South Carolina Shifts Insurance Fraud Investigations to Insurance Department

South Carolina is transferring its insurance fraud investigations from the attorney general to the insurance regulator.

Ray Farmer, director of the South Carolina Department of Insurance (SCDOI), said he has entered into an agreement with Attorney General Alan Wilson and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) to transfer insurance fraud enforcement to the SCDOI.

The officials also announced that the South Carolina General Assembly has approved $2 million in funding for the investigation and prosecution of insurance fraud.

Under the transfer agreement, the SCDOI will investigate and prosecute fraud in the insurance industry using SLED agents. Indictments will be presented to the attorney general’s office for approval and the attorney general retains prosecutorial authority.

According to the attorney general’s 2020 insurance fraud report, South Carolina ranks 8th in staged car wreck complaints and 17th for complaints of suspected insurance fraud.

The General Assembly’s budget for the 2021 – 2022 fiscal year includes $2 million in appropriations to the SCDOI for insurance fraud enforcement, representing a 400% increase in funding over current levels.

Topics Fraud South Carolina