South Carolina: premium trust account rules
What South Carolina requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 38-43-130; 38-43-240; 38-2-10
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
A producer must turn over or satisfactorily account for all collections made to the insurer when required.
Penalties for diversion
The director may place on probation, revoke, or suspend, or refuse to issue a producer’s license, if the producer improperly withheld, misappropriated, or converted any monies received in the course of doing insurance business. In addition to or in lieu of a change in licensure, the person violating this title may be subject, after a hearing, to an administrative penalty not to exceed $2,500, unless the violation is willful, then the amount shall not exceed $5,000. If a producer fails to turn over or account for all collections, he or she is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than 2 years.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a South Carolina trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with South Carolina's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
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