On May 3, 2018, Governor Henry McMaster signed into law the South Carolina Insurance Data Security Act (the "Act").  The Act will become effective on January 1, 2019.  South Carolina is the first state in the nation to pass this important and timely legislation which is modeled after the NAIC Insurance Data Security Model Law.  

The Act is codified in Title 38, Chapter 99 of the South Carolina Code of Laws.  The Act defines the requirements applicable to a "licensee" and establishes standards for data security and standards for the investigation of and notification to the Director of a cybersecurity event. 

Key Implementation Dates

January 1, 2019

:  South Carolina Insurance Data Security Act becomes effective.  This requires, among other things, that a licensee notify the Director no later than 72 hours after determining that a cybersecurity event has occurred when certain criteria are met.

July 1, 2019

:  Licensees must have implemented Section 38-99-20 by this date.  This section requires that licensees establish a comprehensive, written information security program by July 1, 2019.

July 1, 2020

:  Licensees must have implemented Section 38-99-20(F) by this date.  This section details additional requirements for licensees who contract with third-party service providers that maintain, process, store or otherwise is permitted access to nonpublic information through its provision of services to the licensee.

February 15, 2020

:  Beginning on this date, each insurer domiciled in South Carolina must annually submit to the Director a written statement certifying that the insurer is in compliance with the requirements set forth in Section 38-99-20.

Additional Information

The Department will issue a series of bulletins regarding the implementation of this legislation and each will be copied below as they become available.

  1. Bulletin 2018-02. South Carolina Insurance Data Security Act.  This bulletin provides answers to questions such as to whom does the Act apply, what does the legislation do, and when will the legislation be effective.
  2. Bulletin 2018-09.  Cybersecurity Event Reporting Form.  This bulletin addresses the process for reporting a cybersecurity event and provides guidance regarding what constitutes a cybersecurity event.