Notice of 2026 South Carolina Adjuster Law Changes Bulletin Number 2026-02

South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: P.O. Box 10010S, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 BULLETIN NUMBER 2026-02 HENRY McMASTER Governor MICHAEL WISE Director TO: All Authorized Insurance Companies and Producers Transacting the Business of Insurance within the State of South Carolina FROM: Michael Wise ~ u~ Director of Insurance SUBJECT: Notice of 2026 South Carolina Adjuster Law Changes DATE: July 30, 2026 I. PURPOSE On May 19, 2026, Governor Henry McMaster signed into law 2026 S.C. Act No. 209 (S.196). This legislation modifies laws regarding the licensure of adjusters in this state. The purpose of this bulletin is to notify all South Carolina adjusters and insurers of the recent changes to the law and the compliance requirements. Chapters 47 (Adjusters) and 48 (Public Adjusters) have been repealed and replaced with Chapters 91 (Adjusters) and 92 (Public Adjusters). The changes described in this bulletin are effective on the date of the Governor's signature. All adjusters must comply with the provisions of Chapter 91. II. OVERVIEW OF S.C. ADJUSTER CHANGES No individual or business entity may perform the acts of an adjuster or hold out as an adjuster unless the individual or person is licensed by this Department. See S.C. Code Ann. §38-91-20. South Carolina law defines an adjuster as an individual, other than a public adjuster, or business entity who undertakes on behalf of insurers or self-insurers to investigate, evaluate, and negotiate the resolution of the amount of a property, casualty, crop, or workers' compensation claim or loss on behalf of an insurance policy or insurer or as a third party on behalf of a self-insurer. Adjuster includes an independent contractor or employee of an association, producer, independent contractor, insurer or managing general agent. Any person engaging in the aforementioned types of activities must be licensed as an adjuster. This licensing requirement also applies to business entities that employ or contract with individuals to investigate, evaluate, and negotiate property and casualty insurance losses on behalf of an insurer. The business entity and the persons it employs must be licensed unless they fall within one of the exemptions set forth in the statute. 2 | P a g e A. Adjuster License Requirements 1. General License Information Section 38-91-20 sets forth the requirements for the adjuster license. The application for a license must be on a form prescribed by the director or the uniform individual, or business entity license and the applicant must declare under penalty of perjury that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief. The adjuster license must contain the adjuster’s name, business address, license number, date of issuance, expiration date, and any other relevant information the director deems necessary. An adjuster may receive qualification for a license in one or more of the following lines of authority: property and casualty; workers’ compensation; crop; or such other lines as prescribed by the director. The adjuster license fee is $100, and the business entity license fee is $50. Both license fees are fully earned when received and are neither refundable, transferable or pro-ratable. No nonresident may be licensed as a nonresident adjuster in South Carolina if his home state refuses to license South Carolina adjusters. Nonresident adjusters may be licensed in South Carolina for the same lines of authority held in his home state, if the nonresident has furnished a complete set of fingerprints and undergone a background check and if: a) the person is currently licensed as a resident adjuster and in good standing in his home state; b) the person has submitted or transmitted to the director the appropriate completed application for licensure and fees; and c) the person's home state awards nonresident adjuster licenses to residents of this State on the same basis. If the home state license is lost, the nonresident adjuster’s license must be terminated and surrendered to the director. The nonresident adjuster must meet the examination, fingerprint and background check requirements of South Carolina law if his home state law does not require an exam, fingerprints and background checks. Nonresident adjusters must maintain home state licensure to qualify for a South Carolina nonresident adjuster license. A nonresident who is not eligible for a license pursuant to Section 38‑91‑50 may designate South Carolina as his home state and apply for licensure as a resident adjuster. Such person is required to successfully pass the adjuster examination and comply with the other provisions of this chapter applicable to residents of this State. 2. Adjuster License Exemptions The adjuster license exemptions are set forth in Section 38-91-40 and include individuals adjusting portable electronic claims via an automated claims adjudication system; South Carolina attorneys; insurance employees not involved in the adjusting of claims; technical experts including investigators, engineers, estimators, photographers, etc.; producers who process undisputed claims; persons who handle life, accident and health insurance claims, persons who handle service contracts, commercial claims for excess coverages, reinsurance or subrogation claims, workers’ compensation disability claims or any claims handled by a licensed third party administrator. Executive officers, insurer employee including the designated attorney or producer of a reciprocal 3 | P a g e insurer may handle spoilage claims, loss or damages of $500 or less. Adjusters are subject to the provisions of the Unfair Claims Practices Act of Title 38, Chapter 59. See S.C. Code Ann. § 38-91-40. 3. Adjuster License Qualifications/Requirements To be licensed by the South Carolina Department of Insurance, the applicant must: 1) be 18 years old; 2) be a person of good moral character and not: a) been convicted of a felony or any act within the last ten years that is a ground for denial, suspension, or revocation pursuant to this chapter; b) been convicted of a misdemeanor involving dishonesty, breach of trust, or other financial- or insurance-related crime within five years; 3) be eligible to designate this State as his home state; 4) have submitted the proper application and fees required by Section 38-91-20; 5) not have committed any act that is a ground for denial, suspension, or revocation of a license pursuant to this chapter; 6) pass the adjuster’s examination unless exempted; 7) furnish a complete set of his fingerprints and the required fees; 8) have undergone and successfully passed state and federal background check; and 9) have paid the biennial license fee. Business entities must comply with the foregoing requirements and must designate an adjuster that will be responsible for the entity’s compliance with South Carolina laws; maintain a home office with regular business hours in this state; and provide a listing of its officers and directors. South Carolina law authorizes the director to require any additional documents reasonably necessary to verify the information contained in the license application. a. Adjuster Examination Process An applicant for an adjuster license must successfully pass the appropriate licensing exam. To register for the examination, please contact Pearson at 877-759-5226 or schedule online at www.pearsonvue.com. If you successfully pass the licensing exam, your test results will be electronically submitted to the NIPR online system. Please allow up to three business days for the exam results to transfer to the NIPR online system. Exam results are valid for one year. An applicant for a non-resident adjuster license in the State of South Carolina must successfully pass the appropriate licensing exam in their resident state or designated home state and apply with the NIPR online system. b. Continuing Education Adjusters are required to complete a minimum of 24 credit hours of continuing education, including three hours of ethics, during each two-year license term. An adjuster licensed in casualty or worker’s compensation must take 3 credit hours of worker’s compensation to be included with 4 | P a g e the 24 credit hours. Credit will not be given if a continuing education course is duplicated within a two-year period. A list of approved courses and courses that have been taken can be found online at www.statebasedsystems.com. If you are missing a course on your education transcript, please contact the course’s education provider. 4. License Term An adjuster license continues on a biennial basis unless revoked, terminated, surrendered, suspended, or denied renewal or reinstatement provided the fee set forth in Section 38-91-90 has been paid and the requirements for renewal are met by August thirtieth of each odd-numbered year. All continuing education requirements pursuant to this chapter must be completed prior to the applicant submitting a biennial application for renewal. 5. Reinstatement or Reissue a License All formerly licensed resident and non-resident adjusters may reinstate an expired license up to 12 months after the license expiration date. Resident adjusters must prove that during the continuing education term the associated continuing education requirements were met prior to expiration. If continuing education requirements were not met prior to expiration, contact the South Carolina Department of Insurance (Department) for the procedure to become compliant for reinstatement. Once the Department shows continuing education compliance, the adjuster must complete the renewal application through the National Insurance Producer Registry (NIPR) online system, pay a license reinstatement fee, and a license renewal fee. A formerly licensed adjuster that fails to apply for a reinstatement within 12 months of license expiration must apply for a new license. III. Enforcement Adjusters are subject to and must comply with the applicable provisions of South Carolina law and Title 38 including the South Carolina Unfair Trade Practices Acts, see S.C. Code Ann. 38-92-180, and must report any administrative or criminal actions taken against the adjuster in South Carolina or another jurisdiction. Violations of the law will be investigated and if warranted by the facts administrative disciplinary action will be imposed in accordance with the provisions of § 38-2-10. IV. Questions Please refer to FAQ for Frequently Asked Questions (link pending). Questions about this Bulletin should be directed to Andrea Bourgoin at agentmail@doi.sc.gov.