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Key Person Insurance in South Carolina

South Carolina residents receive up to $300,000 in state guaranty-association coverage for a life policy’s death benefit if a member insurer becomes insolvent. Because a key-person policy may exceed that backstop, identify the issuing insurer and size the benefit with the cap in view. For a South Carolina quote, request the carrier’s written checklist for documenting the business beneficiary’s interest. Keep the business rationale with the policy. Compare your ownership and insured’s role with S.C. Code § 38-63-20. 4,1

What Is Key Person?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What to Watch for in South Carolina

  • Document the Business Interest

    For a South Carolina quote, request the carrier’s written checklist for documenting the business beneficiary’s interest. Keep the business rationale with the policy. 1

  • Complete Written Notice and Consent

    Keep dated proof that the insured received the required notice and consented before the South Carolina policy took effect. Retain the employee’s copy of the notice. 2,3

  • Check the State Guaranty Backstop

    NOLHGA’s South Carolina entry sets the reported death-benefit protection at $300,000. This is not a limit on the contract; ask the broker how it applies to your employer-owned benefit. Review it alongside the replacement-cost estimate for this insured. For issuance, also check S.C. Code § 38-63-20. 4,5,1

Who Regulates Insurance in South Carolina

South Carolina Department of Insurance

The South Carolina Department of Insurance licenses and regulates insurance companies and producers and accepts complaints involving entities it licenses and policies incepted in South Carolina. Its consumer page links to the online complaint form and explains limits on the Department’s authority. 6,7,8

Surplus-lines tax and stamping office

Reported tax rate: 6% blended broker premium tax: 4% state plus 2% municipal SCDOI’s January 2026 instructions set a 6% blended surplus-lines broker premium tax: 4% state and 2% municipal; the Department collects both and the Municipal Association of South Carolina allocates the municipal share. The filing system also asks brokers to identify one to three insurers that declined the indicated coverage; check the policy notice for any guaranty-association disclosure. 9,10

Providers With Documented State Licenses

These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in South Carolina. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 17

Questions to Ask Before You Buy in South Carolina

  1. What South Carolina law supports our business’s insurable interest in this person, and what should we retain to prove the role?
  2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
  3. How would South Carolina’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person in South Carolina: FAQ

How much of a key person life policy is protected if an insurer fails in South Carolina? 4,5

NOLHGA lists $300,000 in death-benefit protection for a covered life in South Carolina. Ask the broker whether multiple policies on different people are subject to the owner aggregate. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. 4,5

Does my business need an employee’s consent for key person insurance in South Carolina? 2,3,1

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Keep dated proof that the insured received the required notice and consented before the South Carolina policy took effect. Retain the employee’s copy of the notice. Confirm the stated maximum face amount matches the application. For state-law details, check S.C. Code § 38-63-20. 2,3,1

Key Person in Other States

Other Coverage in South Carolina

Sources

  1. South Carolina Code, Life Insurance, Insurable Interest. State statute (Justia U.S. Codes and Statutes); S.C. Code § 38-63-20. Accessed 2026-09-28.
  2. 26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
  3. Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
  4. How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
  5. Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
  6. south-carolina insurance regulator. State insurance regulator; Official home and consumer services pages describe regulator scope. Accessed 2026-09-28.
  7. SCDOI Online Services. State insurance regulator; General Public offers Licensee Lookup for licensed individuals and insurers. Accessed 2026-09-28.
  8. SCDOI Consumer Services. State insurance regulator; Complaint process and stated authority covers licensed entities and policies incepted in SC; online complaint form is linked. Accessed 2026-09-28.
  9. 2026 Surplus Lines Filing Instructions. South Carolina Department of Insurance; Pages 1–2, January 26 2026 memo: 6% blended rate, 4% state plus 2% municipal; DOI collects both and MASC allocates municipal portion. Accessed 2026-09-28.
  10. 2026 Surplus Lines Filing Instructions. South Carolina Department of Insurance; Pages 1–2, Jan. 26, 2026 instructions: broker filing due-diligence field requires one to three named insurers declining the indicated coverage. Accessed 2026-09-28.
  11. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  12. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  13. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  14. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  15. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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