(A) The following licensees are exempt from the provisions of § 38-99-20:

(1) a licensee with fewer than ten employees, including any independent contractors;

Terms Used In South Carolina Code 38-99-70

  • Information security program: means the administrative, technical, and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic information. See South Carolina Code 38-99-10
  • insurance: includes annuities. See South Carolina Code 38-1-20
  • Licensee: means a person licensed, authorized to operate, or registered, or required to be licensed, authorized, or registered pursuant to the insurance laws of this State but does not include a purchasing group or a risk retention group chartered and licensed in a state other than this State or a licensee that is acting as an assuming insurer that is domiciled in another state or jurisdiction. See South Carolina Code 38-99-10

(2) an employee, agent, representative, or designee of a licensee, who is also a licensee, is exempt from the provisions of § 38-99-20 and need not develop its own information security program to the extent that the employee, agent, representative, or designee is covered by the information security program of the other licensee; and

(3) a licensee subject to the Health Insurance Portability and Accountability Act, Pub.L. 104-191, 110 Stat. 1936, that has established and maintains an information security program pursuant to such statutes, rules, regulations, procedures, or guidelines established thereunder, will be considered to meet the requirements of § 38-99-20, provided that the licensee is compliant with, and submits a written statement certifying its compliance with, the provisions of § 38-99-20.

(B) In the event that a licensee ceases to qualify for an exception, such licensee shall have one hundred and eighty days to comply with this chapter.

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