Bulletin 2010-02 2009 Appointment Changes

FROM: Scott H. Director South Carolina Department of Insurance BULLETIN NUI\'tBER 2010-02 SUBJECT: 2009 Appointment DATE: February 3, 2010 I. PURPOSE MARK SANFORD Governor SCOTT H. RICHARJ>SON Director Insurance This bulletin is third in a of bulletins 1 published to the South Carolina insurance industry on recent changes in South Carolina law effected by 2009 S.C. Act :No. 69 and Budget Proviso . The purpose of this bulletin is to 1) provide an overview of the changes in the law affecting insurer appointments and appointment renewals; and 2) set forth the requirements relating to insurer appointments and appointment renewals. II. OVERVIE\V OF STATUTORY CHANGES A. sets I. mu~ 2. are due on a biennial appointment must paid by September of an even-numbered 3. If the biennial appointment is not paid by September of an even- the must canceled. insurer an appointment that was canceled due to the insurer's nonrene\val by December 1 of the same even-numbered year. In order to reactivate a canceled appointment, the msurer must pay the biennial appointment renewal and a two hundred fifty dollar ($250) penalty to the Department by December 1. Summarized Section III of this bulletin are the appointment renewal requirements for the September 20 l 0 appointment renewal period. Ill. SEPTEMBER 2010 APPOINTMENT RENEWAL PROCESS MAY 1, 10 DEADLINE AND OF TO COMPLY the deadline for licensed to comply with 0 1' 10. B. lapsed to compliant by 15, and appointment is reinstated prior to the September 1, 2010 start of the appointment renewal period. C. SEPTEMBER l ~ 30, 2010 RENEWAL PERIOD Producer appointments must be renewed from September 1 through September 30, 2010. The names of producers whose licenses have lapsed for noncompliance and have not reinstated their producer license and appointment(s) will not appear on the insurer's Appointment Renewal List. Insurers \vill not be able to renew the appointments of producers whose license and appointments have lapsed for failure to comply with license renewal or continuing insurance education requirements. D. OF FAILURE TO RENEW Appointments not renewed by September 30, 2010 will cancel effective October 1, 2010. Pursuant to South Carolina Code of Laws Section 38-43-55, insurers must provide notice of cancellation to all producers appearing on the insurer's Appointment Renewal List and whose appointment is canceled due to the nonrenewal of the appointment by September 30, I 0. . Within ( 15) canceling an appointment, insurer must mail a notice to producer. IV. QUESTIONS to O'Brien, mobrien@doi.sc.gov