1.0 Insurance Regulation (15%)

Continuing Education (CE)

A licensed producer who has obtained one of the following designations may use the credit hours earned to maintain that designation toward the fulfillment of the 24-hour requirement of their insurance license: Chartered Life Underwriter (CLU); Fellow, Life Management Institute (FLMI); Certified Financial Planner (CFP); Life Underwriter Training Council Fellow (LUTCF); Registered Health Underwriter (RHU); Registered Employee Benefit Consultant (REBC); Chartered Financial Consultant (CHFC) for a life, accident, and health license; Chartered Property and Casualty Underwriter (CPCU); Certified Insurance Counselor (CIC) for a property and casualty license

Nonresident

A nonresident person may receive a nonresident producer license with the same lines of authority held in their home state if the nonresident

Nonresident

A nonresident person may receive a nonresident producer license with the same lines of authority held in their home state if the nonresident is currently a licensed resident producer in good standing in their home state

Nonresident

A nonresident person may receive a nonresident producer license with the same lines of authority held in their home state if the nonresident resides in a state that issues nonresident producer licenses to residents of South Carolina on the same basis—this is known as reciprocity

Nonresident

A nonresident person may receive a nonresident producer license with the same lines of authority held in their home state if the nonresident submits a request for licensure and pays the required fee

Nonresident

A nonresident person may receive a nonresident producer license with the same lines of authority held in their home state if the nonresident submits either a certified copy of the license application that was submitted to the home state Oran original, completed Uniform Application

Nonresident

A nonresident producer who moves from one state to another, or a resident producer who moves from this State to another, must file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No fee or license application is required.

18

A person applying for a resident producer license must be at least ___ years of age.

Change of Name or Address

A producer failing to notify the Director within 30 days of any change in name or address will be fined up to $2,500, have their license suspended, or both. The fine will be up to $5,000 if the violation is willful.

Continuing Education (CE)

A producer licensed for property and casualty, life and health, or both must complete at least 24 hours of CE biennially (every 2 years). A producer licensed in both lines must complete at least 8 of these hours in courses related to each line. A minimum of 3 hours must be in topics related to Ethics.

24

A producer licensed for property and casualty, life and health, or both must complete at least ___ hours of CE every 2 years.

Continuing Education (CE)

A producer may repeat a CE course, but credit will not be given more than once for a course repeated during the same compliance period.

Producer

A producer must be licensed and appointed by the insurer for which the insurance transaction was performed.

Assumed Names

A producer must notify the Director before doing business under an assumed name.

Reporting of Actions

A producer must report being the subject of criminal prosecution in any jurisdiction to the Director within 30 days of the initial pretrial hearing date.

Reporting of Actions

A producer must report, to the Director, any administrative action taken against them in another jurisdiction or by another governmental agency within 30 days of the matter's final disposition.

Producer

A producer of an insurer transacts insurance on behalf of that insurer.

Penalties

A producer or applicant must pay any imposed penalty within 30 days or their license will be revoked, suspended, or refused renewal.

Reinstatement

A producer who is unable to comply with renewal requirements due to active military service, or another extenuating circumstance, may request a waiver of renewal requirements, exam requirements, and any fine imposed for failing to meet renewal requirements.

30

A producer who moves to another state must file a change of address form with the Director and provide certification from that state within ___ days.

2

A producer whose license has been revoked or an applicant who has been refused a license may not reapply for another license until ___ years after the effective date of the revocation or refusal.

Reinstatement

A producer whose license lapses for failure to meet continuing education requirements, but who then complete those requirements, may reinstate the license within 6 months of the compliance deadline. An additional fee will be required as a penalty.

Reinstatement

A producer's license continues on a biennial basis unless revoked or suspended, as long as the producer meets continuing education requirements, pays the biennial renewal fee, and submits an online renewal application. The license must be renewed by the last day of the producer's month of birth based on the producer's year of birth.

Licensing Process

A resident individual applying for a producer license must pass an examination, pay a nonrefundable examination fee, and submit a license application to the Director on the Uniform Application Form. The applicant must declare that statements made in the application are true, correct, and complete to the best of the applicant's knowledge.

Insurance Broker

A resident property and casualty insurance producer may be licensed as an insurance broker if the following requirement is met. The individual must

Insurance Broker

A resident property and casualty insurance producer may be licensed as an insurance broker if the following requirement is met. The individual must be licensed as a resident insurance producer in the lines of insurance for which they are applying to be a broker

Insurance Broker

A resident property and casualty insurance producer may be licensed as an insurance broker if the following requirement is met. The individual must file a $10,000 bond, with the Department, that favors South Carolina and is approved by the Attorney General

Insurance Broker

A resident property and casualty insurance producer may be licensed as an insurance broker if the following requirement is met. The individual must pay $200 biennially; this fee is nonrefundable

Insurance Broker

A resident property and casualty insurance producer may be licensed as an insurance broker if the following requirement is met. The individual must quarterly pay the broker's premium tax rate on premiums (4%) for policies of insurers that are not licensed in South Carolina

Insurance Broker

A resident property and casualty insurance producer may be licensed as an insurance broker if the following requirement is met. The individual must successfully pass the South Carolina broker licensing examination

Continuing Education (CE)

All licensed producers must renew their license and pay the license renewal fee by the last day of the individual's month of birth. An individual born in an odd-numbered year must comply every odd numbered year. An individual born in an even-numbered year must comply every even-numbered year.

5

All producers must keep a record of business transacted, showing the date, term, and amount insured; premiums; and the policyholders' names for at least ___ years.

Licensing Process

An agency acting as an insurance producer must obtain a producer's license by submitting a Uniform Business Entity Application, paying the required fees, and designating a licensed individual responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.

Licensing Process

An agency license will contain the licensee's name, address, personal identification number, date of issuance, and any other information considered necessary by the Director.

Licensing Process

An individual or agency may not transact insurance business until a producer's license has been issued by the Director of Insurance. The Director may not issue a license until it has been determined that an applicant is qualified as an insurance producer for the line of business they want to conduct.

Broker

An insurance broker is defined as a licensed property and casualty insurance producer who advertises or otherwise gives notice of receiving or transmitting a surplus lines application or policy

Broker

An insurance broker is defined as a licensed property and casualty insurance producer who performs another act in the making of a surplus lines insurance contract for or with an insured

Broker

An insurance broker is defined as a licensed property and casualty insurance producer who receives or delivers a policy of surplus lines insurance for an insured on behalf of a surplus lines insurer

Broker

An insurance broker is defined as a licensed property and casualty insurance producer who receives, collects, or transmits a premium of surplus lines insurance

Broker

An insurance broker is defined as a licensed property and casualty insurance producer who sells, solicits, or negotiates insurance on behalf of an insured

Broker

An insurance broker is defined as a licensed property and casualty insurance producer who takes or transmits an insurance application or policy to or from the insurer, except applications where the broker is also the insured

Broker License

An insurance broker's license is not required for a broker's office employee acting within the broker's office and under the supervision of a licensed broker. A broker's license is also not required for a property and casualty producer who places surplus lines insurance through a licensed broker. An insurance broker may place that insurance either with an eligible surplus lines insurer or with a licensed insurance producer appointed by an insurance carrier licensed in this State.

Penalties

Any person convicted of a misdemeanor will be fined $2,500, imprisoned for up to 2 years, or both, unless another penalty is specifically provided by law.

Penalties

Any person transacting insurance business without a license is guilty of a misdemeanor and, upon conviction, will be fined up to $10,000, imprisoned for up to 2 years, or both.

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant has not been convicted of a crime involving moral turpitude within the last 10 years

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant has not been convicted of a felony that is grounds for license denial, suspension, or revocation

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant has not been convicted of a misdemeanor involving dishonesty, breach of trust, or other financial- or insurance-related crime within the last 5 years

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant has successfully passed a license exam covering the lines for which the person has applied

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant has successfully passed a license exam covering the lines for which the person has applied has paid the required fees

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant has successfully passed a license exam covering the lines for which the person has applied is of good moral character

Licensing Process

Before approving the application and issuing or renewing a license, the Director must find that the applicant is at least 18 years of age

Boycott, Coercion, or Intimidation

Committing any act of boycott, coercion, or intimidation resulting in unreasonable restraint of, or monopoly in, the insurance business.

Unfair Discrimination

Discriminating, or allowing discrimination, between individuals of the same class and risk, involving the same hazards, in an insurance product's terms.

Continuing Education (CE)

Falsely stating that CE hours have been completed may result in a fine of up to $2,500 (up to $5,000, if the violation is willful), license suspension, or both.

Continuing Education (CE)

If a producer fails to complete the CE requirements, their license will lapse, they will be unable to transact insurance, and their appointment will not be renewed.

Change of Name or Address

If an individual applies for an insurance producer's license, they must supply the department their business, email, mailing, and residential street addresses. The producer also must notify the department within 30 days of any change in legal name or in these addresses.

Cease and Desist Order

If an insurer does not comply with the order within 30 days, the Director may then impose the following penalty if the violation is willful, the Director will fine the violator up to $5,000, suspend or revoke the violator's authority to do business in this State, or both.

Cease and Desist Order

If an insurer does not comply with the order within 30 days, the Director may then impose the following penalty if the violator is a person licensed by the director, other than a insurer or an HMO, the Director or his designee will fine the person up to $2,500, suspend or revoke the person's license, or both.

Cease and Desist Order

If an insurer does not comply with the order within 30 days, the Director may then impose the following penalty if the violator is an insurer or an HMO licensed in this State, the Director will fine the violator up to $15,000, suspend or revoke the violator's authority to do business in this State, or both. If the violation is willful, the Director will fine the violator up to $30,000, suspend or revoke the violator's authority to do business in this State, or both.

Cease and Desist Order

If, after due notice and a hearing, the Director or their designee determines that an insurer has failed to meet the obligations imposed, the Director will order the insurer to cease and desist from the practice, to correct any errant business practices, and to make any payments due, including applicable interest.

Licensing Process

In addition to complying with the licensing requirements, the applicant must supply a complete set of fingerprints, certified by a law enforcement officer, to the Director, undergo a state criminal records check by the South Carolina Law Enforcement Division (SLED), and a national criminal records check by the FBI. Results of these criminal records check must be reported to the Department of Insurance. All costs associated with the background check are the applicant's responsibility.

Continuing Education (CE)

In order to regain licensing status, the producer must retake and pass the appropriate producer licensing examination, complete a new application and pay an application fee to the Department.

Licensing Process

Individuals who apply for a producer license in South Carolina are not required to complete an exam if they were previously licensed for the same line(s) of insurance in another state. The individual must be currently licensed in another state or submit their application to South Carolina within 90 days of cancelling it in the previous state. The prior state may need to issue a certificate stating that the applicant was in good standing at the time of cancellation.

Penalties

Instead of denying, revoking, or suspending a license, the Director may fine the person up to $2,500. However, the fine can be up to $5,000 if the violation is willful.

15

Insurers must notify the Director after terminating a producer's appointment and then must mail a copy of the termination notice to the producer within ___ days.

Misrepresentation

Issuing or circulating any statement misrepresenting a policy's terms, benefits, or dividends. This also includes misrepresenting the financial condition of an insurer, or the reserve on which the insurer operates.

Twisting

Making a false or misleading representation or comparison of policies or insurers to induce any person to lapse, forfeit, surrender, terminate, or convert a policy or to purchase a policy from another insurer.

Rebating

Offering any valuable consideration not stated in an insurance contract in order to induce a person to buy or review that contract. Both giving and accepting a rebate is illegal; however, rebating any auto policy commission is permitted in South Carolina.

Rebating

Offering any valuable consideration not stated in an insurance contract in order to induce its acquisition or renewal is an unfair trade practice.

Free Insurance

Offering or providing free insurance as an enticement to purchase or sell personal or real property or services. Free insurance is insurance where no identifiable and additional charge is made when purchasing property, or where an identifiable or additional charge is made in an amount less than the cost of the insurance for the seller (other than the insurer) providing the insurance.

Continuing Education (CE)

Producers may reactivate the license and appointment(s) that have lapsed, if within 6 months of the compliance deadline, the CE recordkeeping fee has been paid to the Continuing Education Administrator and a $50 penalty has been paid to the Department of Insurance and proof of completion of a total of24 hours of CE credits has been received. The license and appointment(s) of a producer who does not provide documentation of compliance within 6 months of the compliance deadline will be canceled.

False Advertising

Publishing or disseminating an untrue, deceptive, or misleading advertisement relating to the business of insurance or any person in the business. This includes any written format, such as notices or posters, as well as oral advertising done on the radio or television.

Defamation

Publishing or disseminating any false or maliciously derogatory statement about an insurer's financial condition with intent to injure any person in the insurance business. It can include aiding or encouraging another person to make malicious statements.

False Financial Statements

Publishing or disseminating any false statement about an insurer's financial condition with the intent to deceive, whether in public or in private. This includes making false entries or willfully omitting true information in a book, report, or statement of an insurer with the intent to deceive an agent or examiner.

Nonresident

Surplus lines brokers may get a nonresident surplus lines broker license. A limited line credit insurer or other limited lines producer may receive a nonresident limited lines producer license, giving them the same scope of authority as in their resident state.

Temporary License

The Director may issue a temporary insurance producer license for up to 180 days without examination if the temporary license is necessary to serve the insurance business in any of the following cases: in any other circumstance, except for those relating to continuing education requirements, if it is considered by the Director to be in the public's best interest for the license to be issued

Temporary License

The Director may issue a temporary insurance producer license for up to 180 days without examination if the temporary license is necessary to serve the insurance business in any of the following cases: to a licensed member or employee of an agency upon the death or disability of an individual who was designated in the business entity application or license

Temporary License

The Director may issue a temporary insurance producer license for up to 180 days without examination if the temporary license is necessary to serve the insurance business in any of the following cases: to the designee of a producer entering active service in the United States armed forces

Temporary License

The Director may issue a temporary insurance producer license for up to 180 days without examination if the temporary license is necessary to serve the insurance business in any of the following cases: to the spouse or representative of a deceased or mentally or physically disabled producer to allow for the sale of the business, the recovery or return of the producer to the business, or to provide for the training and licensing of new personnel to operate the producer's business

180

The Director may issue a temporary license for up to ___ days without examination under certain circumstance, if in the public interest.

Temporary License

The Director may limit the authority of any temporary license if necessary to protect insureds and the public. This may include a requirement for the temporary licensee to have a suitable sponsor who will assume responsibility for all insurance acts of the temporary licensee. A temporary license maybe revoked if the Director decides the license is endangering the public. A temporary license may not continue after the business for which the temporary license was issued has been sold.

Suspension, Revocation, Probation, or Nonrenewal

The Director may place on probation, revoke, or suspend a producer's license for the following reason:

Suspension, Revocation, Probation, or Nonrenewal

The Director may place on probation, revoke, or suspend a producer's license for the following reason: Obtaining or attempting to obtain a license through misrepresentation or fraud

Suspension, Revocation, Probation, or Nonrenewal

The Director may place on probation, revoke, or suspend a producer's license for the following reason: Providing incorrect, misleading, incomplete, or materially untrue information in the license application

Suspension, Revocation, Probation, or Nonrenewal

The Director may place on probation, revoke, or suspend a producer's license for the following reason: Violating insurance laws, or violating any regulation, subpoena, or order of the director or of another state's director or his designee

Nonresident

The Director may verify the producer's licensing status with the Producer Database maintained by the NAIC or its affiliates.

Hearings

The Director must give a person written notice of at least 30 days before a hearing, and the notice must state the time and place of the hearing. The notice must also contain the subject of the inquiry and the specific charges.

Licensing Process

The individual producer's license must include the licensee's name, address, personal identification number, date of issuance, line of authority, and any other information deemed necessary by the Director.

Producer

The term 'producer' can also refer to an agency. Every agency, including a corporation, partnership, association, or person, transacting the insurance business of a producer under a corporate or trade name must be licensed by the Director. The agency's stockholders, officers, directors, members, employees, or associates acting as a producer must also be licensed.

Continuing Education (CE)

Up to 18 excess credit hours may be carried over to the next biennial period.

Continuing Education (CE)

do not apply to Limited lines producers

Continuing Education (CE)

do not apply to Nonresident producers who successfully satisfy the continuing education in their home state are considered to have satisfied the requirements of South Carolina

Consumer Information Privacy Regulation

regulates the management of personal health and financial information by requiring a producer not disclose a policy number to any nonaffiliated third party for marketing by mail, email, or phone.

Insurance Fraud Act

requires any person or insurer believing that another has made a false statement, or a misrepresentation notify the Insurance Fraud Division and provide additional information upon request.