South Carolina H 4792: Insurance penalties and fees

Bill Text

2025-2026 Bill 4792 Text of Previous Version (Dec. 17, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4792

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 38-2-10, RELATING TO ADMINISTRATIVE PENALTIES FOR VIOLATIONS OF STATE 
AND FEDERAL INSURANCE LAWS IN THIS STATE, SO AS TO INCREASE PENALTIES FOR 
VIOLATIONS BY INSURERS, PHARMACY BENEFITS MANAGERS, AND HEALTH MAINTENANCE 
ORGANIZATIONS; AND BY AMENDING SECTION 38-71-2210, RELATING TO LICENSE 
REQUIREMENTs FOR PHARMACY BENEFITS MANAGERS, SO AS TO INCREASE LICENSE 
APPLICATION AND RENEWAL FEES.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 38-2-10(A)(1) of the S.C. Code is amended to 
read:

 (1) If the violator is an insurer, 
pharmacy benefits manager, or a health maintenance organization licensed in 
this State, the director or his designee shall fine the violator in an amount 
not to exceed fifteentwenty-five 
thousand dollars, suspend or revoke the violator's authority to do business in 
this State, or both. If the violation is wilful, the director or his designee 
shall fine the violator in an amount not to exceed thirtytwo hundred fifty thousand dollars, suspend or revoke the 
violator's authority to do business in this State, or both.

SECTION 2. Section 38-71-2210(A)(2) of the S.C. Code is amended to 
read:

 (2) The director shall prescribe the 
application for a license to operate in this State as a pharmacy benefits 
manager and may charge an initial application fee of onetwenty-five thousand dollars and an annual renewal fee of 
five hundredten thousand 
dollars, provided the pharmacy benefits manager application form must collect 
the following information:

 (a) 
the name, address, and telephone contact number of the pharmacy benefits 
manager;

 (b) 
the name and address of the pharmacy benefits manager's agent for service of 
process in the State;

 (c) 
the name and address of each person with management or control over the 
pharmacy benefits manager;

 (d) 
the name and address of each person with a beneficial ownership interest in the 
pharmacy benefits manager;

 (e) 
a signed statement indicating that, to the best of their knowledge, no officer 
with management or control of the pharmacy benefits manager has been convicted 
of a felony or has violated any of the requirements of state law applicable to 
pharmacy benefits managers, or, if the applicant cannot provide such a 
statement, a signed statement describing the relevant conviction or violation; 
and

 (f) 
in the case of a pharmacy benefits manager applicant that is a partnership or 
other unincorporated association, limited liability company, or corporation, 
and has five or more partners, members, or stockholders:

 (i) the applicant shall specify its 
legal structure and the total number of its partners, members, or stockholders 
who, directly or indirectly, own, control, hold with the power to vote, or hold 
proxies representing ten percent or more of the voting securities of any other 
person; and

 (ii) the applicant shall agree that, 
upon request by the department, it shall furnish the department with 
information regarding the name, address, usual occupation, and professional 
qualifications of any other partners, members, or stockholders who, directly or 
indirectly, own, control, hold with the power to vote, or hold proxies 
representing ten percent or more of the voting securities of any other person.

SECTION 3. This act takes effect upon approval 
by the Governor.

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This web page was last updated on December 17, 2025 at 01:51 PM