insurance” in the contract. The agreement is not an insurance contract, as according to §38-78-60.
12. Can a bank or lending institution require a borrower to purchase a service contract as a condition of a loan?
No bank, savings and loan association, lending institution, manufacturer, or seller of any product shall require the purchase of a service contract as a condition of a loan or a condition for the sale of any property, as according to §38-78-60(c).
The director of the South Carolina Department of Insurance has expanded the territory covered by the South Carolina Wind and Hail Underwriting Association (Wind Pool).
2. When is the expansion effective?
The initial expansion was effective on March 30, 2007, and the additional expansion was effective on June 1, 2007. The expansions will continue in effect until March 29, 2013, unless changed via an order of the director or action by the South Carolina General Assembly.
The territory in which the South Carolina Wind and Hail Underwriting Association may provide wind and hail insurance coverage (i.e., coverage that protects property from losses due to hurricane, tornadoes, severe thunderstorms, other catastrophic wind and hail) has been expanded to include some additional areas. This is an initial expansion and it is limited. It is intended to help improve availability by providing access to wind and hail insurance coverage to consumers who have had difficulty obtaining that coverage. It is also intended to encourage more standard insurers to write insurance coverage in the wind pool territory.
4. What is the new area?
Maps depicting the expanded area may be viewed by accessing the South Carolina Wind and Hail Underwriting Association's website.
5. Will this expansion solve the coastal property insurance crisis?
This expansion is a part of a comprehensive approach to improve the availability and affordability of property insurance coverage being advanced by the governor, members of the General Assembly, and the director of insurance.
6. How can I obtain insurance through the wind pool?
You may contact any licensed insurance agent or broker. Your current agent should be able to assist you with obtaining coverage.
7. Will expanding the wind pool save me money?
Some consumers whose coverage is currently written by a surplus lines carrier may see a reduction in what they are paying for property insurance coverage if they obtain coverage through the wind pool. The cost of coverage may increase for others if it is written by a standard carrier and the wind coverage is excluded.
8. Am I eligible for coverage as a part of the expansion?
If you are in the territory covered by the wind pool and meet the eligibility requirements for coverage, you may obtain coverage through the wind pool. Proper maintenance of the property one is seeking to insure is one of the criteria required for coverage.
9. How was the expansion area determined?
The location of the expanded areas was determined through surveys, data calls, and discussions with producers, legislators, and consumers about the areas along the coast that are having the most significant availability problems.
10. Who should I contact if I want more information about coverage offered through the wind pool?
You may contact your agent or the wind pool at 803-779-8373.
11. What if I don't want to be in the wind pool?
You do not have to be in the wind pool if you can secure the insurance coverage you desire elsewhere. You always have the option of securing coverage from a standard insurance company, such as State Farm, South Carolina Farm Bureau, Travelers, Nationwide, Allstate, etc., or the surplus lines market. You should always shop around for the best coverage and rates.
12. Can you explain wind pool rates?
The wind pool was not created to be the low cost provider of wind and hail insurance. Its rates will be higher than the standard market, but may be lower than some excess and surplus lines companies. This is why it is extremely important that you shop around and try to secure coverage through a standard insurer before going to the wind pool. The wind pool exists to provide coverage for consumers who cannot find that coverage in the standard market.
1. When are surplus lines taxes due?
Surplus lines taxes are due thirty days after the close of each quarter. Therefore, due dates are April 30th; July 30th; October 30th an January 30th of each calendar year.
2. Are there penalties for late submissions?
At the current time, we do not have any penalties for late submissions. If you enter a submission late, the tax application will prompt you for a late reason which you will choose from a drop-down box. However, we do impose a $200.00 Administrative penalty if the tax payment is not received in our office on or before the due date. This penalty is automatically assessed in the tax application.
3. What kind of penalties are associated with filing surplus lines premium taxes?
If your tax payment is not received on or before the due date, you will be automatically assessed an Administrative fine of $200.00.
1. What tax credits are available for fortification measures?
Learn about the two income tax credits available.
2. Can the tax credits be claimed for new construction?
No, the credits are only available for retrofits made to an existing residential structure that would make the existing structure more resistant to loss due to hurricane, rising floodwater, or other catastrophic windstorm event and meet the criteria provided in Regulation 69-75.
3. Is there a list of items or projects that are approved and qualify for the tax credit?
There is not a list of projects or items that are approved and qualify for the tax credit. View the Regulation 69-75 Information page more information.
4. What documentation is needed to claim the tax credits?
The acceptable forms of evidence include:
A written certification or a report (with certification) from a licensed professional with expertise in construction techniques, building design, or property inspection or appraisal including, but not limited to an: architect; appraiser; building inspector; or contractor stating that the fortification measure has been implemented in accordance with applicable standards. Copies of the applicable receipts must accompany the certification or report.
An affidavit from the individual taxpayer certifying that the fortification measures have been implemented. Copies of the applicable receipts must accompany the affidavit.
5. How does a homeowner claim the tax credits?
Both credits can be claimed on the homeowner’s individual income tax return using a South Carolina Schedule TC-43.
6. Where can I get the form to claim the tax credits?
The South Carolina Schedule TC-43 form is available on the Department of Revenue website or by calling the Department of Revenue forms request line at 1-800-768-3676.
7. I completed my fortification project in 2007 and have already filed my taxes. Can I claim the tax credit? If so, how?
A taxpayer may amend his 2007 tax return to claim the credits for qualifying expenditures. File SC1040X and South Carolina Schedule TC-43 to claim the credits. The credits should be claimed on Line 9 of the SC1040X. In order to receive a refund, this amended return must be filed within 3 years of the original filing date or 3 years from the date of filing if a proper extension was filed and a return was filed by the extended due date. For individuals who filed their 2007 returns by April 15, 2008, the amended return must be filed by April 15, 2011.
8. I plan to complete several approved fortification projects in the next few years. Will I be able to apply for the tax credit each year for the fortification measures I have made during that year?
Yes, the credit may be claimed in each year that fortification measures are completed.
9. Do SC Safe Home grant projects automatically qualify as approved fortification projects for purposes of being eligible for the tax credit?
Yes, as long as the fortification measures are accomplished in accordance with the standards that are contained in the South Carolina Safe Home Resource Document for Mitigation Techniques.
10. Can projects that are not part of the SC Safe Home grant program qualify for the credits?
Yes, a homeowner does not have to be a recipient of a SC Safe Home grant to qualify for the income tax credits. The projects and costs must, however, meet the requirements of Department of Insurance Regulation 69-75.
11. If a homeowner received a SC Safe Home grant and the grant is not required to be included in the homeowner’s income tax return, can the homeowner claim the tax credits for the grant money spent?
No, the credits cannot be claimed if the only money spent on the fortification project was grant money that was not included in income on the homeowner’s individual income tax return. (See S.C. Code Sections 12-6-3660 and 12-6-3665).
Note: Whether or not the grant money is included in taxable income for income tax purposes is a federal income tax question, which cannot be answered by the Department of Revenue or the Department of Insurance.
12. If a homeowner received a SC Safe Home grant that is required to be included on the taxpayer's income tax return, can the homeowner claim tax credits for both the grant and personal money spent?
Yes, if the homeowner received a grant that was included in the income of the homeowner for income tax purposes, the homeowner can claim the tax credit for both the grant money and personal money spent on the fortification project.
13. If a homeowner received a matching SC Safe Home grant requiring that the homeowner pay a certain amount to receive the matching grant, does the amount paid by the homeowner qualify for the credits?
Yes. View the Matching Grant Tax Credits for more information.
14. If the homeowner pays the matching funds to the contractor, can the taxpayer claim that the matching funds were used to purchase the tangible personal property for income tax credit reasons?
No. View the Contractor Receives Matching Funds From Homeowner page for more information.
15. If the homeowner directly purchases qualifying tangible personal property to be used by the contractor, can the taxpayer claim all the purchases?
Yes. View the Qualifying Tangible Personal Property page for more information.
16. My question was not answered in the above. Who should I contact for assistance?
Questions about what items or procedures qualify for the credits should be directed to the SC Safe Home Program or by visiting the Coastal Insurance section.
Questions about how to claim the tax credit should be directed to the Department of Revenue by calling 803-898-5709 or by visiting their website.
1. What is utilization review?
Utilization review is defined as a system for reviewing the necessary, appropriate, and efficient allocation of health care resources and services given or proposed to be given to a patient or group of patients. §38.70.10(1)
2. What is a private review agent?
A private review agent is defined as a person performing utilization reviews who is either under contract with or acting on behalf of, but not employed by:
A South Carolina business entity
Section §38.70.10(2)
3. Who is subject to the state’s utilization review laws?
View the Subjects of the State's Utilization Review Laws page for information.
4. Is it required for a private review agent performing utilization review on single-employer, self-insured health plans to obtain a license?
No. Private review agents performing utilization reviews only for single-employer, self-insured employee health plans are not required to obtain a certificate. South Carolina Regulation 69-47 (H)(2)
5. Is the license transferable?
No. A utilization review license is not transferable. If the business is sold or transferred, the issued certificate will automatically cancel. The surviving business must apply for a new certificate. SC Regulations §38.70.10(5)
6. Where can I find the laws and regulations that govern utilization review and private review agents?
The laws and regulations that govern utilization review and private review agents are found in §38.70 and SC Regulation 69-47.
7. What are the licensing requirements to become licensed as a utilization review and private review agent?
The licensing requirements are:
Complete a application packet
Submit a licensing fee of $1,200 dollars
File a copy of certificate of authority from home state, letter of good standing, and copy of articles of incorporation
Provide list(s) of toll free number for accessibility
Provide number of incoming telephone lines
Provide incoming call queue time
Submit all materials designed to inform applicable patients of the requirements of the utilization plan
8. How often must licensure be renewed?
Every two years, beginning on July 1 of even-numbered years. SC Regulation §38.70.50
9. What are the licensure fees (initial and renewal)?
The application fee is $400 and the biennial/renewal fee is $800. SC Regulation 69-47 (3)(A)
10. When does a utilization review and private review certificate of license expire?
All certificate of license expire on June 30 of each even-numbered year. SC Regulation §38.70.50(A)
11. Does South Carolina recognize Utilization Review Accreditation Commission (URAC) accreditation?
No. South Carolina does not recognize URAC accreditation.
12. Are there any other requirements of utilization review and private review agents?
Yes. View the Private Review Agent Application Requirements page for more information.
13. Where do you file complaints?
Complaints are filed with the South Carolina Department of Insurance. Complaints should be addressed to the Consumer Service Division.
1. Who is required to respond to this data call?
Only companies who are licensed to write personal property (“personal”) and/or commercial property (“commercial”) insurance coverage in South Carolina and actively wrote over $1 million in premium for such policies in any one previous calendar year beginning in 2006 are required to respond.
Agents: No response is expected from any agents
Commercial Lines: Includes Business Owners Policy (BOP) and Special Multi Peril (SMP)
Personal Lines: Includes dwelling, tenant, condo, and mobile-homeowners
Surplus Lines: No response is currently required from surplus lines insurers
2. How should total written premium be calculated to determine whether or not the company exceeds the $1 million threshold for eligibility?
Please use all policies written in South Carolina (not just the wind pool territory) and calculate personal and commercial separately. For personal please use annual statement line 040 homeowners and for commercial please use lines 051 commercial multiple peril (non-liability).
3. Is a reply necessary if the company is under the $1 million threshold for both "personal" and "commercial"?
No, a response is not necessary, - even a null (all zeros) spreadsheet. An email indicating such ("N/A: under $1M for both Personal and Commercial") will be accepted, but is not necessary, either.
4. Is a reply necessary if the company is over the $1 million threshold for either personal or commercial and none of the policies written were in the wind pool territory?
Yes, please reply with a null (all 0s) spreadsheet for that tab (personal and/or commercial) and indicate such ("over $1 million, but none in the wind pool") in the spreadsheet.
5. If the company wrote less than the $1 million threshold in 2006 and more than the $1 million threshold in 2007 for personal and/or commercial, is a response necessary to the data call in 2008?
Yes, only companies who wrote less than $1 million in 2006 and 2007 for both lines are not required to respond.
1. How does one determine whether or not a location falls within the wind pool territory? Is a list of zip codes available? Are there map files available?
View the wind pool territory page for information.
2. How should a policy with multiple risks / locations, some with wind and some without wind, be recorded?
Please use the predominant risk / location. For policies with locations that are split evenly between with wind vs. without wind, please split the policy count in half and report 0.5 in each with wind and without wind.
3. How should a policy with multiple locations, some in the wind pool territory and some not, be recorded?
For recording policies, please use the predominant location. Please report those policies with locations that are split evenly between inside the Wind Pool (WP) territory (required to report) versus outside the WP territory (not required to report). There is no need to report those that have a predominate location outside the WP territory.
1. When should a new policy / policy change be recorded if it has been booked / processed but the change does not become effective until the future? What if it is effective retro-actively?
Please record a policy change as follows:
If the effective date is in the future, record based on the effective date.
If the effective date is in the past, record based on the booked / processed date.
2. How should a policy that is cancelled and then reinstated in the same month be recorded? What if it was reinstated in a following month?
Please do not record policies cancelled and then reinstated in the same month. For policies cancelled one month and then reinstated the following month, please record one cancellation in the first month and one renewal in the following month.
3. Should a lapse be recorded as a cancellation?
No, a lapse or a cancellation due to nonpayment is considered a request to cancel from the insured and should not be included in cancellations.
4. What should be recorded under “total policies in force”?
"Total policies in force" is meant to be the overall total number of policies in force at the end of each month. It should be evaluated at the end of the month and should be equivalent to the total policies in force at the start of the month (i.e. end of the previous month) plus adjustments due to new policies, renewals (including reinstatements), and all types of cancellations made during the month.
Please note that it is not the sum of new policies and renewals minus cancellations. This would imply that there were no policies in force before the date range requested in the data call, all renewals were reinstatements, and there were no cancellations made by the insured (e.g. no lapses).
1. How do I submit a response? / Who do I contact if I have a question?
Please submit all questions and responses via email.
2. Can a response be submitted by group?
No. Please submit a separate worksheet for each company rather than submitting by group.
3. Should the number of policies or total written premium be recorded on the worksheet?
Please enter the total number of policies for each month and not the dollar amount of the premium written.
4. How often is a submission required and what months of data are required for each submission?
The data must be recorded monthly and reported to the department on a quarterly basis until further notice. The first submission was due Nov. 15, 2007, and covered the months Jan. through Sept. for 2006 and 2007 only.
Monthly data for Oct. through Dec. is requested by the subsequent Jan. 15 of the following year.
Subsequent submissions must be received by the 30th day following the end of each quarter thereafter and should, at a minimum, contain monthly data for the immediately preceding quarter (i.e. “current year”) and for the same months of the previous year (i.e. “prior year”).
5. Does the company need to submit an annual data certification?
Yes. The company will need to submit an annual data certification request as referenced in South Carolina Bulletin 2009-14 along with its fourth quarter data submission. This certification will need to be signed by an officer of the company, notarized, and submitted via email in PDF format.
6. Where is the wind pool data call link located on the new South Carolina Department of Insurance website?
The data call link may be found by visiting wind pool data call, which contains a list of all wind pool related information, including press releases, relevant orders, the original notice, worksheet, as well as a copy of this FAQ.