SCDOI to Send Notice of Producers’ Administrative Fee

The South Carolina Department of Insurance announced that during the week of February 5, 2003, the department will mail to all licensed unlimited lines resident and nonresident South Carolina producers a notice for payment of a $35 administrative fee and a notice to complete a personal information data form. Insurers are requested to notify their licensed producers to expect this notice.

The fee and personal information data form is not required for limited lines producers.

The authority for the assessment is contained in H.B. 4096, Producer Model Law, adopted by the South Carolina General Assembly during the 2002 Legislative Session. The new law contains reciprocal provisions of the NAIC’s National Producer Model Act. The new law mandates that producers licensed on January 31, 2003 be required to pay a one-time $35 administrative fee to implement and administer individual licensing requirements of South Carolina. To avoid duplication of payments from producers licensed with multiple companies, the $35 administrative fee must be paid by the producer, not the insurer.

In addition to the administrative fee payment notice, producers will receive a personal data information form. Producers must fully complete the personal information data form and mail that form with the $35 fee payment to the department. This information will be used to update the department’s records and information placed on the NAIC’s Producer Database system.

Insurance producers will be allowed 30 days from the date of the department’s mailing notice to comply. The failure of a producer to pay the fee and submit the personal information data form to the department within the 30-day time period will result in suspension of the producer’s license and appointments. In order to reactivate the license and appointments, the producer must pay the $35 administrative fee and pay a $250 penalty.

Insurers who accept business from a producer whose license has been suspended for noncompliance will be subject to administrative action.

Insurers can help the department obtain a current address by contacting each producer on this list and having them submit to the department in writing their current mailing address. Insurers can further help by directing their producers to submit a written change of address to the department if they have changed their residence and/or mailing address within the past three years, but have not notified the department.

Also, after Jan.16, producers will be able to review the CE administrator’s, Experior, Web site at www.experioronline.com/ to check their address status. The change of address form is located on the department’s website at: www.doi.state.sc.us. By law, producers must notify the department within 30 days of an address change or be subject to an administrative fine up to $2,500. In order to be eligible for the mailing in February, all address changes must be completed by January 30, 2003. Address changes must be made in writing and submitted to the department. Telephone calls cannot be used to make address changes.

Topics South Carolina