This article was created by AI using a key topic of the bill. It summarizes the key points discussed, but for full details and context, please refer to the full bill. Link to Bill
South Carolina Senate Bill 244, introduced on January 24, 2025, aims to amend existing insurance laws regarding bad faith claims related to liability, underinsured, and uninsured motorist insurance. The bill seeks to clarify the conditions under which insurers can be held liable for bad faith actions, particularly in the context of claims handling and settlement processes.
Key provisions of the bill stipulate that an insurer is not liable for bad faith if they tender the policy limits within specified timeframes after receiving a demand from the claimant. Specifically, if the insurer responds to a demand before a lawsuit is filed, they must pay within 90 days of receiving sufficient evidence of the claim. If the demand occurs after a lawsuit has been initiated, the insurer has either ten months from the lawsuit's filing or 30 days from the demand to respond. Furthermore, the bill establishes that mere negligence or a verdict exceeding policy limits does not constitute bad faith.
The legislation also introduces a duty for insured parties and claimants to act in good faith when providing information and making demands, which could potentially reduce damages awarded against insurers if they fail to do so. Additionally, in cases with multiple claimants from a single incident, insurers can issue a global offer for policy limits, limiting their liability to the available coverage.
Debate surrounding Senate Bill 244 has focused on its implications for consumer rights and insurance practices. Proponents argue that the bill will streamline the claims process and protect insurers from frivolous bad faith lawsuits, while opponents express concern that it may weaken protections for policyholders and limit their ability to seek redress in cases of insurer misconduct.
The bill's passage could have significant economic implications, potentially reducing litigation costs for insurers and affecting how claims are settled in South Carolina. As the legislative process continues, stakeholders from both sides are closely monitoring developments, anticipating that the final outcome will shape the landscape of insurance claims and consumer protections in the state.
Key provisions of the bill stipulate that an insurer is not liable for bad faith if they tender the policy limits within specified timeframes after receiving a demand from the claimant. Specifically, if the insurer responds to a demand before a lawsuit is filed, they must pay within 90 days of receiving sufficient evidence of the claim. If the demand occurs after a lawsuit has been initiated, the insurer has either ten months from the lawsuit's filing or 30 days from the demand to respond. Furthermore, the bill establishes that mere negligence or a verdict exceeding policy limits does not constitute bad faith.
The legislation also introduces a duty for insured parties and claimants to act in good faith when providing information and making demands, which could potentially reduce damages awarded against insurers if they fail to do so. Additionally, in cases with multiple claimants from a single incident, insurers can issue a global offer for policy limits, limiting their liability to the available coverage.
Debate surrounding Senate Bill 244 has focused on its implications for consumer rights and insurance practices. Proponents argue that the bill will streamline the claims process and protect insurers from frivolous bad faith lawsuits, while opponents express concern that it may weaken protections for policyholders and limit their ability to seek redress in cases of insurer misconduct.
The bill's passage could have significant economic implications, potentially reducing litigation costs for insurers and affecting how claims are settled in South Carolina. As the legislative process continues, stakeholders from both sides are closely monitoring developments, anticipating that the final outcome will shape the landscape of insurance claims and consumer protections in the state.
Converted from South Carolina Senate Bill 244 bill
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