Date Published: December 26, 2023
In South Carolina, the new structured settlement surety bond, effective January 1, 2024, is required for structured settlement purchase companies (SSPCs) registered to do business in the state. Any person or entity that engages in the business of purchasing structured settlement payment rights from payees must register as a structured settlement purchase company (SSPC) with the Secretary of State. 
Here’s a breakdown of who needs the bond:
Required for:
- New SSPCs: Any company entering the structured settlement purchasing market in South Carolina after January 1, 2024, will need to obtain the bond before applying for registration with the Secretary of State.
- Renewing SSPCs: Existing SSPCs registered in South Carolina before January 1, 2024, will need to obtain the bond upon their next renewal of registration, likely sometime in 2024.
Not required for:
- Individuals: The bond requirement applies only to businesses, not individuals selling their structured settlement payments.
- Annuity issuers: The bond applies specifically to SSPCs, not insurance companies issuing annuities as part of structured settlements.
Structured Settlement Purchase Company Bond details:
- The bond amount is $50,000.
- It must be a surety bond, not a cash bond.
- The bond is payable to the State of South Carolina for the benefit of any payee claimant.
Its purpose is to protect payees from financial harm if an SSPC violates the Structured Settlement Protection Act. Click here to read more about the surety bond and access a bond application.
Structured Settlement Purchase Company Registration Information
To register as an SSPC in South Carolina, you must file an application with the Secretary of State, along with a $500 registration fee and a $50,000 surety bond. The surety bond must be issued by a surety company licensed to do business in South Carolina and must guarantee the SSPC’s compliance with the Structured Settlement Protection Act.
Once you are registered as an SSPC, you must renew your registration every year and pay an annual renewal fee of $250. You must also file an annual report with the Secretary of State that discloses your financial condition and the number of structured settlement payment rights you have purchased.
Violating the registration requirement is a misdemeanor punishable by a fine of up to $10,000 and/or imprisonment for up to one year.
Resources for further information:
South Carolina Structured Settlement Protection Act: https://www.scstatehouse.gov/sess125_2023-2024/bills/259.htm
2023-2024 Bill 259: Structured Settlement Payments: https://www.scstatehouse.gov/code/t15c050.php
South Carolina Secretary of State: https://sos.sc.gov/
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.