A buried provision in S.C. Bill S0196 increases licensing fees and adds mandatory background checks for adjusters—here's what auto service owners need to know.
Most auto service owners in South Carolina don't realize that a provision buried in Bill S0196 (Insurance Adjusters) directly affects their licensing costs and compliance obligations—even if they only occasionally work with insurance adjusters or employ them part-time.
Here's what changed, and why it matters to your bottom line.
Under Section 38-91-20(E) of S0196, South Carolina raised the individual insurance adjuster license fee from $80 to $100 per person. That's a $20 increase per adjuster on a biennial (two-year) renewal cycle.
But the fee increase is only part of the story. The bill also introduced a new requirement: any business entity that operates as or employs insurance adjusters must now obtain its own business-entity license at $50 per entity, also on a biennial basis.
Additionally, the law added mandatory fingerprinting and background checks as a new compliance obligation tied to adjuster licensing. This means adjusters—whether full-time staff or contractors—must now complete background screening as a condition of licensure.
If your auto service business employs adjusters, contracts with adjusters, or operates an in-house claims or damage-assessment function, you're affected. The business-entity licensing requirement means you'll need to register your company separately, even if you have just one adjuster on staff.
For small shops with multiple adjusters, the costs add up quickly: $100 per individual × number of adjusters, plus $50 for the business entity, every two years.
Section 6 of S0196 specifies that the provision becomes effective upon approval by the Governor. The state's revenue impact from these new fees is estimated to begin in fiscal year 2025-26, which runs from July 1, 2025, through June 30, 2026.
If you currently hold adjuster licenses or employ adjusters, you should verify your renewal dates and plan for the higher fees at your next biennial renewal cycle.
Review your current adjuster licensing status and count how many individual licenses your business maintains. Calculate the new cost: multiply the number of adjusters by $100, add $50 for your business entity, and double that figure for a two-year cycle to understand your new biennial cost.
If you contract with independent adjusters, confirm whether they or your business bears the licensing cost—this should be clarified in your service agreements.
Finally, ensure any adjusters on your payroll or under contract understand that fingerprinting and background checks are now mandatory. Plan ahead if you're hiring new adjusters, as the screening process adds time to onboarding.
For a detailed, business-specific breakdown of how S0196 applies to your operation, a plain-language guide is available through your local chamber or trade association.