A nonresident may be licensed as an insurance broker by the director or his designee if the following requirements are met:

1. (1) filing an application on a form prescribed by the director or his designee;
2. (2) filing an affidavit stating he will not during the period of the license place, directly or indirectly, insurance on a risk located in this State except through licensed agents of insurers licensed to do business in this State;
3. (3) filing an affidavit stating he is a licensed broker in another state;
4. (4) paying a biennial license fee of two hundred dollars fully earned when received, not refundable;

5. (5) filing of a bond with the department in a form approved by the Attorney General in favor of South Carolina of ten thousand dollars executed by a corporate surety licensed to transact surety insurance in this State. The bond must be conditioned to pay a person insured or seeking insurance through the broker who sustains loss as a result of:

   1. (a) the broker's violation of or failure to comply with an insurance law or regulation of this State;
   2. (b) the broker's failure to transmit properly a payment received by him, cash or credit, for transmission to an insurer or an insured; or
   3. (c) an act of fraud committed by the broker in connection with an insurance transaction. In lieu of a bond, the broker may file with the department certificates of deposit of ten thousand dollars of building and loan associations or federal savings and loan associations located within the State in which deposits are guaranteed by the Federal Savings and Loan Insurance Corporation, not to exceed the amount of insurance, or of banks located within the State in which deposits are guaranteed by the Federal Deposit Insurance Corporation, not to exceed the amount of insurance. An aggrieved person may institute an action in the county of his residence against the broker or his surety, or both, to recover on the bond or against the broker to recover from the certificates of deposit, and a copy of the summons and complaint in the action must be served on the director, who is not required to be made a party to the action.
6. (6) paying the department, within thirty days after March thirty-first, June thirtieth, September thirtieth, and December thirty-first each year, a broker's premium tax of four percent upon premiums for policies of insurers not licensed in this State. Credit may be taken for tax on policies canceled flat within forty-five days of the effective policy date as long as the business was placed in good faith and the policy was canceled at the request of the insured.