MEMORANDUM
To: All Licensed South Carolina Insurance Companies
From: Director of Insurance
Subject: $35 Administrative Fee - Late Payment Penalty Notice
Date: April 15, 2003
According to South Carolina Code Ann. §38-43-80(C), all resident and nonresident producers licensed on January 31, 2003 with unlimited lines of authority are required to pay a one-time $35 administrative fee to the South Carolina Department of Insurance, or risk losing their license. Unlimited lines producers are those who are licensed with life, accident and/or health, or property, casualty, surety and marine lines of authority. Department records indicate approximately 10,000 unlimited lines resident and nonresident producers have not complied.
Those producers whose $35 administrative fee payment is not received in the Department by 5:00 p.m. May 2, 2003, may have their license and appointments suspended effective May 5, 2003. Consequently, the Department is requesting insurers assistance in confirming with their producers the status of their payment of the administrative fee. Insurers should not cancel the appointment of a producer until payment status of the $35 administrative fee is confirmed with Department's records. A copy of the producer's canceled check can also be used to verify payment of the administrative fee. To verify whether a producer has paid the $35 administrative licensing fee, an insurer can request from the Department's Agent Licensing Division the "Producer Appointments for A Company" list and submit a check in the amount of $52.50 for each insurer. This report lists all of an insurer's appointed producers and whether or not the $35 administrative fee has been paid. The letter 'Y' at the side of a producer's name indicates that the producer has not paid the administrative fee, while the letter 'N' indicates the producer has paid. To avoid the potential for illegal transactions among insurers and producers, the Department is hereby reminding insurers if they are writing or servicing any business of insurance with an unlicensed South Carolina producer after May 2, 2003, the insurer will be subject to administrative action by the Department.
Insurers can also check the Department's website (www.doi.sc.gov) to verify whether or not the $35 administrative fee has been paid by following the instructions below.
1. On the Department's home page under Quick Links, click on Search SCDOI Database.
2. Click on the Search For Individuals link. After you type in the first and last name of the producer, click “Search.”
3. You should now be at the Individual License Search Results screen. Move the cursor to the producer's name and click.
4. You should now be at the Individual Demographics and license information screen. Scroll down near the bottom of the page under the heading Assessment Fee Information. Under this heading, the question "Producer Assessment Fee Due?" is asked. If the response is "No," this means the Department has received the $35.00 administrative fee. If the response is "Yes," then payment has not been posted to the Department's system.
Any producer whose payment is not received in the Department by 5:00 p.m. May 2, 2003, may have his license and appointments suspended. In order to regain licensure and appointment status, the producer may be required to pay a $250 penalty plus the $35 administrative fee.
