1.1 Statutory Framework & Licensing Requirements

The regulatory structure governing insurance claims adjusting in South Carolina underwent a landmark modernization under S.C. Code Title 38, Chapter 91, enacted through Act 209 of 2026 (effective May 19, 2026). This legislation repealed former Chapter 47 (insurance adjusters) and former Chapter 48 (public insurance adjusters), replacing them with Chapter 91 (adjusters) and Chapter 92 (public adjusters), establishing streamlined administrative procedures, updated definitions, and modernized licensing pathways aligned with national standards while preserving South Carolina’s rigorous consumer protection framework.

Legislative Authority & Powers of the SCDOI Director

Administrative oversight of the insurance industry in South Carolina is vested in the South Carolina Department of Insurance (SCDOI), headed by the Director of Insurance. The Director is appointed by the Governor with the advice and consent of the State Senate, or serves through a designated deputy director possessing full statutory authority.

Under Title 38, Chapter 91, the Director exercises broad regulatory and enforcement powers, including:

• Licensure Authority: Approving, issuing, renewing, suspending, revoking, or placing on probation adjuster licenses for all statutory categories.
• Rulemaking & Bulletins: Promulgating administrative regulations and issuing regulatory bulletins interpreting insurance statutes.
• Examination Oversight: Regulating pre-licensing examination standards, content outlines, testing vendors, and passing score thresholds.
• Investigative & Subpoena Powers: Conducting administrative investigations, examining books and records of adjusters and insurers, administering oaths, and issuing subpoenas for testimony or document production.
• Enforcement & Monetary Sanctions: Issuing cease-and-desist orders, levying administrative fines, and referring criminal violations to the State Attorney General or appropriate circuit solicitors.

---

Statutory Classifications of Adjusters

South Carolina law strictly defines claims adjusting professionals based on whom they represent and the nature of their employment relationship. Title 38 Chapter 91 establishes three primary categories:

Independent Adjusters

An Independent Adjuster is any person who, for compensation, fee, or commission, investigates, negotiates, or settles claims arising under insurance contracts on behalf of an insurer. Independent adjusters operate as independent contractors or employees of an independent adjusting firm. They owe a fiduciary duty of loyalty and fair dealing to the insurance carrier contracting their services.

Public Adjusters

A Public Adjuster is any person who, for money, commission, or any other thing of value, acts on behalf of an insured in negotiating or effecting the settlement of a claim for loss or damage covered by an insurance contract. Public adjusters represent the financial interests of the policyholder. South Carolina maintains strict financial responsibility mandates for public adjusters, requiring a statutory surety bond (typically $20,000) to protect property owners against conversion, fraud, or misrepresentation.

Staff Adjusters (Regular Employees)

A Staff Adjuster (or company adjuster) is a regular, salaried employee of an insurance company authorized to write business in South Carolina. Staff adjusters act directly within the scope of their employment. As detailed below, salaried employees adjusting claims exclusively for their employer are statutorily exempt from individual adjuster licensing under S.C. Code § 38-91-30.

---

Licensing Qualifications & Application Requirements

To qualify for an adjuster license in South Carolina, an individual applicant must satisfy core statutory criteria set forth under S.C. Code Title 38 Chapter 91:

1. Age Requirement: The applicant must be at least 18 years of age.
2. Good Moral Character: The applicant must demonstrate trustworthiness, honesty, and financial integrity. The SCDOI evaluates character through background checks and personal history disclosures.
3. Fingerprint & Criminal History Check (§ 38-91-60(B)(4)): Applicants must furnish a complete set of fingerprints and undergo a SLED state criminal records check and an FBI national criminal records check, with costs borne by the applicant. The applicant must not have been convicted of a felony within the last ten years or of a misdemeanor involving dishonesty, breach of trust, or a financial/insurance-related crime within five years (§ 38-91-60(B)(2)).
4. Competency & Examination (§§ 38-91-60(B)(3) & 38-91-70): Applicants must pass a written adjuster examination administered by Pearson VUE (SCDOI’s exam vendor since May 1, 2023). The Property, Casualty, Surety, and Marine Adjuster exam contains 100 scored questions (plus 5 unscored pretest items), a 2-hour time limit, and a 70% passing score. Candidates may test at a Pearson VUE center or via remote online proctoring; passing results are valid for one year and each exam may be taken at most six times in a calendar year.
5. Application & Fees (§ 38-91-20): Submission of a completed electronic application via the National Insurance Producer Registry (NIPR) or SCDOI portal. The individual adjuster license fee is $100 and the business-entity adjuster license fee is $50 (§ 38-91-20(E)); these fees are payable in advance, fully earned when received, and non-refundable. A SLED criminal background check (approximately $25) and a Pearson VUE examination fee (approximately $59) also apply.

---

Examination Waiver, Reciprocity & Nonresident Licensing

South Carolina facilitates interstate commerce and emergency deployment through structured reciprocity and waiver mechanisms under the following provisions of Chapter 91:

• Nonresident License Reciprocity (§ 38-91-50): A nonresident may receive a nonresident adjuster license if currently licensed and in good standing in the home state, has passed an adjuster examination, has furnished fingerprints and undergone a background check, and pays the required fees (§ 38-91-20), provided the home state issues nonresident licenses to South Carolina residents on the same basis. If the home state does not require an examination or fingerprints, the applicant must meet the South Carolina examination (§ 38-91-70) and fingerprint (§ 38-91-60) requirements.
• Designated Home State (§ 38-91-60(D)): A nonresident who is not eligible for licensure under § 38-91-50 may designate South Carolina as his home state and apply for licensure as a resident adjuster, which requires successfully passing the South Carolina adjuster examination (§ 38-91-70) and complying with all other resident provisions of Chapter 91.
• Emergency Adjuster Permits (SCDOI Reg. 69-1): In the event of a catastrophic event or declared disaster in South Carolina, the Director may issue emergency adjuster permits to out-of-state adjusters sponsored by authorized insurers or licensed adjusting firms. Emergency permits allow rapid deployment for a temporary period (typically up to 120 days, subject to extension) without the standard licensing examination. (Former § 38-47-50 was repealed by Act 209 of 2026; emergency permitting is governed by SCDOI Regulation 69-1.)

Statutory Exemptions from Licensing

Not every individual involved in handling, evaluating, or settling an insurance loss is required to hold an adjuster license. S.C. Code § 38-91-40 establishes explicit statutory exemptions. The following individuals are not required to be licensed as adjusters in South Carolina:

1. Attorneys at Law: Attorneys admitted to practice in South Carolina, when acting in their professional capacity as attorneys.
2. Insurer Employees Not Regularly Engaged in Adjusting: Employees of an insurer who are not regularly engaged in the adjustment or investigation of insurance claims.
3. Technical Assistants to a Licensed Adjuster: Persons employed only to furnish technical assistance to a licensed adjuster, including investigators, attorneys, engineers, estimators, handwriting experts, photographers, and private detectives.
4. Producers Processing Undisputed Losses: A producer of an authorized insurer (or a licensed employee of a producer) who processes an undisputed or uncontested loss under a policy issued by that producer.
5. Clerical-Only Personnel: Persons who perform solely clerical duties and do not negotiate with parties on disputed or contested claims.
6. Life, Accident, and Health Claims: Persons who handle claims arising under life, accident, and health or sickness insurance policies.
7. Fraud Investigators: Individuals employed to investigate suspected fraudulent insurance claims who do not adjust losses or determine claim payments.
8. Service Contracts and Commercial Excess: Persons handling service-contract claims or commercial claims for excess coverages.
9. Reinsurance and Subrogation: Persons who settle only reinsurance or subrogation claims.
10. Self-Insurer Employees and TPA-Handled WC: Full-time salaried employees of a self-insurer, and persons authorized to adjust workers’ compensation or disability claims under a third-party administrator (TPA) license pursuant to Chapter 51.
11. Portable Electronics Claims: Individuals performing supervised data entry for portable electronics insurance claims under an automated claims adjudication system.

---

Summary Table: Licensing Framework At-a-Glance