Notice of 2026 South Carolina Public Adjuster Law Changes Bulletin Number 2026-03

South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 BULLETIN NUMBER 2026-03 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 Public Adjuster Law Changes DATE: July 30, 2026 I. PURPOSE On May 19, 2026, Governor Henry McMaster signed 2026 S.C. Act No. 209 (S.196/R.132) into law. This legislation modifies laws regarding the licensure of public adjusters in this state. The purpose of this bulletin is to notify all South Carolina public adjusters and insurers of the recent changes to the law and the compliance requirements. Chapters 4 7 and 48 have been repealed and replaced with Chapters 91 and 92. The changes described in this bulletin are effective on the date referenced above. All public adjusters must comply with the provisions of Chapter 92. II. OVERVIEW OF S.C. PUBLIC ADJUSTER LAW CHANGES A person is prohibited from performing the acts of a public adjuster unless the individual or person is licensed by this Department. See S.C. Code Ann. Section 38-92-20. South Carolina law defines a public adjuster as any person who, for compensation or any other thing of value on behalf of the insured: 1) negotiates for or settles a first party real or personal property claims for the insured of an insurance claim for loss or damages covered by an insurance contract; 2) advertises or otherwise holds himself out to the public to be a public adjuster of first party claims for real and personal property or 3) directly or indirectly solicits business, investigates, adjusts or advises an insured about real or personal property losses or damages covered by an insurance policy if the person received compensation or any other thing of value. Any person engaging in the aforementioned types of activities must be licensed as a public adjuster. The licensing requirement applies to a third party who made the initial contact with the insured and shared the insured's information with a licensed public adjuster who adjusted the claim if the third party received compensation in the form of a fee or received any other thing of value. See S.C. Code Ann. Section 38-92-10. 2 | P a g e 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. A. Public Adjuster License Requirements 1. General License Information Section 38-92-20 sets forth the requirements for the public adjuster license. The application for a license must be on a form prescribed by the director 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 public adjuster license fee is $100, which is fully earned when received and is neither refundable, transferable or pro-ratable. Nonresident public adjusters must be licensed in South Carolina if a) the person is currently licensed as a resident public adjuster and in good standing in his home state; b) the person has submitted the proper request for licensure, has paid the required fees, and has provided proof of financial responsibility as required in Section 38-92-100; c) the person has submitted or transmitted to the director the appropriate completed application for licensure; d) the person's home state awards nonresident public adjuster licenses to residents of this State on the same basis; and e) the person has provided a bond or letter of credit with the South Carolina Department of Insurance as required by Section 38-92-100. Nonresident public adjusters must maintain home state licensure to qualify for a South Carolina nonresident public adjuster license. If the home state license is lost, the nonresident public adjuster’s license must be terminated and surrendered to the director. 2. Public Adjuster License Exemptions The following persons are exempt from licensure as a public adjuster: 1) a South Carolina attorney at law admitted to practice in this State, when acting in his professional capacity as an attorney; 2) a third party or person who negotiates or settles claims arising under a life or health insurance policy or an annuity contract, e.g., a third party administrator; and 3) persons investigating or seeking information about a claim including photographers, estimators, private investigators, engineers, and handwriting experts. See S.C. Code Ann. Section 38-92-20. 3. Public Adjuster License Qualifications/Requirements To be licensed by the South Carolina Department of Insurance, the applicant must: • be 18 years old; • be a person of good moral character and not: o been convicted of a felony or any act within the last ten years that is a ground for denial, suspension, or revocation as provided for in Section 38-92-90; or o been convicted of a misdemeanor involving dishonesty, breach of trust, or other financial- or insurance-related crime within five years. • be eligible to designate this State as his home state; • not have committed any act that is a ground for denial, suspension, or revocation of a license as set forth in Section 38-92-90; 3 | P a g e 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. • be trustworthy, reliable, and of good reputation, evidence of which may be determined by the director; • be financially responsible to exercise the license and has provided proof of financial responsibility as required in Section 38-92-100; • have paid the biennial license fee; • maintain an office in the home state of residence with public access by reasonable appointment or regular business hours; • have undergone state and federal criminal records check supported by his fingerprints; • submit full set of fingerprints unless waived by the director due to a medically certified injury; • pay the examination fee and take and pass the examination unless exempt; • provide evidence of financial responsibility through a security bond or irrevocable letter of credit in the minimum amount of $20,000 which specifically authorize the director to draw down on them make a claim on behalf of citizens in this state; and • complete 24 hours of continuing education. South Carolina law authorizes the director to require any additional documents reasonably necessary to verify the information contained in the license application. a. Public Adjuster Examination Requirements An applicant for a public 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 public adjuster license in the State of South Carolina must successfully pass the appropriate licensing exam or must have passed the appropriate licensing exam in their resident state or designated home state and apply with the NIPR online system. b. Continuing Education Requirements Public 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. A list of approved courses and courses that have been taken can be found at www.statebasedsystems.com. Credit will not be given if a continuing education course is duplicated within a two-year period. If you are missing a course on your education transcript, please contact the course’s education provider. 4 | P a g e 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. 4. License Term A public adjuster license continues on a biennial basis unless revoked, terminated, surrendered, suspended, or denied renewal or reinstatement provided the fee set forth in Section 38-92-20 has been paid and the requirements for renewal are met by October thirty-first of each even-numbered year. All continuing education requirements pursuant to Section 38-92-110 must be completed prior to the applicant submitting a biennial application for renewal. 5. Reinstatement or Reissuance of a License All formerly licensed resident and non-resident public adjusters may reinstate an expired license up to 12 months after the license expiration date. Resident public 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 public 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 public adjuster that fails to apply for a reinstatement within 12 months of license expiration must apply for a new license. During the application process through the NIPR online system, you will also need to submit current evidence of financial responsibility from an insurer authorized to act as a surety - examples can be found in this listing or a financial institution located in South Carolina. B. Public Adjuster Contracts Effective May 19, 2026, all new public adjuster contracts must comply with Section 38-92-130. The attached Exhibit is a sample public adjuster contract that meets the requirements of this statute. All public adjusters must file their contract forms with the South Carolina Department of Insurance. Public adjusters may use their own contract forms subject to prior approval by the Department. For new public adjusters, the contract forms must be provided with the public adjuster license application. The contract will be reviewed as a part of the application process. For existing public adjusters, new forms must be submitted for approval to p&cmail@doi.sc.gov. It is anticipated the approval process may take up to sixty (60) days. Questions about the review status may be submitted to p&cmail@doi.sc.gov. Alternatively, the public adjuster may use the sample form attached immediately if they file the sample form with a certification that states the terms and conditions set forth in the form have not and will not be altered. 5 | P a g e 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. In summary, the law provides the contract must include: • legible full name of the public adjuster signing the contract, as specified in Department of Insurance records and the permanent home state business address and telephone number; • the insured’s full name, street address, insurance company name, and policy number; • a detailed description of the loss, its occurrence date, and its location; • a description of all services provided by the public adjuster to the insured and the expenses and costs associated with those services; • signatures of the public adjuster and insured and the dates each signed; • a complete description of the public adjuster’s compensation or other consideration for the public adjuster’s services; • an attestation that the public adjuster is fully bonded pursuant to state law; and • a statement in bold print that salary, fee, commission, compensation, or other consideration must be paid to the public adjuster from any sums the public adjuster assists the insured in recovering and not paid by the insurer. A contract may receive payment based on a share of the insurance settlement; however, that percentage must not exceed 10%. Please note that a public adjuster is not entitled to a percentage of any claim settlement if the insurer commits to paying full policy limits within 5 business days of the insured reporting the loss to the insurer. In this instance, the public adjuster must inform the insured that the insurer may not increase the loss recovery amount and the public adjuster is only entitled to reasonable compensation based on time spent on the claim and expenses incurred by the public adjuster as stated in the contract. Each contract must be issued in duplicate to provide an original copy to the public adjuster and the insured. Public adjusters may demonstrate compliance by using this sample contract or submitting a contract for approval by the South Carolina Department of Insurance to p&cmail@doi.sc.gov. Also attached is Exhibit B; a copy of the sample disclosure form the public adjuster must issue to the insured concerning any direct and indirect financial interest the public adjuster has with any other party involved in the review or settlement of the claim. Exhibit C is a copy of a disclosure regarding the public adjuster’s claims process. Please note that South Carolina law gives the insured the right to rescind the contract within five business days after the date the contract was signed. C. Record Retention Requirements South Carolina law requires public adjusters to maintain a complete and accurate record of business transacted for five years after the termination of the transaction. The information that must be maintained includes: 6 | P a g e 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. • name of the insured; • date, location, and amount of the loss; • copy of the signed contract between the public adjuster and insured; • name of the insurer, amount, expiration date, and number of each policy carried with respect to the loss; • itemized statement of the insured’s recoveries; • itemized statement of all compensation received by the public adjuster, from any source whatsoever, in connection with the loss; • a register of all monies received, deposited, disbursed, or withdrawn in connection with a transaction with an insured, including fees, transfers, and disbursements from a trust account and all transactions concerning all interest‑bearing accounts; • name of public adjuster who executed the contract; • name of any attorney representing the insured, if applicable, and the name of the claim representatives of the insurance company; and • evidence of financial responsibility in a format prescribed by the director. The public adjuster’s records must be made available to the director for inspection upon demand. III. Enforcement Public 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. Section 38-92-180, and must report any administrative or criminal actions taken against the public 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 Section 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.