A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 38-3-105 SO AS TO PROVIDE FOR THE ELECTION OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE BY THE QUALIFIED ELECTORS OF THE STATE IN THE GENERAL ELECTION AND PROVIDE FOR THE DIRECTOR'S TERM OF OFFICE, QUALIFICATIONS, VACANCY, AND RELATED MATTERS; BY AMENDING SECTION 1-30-10, RELATING TO THE DEPARTMENTS OF STATE GOVERNMENT, SO AS TO PROVIDE THAT THE GOVERNING AUTHORITY OF THE DEPARTMENT OF INSURANCE IS THE DIRECTOR OF THE DEPARTMENT OF INSURANCE ELECTED TO OFFICE UNDER THE LAWS OF THIS STATE; BY AMENDING SECTION 38-1-20, RELATING TO DEFINITIONS UNDER THE INSURANCE LAWS OF THIS STATE, SO AS TO MAKE CERTAIN CHANGES TO THE DEFINITION OF "DIRECTOR" OF THE DEPARTMENT OF INSURANCE; BY AMENDING SECTION 38-3-10, RELATING TO THE DEPARTMENT OF INSURANCE, SO AS TO DELETE CERTAIN PROVISIONS RELATING TO THE DEPARTMENT'S DIRECTOR, TO PROVIDE THAT THE DIRECTOR IS ELECTED RATHER THAN APPOINTED, AND TO MAKE CHANGES IN THE PROVISIONS CONCERNING THE REMOVAL OF THE DIRECTOR; BY AMENDING SECTION 38-3-100, RELATING TO THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, SO AS TO AMONG OTHER CHANGES, DELETE THE REQUIREMENT THAT, IF THE DIRECTOR BECOMES A CANDIDATE FOR PUBLIC OFFICE OR BECOMES A MEMBER OF A POLITICAL COMMITTEE DURING TENURE, HIS OFFICE IMMEDIATELY MUST BE VACATED; AND TO PROVIDE THAT THE ELECTION OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE BEGINS WITH THE 2028 STATEWIDE ELECTION PROCESS AND THAT THE DIRECTOR SERVING ON THE EFFECTIVE DATE OF THIS ACT SHALL CONTINUE TO SERVE UNTIL HIS SUCCESSOR IS ELECTED AND QUALIFIES FOR OFFICE.
H3487 would change the South Carolina Department of Insurance from an agency led by a governor-appointed director to one led by a director elected statewide in the general election. The bill creates a new Section 38-3-105 establishing a four-year term, age and office-holding qualifications, rules for filling vacancies, and a prohibition on campaign contributions or anything of value from regulated insurance companies, agents, and related industry personnel. It also sets the first election for the 2028 statewide election cycle and allows the current director to remain in office until a successor is elected and qualified.
The bill makes conforming changes throughout Title 38 and related government-organization statutes to reflect that the Department of Insurance’s governing authority would be an elected director rather than an appointed one. It revises the statutory definition of “director,” updates the department’s management language, and removes or alters provisions tied to appointment, Senate confirmation, and removal by the Governor. It also deletes the automatic vacancy rule that would have applied if the director became a candidate for public office or joined a political committee during tenure.
If enacted, the bill would significantly alter the structure of state insurance regulation by shifting the Department of Insurance’s leadership from executive appointment to direct election by voters. That change would affect the statutes governing the department’s authority, the definition of its director, and the rules for selection, tenure, and removal of the officeholder. It would also impose new campaign-finance restrictions on candidates and officeholders tied to the insurance industry, while preserving gubernatorial appointment only to fill a vacancy for the remainder of a term.
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears procedural and reform-oriented rather than overtly partisan in the available record. The bill is framed as a governance and accountability measure, suggesting support for making the insurance regulator more directly answerable to voters. However, because there are no transcripts or vote tallies, there is no documented public consensus or opposition in the supplied context.
The main point of contention likely concerns whether the Department of Insurance should be led by an elected official or remain an appointed, professionally selected regulator. Supporters would likely emphasize voter accountability and independence from the governor, while critics may argue that insurance regulation is a technical role better suited to appointment based on expertise and that elections could politicize the office. The bill’s ban on contributions from regulated insurers, agents, and related professionals also suggests concern about industry influence, which could be another area of debate.