A buried provision in S0196 increases licensing costs and compliance requirements for insurance adjusters and their employers across South Carolina.
Most South Carolina insurance adjusters and the firms that employ them don't yet realize that a provision buried in S0196 is about to change their licensing costs and compliance obligations.
Here's what's happening: The bill raises the individual adjuster license fee from $80 to $100 per person on a biennial basis. But that's only part of the story. The law also introduces a new $50 biennial licensing requirement for business entities that employ adjusters—a cost that didn't exist before. And it adds mandatory fingerprinting and background checks as a new compliance step.
Any professional services firm operating as an insurance adjuster or employing adjusters in South Carolina will feel this change. With approximately 149,000 currently licensed adjusters in the state, the cumulative impact is substantial. A small firm with five adjusters will now pay $500 per cycle for individual licenses plus $50 for the business entity license—a meaningful increase in recurring overhead that wasn't budgeted before.
The fingerprinting and background check requirement adds another layer of compliance work. Firms will need to ensure every adjuster completes this step, track expiration dates, and manage the administrative burden of coordinating with the licensing authority.
The fee increase itself is modest per individual—$20 more per adjuster every two years. But when multiplied across a team, and combined with the new business-entity fee and fingerprinting requirement, the total cost of compliance rises noticeably. For firms with high employee turnover, the administrative overhead of managing background checks for new hires becomes a real operational consideration.
The business-entity licensing requirement is the less obvious change, but it's important: this is a new licensing category that didn't require a separate fee before. Any business structure—sole proprietorship, LLC, partnership, or corporation—that operates as an adjuster or employs adjusters now needs its own biennial license.
The changes become effective upon approval by the Governor, as stated in Section 6 of the bill. Revenue impact is estimated to begin in fiscal year 2025-26, which means the state is already planning for the additional income this will generate.
The specific language governing these fees and requirements appears in Section 38-91-20(E) on Page 1 of the bill text.
If you operate or manage an insurance adjustment business in South Carolina, review your current licensing structure and budget for the increased fees. Confirm how many adjusters on your team will need individual licenses and ensure you understand the fingerprinting and background check process before renewal deadlines arrive. If you employ adjusters, verify whether your business entity will need a separate license and factor that $50 biennial cost into your compliance calendar.
For a detailed breakdown of how S0196 affects your specific business structure, a free industry-specific summary is available through the South Carolina Insurance Adjusters Association and your local chamber of commerce.