S.C. Code Ann. § 38-105-20: Licensure of administrators operating wellness reimbursement programs.

(A) No wellness reimbursement program administrator may sell, offer, market, promote, or operate a wellness reimbursement program without first being licensed by the director.

(B) Application for a license must be on forms prescribed by the director and must be accompanied by an initial license fee of five thousand dollars, annual financial statements or reports for the two preceding calendar years, and any other documents that the director may require to ensure that the wellness reimbursement program administrator meets the requirements for licensure set forth in this chapter. Thereafter, an application fee for a renewal offering must be five hundred dollars. These fees must be retained by the director to offset the costs of processing and maintaining the registration of wellness reimbursement programs required by the chapter.

(C) In addition to the documents required under subsection (B), a wellness reimbursement program administrator must comply with Federal ERISA requirements, or submit a letter or document from the Internal Revenue Service or the U.S. Department of Labor approving of the specific wellness reimbursement program in question.

(D) A wellness reimbursement program administrator must make and keep a full and correct record of its business and affairs, and the director shall inspect these records at least every three years. The information from these records must be furnished to the director on demand, and the original books or records must be open to examination by the director when demanded. The cost of the examination must be borne by the wellness reimbursement program administrator.

(E) A wellness reimbursement program administrator must file and maintain with the director a surety bond in favor of the State executed by a surety company authorized to transact business in this State. The director may set the requirements of such surety bond as necessary.

(F) Before granting any license, the director or his designee must be satisfied that the wellness reimbursement program administrator is competent, trustworthy, financially responsible, has a good personal and business reputation, has not had an insurance license revoked, suspended, or denied in any jurisdiction within the preceding five years, and has not been convicted of a crime involving fraud, dishonesty, or moral turpitude in any jurisdiction. For purposes of this section, "convicted" includes a plea of guilty or a plea of nolo contendere.

(G) The director may revoke or suspend any license issued to a wellness reimbursement program administrator when he finds that any condition exists which would have prohibited issuance of the original license, that the wellness reimbursement program administrator has violated any provision of this chapter, or that the wellness reimbursement program administrator has deceived or dealt unjustly with the citizens of this State. In lieu of revocation or suspension of license, the director may impose an administrative monetary penalty not to exceed one thousand dollars for each offense.

(H) Any wellness reimbursement program administrator who fails to obtain a license is guilty of a misdemeanor and, upon conviction, must be fined not more than twenty thousand dollars or imprisoned for not more than two years, or both, and is subject to revocation of any licenses issued by the director. Any fine revenue received may be retained by the director to offset the expenses of enforcing this chapter.