Key Takeaways

  • South Carolina producers have fiduciary duties to clients
  • Producers must disclose compensation and conflicts of interest
  • Premium funds must be handled according to strict requirements
  • Records must be maintained for regulatory examination
  • Continuing education includes ethics requirements
Last updated: January 2026

Producer Conduct and Fiduciary Duties

South Carolina insurance producers have legal and ethical obligations to their clients and the public.

Fiduciary Duties

Producers owe fiduciary duties to their clients:

Key Duties

DutyDescription
LoyaltyPut client's interests first
DisclosureReveal all material information
CompetenceMaintain professional knowledge
ConfidentialityProtect client information
Good FaithAct honestly in all dealings

Agent vs. Broker Duties

Producer TypePrimary Duty To
AgentInsurance company
BrokerClient/Insured

Disclosure Requirements

South Carolina producers must disclose:

Compensation Disclosures

  • Method of compensation (commission, fee, both)
  • Material conflicts of interest
  • Ownership interests in recommending insurers
  • Referral arrangements

Product Disclosures

  • All material terms and conditions
  • Limitations and exclusions
  • Premium and cost information
  • Comparison with alternatives when replacing

Handling of Funds

Producers must handle premiums according to strict rules:

Premium Collection

RequirementRule
DepositPromptly to insurer or trust account
ComminglingCannot mix with personal funds
Trust AccountRequired for holding premiums
RecordsMust maintain detailed records

Consequences of Mishandling

  • License suspension or revocation
  • Required restitution
  • Civil liability
  • Potential criminal charges

Continuing Education

South Carolina requires ongoing education for producers:

CE Requirements

  • Completion of required hours each renewal period
  • Ethics training component required
  • Must be completed before license renewal
  • Courses must be approved by SCDOI

Professional Standards

Beyond legal requirements, professional standards include:

  • Treating all clients fairly and equally
  • Maintaining professional competence
  • Avoiding conflicts of interest
  • Protecting client confidentiality
  • Being honest in all communications
  • Reporting illegal or unethical conduct

Record Keeping

South Carolina requires producers to maintain records:

Required Records

Record TypePurpose
ApplicationsDocument client information
Policy documentsProof of coverage
Client correspondenceCommunication records
Premium recordsFinancial accountability
Replacement formsRegulatory compliance

Access to Records

  • SCDOI can examine records during investigations
  • Must provide records upon request
  • Failure to maintain records is a violation
Test Your Knowledge

Which type of South Carolina insurance producer primarily represents the client?

A
B
C
D
Test Your Knowledge

What happens if a South Carolina producer commingles client premium funds with personal funds?

A
B
C
D