Service Contract Provider

Title 38, Chapter 78 of the South Carolina Code of Laws defines the regulations and requirements for service contracts and those responsible for administering the service contracts. The South Carolina Department of Insurance is charged with the responsibility of enforcing the provisions of these statutes.

2024 Legislative Changes for S.C. Service Contracts

S.C. ACT NO. 159 of 2024

Effective May 20, 2024, S.C. Act No. 159 amends South Carolina Code of Laws by adding S.C. Code Ann. §§ 38-78-55 and 37-6-120. The new Code sections provide that no automatic renewal provision in a service contract shall be enforceable against the contract holder unless the contract holder was presented written or electronic notification of that automatic renewal provision not less than thirty (30) days nor more than sixty (60) days before the cancellation deadline required by the automatic renewal provision.

The notification must “conspicuously disclose” (1) that unless the service contract holder cancels the contract, the contract will automatically renew; (2) the amount that will be charged upon renewal; and (3) methods by which the service contract holder may obtain details of the automatic renewal provision and cancellation procedure. This last element must include a toll-free telephone number, electronic email address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.

The Act also amends S.C. Code Ann. § 38-78-20 by defining “automatic renewal provision” and amends § 37-1-301 by defining automatic renewal provision and service contract. (See S.C. Act No. 159 of 2024 . )

For additional details, please refer to Bulletin 2024-06 by clicking here .

Service Contract Provider License Renewal Period for licenses expiring September 30, 2024.

Application Window Begins July 2, 2024

Application Window Closes September 30, 2024

Initial Application

Application and fee ($200.00) must be completed on NIPR. There are additional questions and attachments that must be sent to the Department of Insurance to go with the online application. Send the additional questions and attachments to the email for the Specialty Licensing team.

• Initial Application Additional Question Form
• Application Checklist
• Certification of Authority from the Secretary of State pursuant to Section 33-15-101.
• Biographical Affidavits of Officers/Directors. You may use the NAIC form.
• Financial Requirement as described in SC Code Law 38-78-30 of the S.C. Code of Laws.
• Financial Statements for previous two years.
  • Note: Service Contract providers that establish their financial security to pay claims by insuring their obligations under a reimbursement insurance policy are not required to file financial statements.

  Renewal Application

  Renewal application and fee ($200.00) must be completed on NIPR. The renewal is due between July 2 and September 30 every year.

  Here is a navigation tool for getting through NIPR to renew your license.

  There are additional questions and attachments that must be sent to the Department of Insurance to go with the online application. Send the additional questions and attachments to the email for the Specialty Licensing team.
  

  • Renewal Application Additional Questions
  • Application Checklist
  • If any changes to the Directors/Officers, complete new Biographical Affidavits. You may use the NAIC form.
  • Financial Requirement as described in SC Code Law 38-78-30 of S.C. Code of Laws.
  • Financial Statements for previous two years.
    • Funded Reserve Calculation Form (if applicable)
    • Note: Service Contract providers that establish their financial security to pay claims by insuring their obligations under a reimbursement insurance policy are not required to file financial statements.

    Miscellaneous Forms

    • Surety Bond
    • Surrender Form
    • Application Checklist
    • Funded Reserve Calculation Form (renewal applications)
    • Biographical Affidavit