South Carolina Life Insurance

South Carolina life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes South Carolina life insurance regulations.

  • Explains the South Carolina Guaranty's protection.

  • Links to more information on life insurance in South Carolina

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South Carolina life insurance rights and regulations

The insurance industry in South Carolina is regulated under Section 38 of the South Carolina Code. These codes outline claims procedures and policy requirements for the benefit of consumers and insurers alike.

One consumer protection provided by the state is the 10-day "free look" provision all South Carolina life insurance policies must carry. During this window, a new policyholder can choose to decline the coverage and still receive a full premium refund. This period is extended to 30 days on policies delivered through the mail, (and some insurers offer the longer trial period regardless).

South Carolina insurers are also obligated to settle claims within thirty days of receipt of proof of death. If an insurer misses this deadline, the final payment will include interest accrued from the date of death through settlement.

However, South Carolina law extends some protections to insurers, too. Consumer misrepresentation on a policy or application, if discovered within the first two years of the policy, can result in its cancellation. The insurer won't be obligated to honor any claims, or refund premiums.

South Carolina insurers are also exempt from paying claims made within the first two years where suicide is the cause of death. (Premiums will be refunded, however.)

Information obtained by a South Carolina insurance company is proprietary. They do not have to share the information they have about you with you.

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If you are ready to apply for a South Carolina term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The South Carolina Life Insurance Guaranty

Licensed insurance companies in South Carolina pay annual fees to the South Carolina Life and Accident and Health Insurance Guaranty Association. This organization is designed to protect insurance consumers, like you, by helping cover policies lost through insurance company insolvency.

However, there are restrictions on this protection. In South Carolina the compensation for lost death benefits is limited to $300,000 per insured individual. This limit applies even in the event of multiple policies with a higher total coverage.

And your insurer must be licensed in South Carolina to qualify for the guaranty's backing. To check the status of an insurer, you can call the South Carolina Department of Insurance at 803-737-6180 for this information.

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Apply for a quote with confidence at Efinancial
(for South Carolina term life insurance), or InsureME.
Your insurer will be licensed in South Carolina.

Other notes on South Carolina life insurance

Life insurance illustrations, which are financial projections made by an insurer, are allowed in South Carolina. However, their content is regulated by the state.

The South Carolina Department of Insurance does not regulate viatical settlements. (These arrangements involve the third-party purchase of a life insurance policy from the insured.)

More SC life insurance help

If you want more help getting the best value on your SC life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about SC life insurance laws and regulations, visit the official website of the South Carolina Department of Insurance.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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