S.C. Code Regs. 69-23 - Adjuster, Public Adjuster, Appraiser, Broker, Bondsmen, Runner, Producer and Agency Licenses

Section I. Purpose

The purpose of this regulation is to specify requirements related to licenses issued by the Department.

Section II. Licenses required for each agency

A. Each agency, as defined in Section 38-1-20(26) of the 1976 Code, as amended, shall make application for licensure to the director or his designee on the Uniform Business Entity Application and declare under penalty of refusal, suspension or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief. This applies to each corporation, association, partnership, limited liability company, limited liability partnership, or other business entity in which more than one person has a financial interest or which operates under a corporate or trade name. The requirement for an agency license does not apply to any agency owned by, and operated under the name of, an individual licensed producer, so long as no other person, firm or entity has any interest in, or affiliation with, the business of the individual producer or his agency.

B. No such agency shall be licensed under a name which is likely to lead a person of average intelligence to believe that the agency is an insurer, an agency of any government, or a club, fraternity, association or social or military organization, or which is otherwise deceptive or misleading. Foreign corporations, limited partnerships and any other entities are required by law to be registered with the South Carolina Secretary of State's Office.

C. The agency is required to submit the application to the Department of Insurance and to pay the required fee; however, each insurer is required to notify all its agencies of their responsibility to file an agency application and to pay the required fee. Only one agency license is required for each agency regardless of the number of insurers it represents or the number of locations. At any time that an agency has no stockholder, officer, director, member, employee or associate possessing a current, active individual producer's license, the agency license shall be deemed terminated.

Section III. Citizenship requirements for Producers, Adjusters, Public Adjusters, Appraisers, Brokers, Bondsmen, and Runners

A. Producers. Only natural persons may be licensed and appointed as producers to represent an insurance company. The applicant shall be a citizen of the United States or provide documentation that the applicant is a properly registered alien residing in the United States.

B. Adjusters, Public Adjusters, Appraisers, Brokers, Bondsmen and Runners. The applicant shall be a citizen of the United States or provide documentation that the applicant is a properly registered alien residing in the United States.

Section IV. Appointments

After becoming licensed, producers must be appointed by an insurer licensed in the State for the kinds of insurance for which the applicant is licensed and seeks to transact business. Every such appointing insurer is accountable for the accuracy and veracity of the certification of the applicant's reputation and trustworthiness. Information obtained from commercial reporting sources concerning the reputation of an applicant must be retained by the appointing insurer for at least five (5) years and shall be made available to the Department of Insurance upon request made by the Department.

Section V. Successful Completion of Examination

A. Producers. An applicant for licensure as a resident producer shall stand a written examination.

B. Adjusters. So as to assure himself that applicants for an adjuster's license under Code Section 38-47-10 have sufficient knowledge of the insurance business, the Director will require those applicants to stand a written examination.

(1) An adjuster applicant holding a designation as Chartered Property and Casualty Underwriter (CPCU) or Chartered Life Underwriter (CLU) relevant to the kinds of insurance for which he seeks authority shall not be required to stand a written examination prior to being issued a license.

(2) Nonresident applicants for an adjuster's license who are licensed in their home state or any other state requiring a licensing examination shall not be required to stand a written examination prior to being issued a license.

(3) If an applicant not currently licensed was previously licensed in respect to the kinds of insurance for which he seeks a license within the immediately preceding ninety days, and such license was not suspended, canceled or revoked, the Director may waive the requirement of a written examination.

C. Public Adjusters, Appraisers, Bondsmen, Runners and Brokers shall take written examinations as provided for by statute.

D. Applicants scoring at least seventy (70) points on the examination will be issued a certificate to signify successful completion of the examination, which certificate shall be valid for twelve months only. Upon submission of such certificate to the Department of Insurance, and upon the applicant's meeting all requirements to become licensed, the appropriate license will be issued.

E. Applicants scoring less than seventy (70) points shall be deemed to have failed the examination. An applicant may take each examination six (6) times during any twelve month period, upon complying with all applicable registration, fee and test procedure requirements.

Section VI. Absence of criminal record

A. Producers. An insurance company is required to investigate the "character and record" of a person whom the company wishes to appoint as its producer, and to vouch for the trustworthiness and qualifications of such person to act as an appointed producer for the insurer. In determining whether an individual is eligible to be licensed as an insurance producer, the Director must, among other things, consider whether the individual has been convicted of, or pleaded guilty or nolo contendere to, a crime involving moral turpitude. Every applicant for a producer's license must provide a copy of his criminal history record to the Director when applying for a license. The Director must also consider whether the individual has had an insurance producer license, or its equivalent, denied, suspended, or revoked in this state or another state, province, district, or territory.

B. Adjusters, Public Adjusters, Appraisers, Bondsmen, Runners and Brokers. The Director must be satisfied that a person applying for a license is of good moral character, has not violated any of the insurance laws of this State or any other state, and is a fit and proper person for a license. So as to permit the Director to make such a determination, every applicant for a license must provide a copy of his criminal history record to the Director when applying for a license. The Director must also consider whether the individual has had a license, or its equivalent, denied, suspended, or revoked in this state or another state, province, district, or territory.

Section VII. Special requirements for variable contracts licensing

In order to be licensed to sell either variable life insurance or variable annuities, an applicant must meet the following requirements:

(1) The applicant must furnish evidence that he has passed a securities examination administered by the National Association of Securities Dealers (NASD), the Securities and Exchange Commission (SEC) or the Securities Commissioner of South Carolina;

(2) The applicant must furnish evidence that he has passed a variable contracts examination. The variable contracts examination may be waived if the applicant furnishes evidence that he has passed the NASD Series 6 or Series 7 examination or any other examination which in the opinion of the Director sufficiently tests the applicant's knowledge of variable contracts.

Notes

S.C. Code Regs. 69-23

Amended by State Register Volume 8, Issue No. 6, eff June 22, 1984; State Register Volume 12, Issue No. 7, eff July 1, 1988; State Register Volume 34, Issue No. 6, eff June 25, 2010.