Bulletin 2018-11 Notice of Unusual Circumstance/Catastrophe Insurance Declaration for SC due to Florence and Michael...

[LOGO] South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 HENRY McMASTER Governor RAYMOND G. FARMER Director Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 # BULLETIN NUMBER 2018-11 TO: All Insurers, Adjusters, Producers, and other Persons Licensed and Authorized to Transact the Business of Insurance within the State of South Carolina FROM: Raymond G. Farmer Director of Insurance Raymond G. Farmer RE: Notice of Unusual Circumstance/Catastrophe Insurance Declaration for South Carolina due to Hurricane Florence and Tropical Storm Michael for the Purposes of Licensing Temporary Adjusters and Motor Vehicle Physical Damage Appraisers DATE: October 12, 2018 S.C. Code Ann. Reg. 69-1, Adjustment of Claims under Unusual Circumstances provides that: In the event of a catastrophe where there are insufficient licensed adjusters or motor vehicle physical damage appraisers in South Carolina to handle claims expeditiously, non-resident adjusters or motor vehicle physical damage appraisers will be permitted to enter the State to handle the adjustments arising out of the catastrophe without being required to be licensed in South Carolina, provided that the adjuster or motor vehicle physical damage appraiser exhibits evidence of an adjuster's or motor vehicle physical damage appraiser's license in his/her home state and remains in the State only for the period that is necessary to assist in the adjustments or appraisals. An unusual circumstance or catastrophe exists when, due to a specific, infrequent, and sudden natural or man-made disaster or phenomenon, there have arisen losses to property in South Carolina that are covered by insurance, and the losses are so numerous and severe that resolution of claims related to such covered property losses will not occur expeditiously without the authorization of emergency adjusters or motor vehicle physical damage appraisers by the Department due to the magnitude of the catastrophic damage. On September 8, 2018, via Executive Order 2018-26, Governor Henry McMaster declared a State of Emergency due to Hurricane Florence, a hurricane that caused death and significant damage to property in the State of South Carolina. On October 9, 2018, Governor McMaster via Executive Order 2018-48 declared that a continued State of Emergency exists in South Carolina due to current flood waters, saturated grounds and potential for heavy rain and further impact that may occur as a result of Hurricane Michael. Governor McMaster further directed the South Carolina Emergency Management Division to place the Emergency Operations Plan into effect as needed and that all prudent preparations be taken to protect against the possible effects of Hurricane Michael. Hurricane Michael was downgraded to a tropical storm; however, it brought heavy rains and tropical force winds to areas of the state previously impacted by Hurricane Florence. Hurricane Florence and Tropical Storm Michael have caused damage to the property of South Carolina citizens. Based upon this unusual circumstance, declaration of emergency and the potential for significant damage including catastrophic losses, this Department has determined in accordance with S.C. Code Ann. Reg. 69-1 that the licensure of temporary non-resident adjusters and motor vehicle physical damage appraisers continues to be necessary. Adjusters and motor vehicle physical damage appraisers will be available to assist with the evaluation of claims resulting from these event(s) for South Carolina residents. To further facilitate the recovery from this continued State of Emergency, licensed temporary adjusters may use their current permits from Hurricane Florence or they may apply for another temporary permit for Tropical Storm Michael to adjust property claims related to these events. This determination is effective immediately and will continue 120 days from the date of this bulletin unless otherwise extended by the Department. Individuals interested in becoming licensed as non-resident, temporary adjusters or motor vehicle physical damage appraisers may obtain the procedures and forms for licensure from this Department's website at www.doi.sc.gov/emergencyadjuster. Instructions on how to process emergency permits may also be found on this webpage. Please direct any questions or concerns regarding this bulletin to Andrea Bourgoin at 803-737-5757. 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.