reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-420. Advances must be confined to premiums; additional charges prohibited.

Advances made by a producer, agency, or producer of record in behalf of an insured or applicant for insurance and any lien arising therefrom under this must be confined to premiums for policies desired by the insured or applicant for insurance and no charges other than those set forth in this article may be made by any producer, agency, or producer of record in connection with, or related to, the advance of premiums. The producer, agency, or producer of record may not require, as a condition to the advancing of the premiums, that the insured purchase any other policy, commodity, product, or service.
HISTORY: Former 1976 Code Section 38-43-420 [1947 (45) 322; 1952 Code Section 37-682; 1962 Code Section 37-682] recodified as Section 38-73-420 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-51-420 [1962 Code Section 37-259.15; 1969 (56) 780] recodified as Section 38-43-420 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-430. Extension of credit constitutes advancement of premiums.

Extension to the insured or applicant for insurance of his credit with an insurer by a producer, agency, or producer of record constitutes the advancing of premiums within the meaning of this article and the premiums are considered to have been advanced as of the effective date of the policy or binder of insurance notwithstanding that the producer, agency, or producer of record remitted to the insurer at a different time or remitted to the insurer net of commission.
HISTORY: Former 1976 Code Section 38-43-430 [1947 (45) 322; 1952 Code Section 37-683; 1962 Code Section 37-683] recodified as Section 38-73-430 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-51-430 [1962 Code Section 37-259.16; 1969 (56) 780] recodified as Section 38-43-430 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-440. Cancellation of policy and refund of unearned premiums for failure to pay installment.

(A) If the insured or applicant for insurance fails to pay one or more installments within five days after the due date under any memorandum of the transaction delivered to him by the producer, agency, or producer of record, the producer, agency, or producer of record may call upon the insurer to cancel the policy and refund any unearned premiums on a pro rata basis to the producer, agency, or producer of record in discharge of the lien provided under Section 38-43-410. The insurer, upon paying any refund of unearned premiums accompanied by a statement detailing the computation, a copy of which is mailed to the insured at the address shown in the policy, has no further liability to the insured with respect to the return of unearned premiums.
(B) If there is any other refund of unearned premium resulting from termination of the policy, reduction in the premium, or otherwise, the refund of premium must be made to the producer, agency, or producer of record in recognition of his or its lien, and payment of the refund to the producer, agency, or producer of record by the insurer accompanied by a statement detailing the computation, a copy of which is mailed by the insurer to the insured at the address shown in the policy, except as to errors in the computation, discharges the insurer's obligation to the insured with respect to the refund.
(C) Failure of a producer, agency, or producer of record to declare a default or move to perfect his or its lien because of the insured's failure to pay when due one or more installments of his obligation for premium advanced does not constitute a waiver on the part of the producer, agency, producer of record, or insurer nor is the producer, agency, or producer of record estopped or precluded from asserting and perfecting the lien with respect to any subsequent default nor is the insurer estopped or precluded from recognizing and discharging the lien with respect to the subsequent default.
HISTORY: Former 1976 Code Section 38-43-440 [1947 (45) 322; 1952 Code Section 37-684; 1962 Code Section 37-684] recodified as Section 38-73-520 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-51-440 [1962 Code Section 37-259.11; 1969 (56) 780] recodified as Section 38-43-440 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-450. Excess of return premium over unpaid balance and charges held in trust.

Any excess of return premium paid by the insurer to a producer, agency, or producer of record in discharge of the lien provided by this article over the amount of unpaid balance and accrued service charges must be held by the producer, agency, or producer of record in his or its fiduciary capacity and the excess must be paid to the insured within a reasonable time and in no event later than thirty days after receipt by the producer, agency, or producer of record of the return premium refunded by the insurer.
HISTORY: Former 1976 Code Section 38-43-450 [1947 (45) 322; 1952 Code Section 37-685; 1962 Code Section 37-685] recodified as Section 38-73-530 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-51-460 [1962 Code Section 37-259.14; 1969 (56) 780] recodified as Section 38-43-450 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-460. Conflict of interest prohibited.

Insurance agencies owned, beneficially owned, or controlled, in whole or part, directly or indirectly, by an insurer, the management of an insurer, or related interests are not entitled to the provisions of this article. An insurer is not chargeable with knowledge that an insurance agency is owned, beneficially owned, or controlled by an insurer, the management of an insurer, or related interests unless it has actual knowledge of the fact.
HISTORY: Former 1976 Code Section 38-43-460 [1947 (45) 322; 1952 Code Section 37-686; 1962 Code Section 37-686] recodified as Section 38-73-540 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-51-470 [1962 Code Section 37-259.17; 1969 (56) 780] recodified as Section 38-43-460 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-470. Agreements not subject to Section 38-55-50; producer or agency presumed to be acting in own right.

(A) Agreements or arrangements for the advancing of insurance premiums by an insurance producer, agency, or producer of record under this article are not subject to Section 38-55-50, relating to the incorporation of collateral agreements effecting the insurance into the policies or contracts of insurance so affected.
(B) A producer or agency which, pursuant to this article, advances premiums in behalf of an insured or applicant for insurance to an insurer for which the producer or agency is licensed is conclusively presumed to be acting in his or its own right and for the protection of his or its own financial interests with respect to the lien provided in this article. No request by the producer or agency to the insurer to cancel a policy, nor the assertion or perfection of the lien by the producer or agency, is considered to create a conflict in interest nor is any act of a producer, agency, or producer of record in causing cancellation of a policy because of the default of the insured in his obligation or in asserting or perfecting the lien void or voidable because of a claimed conflict in interest.
HISTORY: Former 1976 Code Section 38-51-480 [1962 Code Section 37-259.13; 1969 (56) 780] recodified as Section 38-43-470 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-480. Promulgation of regulations; severability.

(A) The director or his designee may promulgate reasonable regulations that are necessary or proper to carry out the purposes of this chapter.
(B) If any provisions of this chapter, or the application of a provision to any person or circumstance, shall be held invalid, the remainder of the chapter, and the application of the provision to persons or circumstances other than those to which it is held invalid, is not affected.
HISTORY: 2002 Act No. 323, Section 2, eff January 31, 2003.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-610. Definitions.

For the purposes of this article:
(1) "Licensee" means a person who holds a limited license.
(2) "Limited license" means the authority of a person authorized to sell certain insurance pursuant to the provisions of this article.
(3) "Rental agreement" means a written agreement setting forth the terms and conditions governing the use of a storage space provided by a self-service storage facility for rental or lease.
(4) "Owner" means the owner of a self-service storage facility or his agent.
(5) "Occupant" means a person or his lessee, successor, or assignee entitled to the use of the storage space at a self-storage facility under a rental agreement to the exclusion of others.
(6) "Self-service storage facility" means real property designed and used for the sole purpose of renting or leasing individual storage space to occupants given access to this storage space for the sole purpose of storing and removing personal property.
(7) "Rental period" means the term of a rental agreement.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-620. Issuance of limited license.

The director or his designee may issue a limited license to an owner who has complied with the requirements of this article.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-630. Application for limited license; fee; renewal; advertising.

(A) Before issuing a limited license, an application for a limited license must be filed with the director, signed by an officer of the applicant, on a form prescribed by the department. An applicant for a limited license must be approved and vouched for by an official or licensed representative of the insurer for which the applicant proposes to act pursuant to Section 38-43-40 and Section 38-43-50. An application must be accompanied by a forty dollar fee. A limited license must be renewed biennially before May first of odd numbered years on a renewal application form provided by the department, and this form must be accompanied by a forty dollar renewal fee. The department shall cancel a license that is not renewed as required by this section. The licensee may reinstate a license within six months after the renewal deadline by paying the forty dollar renewal fee and a forty dollar reinstatement fee. A limited license fee is not refundable.
(B) A limited license holder must not advertise, represent, or otherwise hold itself or its employee out as a licensed insurer, insurance agent, or insurance broker.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-640. Licensee must be owner or employee of facility; insurance that may be sold or offered for sale.

(A) A licensee must be the owner of a self-service rental facility or his employee or agent.
(B) A licensee only may sell or offer to sell insurance in connection with, and incidental to, the rental of a self-storage space in the owner's facility. This insurance only may provide coverage for:
(1) casualty loss of the property contained in the self-storage space;
(2) liability insurance for personal injuries, excluding injuries compensable by workers' compensation, arising on the premises of the individual self-storage space; or
(3) both.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-650. Licensee to provide written document.

(A) Prior to issuing a policy under the provisions of this chapter, a licensee shall provide a written document that:
(1) summarizes clearly and correctly the material terms of coverage offered to an occupant, including the identity of the insurer;
(2) discloses that the coverage offered by the self-service storage facility may provide a duplication of coverage already provided by a homeowners' insurance policy or other source of coverage in effect for the occupant;
(3) describes the process for filing a claim if the occupant elects to purchase coverage and in the event of a claim; and
(4) states that the charges for coverage are itemized and ancillary to the rental agreement.
(B) If the rental agreement requires the occupant to provide insurance of the type described in Section 38-43-640(B), this requirement may be satisfied if the occupant:
(1) purchases this coverage from a licensee; or
(2) provides evidence of this coverage from another source.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-660. Employees or agents of owner authorized to act.

(A) The employee or agent of an owner who is a licensee may act individually on behalf, and under the supervision of, the owner-licensee with respect to providing coverage for which the licensee is authorized to provide, but only if the owner instructs the employee or agent about the kinds of insurance sold pursuant to the owner's license.
(B) The provisions of this chapter do not prohibit:
(1) the payment or receipt of a commission for the sale of insurance that the licensee is authorized to sell; and
(2) the payment of a bonus, incentive payment, or compensation by a licensee to his employee or agent; provided, however, that these payments may not be made based on the completion of a sale of insurance coverage.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-670. Prohibited requirements of licensee, employee, or agent.

Notwithstanding another provision of this chapter, a regulation promulgated by the department, or an order issued by the director, a licensee, his employee, and agent must not be required to:
(1) act as a fiduciary of money received from the sale of insurance authorized to be sold under the provisions of this chapter; or
(2) hold this money in a separate trust account if the insurer represented by the license holder provides written consent, signed by an officer of the insurer, that a premium is not required to be segregated from money received by the license holder because of the consumer transaction associated with the coverage.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-680. Revocation or suspension of license; penalties.

The director may, after notice and opportunity for a hearing, respond to a violation of a provision of this chapter under the provisions of Section 38-2-10 by:
(1) revoking or suspending a limited license; or
(2) imposing other penalties, including suspending the transaction of insurance at a specific rental location where a violation of this chapter occurred, as the director considers necessary or convenient to carry out the provisions of this chapter.
HISTORY: 2014 Act No. 226 (S.1065), Section 1, eff June 2, 2014.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-710. Short title.

This article must be known and may be cited as the "Limited Lines Travel Insurance Act".
HISTORY: 2016 Act No. 159 (H.4141), Section 1, eff July 20, 2016; 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
Effect of Amendment
2021 Act No. 50, Section 3, reenacted the section with no apparent change.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-715. Application of article.

(A) This article applies to travel insurance sold, solicited, negotiated, or offered in this State that covers a resident in this State and is delivered or issued for delivery in this State. It does not apply to cancellation fee waivers and travel assistance services except as expressly provided herein.
(B) All other applicable provisions of this title continue to apply to travel insurance. In the event of a conflict between a provision of this article and any other applicable provisions of this title, the provision of this article controls.
HISTORY: 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-725. Classification and filing of travel insurance; eligibility and underwriting standards.

(A) Notwithstanding any other provision of this title, travel insurance must be classified and filed for purposes of rates and forms as inland marine insurance; provided, however, that travel insurance that provides coverage for sickness, accident, disability, or death occurring during travel, either exclusively or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits such as baggage or trip cancellation, may be filed by an authorized insurer under either an accident and health line of insurance or an inland marine line of insurance.
(B) Travel insurance may be in the form of an individual, group, or blanket policy.
(C) Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided those standards also meet this state's underwriting standards for inland marine insurance.
HISTORY: 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-740. Compensation.

A travel retailer, whose insurance-related activities are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer, may receive compensation for these activities upon registration by the limited lines travel insurance producer as provided in Section 38-43-730(A)(2).
HISTORY: 2016 Act No. 159 (H.4141), Section 1, eff July 20, 2016; 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
Effect of Amendment
2021 Act No. 50, Section 3, reenacted the section with no apparent changes.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-750. Reserved.

HISTORY: Former Section, titled Policy, had the following history: 2016 Act No. 159 (H.4141), Section 1, eff July 20, 2016. Reserved by 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-760. Responsibility.

As the insurer designee, the limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with this article.
HISTORY: 2016 Act No. 159 (H.4141), Section 1, eff July 20, 2016; 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
Effect of Amendment
2021 Act No. 50, Section 3, reenacted the section with no apparent change.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-770. Violations of article.

The director may, after notice and opportunity for a hearing, respond to a violation of a provision of this article by a limited lines travel insurance producer or by the travel retailer offering and disseminating travel insurance under the provisions of Section 38-2-10 by:
(1) revoking or suspending the license of the limited lines travel insurance producer; or
(2) imposing other penalties, including directing the suspension or termination of authority of the involved travel retailer to offer and disseminate travel insurance, as the director considers necessary or convenient to carry out the purposes of this article.
HISTORY: 2016 Act No. 159 (H.4141), Section 1, eff July 20, 2016; 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
Effect of Amendment
2021 Act No. 50, Section 3, reenacted the section with no apparent change.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-780. Premium tax on travel insurance premiums.

(A) A travel insurer shall pay premium tax pursuant to Section 38-7-20 on travel insurance premiums paid by:
(1) an individual primary policyholder who is a resident of this State;
(2) a primary certificate holder who is a resident of this State who elects coverage under a group travel insurance policy; or
(3) a blanket travel insurance policyholder that is a resident in, or has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in, this State for eligible blanket group members, subject to any apportionment rules which apply to the insurer across multiple taxing jurisdictions or that permits the insurer to allocate premiums on an apportioned basis in a reasonable and equitable manner in those jurisdictions.
(B) A travel insurer shall:
(1) document the state of residence or principal place of business of the policyholder or certificate holder, as required in subsection (A); and
(2) report as premium only the amount allocable to travel insurance and not any amounts received for travel assistance services or cancellation fee waivers.
HISTORY: 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-790. Travel protection plans.

Travel protection plans may be offered for one price for the combined features that the travel protection plan offers in this State if:
(1) the travel protection plan clearly discloses to the consumer at or prior to the time of purchase that it includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable, and provides information and an opportunity at or prior to the time of purchase for the consumer to obtain additional information regarding the features and pricing of each; and
(2) the fulfillment materials:
(a) describe and delineate the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and
(b) include the travel insurance disclosures and the contact information for persons providing travel assistance services and cancellation fee waivers, as applicable.
HISTORY: 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 43 - Insurance Producers And Agencies › Section 38-43-810. Licensing requirements for travel administrators for travel insurance.

(A) Notwithstanding any other provisions of this title, no person may act or represent himself as a travel administrator for travel insurance in this State unless that person:
(1) is a licensed property and casualty insurance producer in this State for activities permitted under that producer license;
(2) holds a valid managing general agent license in this State;
(3) holds a valid third-party administrator license in this State; or
(4) holds a valid managing general underwriter license in this State.
(B) A travel administrator and its employees are exempt from the licensing requirements of Section 38-47-10 for the travel insurance it administers.
(C) An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer to be made available by the travel administrator to the director upon request.
HISTORY: 2021 Act No. 50 (S.435), Section 3, eff May 17, 2021.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 44 - Managing General Agents Act › Section 38-44-20. Definitions.

As used in this chapter:
(1) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries.
(2) "Insurer" means a domestic insurer as defined in Section 38-1-20(17).
(3)(a) "Managing general agent", MGA, means a person who:
(i) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; and
(ii) acts as an agent for the insurer whether known as a MGA, a manager, or another similar term, who with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in one quarter or year with one or both of the following activities related to the business produced:
a. adjusts or pays claims in excess of five thousand dollars;
b. negotiates ceding reinsurance contracts on behalf of the insurer.
(b) Notwithstanding subitem (a), the following are not considered as MGAs for the purposes of this chapter:
(i) an employee of the insurer;
(ii) a United States manager of the United States branch of an alien insurer;
(iii) an underwriting manager which, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, and is subject to the Insurance Holding Company Regulatory Act and whose compensation is not based on the volume of premiums written;
(iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney;
(4) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
HISTORY: 1992 Act No. 363, Section 1, eff December 31, 1992; 2004 Act No. 291, Section 10, eff July 29, 2004.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 44 - Managing General Agents Act › Section 38-44-30. License required to act as managing general agent; bond requirements.

(A) No person may act in the capacity of a MGA with respect to risks located in this State for an insurer licensed in South Carolina unless the person is licensed as an agent for that insurer in this State.
(B) No person may act in the capacity of a MGA representing an insurer domiciled in this State with respect to risks located outside South Carolina unless the person is licensed properly as an agent or broker in that state and licensed as an insurance agent in this State for that insurer. The license may be a nonresident license.
(C) For the protection of the insurer, the director or his designee shall require the MGA to obtain a bond of fifty thousand dollars for each insurer represented.
HISTORY: 1992 Act No. 363, Section 1; 1993 Act No. 181, Section 667.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 44 - Managing General Agents Act › Section 38-44-50. Examination and review of managing general agent by insurer; authority to assume insurance contracts or syndicates rests with insurer; notice of entering into or terminating contract with managing general agent; review of agents of insurer to determine if agents have become managing general agents; appointment of managing general agent to board of directors of insurer prohibited.

(A) The insurer shall file annually with the department not later than June first an annual independent financial examination of each MGA with which it has done business, prepared by a certified public accountant in a form acceptable to the director or his designee.
(B) If a MGA establishes loss reserves, the insurer annually shall obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the MGA. The opinion must be filed not later than March first. This is in addition to other required loss reserve certification.
(C) The insurer at least semiannually by July thirty-first and December thirty-first shall conduct an on-site review of the underwriting and claims processing operations of the MGA.
(D) Binding authority for all assumed reinsurance contracts or participation in insurance or reinsurance syndicates rests with an officer of the insurer who must not be affiliated with the MGA.
(E) Within thirty days of entering into or termination of a contract with a MGA the insurer shall provide written notification of the appointment or termination to the department. Notices of appointment of a MGA must include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and other information the director or his designee may request. If the contract is terminated, notification must be given by the insurer within thirty days of the action to agents or brokers who have placed business with the MGA within the last twelve months.
(F) An insurer shall review its books and records each quarter to determine if an agent, as defined by Section 38-44-20(3), has become, by operation of that section, a MGA. If the insurer determines that an agent has become a MGA, the insurer promptly shall notify the agent and the department of the determination, and the insurer and agent shall comply fully with this chapter within thirty days.
(G) An insurer may not appoint to its board of directors an officer, a director, an employee, an agent, or a broker or a controlling shareholder of its MGAs. This subsection does not apply to relationships governed by the Insurance Holding Company Regulatory Act or, if applicable, Section 38-21-95.
HISTORY: 1992 Act No. 363, Section 1; 1993 Act No. 181, Section 669; 2002 Act No. 228, Section 7, eff May 1, 2002; 2019 Act No. 6 (S.360), Section 6, eff July 1, 2019.
Effect of Amendment
2019 Act No. 6, Section 6, in (A), substituted "not later than June" for "not later than March".
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 44 - Managing General Agents Act › Section 38-44-60. Acts of managing general agent as acts of insurer; managing general agent examined as insurer.

The acts of the MGA are considered to be the acts of the insurer on whose behalf it is acting. A MGA may be examined as if it were the insurer.
HISTORY: 1992 Act No. 363, Section 1.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 44 - Managing General Agents Act › Section 38-44-70. Penalties for violations of chapter; judicial review; imposition of other penalties not affected; rights of policyholders, claimants, and auditors not affected.

(A) If the director or his designee finds after a hearing conducted in accordance with Insurance Department Regulation 69-31 that a person has violated this chapter, the director or his designee may order:
(1) for each separate violation, a penalty as provided in Section 38-2-10;
(2) revocation or suspension of the agent's license of the MGA;
(3) the MGA to reimburse the insurer, the rehabilitator, or liquidator of the insurer for losses incurred by the insurer caused by a violation of this chapter committed by the MGA.
(B) The decision, determination, or order of the director or his designee pursuant to subsection (A) is subject to judicial review pursuant to Section 38-3-210, and the Administrative Procedures Act before the Administrative Law Court.
(C) Nothing contained in this section affects the right of the director or his designee to impose other penalties in Title 38.
(D) Nothing contained in this chapter limits or restricts the rights of policyholders, claimants, and auditors.
HISTORY: 1992 Act No. 363, Section 1; 1993 Act No. 181, Section 670.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-30. Requirements for nonresident to be licensed as an insurance broker.

A nonresident may be licensed as an insurance broker by the director or his designee if the following requirements are met:
(1) filing an application on a form prescribed by the director or his designee;
(2) paying a biennial license fee of two hundred dollars fully earned when received, not refundable;
(3) an aggrieved person may institute an action in the county of his residence against the broker to recover damages. A copy of the summons and complaint in the action must be served on the director, who is not required to be made a party to the action;
(4) paying the department, within thirty days after March thirty-first, June thirtieth, September thirtieth, and December thirty-first each year, the broker's premium tax rate upon premiums for policies of insurers not licensed in this State. In computing total premiums, return premiums on risks and dividends paid or credited to policyholders are excluded. The credit must be refunded to the policyholder.
HISTORY: Former 1976 Code Section 38-45-30 [1947 (45) 322; 1952 Code Section 37-803; 1962 Code Section 37-803] recodified as Section 38-17-30 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-30 [1947 (45) 322; 1952 Code Section 37-203; 1960 (51) 1646; 1962 Code Section 37-203; 1969 (56) 240; 1970 (56) 2497; 1981 Act No. 11, Section 1; 1981 Act No. 44, Section 1]; Section 38-47-40 [1947 (45) 322; 1952 Code Section 37-203.1; 1962 Code Section 37-203.1] recodified as Section 38-45-30 by 1987 Act No. 155, Section 1; 1988 Act No. 314, Section 6; 1989 Act No. 52, Section 4; 1990 Act No. 379, Section 2; 1992 Act No. 501, Part II Section 11K; 1993 Act No. 181, Section 672; 1999 Act No. 30, Section 2; 2000 Act No. 312, Section 10; 2003 Act No. 73, Section 14, eff June 25, 2003; 2008 Act No. 326, Section 13, eff June 16, 2008; 2012 Act No. 283, Section 1, eff January 1, 2012; 2016 Act No. 194 (H.4817), Section 3, eff May 26, 2016.
Effect of Amendment
2016 Act No. 194, Section 3, deleted former (2) and (3), relating to affidavit requirements, and redesignated former (4) through (6) as (2) through (4).
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-35. Applicant's business and residence address required; notice of change of address required.

When an individual applies for an insurance broker's license, he shall supply the department his business and residence address. The broker shall notify the department within thirty days of any change in these addresses.
HISTORY: 1988 Act No. 327, Section 2; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-40. Reciprocal agreements as to licensing nonresidents.

The director or his designee may enter into reciprocal agreements with the insurance commissioners of other states in regard to licensing of nonresident brokers if in his judgment the arrangements or agreements are in the best interest of the State and if the applicant for the license meets the minimum statutory requirements of this State for the issuance of a broker's license. However, the director or his designee may not enter into or continue any reciprocal agreement unless the other state is as liberal as this State in licensing nonresident brokers.
HISTORY: Former 1976 Code Section 38-45-40 [1947 (45) 322; 1952 Code Section 37-804; 1962 Code Section 37-804; 1964 (53) 2054] recodified as Section 38-17-40 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-50 [1957 (50) 534; 1962 Code Section 37-203.2] recodified as Section 38-45-40 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-50. Duration of broker's license; nonpayment of license fee.

Each license issued is for an indefinite term unless revoked or suspended. If the biennial license fee of a broker is not paid at the time and in the manner the department provides by regulation, the license must be canceled. If the license is to be reinstated, an original application must be filed and a reinstatement fee equal to the biennial license fee unpaid must be paid in addition to the regular biennial license fee.
HISTORY: Former 1976 Code Section 38-45-50 [1947 (45) 322; 1952 Code Section 37-805; 1962 Code Section 37-805; 1964 (53) 2054] recodified as Section 38-17-50 by 1987 Act No. 155, Section 1; Former 1976 Code Sections 38-1-60 [1979 Act No. 63], and 38-47-90 [1947 (45) 322; 1952 Code Section 37-205; 1962 Code Section 37-205; 1976 Act No. 612 Section 2] recodified as Section 38-45-50 by 1987 Act No. 155, Section 1; 1992 Act No. 501, Part II Section 11L; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-55. Revenue.

The revenue collected from the broker's premium tax rate imposed pursuant to the provisions of Sections 38-45-20(5), 38-45-30(4), and 38-45-190, must be credited to a special earmarked fund, distinct from the general fund, and expended only for the purposes provided in this chapter.
HISTORY: 2012 Act No. 283, Section 1, eff January 1, 2012.
Code Commissioner's Note
At the direction of the Code Commissioner, the reference to "38-45-30(6)" was corrected to reference "38-45-30(4)" to reflect the amendment of Section 38-45-30 by 2016 Act No. 194.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-60. Accounting of state portion of broker's premium tax rate payment collected; distribution from earmarked fund.

(A) As soon after December thirty-first of each year as may be convenient, the director or his designee shall render an accounting to the State Treasurer of the state portion of the broker's premium tax rate payment collected showing the counties in which the risk covered by the insurance is located and shall furnish a duplicate of the accounting to the Comptroller General. The Comptroller General shall draw his warrant on the State Treasurer for one-fourth of the state's portion of the broker's premium tax rate payment collected by the department on property insurance, payable to the county treasurer of the county in which the property is located. The county treasurer shall distribute the broker's premium tax collected on property insurance in accordance with the requirements of Sections 23-9-360 and 23-9-470 and Sections 38-7-70 and 38-7-80.
(B) As soon as practical after December thirty-first, but no later than July first of each year, the department shall distribute from the special earmarked fund, distinct from the general fund, the municipal portion of the broker's premium tax rate payment collected for the prior tax year in accordance with the requirements of Sections 38-45-20(5) and 38-45-30(4). This amount must be paid to the municipal agent with a full accounting, provided by the department, including, but not limited to, the name and address of the broker, and amount of the broker's premium tax rate payment collected from each broker, and showing the counties in which the risk covered by the insurance is located. The municipal agent shall distribute the funds annually to each municipality with which it contracts based on the data submitted by the department.
HISTORY: Former 1976 Code Section 38-45-60 [1947 (45) 322; 1952 Code Section 37-806; 1962 Code Section 37-806] recodified as Section 38-17-60 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-70 [1947 (45) 322; 1952 Code Section 37-207; 1962 Code Section 37-207; 1978 Act No. 585 Section 2; 1981 Act No. 11, Section 2] recodified as Section 38-45-60 by 1987 Act No. 155, Section 1; 1991 Act No. 171, Part II, Section 22J; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
Code Commissioner's Note
At the direction of the Code Commissioner, the reference to "38-45-30(6)" was corrected to reference "38-45-30(4)" to reflect the amendment of Section 38-45-30 by 2016 Act No. 194.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-70. Effect of broker's license; municipal license fees.

A broker's license entitles the holder to solicit insurance in any county of this State. However, municipalities may impose license fees in accordance with this title.
HISTORY: Former 1976 Code Section 38-45-70 [1947 (45) 322; 1952 Code Section 37-807; 1962 Code Section 37-807] recodified as Section 38-17-70 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-80 [1947 (45) 322; 1952 Code Section 37-208; 1962 Code Section 37-208] recodified as Section 38-45-70 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-80. Brokers to keep records of business done, furnish to director for inspection.

All brokers doing any kind of insurance business in this State shall make and keep a full and correct record of the business done by them, showing the number, date, term, amount insured, premiums, and the person to whom issued of every policy or certificate of renewal. The information from these records must be furnished to the director or his designee on demand and the original books or records are open to the inspection of the director or his designee on demand. These records must be kept for a minimum of five years. The director or his designee also may conduct examinations of broker records. Examinations must be conducted in accordance with the requirements of Chapter 13 of this title. The broker is responsible for the costs of any examination.
HISTORY: Former 1976 Code Section 38-45-80 [1947 (45) 322; 1952 Code Section 37-808; 1962 Code Section 37-808] recodified as Section 38-17-80 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-1210 [1947 (45) 322; 1952 Code Section 37-290; 1962 Code Section 37-290] recodified as Section 38-45-80 by 1987 Act No. 155, Section 1; 1988 Act No. 357, Section 5; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-100. Brokers may divide commissions.

A licensed insurance broker may divide commissions with producers or brokers in other states or with a producer licensed in this State for an insurer doing the particular class of insurance desired to be placed through the broker.
HISTORY: Former 1976 Code Section 38-45-100 [1947 (45) 322; 1952 Code Section 37-810; 1962 Code Section 37-810; 1964 (53) 2054] recodified as Section 38-17-100 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-110 [1947 (45) 322; 1952 Code Section 37-211; 1962 Code Section 37-211] recodified as Section 38-45-100 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-110. Warning stamped on policies of eligible surplus lines insurer.

The broker shall write or stamp upon the face of each policy of an eligible surplus lines insurer the words, "This company has been approved by the director or his designee of the South Carolina Department of Insurance to write business in this State as an eligible surplus lines insurer, but it is not afforded guaranty fund protection".
HISTORY: Former 1976 Code Section 38-45-110 [1947 (45) 322; 1952 Code Section 37-811; 1962 Code Section 37-811] recodified as Section 38-17-110 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-130 [1947 (45) 322; 1952 Code Section 37-210; 1962 Code Section 37-210; 1981 Act No. 131, Section 1] recodified as Section 38-45-110 by 1987 Act No. 155, Section 1; 1988 Act No. 314, Section 8; 1993 Act No. 181, Section 672; 1998 Act No. 260, Section 1; 2000 Act No. 312, Section 11; 2002 Act No. 228, Section 8, eff May 1, 2002; 2012 Act No. 283, Section 1, eff January 1, 2012; 2016 Act No. 194 (H.4817), Section 4, eff May 26, 2016.
Effect of Amendment
2016 Act No. 194, Section 4, deleted "and application" following "each policy".
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-120. Personal liability of broker on policy of unlicensed insurer.

Every insurance broker who sells an insurance policy written or issued by an insurer not licensed to do business in this State is personally liable for the limits of the coverage provided for in the policy if the broker fails to comply with the provisions of this title relating to policies issued by insurers not licensed to do business in this State.
HISTORY: Former 1976 Code Section 38-45-120 [1947 (45) 322; 1952 Code Section 37-812; 1962 Code Section 37-812] recodified as Section 38-17-120 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-140 [1960 (51) 1630; 1962 Code Section 37-210.1] recodified as Section 38-45-120 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-130. Adjustment of losses; inspections and endorsements.

All losses occurring under policies placed through an insurance broker may be adjusted by a licensed producer or adjuster in this State. All inspections of property and endorsements on policies may be made by a licensed broker or any other licensed insurance producer in this State authorized to do so.
HISTORY: Former 1976 Code Section 38-45-130 [1947 (45) 322; 1952 Code Section 37-813; 1962 Code Section 37-813] recodified as Section 38-17-130 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-120 [1947 (45) 322; 1952 Code Section 37-212; 1962 Code Section 37-212] recodified as Section 38-45-130 by 1987 Act No. 155, Section 1; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.
2023 South Carolina Code of Laws › Title 38 - Insurance › Chapter 45 - Insurance Brokers And Surplus Lines Insurance › Section 38-45-140. Revocation of license of broker.

When the director or his designee determines after investigation that a broker has violated this title, he may, upon ten days' notice, impose the penalties provided in Section 38-2-10.
HISTORY: Former 1976 Code Section 38-45-140 [1947 (45) 322; 1952 Code Section 37-814; 1962 Code Section 37-814] recodified as Section 38-17-140 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-47-150 [1947 (45) 322; 1952 Code Section 37-204; 1962 Code Section 37-204] recodified as Section 38-45-140 by 1987 Act No. 155, Section 1; 1988 Act No. 374, Section 19; 1993 Act No. 181, Section 672; 2012 Act No. 283, Section 1, eff January 1, 2012.