Bulletin 2009-21 2009 Premium Service Company Licensing Changes

South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: P 0. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 BULLETIN NUMBER 2009-21 MARK SANFORD Governor SCOTT H. RICHARDSON Director of Insurance TO: All Licensed Insurance Premium Service Companies and All Licensed Property and Casualty Insurers Transacting the Business of Insurance in South Carolina FROM: Scott H. Richardson, CPCU A tf __..- Director ~ SUBJECT: 2009 Premium Service Company Licensing Changes DATE: November 6, 2009 I. PURPOSE AND SCOPE OF THIS BULLETIN This is the third in a series of bulletins regarding implementation of 2009 S.C. Act No. 69 (Act). The purpose of this bulletin is to inform licensed premium service companies of the Act's changes to S.C. Code § 38-39-20(b), license renewal requirements for premium services companies. This bulletin also outlines the requirements for new licensees and for submission of annual financial reports for premium service companies. II. PREMIUM SERVICE COMPANY LICENSE RENEWAL REQUIREMENTS The licensing renewal process for insurance premium service companies has changed from an annual-to a biennial renewal subject to a fee of $1,000. Under the previous law, an insurance premium service company was subject to an annual license renewal process and a fee of $500. The $1 ,000 biennial fee must be paid to the Department by March 1, 2010 and by March 1 of every even-numbered year thereafter. Premium service companies must renew their license and pay the $1,000 biennial fee to the Department bv March 1, 2010 in order for their license to continue. Effective January 13, 2010, premium service companies will be able to renew their licenses online. Licensees will receive notification regarding the license renewal process on or after January 13, 2010. III. PREMIUM SERVICE COMPANY INITIAL LICENSE FEE Effective June 2, 2009, newly licensed premium service companies must pay an application licensing fee of $1,000. In order for the license to continue, the licensee must comply with biennial license renewal requirements by March 1 sr of every even-numbered year thereafter. Premium service companies are not required to renew their initial license if the license was issued within one hundred-eighty (180) days of the first March 1 deadline for renewal. IV. FINANCIAL REPORTS Premium service companies are required to continue to submit their financial reports to the Department by 5:00p.m. Eastern Standard Time (EST) on March 1 annually. Beginning in 2010, all financial reports must be submitted electronically to the Department and must be received by the annual deadline of 5:00 p.m. EST on March 1. Information regarding the electronic submission process will be included in the January 2010 notification to licensees. V. QUESTIONS Questions regarding this bulletin should be submitted in wTiting to: Willie Seawright, Manager of Specialty Licensing Department of Insurance Post Office Box 100105 Columbia, South Carolina 29202-3105 Fax: (803) 737-6100 E-mail: wseawright@doi.sc.gov Bulletins are the method by which the Director of Insurance formally communicates with persons and entities regulated by the Department. Bulletins are departmental interpretations of South Carolina insurance laws and regulations and provide guidance on the Department's enforcement approach. Bulletins do not provide legal advice. Readers should consult applicable statutes and regulations or contact an attorney for legal advice or for additional information on the impact of that legislation on their specific situation.