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1. What is the license fee for an insurance premium service company?

The annual license fee is $1,000 payable to the department by March 1 (biennial), according to Section 38-39-20(b) of the South Carolina Code of Laws.

2. How long does a premium service company have to keep its records?

Every licensed insurance premium service company must keep and maintain its records for at least three years after making the final entry on any premium service agreement. The records must be open to examination and investigation at any time by the department, according to Section 38-39-50 of the South Carolina Code of Laws.

3. What are the cancellation procedures for an insurance premium service company?

The premium service company must deliver to the insured a 10-day notice of its intent to cancel the insurance contract. No less than five days after the expiration of the notice, the insurance premium service company may request in the name of the insured cancellation of the insurance contract by delivering the notice of cancellation to the insurer, according to Section 38-39-90 of the South Carolina Code of Laws.

4. What is the maximum fee an insurance premium service company can charge on a delinquent account?

The maximum fee of a delinquent account may not exceed 5% of the installment, according to Section 38-39-80(g) of the SC Code of Laws.

5. How much is the initial charge for an insurance premium contract?

The initial charge for an insurance premium contract can be up to $20, which may not be refunded. This is according to Section 38-39-80(d) of the SC Code of Laws.

6. Can an insurance premium service company charge the non-refundable fee twice?

An insurance premium service company cannot induce an insured to become obligated under more than one premium service agreement for the purpose of obtaining more than one nonrefundable charge. Additionally, an insurance premium service company cannot intentionally cancel an insurance contract for the purpose of obtaining an additional nonrefundable charge on a new premium service agreement accepted within sixty days of the cancellation of the prior agreement. This is according to Section 38-39-80(f) of the SC Code of Laws.

7. What happens if a policy is cancelled and there is a premium credit?

If the crediting of return premiums to the insured’s account results in a surplus over the amount due from the insured, the insurance premium service company must refund the excess to the insured or the agent of record. A refund is not required if it amounts to less that $5, according to Section 38-39-90(f) of the SC Code of Laws.

8. What are the procedures if the owner or partner of an insurance premium service company dies; withdraws from the company; is arrested, indicted or convicted by state or federal law enforcement; has t

In this case, the department must be notified by registered or certified mail no later than 10 days after the event occurs, according to Regulation 69-10-12.