S.C. Code Ann. § 38-92-130: Public adjusters; contracts; required terms and disclosures; prohibited provisions; rescission; assignments.

(A) Public adjusters must ensure that all contracts for their services are in writing and contain the following terms:

(1) legible full name of the public adjuster signing the contract, as specified in Department of Insurance records;

(2) permanent home state business address and phone number;

(3) Department of Insurance license number;

(4) title of "Public Adjuster Contract";

(5) the insured's full name, street address, insurance company name, and policy number;

(6) a detailed description of the loss, its occurrence date, and its location;

(7) a description of all services the public adjuster will provide to the insured;

(8) signatures of the public adjuster and the insured;

(9) date contract was signed by the public adjuster and date the contract was signed by the insured;

(10) attestation language stating that the public adjuster is fully bonded pursuant to state law;

(11) a complete description of the full salary, fee, commission, compensation, or other considerations the public adjuster is to receive for service; and

(12) conspicuous language in bold type stating that the salary, fee, commission, compensation, or other consideration must be paid to the public adjuster from any sums the public adjuster assists the insured in recovering and not paid by the insurer.

(B) The contract may specify that the public adjuster must be named as a copayee on an insurer's payment of a claim to the insured if the compensation is based on a share of the insurance settlement, the exact percentage must be specified, not to exceed ten percent. Initial expenses to be reimbursed to the public adjuster from the proceeds of the claim payment must be specified by type, with dollar estimates set forth in the contract, and with any additional expenses first approved by the insured. Compensation provisions in a public adjusting contract may not be redacted in any copy of the contract provided to the director.

(C) If the insurer, not later than five business days after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the full policy limit of the insurance policy, the public adjuster must:

(1) not receive a commission consisting of a percentage of the total amount paid by an insurer to resolve a claim;

(2) inform the insured that loss recovery amount might not be increased by insurer; and

(3) be entitled only to reasonable compensation from the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer, and in no case may such compensation exceed ten percent of the claim settlement amount.

(D) A public adjuster must also provide the insured a written disclosure concerning any direct or indirect financial interest that the public adjuster has with any other party who is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured including, but not limited to, any ownership of, other than as a minority stockholder, or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, motor vehicle repair shop, or any other firm that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged. The word "firm" includes any corporation, partnership, association, joint-stock company, any other legal entity, or person.

(E) A public adjuster contract may not contain any contract term that:

(1) allows the public adjuster's percentage fee to be collected when money is due from an insurance company, but not paid, or that allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company;

(2) requires the insured to authorize an insurance company to issue a check only in the name of the public adjuster; or

(3) imposes any collection costs or late fees.

(F) Prior to the signing of the contract the public adjuster must provide the insured with a separate disclosure document regarding the claim process that states:

(1) Property insurance policies obligate the insured to present a claim to his insurance company for consideration. There are three types of adjusters that could be involved in that process. The definitions of the three types are as follows:

(a) "Company adjuster" means the insurance adjusters who are employees of an insurance company. They represent the interest of the insurance company and are paid by the insurance company. They will not charge a fee.

(b) "Independent adjuster" means the insurance adjusters who are hired on a contract basis by an insurance company to represent the insurance company's interest in the settlement of the claim. They are paid by the insurance company. They will not charge a fee.

(c) "Public adjuster" means the insurance adjusters who do not work for any insurance company. They work for the insured to assist in the preparation, presentation, and settlement of the claim. The insured hires them by signing a contract agreeing to pay them a fee or commission based on a percentage of the claim settlement, or other method of compensation.

(2) The insured is not required to hire a public adjuster to help the insured meet his obligations under the policy, but has the right to do so.

(3) The insured has the right to initiate direct communications with the insured's attorney, the insurer, the insurer's adjuster, and the insurer's attorney, or any other person regarding the settlement of the insured's claim.

(4) The public adjuster is not a representative or employee of the insurer.

(5) The salary, fee, commission, or other consideration is the obligation of the insured, not the insurer.

(G) The contracts must be executed in duplicate to provide an original contract to the public adjuster, and an original contract to the insured. The public adjuster's original contract must be available at all times for inspection without notice by the director.

(H) The public adjuster must provide the insurer a notification of representation letter, which has been signed by the insured, authorizing the public adjuster to represent the insured's interest including the date of representation, and upon request, a copy of the contract between the public adjuster and the insured. The insurer shall verify the public adjuster holds a valid license with the Department of Insurance.

(I) The insured has the right to rescind the contract within five business days after the date the contract was signed. The rescission must be in writing and mailed, emailed, or delivered to the public adjuster at the address in the contract within the five-business-day period.

(J) If the insured exercises the right to rescind the contract, anything of value given by the insured under the contract will be returned to the insured within fifteen business days following the receipt by the public adjuster of the cancellation notice.

(K) Subject to its terms relating to assignability, a property insurance policy, whether heretofore or hereafter issued, under the terms of which the policy and its rights and benefits are assignable, may provide that the rights and benefits under the insurance may only be assigned to a person who has the legal authority to represent the named insured or to a subsequent owner of the property to whom title is transferred, and may explicitly prohibit assignment of rights and benefits to any other person, including a property repair contractor. For purposes of this subsection, having "legal authority to represent the named insured" includes the person named by the named insured as having the named insured's power of attorney, the person who is the named insured's licensed public adjuster, or any other comparable person. Property repair contractors operating in this State may not subvert the public adjuster licensing requirements of this chapter through the acquisition of a power of attorney from the named insured.