Premium Service Company

Title 38, Chapter 39 of the South Carolina Code of Laws defines the regulations and requirements for Premium Service Companies. Section 38-39-10 provides a detailed list of those exempt from the licensing requirements.

Initial License


1. Application and license fee ($1,000.00) must be completed on NIPR
2. There are additional questions and attachments that need to be sent to the Department of Insurance for the application to be completed. The following will need to be sent to the email for the Special Licensing team. 
     a. Certificate of Existence (from the SC Secretary of State)
     b. Surety Bond or Certificate of Deposit ($50,000.00)
     c. Financial statement from the last two years
     d. Additional questions
     e. Rates and Forms
          i. Premium Service Agreement (Agreement example, Statement example)
               a. The total amount of the premiums
               b. The amount of the down payment
               c. The principal balance
               d. The amount of the service charge
               e. The balance payable by the insured
               f. The number of installments required, the amount of each installment expressed
                   in dollars and the due date (Section 38-39-70)

          ii. Notices 
              a. Intent to Cancel
               b. Cancellation
               c. Acceptance
               d. Overdue Payment
          iii. Maximum Rate Schedule

Renewal License


1. Renewal application and fee must be completed on NIPR every even year.
2. Renewal fee is $1,000.00 every even year.
3. Financial statement must be sent to the Department every year by email to the Special Licensing team. 
4. There are additional questions and attachments that need to be sent to the Department of Insurance for the renewal to be completed. 

Exemptions


The following are exempted from applying for an insurance premium service company license in South Carolina:
  • An insurer authorized to transact insurance business in this state
  • A banking institution, savings and loan association, cooperative credit union, consumer finance company authorized to do business in this state, or a supervised lender provided for in Title 37 of the SC Code of Laws authorized to do business in this state
  • The inclusion of a charge for insurance in connection with an installment sale of goods or services
  • The advancing of premiums by insurance agents and producers of record under Article 3 of Chapter 43 of this title (Section 38-39-10)