A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 15-1-350 SO AS TO ESTABLISH REQUIREMENTS FOR DEMANDS FOR PERSONAL INJURY, BODILY INJURY, PROPERTY DAMAGE, OR WRONGFUL DEATH.
Summary
H4670 creates a new section of South Carolina law governing time-limited settlement demands in tort cases involving personal injury, bodily injury, property damage, or wrongful death. It requires that any such demand made by or on behalf of a claimant to a tortfeasor with liability insurance be made in good faith, be reasonable in its terms, include enough information for the insurer to evaluate the claim, and give the insurer at least 30 days to respond.
The bill also states that it does not change or affect the Tyger River doctrine, preserving existing South Carolina law on insurer liability for failing to settle within policy limits when appropriate. The act would take effect upon approval by the Governor, and it would apply to settlement-demand practices in civil liability and insurance claims handling rather than creating a new cause of action or changing damages rules directly.
Impact
The bill would add Section 15-1-350 to Title 15 of the South Carolina Code, imposing statutory standards on time-limited settlement demands in tort claims involving liability insurance. It affects claimants, attorneys, tortfeasors, and insurers by setting minimum requirements for good faith, reasonableness, disclosure, and response time, while expressly preserving the existing Tyger River bad-faith settlement doctrine.
Sentiment
The available voting history suggests broad support for the bill in the House. It passed final House consideration unanimously, 110-0, after an earlier procedural vote to waive printing rules also succeeded by a wide margin. No committee transcript is available, so the record shows little direct public debate in the provided materials, but the vote pattern indicates the measure was generally viewed favorably.
Contention
The main policy issue appears to be balancing claimant leverage in time-limited demands against insurer and defense concerns about unfairly short or incomplete settlement offers. By requiring good faith, reasonableness, sufficient information, and at least 30 days to respond, the bill addresses concerns that some demands may be designed to create technical traps for insurers. At the same time, the express preservation of Tyger River suggests an effort to reassure proponents of existing insurer-bad-faith protections that the bill would not weaken current remedies.