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Purchasing Group
Title 38, Chapter 87 of the South Carolina Code of Laws details the regulations for Purchasing Groups. As stated specifically in Section 38-87-120 of the code, when insurance is procured from a licensed insurer for members of the purchasing group who reside in South Carolina, it must be transacted by the insurer's licensed agents in South Carolina. It is also stated that when insurance is procured from an eligible surplus lines insurer, it must be transmitted through duly licensed brokers. These requirements are the same as the normal transaction of business in South Carolina conducted through licensed resident agents or licensed resident brokers.
Nonresident Brokers
Since discrimination is prohibited by the Federal Liability Risk Retention Act, countersignature requirements are waived and all business may be conducted by nonresident individuals who become properly licensed. Special handling of a nonresident broker will be conducted if the sole purpose of becoming licensed is to participate in the procurement of insurance through an eligible surplus lines insurer.
Administrative Firms
When a firm acts as the administrator of the purchasing group and is involved in the transaction of the purchasing group insurance, it is required by law to be licensed as an insurance agency. South Carolina agency licensing requirements must be met.
Licensing information, documentation and instructions can be found by accessing the Purchasing Group Licensing page.
Nonresident Brokers
Since discrimination is prohibited by the Federal Liability Risk Retention Act, countersignature requirements are waived and all business may be conducted by nonresident individuals who become properly licensed. Special handling of a nonresident broker will be conducted if the sole purpose of becoming licensed is to participate in the procurement of insurance through an eligible surplus lines insurer.
Administrative Firms
When a firm acts as the administrator of the purchasing group and is involved in the transaction of the purchasing group insurance, it is required by law to be licensed as an insurance agency. South Carolina agency licensing requirements must be met.
Licensing information, documentation and instructions can be found by accessing the Purchasing Group Licensing page.