South Carolina Law > Code of Laws > Title 38

SECTION 38-91-10. Definitions.

As used in this chapter, unless the context requires otherwise:

(1) "Adjuster" means an individual, other than a public adjuster, or business entity who undertakes on behalf of insurers or self-insurers to investigate, evaluate, and negotiate the resolution of the amount of a property, casualty, crop, or workers' compensation claim or loss on behalf of an insurance policy or insurer or as a third party on behalf of a self-insurer. Such term includes an independent contractor or an employee of:

(a) an association;

(b) a property and casualty producer;

(c) an independent contractor;

(d) an insurer; or

(e) a managing general agent.

(2) "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

(3) "Director" means the Director of Insurance or his designee, as defined in Section 38-1-20.

(4) "Home state" means the District of Columbia and any state or territory of the United States in which the adjuster's principal place of residence or principal place of business is located. If neither the state in which the adjuster maintains the principal place of residence nor the state in which the adjuster maintains the principal place of business has a substantially similar law governing adjusters, the adjuster may designate another state in which he becomes licensed and acts as an adjuster to be the "home state."

(5) "Individual" means a natural person.

(6) "Insurer" means any type of insurer conducting business in this State and authorized in accordance with Section 38-5-180.

(7) "Person" includes an individual or business entity, as defined in Section 38-1-20.

(8) "Self-insurer" means an individual or business entity that insures itself or risks by setting aside an amount of money to provide for any losses that occur rather than insuring such risks through an insurance company.

(9) "Uniform individual application" means the current version of the National Association of Insurance Commissioners (NAIC) Uniform Individual Application for resident and nonresident individuals.

(10) "Uniform business entity application" means the current version of the National Association of Insurance Commissioners (NAIC) Uniform Business Entity Application for resident and nonresident business entities.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-20. Adjusters; license required; applications; qualifications; fees; term; reciprocity.

(A) No individual may act or hold himself out as an adjuster in this State unless the individual is licensed as an adjuster or qualifies for one of the license exemptions set forth in this chapter. The director must satisfy himself that each applicant for an adjuster license is an individual of good moral character, has sufficient knowledge of the insurance business and his duties as an adjuster, has not violated the insurance laws of this State, and is a fit and proper individual for the position. No license may be issued to a nonresident adjuster who resides in a state refusing to license South Carolina adjusters. Individuals must apply for a license on a uniform individual application or as prescribed by the director.

(B) No business entity may adjust losses or otherwise act as an adjuster unless the entity and the adjusters it employs are licensed by the director or qualify for one of the license exemptions set forth in this chapter. Business entities must apply for a license on a uniform business entity application or as prescribed by the director.

(C) A person applying for an adjuster license must make application on the uniform individual application or uniform business entity application and declare under penalty of refusal, denial, suspension, or revocation that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief.

(D) The license must contain the adjuster's name, business address, license number, date of issuance, expiration date, and any other relevant information the director deems necessary. An adjuster may receive qualification for a license in one or more of the following lines of authority: property and casualty; workers' compensation; crop; or such other lines as prescribed by the director.

(E) The fee for an individual adjuster license is one hundred dollars and the fee for a business entity adjuster license is fifty dollars. These fees are payable in advance and fully earned when received, not refundable, transferable, nor proratable. All fees collected by the director must be paid into the state general fund in the same manner as other funds collected by him.

(F) An adjuster license is for a biennial term and remains in effect unless revoked, terminated, suspended, or denied renewal or reinstatement.

(G) The director may contract with nongovernmental entities, including the National Association of Insurance Commissioners (NAIC), or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees and data related to licensing that the director may deem appropriate.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-30. Adjusters; contact information; notice of changes.

When an individual or business entity applies for an adjuster license, he must supply the department his legal name, email address, and business mailing address and residential mailing address. The adjuster must notify the department within thirty days of any change in the information required by this section.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-40. Adjusters; exemptions from licensure; automated claims adjudication; food spoilage claims.

(A) The following individuals are exempt from licensure as an adjuster:

(1) an individual who, for portable electronics insurance, collects claim information from, or furnishes claim information to, insureds or claimants and who conducts data entry, including entering data into an automated claims adjudication system, provided that no more than twenty-five people are under the supervision of a licensed adjuster or a licensed producer who is otherwise exempt from licensure pursuant to item (5);

(2) an attorney at law admitted to practice in this State, when acting in his professional capacity as an attorney;

(3) an employee of an insurer who is not regularly engaged in the adjustment or investigation of insurance claims;

(4) a person employed only to furnish technical assistance to a licensed adjuster including, but not limited to, an investigator, an attorney, an engineer, an estimator, a handwriting expert, a photographer, and a private detective;

(5) a producer of an authorized insurer or a licensed employee of a producer who processes an undisputed or uncontested loss for the insurer under a policy issued by the producer;

(6) a person who performs solely clerical duties and does not negotiate with parties on disputed or contested claims or otherwise perform the duties of an adjuster;

(7) a person who handles claims arising under life, accident, and health or sickness insurance policies;

(8) an individual who is employed to investigate suspected fraudulent insurance claims but who does not adjust losses or determine claims payments;

(9) a person who handles claims arising under service contracts;

(10) a person handling commercial claims for excess coverages;

(11) a person who settles only reinsurance or subrogation claims;

(12) a full-time salaried employee of a self-insurer; and

(13) a person authorized to adjust workers' compensation or disability claims under the authority of a third-party administrator (TPA) license pursuant to Chapter 51.

(B) For purposes of this section, "automated claims adjudication system" means a preprogrammed computer system designed for the collection, data entry, calculation, and final resolution of portable electronics insurance claims that:

(1) only may be used by a licensed adjuster, licensed producer, or supervised individuals operating pursuant to this section;

(2) must comply with all claims payment requirements of Title 38; and

(3) must be certified as compliant with this section by a licensed independent adjuster who is an officer of the entity or an affiliate of the entity that employs an individual operated pursuant to this section.

(C) This chapter may not be construed to prevent an executive officer of an insurer, an employee of an insurer handling claims, the duly designated attorney, or producer authorized and acting for subscribers to reciprocal insurers with respect to residential property insurance from adjusting food spoilage claims, loss, or damages under any insurance contract of such insurer in which the amount of coverage for the applicable type of loss is contractually limited to five hundred dollars or less. If any such officer, employee, attorney, or producer in connection with the adjustment of any such food spoilage claim, loss, or damage engages in improper claims practices pursuant to the provisions of Chapter 59 or violates any other provision of this title, the director may suspend or revoke the insurer's certificate of authority.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-50. Nonresident adjusters; licensure; reciprocity; verification; termination.

(A) Unless denied licensure pursuant to Section 38-91-120, a nonresident person may receive a nonresident adjuster license with the same lines of authority held in the home state upon complying with the following requirements:

(1) The person is currently licensed as a resident adjuster, has passed an adjuster examination, has furnished a complete set of fingerprints and undergone a background check, and is in good standing in the home state.

(a) If the home state does not require an examination, then the individual must meet the examination requirements provided for in Section 38-91-60.

(b) If the home state does not require fingerprints and a background check, then the individual must meet the fingerprint and background check requirements provided for in Section 38-91-60.

(2) The person has submitted the proper fees required by Section 38-91-20.

(3) The person has submitted or transmitted to the director the appropriate completed application for licensure.

(4) The person's home state issues nonresident adjuster licenses to residents of this State on the same basis. The director may waive any license requirements imposed under this chapter for an applicant who holds a valid license from another state if the state has license requirements substantially equivalent to the requirement for a license issued under this chapter.

(B) The director may verify the adjuster's licensing status through regulatory or other databases.

(C) As a condition of licensure, the nonresident adjuster licensee must maintain a resident adjuster license in his home state. The nonresident adjuster license issued pursuant to this section must terminate and be surrendered immediately to the director if the home state adjuster license terminates for any reason. If the license terminates for any reason, the adjuster may not transact any adjustment of claims.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-60. Adjusters; licensure qualifications; examinations; fingerprints; business entities; home state.

(A) Before issuing an adjuster license to an applicant pursuant to this chapter the director must find that the applicant:

(1) is eligible to designate this State as his home state;

(2) has not committed any act that is grounds for denial, suspension, or revocation of a license pursuant to this chapter;

(3) has submitted the proper fees required by Section 38-91-20; and

(4) has submitted or transmitted to the director the appropriate completed application for licensure.

(B) In addition to satisfying the requirements of subsection (A), an individual must:

(1) be at least eighteen years of age;

(2) be a person of good moral character and has not been convicted of a felony or any act within the last ten years that is a ground for denial, suspension, or revocation as provided for in Section 38-91-120 or been convicted of a misdemeanor involving dishonesty, breach of trust, or other financial or insurance-related crime within five years;

(3) have successfully passed the adjuster examination required by Section 38-91-70 unless exempted pursuant to Section 38-91-80; and

(4)(a) furnish a complete set of his fingerprints and the required fees and information in accordance with this subsection to the director. Failure to furnish the complete set of fingerprints and required fees constitutes grounds for denial of an application for licensure. However, the director may waive the fingerprinting requirements if it is impossible for the applicant to provide fingerprints due to a medically-certified physical injury; and

(b) undergo a state criminal records check, supported by his fingerprints, by the South Carolina Law Enforcement Division (SLED) and a national criminal records check, supported by his fingerprints, by the Federal Bureau of Investigation (FBI). The results of these criminal record checks must be reported to the department. SLED is authorized to retain the fingerprints for use in identification purposes including, but not limited to, unsolved latent prints. T he cost associated with the criminal history record checks must be borne by the applicant. The applicant's fingerprints must be certified by a law enforcement officer authorized by SLED.

(C) In addition to satisfying the requirements of subsection (A), a business entity must:

(1) designate a licensed individual adjuster responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State and for adjusting losses on behalf of the entity;

(2) maintain an office in the home state of residence with public access by reasonable appointment or regular business hours; and

(3) provide a listing of all executive officers and directors of the applicant and of all executive officers and directors of entities controlling and any individuals controlling, directly or indirectly, ten percent or more of the outstanding voting securities of the applicant. In order to make a determination of eligibility for licensure, the director may require any person listed pursuant to this section to submit addresses, criminal and administrative history, fingerprints, background checks, and biographical statements or affidavits.

(D) A nonresident who is not eligible for a license pursuant to Section 38-91-50 may designate South Carolina as his home state and apply for licensure as a resident adjuster. Such person is required to successfully pass the adjuster examination and comply with the other provisions of this chapter applicable to residents of this State.

(E) The director may require any documents reasonably necessary to verify the information contained in the application for licensure including, but not limited to, a driver's license.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-70. Adjusters; examination requirement; administration; fees; reexamination.

(A) An individual applying for an adjuster license under this chapter must pass a written examination unless exempt pursuant to Section 38-91-80. The examination must test the knowledge of the individual concerning the duties and responsibilities of an adjuster and the insurance laws and regulations of this State. Examinations required by this section must be developed and conducted under rules and regulations prescribed by the director.

(B) The director may contract with one or more outside testing services to administer examinations and collect the examination fees. The director may require that the applicant pay the cost of the examination directly to the testing firm.

(C) An individual who fails to appear for the examination as scheduled or fails to pass the examination may reapply for an examination and must remit all required fees and forms before being rescheduled for another examination.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-80. Adjusters; examination exemptions; reciprocity; reinstatement.

(A) An individual licensed as a resident adjuster in another state who moves to this State must make application within ninety days of establishing legal residence to become a resident adjuster pursuant to Section 38-91-60. No examination may be required of that person to obtain a license for any line of insurance previously held in another state. This exemption is available only if the application is received within ninety days of the cancellation of the applicant's previous adjuster license and records indicate that the adjuster is or was licensed in good standing.

(B) An adjuster applicant holding a designation as Chartered Property and Casualty Underwriter (CPCU) is not required to pass a written examination prior to being issued a license.

(C) A licensed adjuster whose license lapses or expires may, within twelve months from the expiration or lapse date of the license, reinstate the same license without having to retake the examination if the adjuster has:

(1) applied to reinstate the same license within twelve months from the compliance date;

(2) met the continuing insurance education requirements; and

(3) paid a penalty set forth by the director or his designee in full.

(D) The director may prescribe other exemptions through bulletins, orders, or regulations.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-90. Adjusters; continuing education; exemptions; approval.

(A) An individual who holds an adjuster license and who is not exempt under subsection (D) must satisfactorily complete a minimum of twenty-four hours of continuing education courses, including three hours of ethics as approved by the director and reported on a biennial basis in conjunction with the license renewal cycle. Any individual who holds an adjuster license and adjusts workers' compensation claims must complete at least three hours of education related to the laws and regulations specific to adjusting workers' compensation claims in South Carolina. These hours must be included in the twenty-four hours of required continuing education.

(B) This section does not apply to either of the following:

(1) an individual renewing an adjuster license for the first time after initial issuance; or

(2) licensees holding nonresident adjuster licenses who have met the continuing education requirements of their home state and whose home state gives credit to residents of this State in a manner consistent with the provisions of this chapter.

(C) Only continuing education courses and providers approved by the director may satisfy the continuing education requirement of subsection (A).

(D) An individual who holds both a resident producer license and a resident adjuster license may not be required to complete continuing education requirements for both licenses. Completion of continuing education requirements for an adjuster license must be satisfied if the individual is required to complete continuing education for the resident producer license. If the resident producer is exempt from the continuing education requirements, the adjuster is also exempt from the continuing education requirements. Nonetheless, any adjuster adjusting workers' compensation claims must complete at least three hours of education related to the laws and regulations specific to adjusting workers' compensation claims in South Carolina, as specified in subsection (A).

(E) The director must develop an approval process for adjuster continuing education similar to that set forth in Section 38-43-106(B).

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-100. Adjusters; biennial license renewal; reinstatement; waivers.

(A) An adjuster license continues on a biennial basis unless revoked, terminated, suspended, or denied renewal or reinstatement provided the fee set forth in Section 38-91-20 has been paid and the requirements for license renewal are met by August thirty-first of each odd-numbered year.

(B) Every licensed adjuster must file a biennial application for renewal of his license in accordance with the requirements of this chapter.

(C) All continuing education requirements pursuant to Section 38-91-90 must be completed prior to the applicant submitting a biennial application for renewal.

(D) A licensed adjuster who allows his license to lapse or expire may, within twelve months from the expiration date of the license, reinstate the same license upon proof of fulfilling all continuing education requirements as applicable, through the date of reinstatement and upon payment of all fees due. If the license has lapsed for more than twelve months, the applicant must fulfill the requirements for issuance of a new license.

(E) If the license is to be reinstated, a renewal application must be filed and a reinstatement fee equal to the biennial license fee unpaid must be paid in addition to the regular biennial license fee.

(F) A licensed adjuster who is unable to comply with license renewal procedures due to active military service, long-term medical disability, or other extenuating circumstances, may request a waiver of any continuing education requirement, fine, or other penalty imposed for failure to comply with renewal procedures.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-110. Adjusters; conduct standards; conflicts; misrepresentation; review of denials.

(A) A licensed adjuster is subject to the provisions of the chapters that prohibit unfair trade and unfair claims practices of this title.

(B) An adjuster may not permit an unlicensed employee or representative of the adjuster to conduct business for which a license is required under this chapter.

(C) An adjuster may not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, or other consideration established with the insurer.

(D) An adjuster may not acquire any interest in salvage of property subject to the contract with the insurer.

(E) An adjuster may not solicit employment for, recommend, or otherwise solicit engagement, directly or indirectly, for or on behalf of any attorney at law, contractor, or subcontractor, in connection with any loss or damage with respect to which such adjuster is concerned or employed.

(F) An adjuster may not solicit or accept any compensation, directly or indirectly, from, by, or on behalf of any contractor or subcontractor engaged by or on behalf of any insured by which such adjuster has been, is, or will be employed or compensated, directly or indirectly.

(G) Adjusters must adhere to the following general requirements:

(1) An adjuster may not undertake the adjustment of any claim if the adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster's current expertise.

(2) An adjuster may not knowingly make any oral or written material misrepresentations or statements which are false and intended to injure any person engaged in the business of insurance.

(3) No adjuster, while so licensed by the department, may represent or act as a public adjuster.

(4) No adjuster may materially misrepresent to an insured or other interested party the terms and coverage of an insurance contract with intent and for the purpose of effecting settlement of a claim for loss or damage or benefit under such contract on less favorable terms than those provided in and contemplated by the insurance contract.

(5) If the insured's claim is denied and the insured contests the denial, an individual licensed under this chapter must review the denial with the insured.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-120. Adjusters; disciplinary actions; denial, suspension, or revocation; fines; hearings; enforcement.

(A) The director may place on probation, revoke, suspend, or refuse to issue, renew, or reinstate an adjuster's license or may levy a fine as set forth in Section 38-2-10 for any one or more of the following causes:

(1) providing incorrect, misleading, incomplete, or materially false information in the license or renewal application;

(2) violating the insurance laws or regulations of the United States, this State, or any other jurisdiction or a subpoena or order of the director or of another state's insurance commissioner;

(3) obtaining or attempting to obtain a license through misrepresentation or fraud or improperly using notes or any other reference material to complete an examination for an insurance license, or otherwise cheating or attempting to cheat on an examination for an insurance license of any kind;

(4) improperly withholding, misappropriating, or converting any money or property received in the course of conducting insurance business;

(5) conviction of or nolo contendere plea to any felony, participation in a pretrial diversion program pursuant to a felony charge, suspension or deferral of sentence and probation, or conviction of any misdemeanor charge involving public corruption or the adjustment of insurance claims;

(6) admitting to or committing fraud or unfair trade practices;

(7) using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or elsewhere;

(8) having an adjuster license, or its equivalent, denied, suspended, or revoked in another state, province, district, or territory;

(9) forging another's name on any document related to an insurance transaction;

(10) knowingly accepting insurance business from an individual who is not licensed but who is required to be licensed by the director or his designee;

(11) intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

(12) failing to comply with an administrative or court order imposing a child support obligation;

(13) failing to pay state income tax or comply with any administrative or court order directing payment of state income tax;

(14) refusing to submit physical evidence of identity or the conviction of a felony, in accordance with Section 38-91-160;

(15) employing or allowing to associate with his business, in any manner, any person engaged in the business of insurance who has been convicted of a felony under the laws of this or any other state, and United States, or any other jurisdiction. As used in this section, "business of insurance" means the writing of insurance or the reinsuring of risks by an insurance producer or insurer, including all acts necessary or incidental to such writing or reinsuring, and the activities of persons who act as, or are, officers, directors, agents, or employees of producers or insurers, or who are other persons authorized to act on behalf of such persons;

(16) being convicted of a felony involving dishonesty or breach of trust pursuant to 18 U.S.C. Sections 1033 and 1034, without written consent from the director pursuant to 18 U.S.C. Section 1033, or any successor statute regulating crimes by or affecting persons engaged in the business of insurance whose activities affect interstate commerce; or

(17) violating any provision of this title.

(B) If upon investigation the director finds that an individual or business entity has obtained a license by fraud or misrepresentation, he may immediately suspend the license. The director, in an order suspending a license, must specify the period during which the suspension is to be in effect. The period may not exceed two years. An adjuster whose license has been revoked or an applicant who has been refused a license by the director may not reapply for another license until a two-year period of time has lapsed from the effective date of the revocation or refusal or, if judicial review before the Administrative Law Court of the revocation or refusal is sought, after two years from the date of a final court order or decree affirming the revocation or suspension.

(C) If, after notice of a hearing before the Administrative Law Court or notice of an opportunity for hearing before the Administrative Law Court, the director finds that one or more grounds exist for the revocation or suspension of, or the refusal to issue or reissue a license, the director, in his discretion, instead of revocation, suspension, or refusal, may impose upon the adjuster or applicant an administrative penalty as provided in Section 38-2-10 for each offense or ground.

(D) The director may allow the adjuster or applicant a reasonable period, not to exceed thirty days, within which to pay to the director the amount of the penalty imposed. If the adjuster or applicant fails to pay the penalty in its entirety to the director within the period allowed, the license or application stands revoked, suspended, or renewal-refused, as the case may be, upon expiration of the period and without any further proceedings.

(E) Whenever the director denies an application for a license or for renewal, the director must notify the applicant or adjuster and advise, in writing, the applicant or adjuster of the reason for the denial or nonrenewal of the applicant's or adjuster's license. The applicant or adjuster may make written demand upon the Administrative Law Judge within thirty days for a hearing before the Administrative Law Judge to determine the reasonableness of the director's action. The hearing must be held pursuant to the Administrative Procedures Act.

(F) The business entity adjuster license may be suspended, revoked, or refused if the director finds that an individual licensee's violation was known or should have been known by one or more of the partners, officers, directors, or managers of the business entity and the violation was not reported to the director.

(G) In addition to or in lieu of any applicable denial, suspension, or revocation, an adjuster violating this chapter may, after notice and an opportunity for a hearing, be subject to an administrative penalty pursuant to Section 38-2-10.

(H) The director has the authority to enforce the provisions of and impose any penalty or remedy authorized by this chapter and title against any person who is under investigation for or charged with a violation of this chapter even if the person's license or registration has been surrendered or has lapsed by operation of law.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-130. Adjusters; agent of insurer or self-insurer.

Adjusters are declared to be acting as the agents for the insurer or self-insurer represented by them in the adjustment of any loss.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-140. Food spoilage claims; license exemption for insurer personnel; penalties.

(A) This chapter may not be construed to prevent an executive officer of an insurer, an employee of an insurer handling claims, the duly designated attorney, or producer authorized and acting for subscribers to reciprocal insurers with respect to residential property insurance from adjusting food spoilage claim loss or damages under any insurance contract of such insurer in which the amount of coverage for the applicable type of loss is contractually limited to five hundred dollars or less.

(B) Such officer, employee, attorney, or producer is not required to have an adjuster's license to adjust food spoilage claims referenced in this section. If any such officer, employee, attorney, or producer in connection with the adjustment of any such food spoilage claim, loss, or damage engages in improper claims practices pursuant to the provisions of Chapter 59 or violates any other provision of this title, the director or his designee may suspend or revoke the insurer's certificate of authority.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-150. Referral of claims to adjusters; license required; verification.

(A) An insurer or self-insurer may not knowingly refer a claim or loss for adjustment to a person purporting to be or acting as an adjuster in this State unless the person holds a license or is otherwise exempt from the licensing requirements under this chapter.

(B) Before referring a claim or loss for adjustment, an insurer must ascertain from the director whether the person performing the adjustment holds a license under this chapter. Once the insurer has ascertained that the person holds a license, the insurer may refer the claim or loss to the person and may continue to refer claims or losses to the person until the insurer has knowledge or receives information from the director that the person no longer holds a license.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-160. Adjusters; compensation; fixed salary or stipend only.

No insurer may pay to any adjuster or adjusters or to any person engaged in the adjustment of losses any fee or compensation in excess of a regular fixed salary or stipend, nor may such insurer contract to pay to any insurance adjuster or any person engaged in the business of adjusting losses, any portion of the amount saved to said insurer through the efforts of said adjuster or person engaged in adjusting losses, in addition to or in lieu of any such salary or stipend.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-170. Adjusters; reporting administrative actions and criminal convictions.

(A) The adjuster must report to the director any administrative action taken against the adjuster in any jurisdiction or by another governmental agency within thirty days of the final disposition of the matter. This report must include a copy of the order, consent order, or other relevant legal documents.

(B) Within thirty days of a conviction, the adjuster must report to the director any criminal conviction of the adjuster taken in any jurisdiction for violation of insurance laws or regulations, any felony, or any misdemeanor. The report must include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-180. Adjusting unauthorized insurance; unlawful acts; misdemeanor; penalties.

It is unlawful for a person to:

(A) act as adjuster on a contract made other than as authorized by the laws of this State or made by an insurer who is not regularly licensed to do business in this State; or

(B) adjust or aid in the adjustment, either directly or indirectly, of a claim arising under a contract of insurance not authorized by the laws of this State.

(C) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years, or both.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

Editor's Note

Prior Laws: Former SECTION 38-47-60 was titled Adjuster acting for unauthorized insurer, and had the following history: Former 1976 Code SECTION 38-47-60 [1947 (45) 322; 1952 Code SECTION 37-206; 1962 Code SECTION 37-206] has no comparable provisions in 1987 Act No. 155; Former 1976 Code SECTION 38-49-60 [1947 (45) 322; 1952 Code SECTION 37-226; 1962 Code SECTION 37-226] recodified as SECTION 38-47-60 by 1987 Act No. 155, SECTION 1; 1988 Act No. 374, SECTION 21; 1993 Act No. 184, SECTION 216; 1993 Act No. 181, SECTION 681.

SECTION 38-91-190. Adjusters; violations; administrative penalties.

When the director determines after investigation that there has been a violation of this title by an adjuster, upon ten days' notice, he may impose the penalties provided in Section 38-2-10.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.

SECTION 38-91-200. Director; bulletins and orders; regulations.

The director may issue bulletins or orders or promulgate regulations as necessary or proper to carry out the purposes of this chapter.

HISTORY: 2026 Act No. 209 (S.196), SECTION 1, eff May 19, 2026.