(A) An insurance company or insurance producer may not pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed pursuant to the provisions of this chapter and is not licensed.
(B) A person may not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed pursuant to the provisions of this chapter and is not licensed.
(C) A renewal or other deferred commission may be paid to a person for selling, soliciting, or negotiating insurance in this State if the person was required to be licensed pursuant to the provisions of this chapter at the time of the sale, solicitation, or negotiation and was licensed at that time.
(D) An insurer or insurance producer may pay or assign service fees or other valuable consideration to an insurance agency or to a person who does not sell, solicit, or negotiate insurance in this State, unless the payment violates another provision of Title 38. A payment made pursuant to the provisions of this subsection must not be based on completion of the sale of the insurance policy.
(E) Nothing in this section may be construed to prohibit a licensed insurance producer from rebating a portion of his commission collected on automobile insurance premiums to the insured upon that automobile insurance policy.
(F) This section does not prohibit the payment of a fee to a trade or professional association exempt from income tax under Section 501(c) of the Internal Revenue Code.
HISTORY: Former 1976 Code Section 38-51-200 [1960 (51) 1630; 1962 Code Section 37-250.1] recodified as Section 38-43-200 by 1987 Act No. 155, Section 1; 1990 Act No. 465, Section 1; 1997 Act No. 154, Section 25; 2002 Act No. 323, Section 2, eff January 31, 2003; 2004 Act No. 291, Section 9.A, eff January 1, 2005; 2009 Act No. 69, Section 6, eff June 2, 2009.
Structure South Carolina Code of Laws
Chapter 43 - Insurance Producers And Agencies
Section 38-43-20. Producer's license required; exceptions.
Section 38-43-25. Travel insurance producer licensing.
Section 38-43-40. License confers right to appoint producers; notification to director.
Section 38-43-60. Insurance business to be transacted by producers licensed in State; exceptions.
Section 38-43-70. Nonresident producer licensure.
Section 38-43-80. License fees; payment by credit card.
Section 38-43-90. Medical examiners of insurers exempt from license fees.
Section 38-43-102. Temporary insurance producer license; limitation of temporary licensee authority.
Section 38-43-110. Renewal of license; conditions; lapse; request for military waiver.
Section 38-43-130. Probation, revocation, suspension of license, or denial of reissuance.
Section 38-43-160. Unlawfully representing unlicensed insurer.
Section 38-43-170. Personal liability of producers on contracts of unauthorized insurers.
Section 38-43-180. Personal liability of producers for selling policy of unlicensed insurer.
Section 38-43-190. Producer receipt of premium; penalty for fraud.
Section 38-43-200. Prohibition or payment of certain commissions and fees.
Section 38-43-210. Selling stock in insurer.
Section 38-43-220. Stock salesmen may not sell insurance.
Section 38-43-240. Other offenses by producers.
Section 38-43-245. Fraudulent insurance application.
Section 38-43-247. Reporting administrative actions and criminal prosecutions.
Section 38-43-250. Producer records.
Section 38-43-260. Signing certain blank documents.
Section 38-43-410. Service charge; unpaid balance and service charge are lien on unearned premiums.
Section 38-43-420. Advances must be confined to premiums; additional charges prohibited.
Section 38-43-430. Extension of credit constitutes advancement of premiums.
Section 38-43-450. Excess of return premium over unpaid balance and charges held in trust.
Section 38-43-460. Conflict of interest prohibited.
Section 38-43-480. Promulgation of regulations; severability.
Section 38-43-610. Definitions.
Section 38-43-620. Issuance of limited license.
Section 38-43-630. Application for limited license; fee; renewal; advertising.
Section 38-43-650. Licensee to provide written document.
Section 38-43-660. Employees or agents of owner authorized to act.
Section 38-43-670. Prohibited requirements of licensee, employee, or agent.
Section 38-43-680. Revocation or suspension of license; penalties.
Section 38-43-710. Short title.
Section 38-43-715. Application of article.
Section 38-43-720. Definitions.
Section 38-43-740. Compensation.
Section 38-43-760. Responsibility.
Section 38-43-770. Violations of article.
Section 38-43-780. Premium tax on travel insurance premiums.
Section 38-43-790. Travel protection plans.
Section 38-43-800. Sales practices for travel insurers.
Section 38-43-810. Licensing requirements for travel administrators for travel insurance.