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South CarolinaS 0196126th General Assembly (2025-2026)SenateWALLET

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING CHAPTER 91 TO TITLE 38 SO AS TO REGULATE THE LICENSURE OF INSURANCE ADJUSTERS, AMONG OTHER THINGS; BY ADDING CHAPTER 92 TO TITLE 38 SO AS TO REGULATE THE LICENSURE OF PUBLIC INSURANCE ADJUSTERS, AMONG OTHER THINGS; TO AMEND SECTION 38-1-20, RELATING TO DEFINITIONS, SO AS TO PROVIDE A DEFINITION; AND BY REPEALING CHAPTERS 47 AND 48 OF TITLE 38 RELATING TO INSURANCE ADJUSTERS AND PUBLIC INSURANCE ADJUSTERS.

Sponsored By: Ronnie W. Cromer (Republican)

Signed by Governor

Summary

Insurance Adjusters

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 5 benefits, 1 costs, 6 mixed.

Crackdown on unlicensed or conflicted adjusting

Insurers must check with the state that anyone handling your claim is licensed or exempt before sending them work. Insurers cannot pay adjusters more than a fixed salary or stipend, and cannot pay a share of money “saved” on claims. Public adjusters cannot pay unlicensed people to investigate or settle claims, and unlicensed people cannot accept those payments. Acting as a public adjuster without a license, or adjusting unauthorized insurance, is illegal and can be treated as fraud and a misdemeanor with fines or up to two years in jail.

Stronger rights in public adjuster deals

Public adjuster contracts cannot force you to pay from the first check, take fees when insurer money is still unpaid, require checks in the adjuster’s name, or add late or collection fees. A public adjuster cannot agree to a settlement without your knowledge and written consent. Your property policy can limit assignment of rights to someone with legal authority or a later owner, and can ban assignments to repair contractors. Contractors cannot use a power of attorney to act like a public adjuster without a license.

Stronger rules for public adjusters

Public adjusters face a hard 10% cap on fees. They cannot take any money before your claim is settled. If your insurer pays or promises the full policy limit within five business days, the adjuster cannot take a percentage and may only charge reasonable time and expense (still capped at 10%). You get a clear, written contract with required terms, a separate pre‑signing disclosure, and duplicate originals. You can cancel in writing within five business days and must get back anything you gave within 15 business days. If the adjuster holds your money, it must go into a noninterest‑bearing escrow or trust account kept in South Carolina. Adjusters must keep full records, disclose any financial ties, and follow strict ethics rules.

Tougher penalties and rights for adjusters

The Director can put an adjuster on probation, suspend, revoke, or refuse a license, and fine per offense. Not paying an imposed fine within up to 30 days can trigger automatic license action. Grounds include fraud, theft of client funds, cheating on exams, certain crimes, tax or child‑support noncompliance, and other violations. Business entities can lose their license if managers knew of violations and did not report them, and enforcement continues even if a license is surrendered or lapses. Adjusters must follow conduct rules (no unlicensed staff doing licensed work, no claim interests or contractor kickbacks) and report discipline or convictions within 30 days. You have due‑process rights: written notice of denial or nonrenewal and a right to a hearing within 30 days. When adjusting a loss, an adjuster acts as the insurer’s agent.

Director sets rules; law now active

The Director of Insurance can issue bulletins, orders, and regulations to run both adjuster chapters. The law takes effect May 19, 2026, unless a section sets a different date.

Rules for automated claims systems

Automated claims systems for portable electronics can only be used by licensed adjusters, licensed producers, or people they supervise. The system must follow all state claims payment rules. A licensed independent adjuster who is an officer must certify the system as compliant.

Rules for adjuster businesses and owners

Any business that adjusts claims in South Carolina must hold a business‑entity adjuster license. The firm must name a licensed individual in charge of compliance, keep a home‑state office open by appointment or during regular hours, and list executives and anyone who owns 10% or more of voting shares. The Director may require fingerprints and background details for responsible persons.

Faster small food spoilage claims

Insurer officers, employees, attorneys, or reciprocal producers can adjust food spoilage claims when the policy’s limit for that loss type is $500 or less. This can speed simple, small claims. The Director can suspend or revoke an insurer’s authority for improper claim practices tied to these adjustments.

Small food spoilage claims handled faster

If your home policy caps food‑spoilage coverage at $500 or less, certain insurer staff can adjust that claim without a separate adjuster license. The insurer still faces enforcement for improper claim practices.

Adjuster exams, training, and renewals

You must pass a written exam unless exempt; private testing vendors may charge fees. To keep a license, you need 24 hours of continuing education every two years, including 3 hours of ethics. If you handle workers’ comp, include 3 hours on South Carolina workers’ comp law. Renew by August 31 of odd‑numbered years after finishing CE. If your license lapses, you can reinstate within 12 months without re‑testing by proving CE and paying required fees and a penalty. The Director can waive CE or penalties for active military service, long‑term medical disability, or other hardships.

Who must get an adjuster license

You cannot act as an adjuster in South Carolina without a license. Applicants must be at least 18, meet good‑character and criminal‑history standards, pass required checks and fingerprinting, and keep contact info updated within 30 days. Licenses last two years and can cover multiple lines (like property, casualty, workers’ comp, or crop). Nonresidents can get a reciprocal license if their home state reciprocates; the South Carolina license ends if the home license ends. If you move to South Carolina, you have 90 days to apply for a resident license and can skip re‑testing for lines you already held in good standing.

New adjuster licensing rules and fees

The state sets adjuster license fees at $100 for individuals and $50 for business entities, paid in advance and nonrefundable. Applicants with the CPCU designation do not need to take the written exam. Some roles are exempt from licensing, like certain supervised portable‑electronics data entry workers (up to 25 per supervisor), attorneys acting as lawyers, and clerical staff. The Director may use private groups like the NAIC to collect fees and keep licensing records. The code now uses the new definition of “adjuster” and replaces the old adjuster chapters.

Sponsors & Cosponsors

Sponsor

  • Ronnie W. Cromer

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 150 • No: 1

House vote • 5/5/2026

(Insurance Adjusters)Passage of Bill

Yes: 108 • No: 1

Senate vote • 4/29/2025

(Insurance Adjusters)2nd Reading

Yes: 42 • No: 0

Actions Timeline

  1. Effective date 05/19/26

    6/5/2026legislature

  2. Act No. 209

    6/2/2026legislature

  3. Signed By Governor

    5/19/2026Governor

  4. Ratified R 132

    5/14/2026legislature

  5. Read third time and enrolled

    5/6/2026House

  6. Roll call Yeas-108 Nays-1

    5/5/2026House

  7. Read second time

    5/5/2026House

  8. Debate adjourned until Tues., 5-5-26

    4/30/2026House

  9. Debate adjourned

    4/29/2026House

  10. Debate adjourned

    4/28/2026House

  11. Scrivener's error corrected

    4/23/2026legislature

  12. Committee report: Favorable Labor, Commerce and Industry

    4/22/2026House

  13. Referred to Committee on Labor, Commerce and Industry

    5/1/2025House

  14. Introduced and read first time

    5/1/2025House

  15. Read third time and sent to House

    4/30/2025Senate

  16. Roll call Ayes-42 Nays-0

    4/29/2025Senate

  17. Read second time

    4/29/2025Senate

  18. Scrivener's error corrected

    4/22/2025legislature

  19. Committee report: Favorable Banking and Insurance

    4/16/2025Senate

  20. Referred to Committee on Banking and Insurance

    1/14/2025Senate

  21. Introduced and read first time

    1/14/2025Senate

Bill Text

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