South Carolina Insurance Laws and Regulations
Who regulates what
The South Carolina Department of Insurance administers Title 38 of the SC Code and licenses insurers, producers, and adjusters. An adjuster must be licensed before handling SC claims; resident, nonresident (usually through reciprocity), and public adjuster licenses are distinct, and catastrophe or emergency adjuster permits may be issued after a declared disaster. Licenses renew on a two-year cycle with continuing education, including an ethics component - confirm current hour totals with the Department, since they change.
Claims conduct rules
The Unfair Trade Practices Act (Title 38, Chapter 57) and the claims practices provisions (Chapter 59) prohibit misrepresenting policy provisions, failing to investigate promptly, unreasonable delay, and offering substantially less than the amount owed. Insurers must acknowledge claims promptly, act in good faith, and explain a denial or partial denial in writing. Public adjusters must use a written contract and face restrictions on soliciting business during a declared state of emergency.
South Carolina facts adjusters are tested on
Minimum auto liability is 25/50/25, and uninsured/underinsured motorist coverage must be offered. The state follows modified comparative negligence. The general statute of limitations for tort and contract actions is three years. Coastal wind coverage is available through the South Carolina Wind and Hail Underwriting Association, while flood remains a separate NFIP policy.
Traps
Assuming a nonresident license authorizes SC claims without SC authority. Treating a certificate of insurance as coverage. Signing a release that destroys subrogation. Ignoring a named-storm deductible on a coastal property claim.
Rule of thumb
When the law or a policy term is unclear, take the path that documents the issue, communicates in writing, and preserves the insurer's rights.