Producer Licensing in South Carolina

South Carolina regulates insurance producers under Title 38, Chapter 43 of the South Carolina Code of Laws.

Licensing Requirements

Pre-License Education

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

Key Points:

• No required classroom hours
• No mandated online courses
• No approved education providers needed
• Candidates may study independently

Recommended Preparation:

• 40-60 hours of self-study
• Review of South Carolina insurance laws (Title 38)
• Study of national P&C concepts
• Practice exams to assess readiness

Exam Tip: While South Carolina doesn't require pre-license education, most successful candidates study 40-60 hours. The exam is challenging and requires thorough preparation.

Licensing Examination

Exam Structure:

Content Distribution:

State-Specific Content (40-50%):

• South Carolina insurance laws and regulations
• State Department of Insurance authority
• South Carolina auto insurance requirements (25/50/25)
• UM/UIM coverage requirements
• Producer licensing and conduct
• State-specific policy provisions

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

• Property insurance fundamentals
• Casualty insurance principles
• Commercial coverage
• Underwriting and rating
• Claims handling
• Policy provisions and endorsements

Exam Registration

Steps to Register:

1. Create Account: Register at pearsonvue.com/sc/insurance
2. Schedule Exam: Select date, time, and location
3. Pay Exam Fee: $44 (non-refundable)
4. Receive Confirmation: Email confirmation with appointment details
5. Arrive Early: Arrive 30 minutes before scheduled time

What to Bring:

• Valid government-issued photo ID (driver's license, passport, etc.)
• Confirmation number
• No study materials allowed in testing room
• Personal belongings secured in locker

Exam Results:

• Immediate results upon completion
• Score report provided at test center
• Pass: Proceed with license application
• Fail: Must wait 24 hours before retaking

Background Check Requirements

Since January 2017, all resident producers must submit fingerprints:

Background Check Process:

1. Fingerprinting: After passing exam, complete fingerprinting
2. Fee: $50 for background check
3. SLED Check: South Carolina Law Enforcement Division (SLED) reviews state criminal history
4. FBI Check: National criminal background check
5. Review: Department reviews criminal history
6. Approval: Clean background required for licensure

Disqualifying Offenses:

• Felony convictions involving dishonesty or breach of trust
• Fraud or embezzlement
• Misappropriation of funds
• Certain violent crimes
• Recent felony convictions (within past 15 years)

Disclosure Requirements:

• Must disclose all criminal convictions
• Must disclose pending criminal charges
• Must disclose administrative actions by other states
• Failure to disclose can result in license denial or revocation

Exam Tip: South Carolina's fingerprinting requirement began in January 2017. This is a frequently tested fact about recent changes to licensing procedures.

License Application Process

Application Through NIPR

South Carolina uses the National Insurance Producer Registry (NIPR) for license applications:

Application Steps:

1. Pass Exam: Achieve 70% or higher on P&C exam
2. Create NIPR Account: Register at nipr.com
3. Complete Application: Provide personal and professional information
4. Pay License Fee: $25 application fee
5. Schedule Fingerprinting: Complete background check
6. Submit Application: NIPR submits to South Carolina
7. Processing: Department reviews application (2-4 weeks)
8. License Issued: Receive license electronically

Application Information Required:

• Personal identification (name, address, SSN)
• Exam results and passing score report
• Business address and contact information
• Disclosure of criminal history
• Disclosure of administrative actions
• Sponsoring agency information (if applicable)
• Errors and omissions insurance information

License Types

South Carolina issues several types of P&C licenses:

Resident Producer License

• Individual domiciled in South Carolina
• Primary business location in South Carolina
• Subject to South Carolina laws and regulations

Non-Resident Producer License

• Individual domiciled in another state
• Licensed in home state
• South Carolina grants reciprocal licensing
• Must maintain home state license

Temporary License

• Issued upon death or disability of producer
• Allows business continuation for up to 180 days
• Must designate qualified individual to manage business
• Can be extended for good cause

Limited Lines License

• Restricted to specific types of insurance
• Examples: travel insurance, rental car insurance
• Limited licensing requirements
• Restricted scope of authority

License Term and Renewal

License Validity

License Term:

• Valid for 2 years from date of issuance
• Expires on last day of birth month in renewal year
• Must complete continuing education before renewal
• Grace period: 60 days after expiration (with late fee)

Renewal Fee:

• $25 every 2 years
• Additional late fee if renewed after expiration
• No proration for mid-term license

Renewal Process

Steps to Renew:

1. Complete CE: Finish 24 hours of continuing education (including 3 hours ethics)
2. Access NIPR: Log into NIPR account
3. Renew License: Complete renewal application
4. Pay Fee: $25 renewal fee
5. Submit: NIPR processes renewal
6. Confirmation: Receive renewed license electronically

Late Renewal:

• Grace period: 60 days after expiration
• Late fee added to renewal fee
• License considered expired during grace period
• Cannot transact insurance during grace period

Failure to Renew:

• License lapses after grace period
• Must apply for reinstatement
• May require re-examination if lapsed over 12 months
• CE requirements still apply

Exam Tip: South Carolina licenses are valid for 2 years and expire on the last day of the producer's birth month in the renewal year.