On May 3, 2018, Governor Henry McMaster signed into law the SC Insurance Data Security Act. The  SC Insurance Data Security Act pertains to insurance businesses that are licensed or required to be licensed through the Department of Insurance. In addition, a business must employ 10 or more employees, agents, representatives or independent contractors to fall under the requirements of this act.

On the plus side, agents or independent contractors working under a business that meets the size requirement above, are not required to create their own information security program. But that only applies if they are covered by the program of a parent company or business. Furthermore, licensed insurance groups that meet the higher standards of the Health Insurance Portability and Accountability Act are considered to meet the standards of the SC Insurance Data Security Act. These entities are not required to have a separate program and only need to file a written statement certifying their compliance.

With all that being said, this act only pertains to licensee’s whom are domiciled in the State of South Carolina.

If you need further clarification to see if you or your business will be impacted by this act, please call the South Carolina Department of  Insurance at (803) 737-6160.

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