South Carolina Code 38-71-1830. Recoupment
(A) Recoupments of any funds disputed on the basis of an audit must occur only after final internal disposition of the audit, including the appeals process as provided for in § 38-71-1820, unless fraud or misrepresentation is reasonably suspected.
Terms Used In South Carolina Code 38-71-1830
- Commission: means the part of the premium paid to the producer as compensation for his services. See South Carolina Code 38-1-20
- Contract: A legal written agreement that becomes binding when signed.
- Fraud: Intentional deception resulting in injury to another.
(B) Recoupment on an audit must be refunded to the responsible party as contractually agreed upon by the parties involved in the audit.
(C) The entity conducting the audit may charge or assess the responsible party, directly or indirectly, based on amounts recouped if both of the following conditions are met:
(1) the responsible party or payor and the entity conducting the audit have entered into a contract that explicitly states the percentage charge or assessment to the responsible party; and
(2) a commission or other payment to an agent or employee of the entity conducting the audit is not based, directly or indirectly, on amounts recouped.