Title 38, Chapter 87 of the South Carolina Code of Laws [pdf 50k] details the regulations for Purchasing Groups. As stated specifically in Section 38-87-120 of the Code, when insurance is procured from a licensed insurer for members of the purchasing group who reside in South Carolina, it must be transacted by the insurer's licensed agents in South Carolina. It is also stated that when insurance is procured from an Eligible Surplus Lines Insurer, it must be transmitted through duly licensed brokers. These requirements are the same as the normal transaction of business in South Carolina conducted through licensed resident agents or licensed resident brokers.
Since discrimination is prohibited by the Federal Liability Risk Retention Act, countersignature requirements are waived and all business may be conducted by non-resident individuals who become properly licensed. Special handling of a non-resident broker will be conducted if the sole purpose of becoming licensed is to participate in the procurement of insurance through an Eligible Surplus Lines Insurer.
When a firm acts as the administrator of the purchasing group and is involved in the transaction of the purchasing group insurance, it is required by law to be licensed as an insurance agency. South Carolina agency licensing requirements must be met.
Please complete the following documentation and submit the information as a complete package to the attention of G. Lee Hill, Jr., Chief Financial Analyst.
South Carolina Application for Registration as a Purchasing Group, Form 1032
Please make certain the following information is indicated on the Application, Form 1032.
• The agency shown in Item 6A is licensed in South Carolina.
• The agent shown in Item 6B is licensed with the insurer or registered risk
retention group shown in Item 12.
• Broker shown in Item 6B is licensed as a broker in SC.
• Show in Item 12 the licensed insurer, registered risk retention group, or
approved eligible surplus lines insurer in South Carolina from which the Group
intends to purchase liability insurance.
- South Carolina Appointment of Attorney to Accept Service, Form 1033 [pdf 43k]
- A copy of the Certificate of Authority or Registration from the state of domicile.
SCDOI Contact Information
G. Lee Hill, Jr., Chief Financial Analyst