1.2 Maintenance of License, Continuing Education & Professional Conduct

Obtaining a South Carolina adjuster license is the initial milestone in a professional claims career. However, maintaining that license requires strict ongoing adherence to statutory continuing education mandates, administrative reporting protocols, and ethical principles enforced by the South Carolina Department of Insurance (SCDOI).

Biennial License Renewal & Continuing Education (CE) Structure

In South Carolina, adjuster licenses are renewed on a biennial cycle (every two years). To remain active and in good standing, each licensed resident adjuster must fulfill mandatory continuing education (CE) requirements during every two-year compliance period.

General Continuing Education Requirements

• Total Credit Hours: Licensed adjusters must complete a minimum of 24 hours of SCDOI-approved continuing education during each biennial reporting period.
• Ethics Requirement: Within the 24 total hours, adjusters must complete a minimum of 3 hours of approved Ethics education.
• Course Approval & Provider Verification: CE hours must be earned through course providers officially approved by the SCDOI. Self-study courses require proctored examination completion, while online interactive courses track active participation.
• Carryover Credits: South Carolina permits a limited carryover of up to 6 excess general CE credit hours into the subsequent biennial compliance period, provided ethics hours are satisfied anew each cycle.
• First-Renewal and Nonresident Exemptions (§ 38-91-90(B)): An individual renewing an adjuster license for the first time after initial issuance is exempt from the CE requirement, as are nonresident adjusters who have met the CE requirements of their home state (when the home state grants reciprocal credit).
• Dual Producer/Adjuster Credit (§ 38-91-90(D)): An adjuster who also holds a resident producer license satisfies the adjuster CE by completing the producer CE; however, any adjuster handling workers’ compensation claims must still complete the 3-hour WC mandate.

Mandatory Workers’ Compensation CE Mandate (§ 38-91-90)

A critical statutory provision specific to South Carolina claims adjusters is codified under S.C. Code § 38-91-20. This statute imposes a specialized continuing education requirement on adjusters who evaluate, negotiate, or settle workers' compensation claims:

Statutory Mandate: Any licensed adjuster handling workers' compensation claims in South Carolina must complete at least 3 hours of approved Workers' Compensation continuing education during each biennial licensing period as part of the overall 24-hour CE requirement.

This specialized mandate ensures that claims professionals remain proficient in South Carolina Workers' Compensation Law (Title 42), South Carolina Workers' Compensation Commission (SCWCC) administrative regulations, medical fee schedules, disability benefit calculations, and return-to-work protocols. Adjusters handling property or casualty lines exclusively are exempt from the 3-hour workers' compensation requirement but must fulfill the general 24-hour credit total.

Mandatory 30-Day Administrative Reporting Rule

The SCDOI relies on accurate regulatory records to issue compliance notices, legal service of process, and license renewal reminders. S.C. Code Title 38 establishes an explicit 30-day reporting window for administrative changes:

• Contact Information Changes: Every licensed adjuster must report any change in residential address, primary business address, mailing address, telephone number, or official email address to the SCDOI within 30 days of the change.
• Legal Name Changes: Any change in legal name due to marriage, divorce, or court order must be reported to the Department within 30 days, accompanied by supporting legal documentation (e.g., marriage certificate or court decree).
• Administrative & Criminal Disclosures: Licensees must report any administrative action taken against them by another state's insurance department or governmental agency within 30 days of final disposition. Furthermore, any criminal prosecution initiated against the adjuster in any jurisdiction must be reported to the SCDOI within 30 days of the initial pre-trial hearing date.

South Carolina Adjuster CE & Notification Summary

Disciplinary Grounds & Statutory Sanctions

Under S.C. Code Title 38, the SCDOI Director possesses comprehensive statutory authority to discipline licensees who violate insurance laws or demonstrate unfitness. The Director may place an adjuster on probation, suspend, revoke, or refuse to issue or renew an adjuster license upon establishing any of the following statutory grounds:

1. Material Misrepresentation: Providing inaccurate, deceptive, or fraudulent statements on a license application or renewal filing.
2. Insurance Code Violations: Violating any insurance statute, SCDOI administrative regulation, subpoena, or lawful order of the Director.
3. Financial Misappropriation: Improperly withholding, misappropriating, converting, or failing to remit claim funds, premium payments, or return premiums held in a fiduciary capacity.
4. Fraudulent or Dishonest Practices: Engaging in fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in claims adjusting.
5. Felony & Misdemeanor Convictions: Being convicted of, or pleading nolo contendere to, any felony, or any misdemeanor involving moral turpitude, dishonesty, or breach of trust.
6. Unfair Claims Settlement Practices: Committing unfair or deceptive claims settlement practices with such frequency as to indicate a general business practice under S.C. Code § 38-59-20.
7. Out-of-State License Sanctions: Having an adjuster license suspended, revoked, or denied in any other U.S. state, territory, or federal jurisdiction.

Administrative Fines & Probationary Terms

In addition to, or in lieu of, license suspension or revocation, the Director may impose severe administrative monetary penalties under S.C. Code Title 38:

• Non-Willful Violations: For non-willful violations of insurance law, the Director may levy an administrative penalty up to $10,000 per violation against an individual adjuster or adjusting entity.
• Willful Violations: For willful or intentional violations, administrative fines may reach up to $30,000 per violation, reflecting the severe nature of intentional statutory breaches.
• Probationary Orders: The Director may issue a probationary order subjecting the adjuster's claims activities to heightened regulatory oversight, mandatory reporting, or restitution orders for specified periods.

Fiduciary Duty & Professional Conduct Standards

Adjusters serve as vital fiduciaries within the insurance ecosystem. In South Carolina, professional conduct rules require adjusters to:

• Act with absolute impartiality, honesty, and integrity toward policyholders, third-party claimants, and insurance carriers.
• Disclose all policy coverages, endorsements, and applicable policy limits clearly to claimants.
• Avoid any personal conflict of interest, such as steering repair work to contractors in which the adjuster holds a financial interest without full written disclosure.
• Refrain from giving unauthorized legal advice to policyholders or discouraging claimants from seeking legal representation.