South Carolina Property & Casualty Insurance Exam

Welcome to the South Carolina Property & Casualty Insurance Exam study guide. This comprehensive resource covers South Carolina-specific insurance laws, regulations, and practices required for your state licensing exam.

About South Carolina's P&C License

South Carolina requires insurance producers to pass a combined Property and Casualty examination to sell property and casualty insurance products in the state. The license is regulated by the South Carolina Department of Insurance (SCDOI), led by the Director of Insurance who is appointed by the Governor.

What This Exam Covers

This guide focuses exclusively on South Carolina state law and regulations:

• South Carolina Department of Insurance structure and authority
• State licensing requirements and procedures
• South Carolina auto insurance laws and minimum coverage requirements (25/50/25)
• Uninsured/Underinsured Motorist (UM/UIM) coverage requirements
• Hurricane, wind, and hail insurance specific to South Carolina
• South Carolina Wind and Hail Underwriting Association
• State property insurance requirements
• South Carolina-specific policy provisions and endorsements
• Ethics and professional conduct under South Carolina law

Important: This study guide covers ONLY South Carolina state-specific content. You must also study national Property & Casualty insurance concepts (policy types, coverages, underwriting, claims) from other resources or courses.

Exam Structure

Combined Property & Casualty Exam

Content Distribution

State-Specific Content (40-50%):

• South Carolina insurance regulations and laws
• State Department of Insurance authority
• South Carolina auto insurance requirements
• State-specific property insurance provisions
• Producer licensing and continuing education

National P&C Content (50-60%):

• Property insurance fundamentals
• Casualty insurance principles
• Commercial coverage
• Personal lines insurance
• Underwriting and claims

Pre-License Requirements

Education

South Carolina has NO mandatory pre-license education requirement for Property & Casualty insurance:

• No required classroom hours
• No mandated online courses
• No approved education providers needed

However, successful candidates typically:

• Study 40-60 hours of exam content
• Take multiple practice exams
• Review South Carolina insurance laws thoroughly
• Study national P&C insurance concepts

Background Check

South Carolina requires since January 2017:

• Fingerprinting for background check ($50 fee)
• Criminal history review through SLED (State Law Enforcement Division)
• FBI national criminal background check
• Disclosure of any felony convictions
• Certain criminal convictions may disqualify applicants

License Application Process

After passing the exam:

1. Submit Application: Apply through NIPR (National Insurance Producer Registry)
2. Pay License Fee: $25 application fee
3. Background Check: Complete fingerprinting ($50 fee)
4. Processing Time: 2-4 weeks typically
5. License Issued: Valid for 2 years

Continuing Education

To maintain your South Carolina P&C license:

South Carolina-Specific Focus Areas

Auto Insurance Requirements

Minimum Liability Coverage (25/50/25):

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

Uninsured Motorist (UM) Coverage:

• Required equal to liability limits
• Must be offered by insurers
• Can be rejected in writing by insured

Underinsured Motorist (UIM) Coverage:

• Must be offered to policyholders
• Can be rejected in writing
• Protects when at-fault driver has insufficient coverage

Exam Tip: South Carolina's 25/50/25 minimum liability and UM requirements are frequently tested. Memorize these numbers.

Property Insurance in Coastal Areas

South Carolina's coastal location creates unique property insurance challenges:

Hurricane and Wind/Hail Exposure:

• Coastal counties face higher premiums
• Wind and hail coverage may require separate policies
• Higher deductibles for wind/hail damage (often 2-5%)

South Carolina Wind and Hail Underwriting Association:

• Residual market for wind/hail coverage
• Available in designated coastal areas
• Insurer of last resort when voluntary market unavailable

Coastal Counties Affected:

• Horry County (Myrtle Beach area)
• Georgetown County
• Charleston County
• Beaufort County
• Portions of Berkeley, Colleton, Jasper counties

South Carolina Department of Insurance

Structure and Leadership

• Director of Insurance: Appointed by the Governor (not elected)
• Authority: South Carolina Code of Laws Title 38 (Insurance)
• Responsibilities: Licensing, rate regulation, consumer protection, market conduct

Key Functions

Exam Content Areas

Chapter 1: South Carolina P&C Regulation & Licensing

• Department of Insurance structure and authority
• Producer licensing requirements and procedures
• Continuing education mandates
• Prohibited practices (rebating, twisting, misrepresentation)
• Penalties and enforcement actions
• South Carolina Code of Laws Title 38

Chapter 2: South Carolina Property Insurance

• Homeowners insurance requirements
• Hurricane and windstorm coverage
• South Carolina Wind and Hail Underwriting Association
• Policy cancellation and non-renewal rules
• Dwelling and personal property coverage
• Flood insurance considerations (NFIP)
• Commercial property insurance

Chapter 3: South Carolina Auto & Casualty Insurance

• Minimum auto insurance requirements (25/50/25)
• Uninsured/Underinsured Motorist coverage
• South Carolina Financial Responsibility Law
• Commercial auto insurance
• Workers' compensation regulations
• Liability insurance requirements
• Claims handling procedures

Chapter 4: South Carolina Ethics & Professional Conduct

• Fiduciary responsibilities
• Disclosure requirements
• Conflicts of interest
• Advertising and solicitation rules
• Client privacy and confidentiality
• Professional standards of conduct
• Disciplinary actions and penalties

Study Recommendations

Timeline

6-8 Weeks Before Exam:

• Begin studying South Carolina insurance law
• Review national P&C concepts
• Take diagnostic practice tests
• Focus on Code of Laws Title 38

4 Weeks Before Exam:

• Focus on weak areas identified
• Complete practice quizzes daily
• Memorize key South Carolina requirements
• Study auto insurance minimums and UM/UIM

2 Weeks Before Exam:

• Take full-length practice exams
• Review South Carolina-specific regulations
• Memorize minimum auto coverage limits (25/50/25)
• Study Wind and Hail Underwriting Association

1 Week Before Exam:

• Final review of key topics
• Focus on South Carolina laws and rules
• Review ethics and prohibited practices
• Get adequate rest

Key Areas to Master

✓ South Carolina Department of Insurance structure (Director appointed by Governor) ✓ Producer licensing requirements and continuing education (24 hours/2 years, 3 ethics) ✓ South Carolina minimum auto insurance (25/50/25 plus UM) ✓ UM/UIM coverage requirements (must be offered, can be rejected in writing) ✓ Wind and Hail Underwriting Association (coastal coverage) ✓ Hurricane and windstorm insurance (coastal counties) ✓ Prohibited practices (rebating, misrepresentation, twisting) ✓ Policy cancellation and non-renewal procedures ✓ Claims handling time frames and requirements ✓ Ethics and professional standards

Test-Taking Tips

Before the Exam

1. Arrive 30 minutes early at the Pearson VUE test center
2. Bring valid government-issued photo ID
3. No materials allowed in testing room
4. Secure personal belongings in locker
5. Review key facts in parking lot (not in test center)

During the Exam

1. Read carefully: Every word matters
2. Watch for negatives: "NOT", "EXCEPT", "LEAST"
3. Eliminate wrong answers: Narrow choices to two options
4. Flag difficult questions: Return later with fresh perspective
5. Manage time: ~1.2 minutes per question (180 min ÷ 150 questions)
6. Don't overthink: Trust your preparation
7. Focus on South Carolina specifics: When state law conflicts with general practice

After the Exam

• Results provided immediately at test center
• Passing: Receive score report for license application
• Failing: Wait 24 hours before retaking (full $44 fee required)
• No limit on retake attempts
• Score report shows performance by content area

South Carolina Insurance Market Overview

Market Characteristics

Property Insurance:

• Coastal exposure creates capacity challenges
• Hurricane risk drives higher premiums in coastal areas
• Inland areas more affordable
• Wind/hail deductibles common statewide

Auto Insurance:

• Competitive market with many carriers
• Urban areas (Charleston, Columbia, Greenville) higher rates
• Rural areas typically lower premiums
• Uninsured motorist rate approximately 10-12%

Commercial Insurance:

• Growing market due to economic expansion
• Tourism industry (Myrtle Beach, Charleston) significant exposure
• Manufacturing and distribution sectors important
• Workers' compensation rates competitive

Economic Factors

South Carolina's insurance market is influenced by:

• Population growth (especially coastal retirement communities)
• Hurricane exposure along 190-mile coastline
• Economic development attracting businesses
• Tourism industry (significant property and liability exposure)

How to Use This Study Guide

Each chapter includes:

📚 Content Sections: Detailed explanations of South Carolina insurance law 📊 Visual Aids: Tables, diagrams, and charts for complex topics 🎯 Key Takeaways: Summary bullets for quick review 📝 Practice Questions: Quiz questions with detailed explanations 💡 Exam Tips: Test-taking strategies and memorization aids

Work through each chapter systematically, complete all practice questions, and review key takeaways until you can recall them confidently.

South Carolina Department of Insurance Resources

• Website: www.doi.sc.gov
• Consumer Services: (803) 737-6180 or (800) 768-3467
• Licensing Division: (803) 737-6160
• Address: 1201 Main Street, Suite 1000, Columbia, SC 29201

Ready to Begin?

This guide is organized into four main chapters:

1. Chapter 1: South Carolina P&C Insurance Regulation & Licensing
2. Chapter 2: South Carolina Property Insurance
3. Chapter 3: South Carolina Auto & Casualty Insurance
4. Chapter 4: South Carolina Ethics & Professional Conduct

Start with Chapter 1 and work through systematically. Master South Carolina's unique requirements including the 25/50/25 auto insurance minimums, UM/UIM requirements, and the Wind and Hail Underwriting Association for coastal properties.

Good luck with your exam preparation!

Disclaimer: This study guide is for educational purposes only and does not guarantee exam success. Always verify current regulations with the South Carolina Department of Insurance, as laws and requirements may change. Last updated January 15, 2026.