The South Carolina Department of Insurance issued a statement reminding 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.
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.
Department records indicate approximately 10,000 unlimited lines resident and nonresident producers have not complied.
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.state.sc.us) to verify whether or not the $35 administrative fee has been paid.
Any producer whose license and appointments are suspended may be required to pay a $250 penalty plus the $35 administrative fee in order to regain licensure and appointment status.