SOUTH CAROLINA CONTINUING EDUCATION FREQUENTLY ASKED QUESTIONS COMPLIANCE REQUIREMENTS

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SOUTH CAROLINA CONTINUING EDUCATION FREQUENTLY ASKED QUESTIONS COMPLIANCE REQUIREMENTS 1. Who is required to meet the continuing education requirements? All licensed resident producers in South Carolina who are not exempt must complete 24 hours of continuing insurance education including 3 hours of ethics and pay the CE recordkeeping fee. Extensions will not be granted. 2. Who is exempt from meeting the CE requirements? An insurance producer licensed for limited lines is exempt from the provisions of Section 38-43-106. CREDIT HOUR & COURSE INFORMATION 1. How many credit hours must I earn to meet the requirements? A total of 24 hours is required by the end of your compliance period, and of those required 24 credit hours, at least three hours must be from courses categorized as Ethics. Extensions will not be granted. 2. What if I hold life, accident and health and property and casualty lines of authority? If you hold property and casualty and life, accident and health authorities, you must complete at least eight of the twenty-four required hours in courses related to each of these lines of authority, plus three hours of Ethics. If you earn more than three Ethics credits, they will be applied towards your 24 hours credit requirement. 3. What if I received a reduction in CE hours by December 31, 2009? Producers that received a reduction in hours will only have to complete 15 hours of CE biennially by the last day of their birth month/year. Three-hours must be in Ethics. Producers with reduced compliance and hold multi-lines must complete 6 hours in Property & Casualty, 6 hours in Life, Accident and Health and 3 hours of Ethics. Producers that add additional lines of authority or allow their licenses to become inactive will lose their reduction in hours. 4. Can I repeat a CE course within the biennial period? If you successfully complete an approved course, you may not repeat the course and receive certification within two years of its original completion date.

5. Can I carry over credits to the next biennium? Producers who accumulate credits in excess of the continuing education requirements for a biennium may apply a maximum of 18 credits to the next compliance period. 6. How will I know which courses will qualify for continuing education credit hours? You may access a list of approved courses on Prometric s Web site: www.prometric.com. On advertisements, look for courses which have been approved for South Carolina continuing insurance education credit. If you have any doubt, call Prometric at 1.800.490.6551. You may also request a listing of all approved courses and sponsors by calling Prometric. 7. Can I receive CE credit for maintaining an insurance designation? Yes. Credit hours earned to maintain the following designations may be used toward the 24 hour credit requirement: Chartered Life Underwriter (CLU), Fellow, Life Management Institute (FLMI), Certified Financial Planner (CFP), Life Underwriter Training Council Fellow (LUTCF), Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), or Chartered Financial Consultant (CHFC) for a life, accident, and health license, or Chartered Property and Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC) for a property and casualty license. Many courses for maintenance of a designation are already approved for CE credit. Verify with the sponsor whether the course is approved for South Carolina CE credit. If so, you will receive credits in the normal manner. If not, send evidence of course completion to Prometric with a cover letter to claim the credits. 8. How can I contact the CE administrator? Contact Prometric by e-mail at pro.ce-services@prometric.com, by phone at 1.800.490.6551. Program information and additional services are available at their Web site: www.prometric.com. The mailing address is: Prometric Operations Center Attn: Continuing Education Processing 7941 Corporate Drive Nottingham, MD 21236 9. What is required of a proctor/disinterested third party? In accordance with the changes to Regulation 69-50 regarding proctor approval, we are no longer approving proctors. Producers are no longer required to use a state approved proctor to proctor their continuing education courses. They may now use any disinterested third party. That third party may not be their employer, employee, supervisor, relative, spouse, or minor.

NONRESIDENT REQUIREMENTS 1. How do nonresident licensed producers comply with CE requirements? Nonresident producers are not required to comply with CE in South Carolina. They must meet the CE requirements of their home state. FEES 1. What is the CE reporting fee? The biennial fee is $15.00. Resident producers subject to the CE requirement must pay the CE reporting fee. The fee must be paid biennially by the last day of your birth month/year. Producers cannot be compliant if the fee is not paid even if other requirements have been met. 2. How can I pay the fee? Prometric will send a fee notice to your address of record 90 days prior to the end of your compliance period. You may pay your reporting fees on Prometric s web site: www.prometric.com. You may also pay by check, American Express, Visa or MasterCard. Make checks payable to Prometric and mail to: Prometric Operations Center Attn: Continuing Education Processing 7941 Corporate Drive Nottingham, MD 21236 3. What happens if I fail to pay my fee by the last day of my birth month? Your license will lapse. If the fee is paid late, in addition to payment of the fee a $50 late penalty fee must be paid to the South Carolina Department of Insurance. You cannot be compliant unless the fee is paid. See FAQ 30 for details about consequences of non-compliance. FILING AND COMPLIANCE DEADLINE 1. What is the date by which I must complete 24 hours of South Carolina CE? On June 2, 2009, the Governor signed into law Act No.69. This new law requires all licensed producers except limited lines producers and exempt producers to complete continuing education (CE) requirements biennially by the end of their birth month. Producers born in an odd numbered year must comply biennially by the end of their birth month every odd numbered year. Producers born in an even numbered year must comply by the end of their birth month every even numbered year. Producers must also renew their license by the end of their birth month in an

odd or even numbered year. No one is exempt from the producer licensing renewal requirement except limited lines producers with travel baggage only. EXEMPTIONS, EXTENSIONS AND HARDSHIP EXTENSIONS 1. How can I apply for Continuing Education (CE) exemption or a reduction in CE hours? South Carolina law allowing exemptions and reduced continuing education hours was repealed effective January 1, 2010. No new exemption requests or reduced continuing education hour requests will be processed. Producers who were granted an exemption or a reduction in continuing education hours prior to January 1, 2010 will remain exempt or will continue to have a reduction in continuing education hours. However, exempt producers or producers with a reduction in continuing education hours who add a new line of authority or allow their license to become inactive will lose their exemption status or lose their reduction in continuing education hour status and will be required to comply with all CE requirements. 2. What happens if exempt producers add a line of authority to their producer license? Effective January, 2010, South Carolina law allowing continuing education exemptions have been repealed. Consequently, exempt producers who add a new line of authority to their producer license will lose their exemption status. In addition, once a producer adds a line of authority the producer cannot request that the line of authority be removed to retain his or her exemption status. 3. Can I receive an extension beyond my compliance deadline? No, South Carolina law allowing extensions has been repealed effective May 2, 2010. 4. What if I get critically ill or cannot work or take courses? Hardship waiver requests may only be granted for good cause and must be made in writing to the South Carolina Department of Insurance prior to the end of your compliance period. The CE recordkeeping fee must still be paid to Prometric and the license renewal fee must be paid to the South Carolina Department of Insurance by your compliance period deadline. The request for a hardship waiver must be received prior to the end of the producer s individual compliance period. REPORTING CREDIT HOURS AND COMPLIANCE 1. How will credit hours be counted and reported? The course sponsor must give you a certificate of course completion. They must also provide this information to Prometric, the CE Administrator, electronically or on an approved roster approved by the Department. Sponsors may obtain an approved roster by contacting the Department s Continuing Education Division.

2. Am I required to provide my Social Security number to CE sponsors or to Prometric? No. Prometric s system only accepts your South Carolina license number. You must provide your South Carolina license number. 3. How will I demonstrate that I have completed the CE requirements to the CE Administrator? Producers can verify their credits and compliance status at Prometric s web site: www.prometric.com or by calling Prometric s toll-free number at 1-800.490.6551. 4. How will I know if I have not complied with my CE requirement? Approximately 90 days before your compliance deadline Prometric will mail a warning notice to the address of record for each resident who is not yet compliant. Producers should contact Prometric to find out if they have complied with CE. 5. How will my company know that I have completed the required CE hours? On or about July 1, 2014, Prometric will furnish each insurer a report of the continuing education status of all of its resident producers with a CE requirement. In addition, insurers can perform a search of South Carolina s database to determine which producers have lapsed for their company.. REQUIREMENTS FOR NEWLY LICENSED PRODUCERS 1. What are the requirements for a newly licensed resident producer? A total of 24 hours is required by the end of your compliance period. At least three hours must be from courses categorized as Ethics of those 24 required credit hours. In addition, a biennial fee of $15.00 is required. Resident producers subject to the CE requirement must biennially pay the CE reporting fee by the last day of their birth month/year. Producers cannot be compliant if the fee is not paid even if other requirements have been met. Extensions will not be granted. 2. What are the requirements for a newly licensed nonresident producer? Effective January 1, 2012 nonresidents are no longer required to pay a CE fee to Prometric. ADDING A NEW LINE OF AUTHORITY 1. What happens if exempt producers add a line of authority to their producer license? Effective January 1, 2010, South Carolina law allowing continuing education exemptions have been repealed. Consequently, an exempt producer adding a new line of authority will lose their exemption status; therefore, that producer will have to complete continuing education hours by the end of his/her compliance period. In

addition, once a producer adds a line of authority the producer cannot request that the Department remove that line of authority to retain his/her exemption status. However, if an exempt producer adds a line of authority within 90 days of their compliance period ending that producer will not have to complete continuing education hours in the new line of authority for that compliance period, but that producer will have to complete continuing education in the existing line of authority. For example: An exempt producer who holds life and health with a December birth month of an even year and adds property and casualty to their existing license, that producer will lose their exemption status. The producer will have to complete 24 hours of continuing education in life and health line of authority and pay the record keeping fee to the Continuing Education Administrator, Prometric, regardless of when the new lines are added. If the producer adds property and casualty, October 3, 2014 prior to their compliance period ending December 31 of the same even year, that producer will not be required to complete continuing education in the new line of authority (property and casualty) during their compliance period. If the producer adds property and casualty on or before October 2, 2014 prior to their compliance period ending December 31 of the same even year, that producer will be required to complete continuing education in the new line of authority (property and casualty) for their compliance period. 2. What happens if a producer with reduced CE compliance adds a new line of authority? Effective January 1, 2010, South Carolina law allowing a reduction in continuing education hours has been repealed. Consequently, producers who have reduced continuing education hours who add a new line of authority to their producer license will lose their continuing education reduction hours status and will have to complete the required 24 hours of continuing education by the end of their compliance period. For example: A producer with reduced continuing education compliance who holds life and health with a December birth month of an even year and adds property and casualty to their existing license, that producer will lose their reduced continuing education hours compliance. The producer will have to complete 24 hours of continuing education in life and health line of authority and pay the record keeping fee to the Continuing Education Administrator, Prometric, regardless of when the new lines are added. If the producer adds property and casualty, October 3, 2014 prior to their compliance period ending December 31 of the same even year, that producer will not be required to complete continuing education in the new line of authority (property and casualty) during their compliance period.

If the producer adds property and casualty on or before October 2, 2014 prior to their compliance period ending December 31 of the same even year, that producer will be required to complete continuing education in the new line of authority (property and casualty) for their compliance period. 3. Will I receive credit for adding a new line of authority during the compliance period? No. The laws have been changed to remove a requirement for pre-licensing education. Hence, no CE credit will be awarded based on completing such a course for adding an additional line of authority. 4. When can a producer cancel a line of authority from his or her producer license? A producer has until 5:00 p.m. (Eastern Standard Time) on the last day of their birth month to cancel a line of authority. 5. When is the cutoff date for adding a line of authority without having to complete the required 8 hours of continuing education for the new line of authority? If an additional line of authority is added within 90 days of the continuing education deadline, the producer is not required to complete the required 8 hours in the newly added line of authority CONSEQUENCES OF FAILURE TO COMPLY 1. What happens if I do not earn my CE credit hour requirements or pay my recordkeeping fee? The failure of any resident licensee to pay the recordkeeping fee and/or meet the biennial continuing education requirement will result in the lapse of the producer license on the day following the licensee s compliance deadline. Resident producers have six months to reinstate a license by completing all requirements, which includes completing credit hours, paying a recordkeeping fee to Prometric and paying a $50 late CE compliance fee to the South Carolina Department of Insurance. The Department of Insurance will notify Prometric when the $50 penalty fee has been paid and Prometric will notify the Department when all CE requirements have been completed. When this process is completed, the license and appointments will be reinstated. If your license lapses, you cannot conduct any business of insurance. If you have an agency or broker license, they will likewise lapse and remain lapsed until your producer license is reinstated

If all requirements are not completed within six months, the license and all appointments will cancel. In order to regain licensure the resident producer will be required to retake and pass the state licensing exam and meet all requirements to become re-licensed. 2. What happens if I do not renew my producer license? Failure to renew the license will result in the lapse of the license on the day following the licensee s compliance deadline. Producers may reinstate a license by paying a penalty fee to the South Carolina Department of Insurance. The amount of the penalty fee is based on the date the license is renewed. If renewed within 30 days the penalty fee is $50; if renewed within 31-60 days the penalty fee is $100; if renewed 61 days and after the penalty fee is $250.00. If renewal is not completed within six months of the license being lapsed, the license and all appointments will be canceled. To regain licensure the producer will be required to reapply and meet all the requirements of a new applicant.