The South Carolina Department of Insurance (the Department) regulates insurance producers, insurance agencies, real estate appraisers, public adjusters, surplus lines brokers, service contract providers, premium service companies and more and specialty licenses such as third party administrators. The Department ensures compliance of state laws, licensing, and investigates consumer complaints of improper performance of duties and fraud.
The obligee is the entity that requires the bond. The South Carolina Department of Insurance requires a license application and a security of a minimum $75,000 in which a surety bond fulfills this requirement. A surety bond ensures compliance of regulations and state laws. Failure to comply or perform as required by state laws and regulations may result in a claim filed against the bond by the Department. If the Department files a claim against the surety bond, the owner (named as the principal on the bond form) will be responsible for repayment of the claimed amount if the claim is paid out by the surety.
The surety bond must be in place at the time the license is applied for and during the time of all business operations. The premium will renew on the bond on an annual basis by March 1st of each year. If the third party insurance administrator changes ownership, a replacement bond is required to fulfill the surety bond conditions. Failure to maintain or replace the bond could result in a fine up to revocation of the license by the Department.
Instead of a surety bond, a letter of credit, corporate guaranty, or a certificate of deposit from an approved financial institution acceptable to the Department may be provided.
The original surety bond and power of attorney (provided by the issuing surety) will need to be submitted along with the license application to the South Carolina Department of Insurance. A minimum bond of $75,000 is required for the first year and may increase to a maximum of $500,000 depending on the volume of premium handled in the previous year. The bond amount after the initial year is based on 10% of the total premium.
The premium that you pay for an South Carolina Third Party Insurance Administrator Surety Bond is dependent on credit and personal and business financial statements. Rates start at 1% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote based on your specific situation.
Insurance administrator licenses must be renewed by March 1st each year.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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