Which document must an insurer have to legally operate in South Carolina?

In South Carolina, an insurer is required to obtain a Certificate of Authority to legally operate within the state. This document is issued by the South Carolina Department of Insurance and serves as proof that the insurance company has met the legal requirements and regulatory standards set by the state. It ensures that the insurer is permitted to provide specific types of insurance coverage to consumers, adhering to the laws and regulations that govern how insurance companies operate in South Carolina.

A business license is not specific to the insurance industry and does not ensure compliance with the additional regulations that insurance companies must follow. An insurance policy is a contract between the insurer and the insured and does not confer the authority to operate as an insurer. A charter typically refers to the establishment of a corporation or similar entity but does not serve the same regulatory function as a Certificate of Authority for insurance providers. Thus, the Certificate of Authority is essential for compliance with state insurance laws and for the legal operation of an insurance company in South Carolina.