Key Takeaways
- South Carolina producers have fiduciary duties to clients
- Producers must disclose compensation and conflicts of interest
- Premium funds must be handled according to strict requirements
- Records must be maintained for regulatory examination
- Continuing education includes ethics requirements
Last updated: January 2026
Producer Conduct and Fiduciary Duties
South Carolina insurance producers have legal and ethical obligations to their clients and the public.
Fiduciary Duties
Producers owe fiduciary duties to their clients:
Key Duties
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Disclosure | Reveal all material information |
| Competence | Maintain professional knowledge |
| Confidentiality | Protect client information |
| Good Faith | Act honestly in all dealings |
Agent vs. Broker Duties
| Producer Type | Primary Duty To |
|---|---|
| Agent | Insurance company |
| Broker | Client/Insured |
Disclosure Requirements
South Carolina producers must disclose:
Compensation Disclosures
- Method of compensation (commission, fee, both)
- Material conflicts of interest
- Ownership interests in recommending insurers
- Referral arrangements
Product Disclosures
- All material terms and conditions
- Limitations and exclusions
- Premium and cost information
- Comparison with alternatives when replacing
Handling of Funds
Producers must handle premiums according to strict rules:
Premium Collection
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Consequences of Mishandling
- License suspension or revocation
- Required restitution
- Civil liability
- Potential criminal charges
Continuing Education
South Carolina requires ongoing education for producers:
CE Requirements
- Completion of required hours each renewal period
- Ethics training component required
- Must be completed before license renewal
- Courses must be approved by SCDOI
Professional Standards
Beyond legal requirements, professional standards include:
- Treating all clients fairly and equally
- Maintaining professional competence
- Avoiding conflicts of interest
- Protecting client confidentiality
- Being honest in all communications
- Reporting illegal or unethical conduct
Record Keeping
South Carolina requires producers to maintain records:
Required Records
| Record Type | Purpose |
|---|---|
| Applications | Document client information |
| Policy documents | Proof of coverage |
| Client correspondence | Communication records |
| Premium records | Financial accountability |
| Replacement forms | Regulatory compliance |
Access to Records
- SCDOI can examine records during investigations
- Must provide records upon request
- Failure to maintain records is a violation
Test Your Knowledge
Which type of South Carolina insurance producer primarily represents the client?
A
B
C
D
Test Your Knowledge
What happens if a South Carolina producer commingles client premium funds with personal funds?
A
B
C
D