Bulletin 2020-03 Temporary Producer Licenses, Extension of Compliance Deadlines

South Carolina Department of Insurance 1201 Main Street, Suite 1000 Columbia, SC 29201 BULLETIN NUMBER 2020-03 Mailing Address P.O. Box 100105 Columbia, SC 29202 TO: All Insurers, Producers, Surplus Lines Brokers, Bail Bondsmen, and other Licensed or FROM: RE: DATE: Authorized Persons Transacting the Business of Insurance in South Carolina Temporary Producer Licenses for New Applicants; Extension of Compliance Deadlines and License Renewals April 2, 2020 As you are aware, Governor Henry McMaster declared a State of Emergency due to the 2019 Novel Coronavirus ("COVID-19 ») on March 131 2020. COVID-19 continues to disrupt the daily lives and business operations of many South Carolinians and threatens the public health and welfare of citizens of this state. It has also substantially impacted some South Carolina insureds, licensees, claimants, and other covered persons. As part of the Department's ongoing efforts to respond to this pandemic, this bulletin advises all insurers, producers, surplus lines brokers, bail bondsmen, and other licensed or authorized individuals and entities of the actions taken by this Department to process licenses, address issues related to services provided by third-party vendors, and extend compliance deadlines. I. TEMPORARY PRODUCER LICENSES Third-party vendors under contract with the Department to provide producer examination and fingerprinting services have suspended, and are continuing to suspend, operations and/or close facilities in response to the COVID-19 pandemic. Although certain third-party vendors could be considered essential during the pandemic and may have the ability to open locations on a limited basis, they have agreed not do so due to the risks associated with COVID-19 and group testing. The suspension of operations and/or closure of facilities by these third-party vendors has resulted in some prospective new applicants being unable to obtain an insurance license and secure employment. Under the authority of South Carolina Code §38-43-102, I have found that circumstances exist where the public interest will best be served by the issuance of temporary insurance producer licenses. Governor Henry McMaster Director Raymond G. Farmer 2 A. Requirements for Temporary Licenses Effective immediately, the Department will issue temporary producer licenses to applicants meeting the requirements for licensure without requiring examination or fingerprinting, subject to the following conditions: 1. Temporary producer licenses will be issued for a period of up to 180 days. These temporary licenses will be active for the duration of the current State of Emergency related to COVID-19. Temporary licenses will automatically expire thirty days after the State of Emergency is lifted by the Governor and third-party vendors are permitted to resume operations. 2. Temporary producer licenses are subject to cancellation or revocation if the temporary licensee violates the insurance laws of this state or if the interests of insureds or the public are endangered. 3. The temporary producer license allows the producer to operate in South Carolina as a resident temporary producer. Temporary producers are not eligible for non-resident licenses in other states. 4. The temporary producer must be appointed by a sponsoring insurer who assumes responsibility for all acts of the temporary licensee. This temporary appointment will coincide with the duration of the temporary license. The sponsoring insurer must maintain a record of all producers operating under a temporary license and business transacted by them. Sponsoring insurers should assist producers with moving through the examination and background check process more quickly once the current State of Emergency has been lifted and the third-party examination and fingerprinting vendors resume operations. 5. The sponsoring insurer must assure that the temporarily licensed producers' sales activities . and training are coordinated by a licensed insurance producer in good standing with the Department or where applicable, a FINRA-licensed registered principal. 6. Any active temporary producer license issued pursuant to this Bulletin may be converted to a regular producer license by completion of all prerequisites of a license for the desired ·line or lines of insurance, including meeting all examination and fingerprint requirements pursuant to the applicable statutes. No additional fee shall be required in association with the issuance of the regular producer license. Recipients of such temporary producer licenses will be subject to any and all limitations on the authority of such temporary licenses pursuant to South Carolina law. B. How to Apply for A Temporary License Until further notice, applicants for a temporary producer license must submit a hard-copy application with a check via United States mail. The Department is currently working with the National Insurance Producer Registry (NIPR) to enable electronic applications via their website at www.nipr.com. New applicants should continue to check our website at www.doi.sc.gov and/or our social media outlets for updates regarding the availability of online applications. 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.