Q. Who are exempted from apply for an insurance premium service company license in this State?
A. (1) an insurer authorized to transact insurance business in this state; (2) a banking institution, savings and loan association, cooperative credit union, consumer finance company provided for in Sections 34‑29‑10 to 34‑29‑260 authorized to do business in this State, or a supervised lender provided for in Title 37 authorized to do business in this State; (3) the inclusion of a charge for insurance in connection with an installment sale of goods or services; and (4) the advancing of premiums by insurance agents and producers of record under Article 3 of Chapter 43 of this title. Section 38-39-10
Q. Where can I find the laws and regulations that govern insurance premium service company?
A. Insurance premium service companies are govern under Chapter 39 of the SC Code of Laws and SC Regulations 69-10
Q. What is the fee to become license as an insurance premium service company?
A. The license fee is five hundred dollars. Section 38-39-30(b)
Q. Are there any other requirements to become license as an insurance premium service company?
A. Yes. (1) Complete an application packet; (2) file its articles of corporation; (3) provide an audit financial statement; (4) must have a beginning net worth of twenty thousand dollars; (5) file a fifty dollars surety bond or certificate of deposit; and (6) pre-file all forms utilized in operation (including interest rates)
Q. When does an insurance premium service company required to renew its license?
A. Every licensed insurance premium service company is required to renew its license by March 1 st of each year. Section 38-39-20(b)
Q. How long does an insurance premium service company have to preserver its records?
A. Every licensed insurance premium service company must preserve its records for three (3) years after making the final entry to any premium service agreement. Section 38-39-50
Q. What items must be disclosed on the premium service agreement?
A. The printing must be at least eight‑point type; (2) must be dated and signed by the insured; (3) contain the name and place of business of the insurance agent or insurance broker negotiating the related insurance contract, the name and residence or the place of business of the insured as specified, the name and place of business of the premium service company to which payments are to be made, a description of the insurance contracts involved, and the amount of the premium; and (4) Shall set forth the following, where applicable:
(A) The total amount of the premiums; (B) The amount of the down payment; (C) The principal balance (D) The amount of the service charge; (E) The balance payable by the insured (F) The number of installments required, the amount of each installment expressed in dollars, and the due date. Section 38-39-70
Q. What is the minimum down payment can an insurance premium service company accepts?
A. The minimum down payment may not be less than ten percent. Section 38-39-70(c)
Q. What are the cancellation procedures for an insurance premium service company?
A. The premium service company shall deliver the insured a ten-day notice of its intent to cancel the insurance contract. Not less than five days after the expiration of the notice, the premium service company may request in the name of the insured cancellation of the insurance contract by delivering to the insurer notice of cancellation. Section 38-39-90
Q. What is the maximum fee an insurance premium service company can charge on a delinquent account?
A. The maximum charge of a delinquent account may not exceed five dollars. Section 38-39-80(g)
Q. How much is the initial charge for an insurance premium contract?
A. The initial charge for an insurance premium contract is fifteen dollars, which may not be refunded. Section 38-39-80(d)
Q. Can an insurance premium service company charge the non-refundable fifteen dollars twice?
A. No premium service company may induce an insured to become obligated under more than one premium service agreement for the purpose of obtaining more than one non-refundable fifteen dollar charge, and no premium service company may intentionally cancel an insurance contract for the purpose of obtaining an additional fifteen dollar non-refundable charge on a new premium service agreement accepted within sixty days of the cancellation on the prior agreement. Section 38-39-80(f)
Q. How much funds is allowable for an insurance premium service company can retain?
A. An insurance premium service company can retain no less than five dollars. Section 38-39-90(f)
Q. What are the procedures if the owner or partner dies; withdraws; or own 10 percent or more in the company?
A. The Department must be notified by registered or certified mail not later than 10 days after the event occurs. SC Regulations 69-10 (12)(a) thru 69-10(12)(e)
