S*1229(Rat #0315, Act #0281 of 2012)  General Bill, By O'Dell and Ford
 AN ACT TO AMEND SECTION 38-47-10, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO LICENSURE OF INSURANCE ADJUSTERS, SO AS TO PROVIDE SPECIFIC
 EXEMPTIONS FROM LICENSURE, TO DEFINE TERMS, AND TO PROVIDE AN ADJUSTER
 LICENSED UNDER THIS CHAPTER MUST REVIEW THE DENIAL OF A CLAIM CONTESTED BY AN
 INSURED. - ratified title

   02/16/12  Senate Introduced and read first time (Senate Journal-page 2)
   02/16/12  Senate Referred to Committee on Banking and Insurance
                     (Senate Journal-page 2)
   02/28/12         Scrivener's error corrected
   04/18/12  Senate Committee report: Favorable with amendment
                     Banking and Insurance (Senate Journal-page 10)
   04/19/12  Senate Committee Amendment Adopted (Senate Journal-page 58)
   04/20/12         Scrivener's error corrected
   04/24/12  Senate Amended (Senate Journal-page 28)
   04/24/12  Senate Read second time (Senate Journal-page 28)
   04/24/12  Senate Roll call Ayes-37  Nays-0 (Senate Journal-page 28)
   04/25/12  Senate Amended (Senate Journal-page 26)
   04/25/12  Senate Read third time and returned to House with
                     amendments (Senate Journal-page 26)
   04/25/12  Senate Roll call Ayes-41  Nays-0 (Senate Journal-page 26)
   04/26/12  House  Introduced and read first time (House Journal-page 23)
   04/26/12  House  Referred to Committee on Labor, Commerce and
                     Industry (House Journal-page 23)
   05/17/12  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry (House Journal-page 6)
   05/23/12  House  Debate adjourned until Thur., 05-24-12
                     (House Journal-page 31)
   05/24/12  House  Debate adjourned until Tues., 05-29-12
                     (House Journal-page 119)
   05/29/12  House  Amended (House Journal-page 7)
   05/29/12  House  Read second time (House Journal-page 7)
   05/29/12  House  Roll call Yeas-105  Nays-0 (House Journal-page 9)
   05/30/12  House  Debate adjourned until Thur., 05-31-12
                     (House Journal-page 14)
   05/31/12  House  Read third time and returned to Senate with
                     amendments (House Journal-page 21)
   06/07/12  Senate Non-concurrence in House amendment
                     (Senate Journal-page 158)
   06/07/12  Senate Roll call Ayes-1  Nays-41 (Senate Journal-page 158)
   06/07/12  House  House insists upon amendment and conference
                     committee appointed Reps. Sandifer, Brady, Bales
   06/07/12  Senate Conference committee appointed Setzler, O'Dell,
                     and Hayes (Senate Journal-page 160)
   06/19/12  Senate Conference report adopted (Senate Journal-page 139)
   06/19/12  Senate Roll call Ayes-41  Nays-0 (Senate Journal-page 139)
   06/19/12  House  Conference report received and adopted
                     (House Journal-page 78)
   06/19/12  House  Roll call Yeas-111  Nays-0 (House Journal-page 79)
   06/19/12  House  Ordered enrolled for ratification
                     (House Journal-page 84)
   06/22/12         Ratified R 315
   06/26/12         Signed By Governor
   07/17/12         Effective date 06/26/12
   07/17/12         Act No. 281

(A281, R315, S1229)

AN ACT TO AMEND SECTION 38-47-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSURE OF INSURANCE ADJUSTERS, SO AS TO PROVIDE SPECIFIC EXEMPTIONS FROM LICENSURE, TO DEFINE TERMS, AND TO PROVIDE AN ADJUSTER LICENSED UNDER THIS CHAPTER MUST REVIEW THE DENIAL OF A CLAIM CONTESTED BY AN INSURED.

Be it enacted by the General Assembly of the State of South Carolina:

Licensure of insurance adjusters, exemptions, definitions, and reviews

SECTION    1.    Section 38-47-10 of the 1976 Code is amended to read:

"Section 38-47-10.    (A)    An individual commonly called an adjuster, adjusting losses for an insurer licensed to do business in this State, must be licensed by the director or his designee. These individuals shall apply for a license on a form prescribed by the director or his designee. The director or his designee shall satisfy himself that each applicant for an adjuster's 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 the 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.

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

(1)    A producer licensed under Chapter 43 is not required to comply with this section.

(2)    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 such persons are under the supervision of a licensed adjuster or a licensed producer who is otherwise exempt from licensure pursuant to paragraph (1).

(C)    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 paragraph;

(2)    must comply with all claims payment requirements of the insurance code; 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 operating pursuant to this section.

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

Time effective

SECTION    2.    This act takes effect upon approval by the Governor.

Ratified the 22nd day of June, 2012.

Approved the 26th day of June, 2012.