Omnibus Insurance Fraud and Reporting Immunity Act revisions

2025-2026 Bill 4784: Omnibus Insurance Fraud and Reporting Immunity Act revisions - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 4784
STATUS INFORMATION
General Bill
Sponsors: Reps. J.E. Johnson, McCravy, M.M. Smith and C. Mitchell
Document Path: LC-0546WAB26.docx
Introduced in the House on January 13, 2026
Currently residing in the House Committee on
Labor, Commerce and Industry
Summary: Omnibus Insurance Fraud and Reporting Immunity Act revisions
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

12/16/2025

House

Prefiled

12/16/2025

House

Referred to Committee on
Labor, Commerce and Industry

1/13/2026

House

Introduced and read first time (
House Journal-page 88
)

1/13/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 88
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/17/2025

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION
38-55-171
SO AS TO CREATE THE FELONY CRIMINAL OFFENSES OF STAGING A MOTOR
VEHICLE COLLISION AND AGGRAVATED STAGING A MOTOR VEHICLE COLLISION, AND TO
PROVIDE PENALTIES; BY AMENDING SECTION
38-55-520
, RELATING TO THE PURPOSE OF
THE OMNIBUS INSURANCE FRAUD AND REPORTING IMMUNITY ACT, SO AS TO DESIGNATE THE
DIVISION PREVIOUSLY ESTABLISHED TO PROSECUTE AND INVESTIGATE FRAUD IN THE
OFFICE OF THE ATTORNEY GENERAL AS BEING IN THE DEPARTMENT OF INSURANCE; BY
AMENDING SECTION
38-55-530
, RELATING TO DEFINITIONS IN THE OMNIBUS INSURANCE
FRAUD AND REPORTING IMMUNITY ACT, SO AS TO REVISE DEFINITIONS; BY AMENDING
SECTION
38-55-540
, RELATING TO CRIMINAL PENALTIES IN THE OMNIBUS INSURANCE
FRAUD AND REPORTING IMMUNITY ACT, SO AS TO INCLUDE ATTEMPTS TO RECEIVE CERTAIN
ECONOMIC ADVANTAGES OR BENEFITS; BY AMENDING SECTION
38-55-550
, RELATING TO
CIVIL PENALTIES IN THE OMNIBUS INSURANCE FRAUD AND REPORTING IMMUNITY ACT, SO
AS TO ADD A STATUTE FOR WHICH VIOLATIONS WILL be SUBJECT TO THE CIVIL
PENALTIES, AND TO MAKE VARIOUS TECHNICAL AND CONFORMING CHANGES; BY AMENDING
SECTION
38-55-560
, RELATING TO THE ESTABLISHMENT OF THE INSURANCE FRAUD
DIVISION AND PROVIDE THE POWERS, DUTIES, AND FUNCTIONS OF THE DIVISION AND
RELATED STATE AGENCIES, SO AS TO TRANSFER THE DIVISION FROM THE OFFICE OF THE
ATTORNEY GENERAL TO THE DEPARTMENT OF INSURANCE, AND TO REVISE THE POWERS,
DUTIES, AND FUNCTIONS OF THE DIVISION AND RELATED AGENCIES; BY AMENDING SECTION
38-55-570
, RELATING TO NOTIFICATION to the division of certain fraudulent
conduct, SO AS TO MAKE CONFORMING CHANGES TO REFLECT THE TRANSFER OF THE
INSURANCE FRAUD DIVISION OF THE OFFICE OF THE ATTORNEY GENERAL TO THE
DEPARTMENT OF INSURANCE, AND TO REMOVE AN EXCEPTION TO A DISCOVERY PROVISION,
AMONG OTHER THINGS; BY AMENDING SECTION
38-55-590
, RELATING TO the ANNUAL
REPORT BY THE DIRECTOR OF the INSURANCE FRAUD DIVISION IN the OFFICE OF the ATTORNEY
GENERAL TO the GENERAL ASSEMBLY, SO AS TO MAKE CONFORMING CHANGES TO REFLECT
THE TRANSFER OF THE INSURANCE FRAUD DIVISION OF THE OFFICE OF THE ATTORNEY
GENERAL TO THE DEPARTMENT OF INSURANCE; BY AMENDING SECTION
17-25-45
, RELATING
TO LIFE SENTENCEs FOR PERSONs CONVICTED of CERTAIN CRIMES, SO AS TO ADD AND
REVISE CERTAIN INSURANCE-RELATED CRIMES; BY AMENDING SECTION
42-9-440
, RELATING
TO SUSPECTED FALSE STATEMENTS OR MISREPRESENTATIONS TO BE REPORTED TO the INSURANCE
FRAUD DIVISION, SO AS TO MAKE CONFORMING CHANGES TO REFLECT THE TRANSFER OF THE
INSURANCE FRAUD DIVISION OF THE OFFICE OF THE ATTORNEY GENERAL TO THE
DEPARTMENT OF INSURANCE; AND BY AMENDING SECTION
14-7-1630
, RELATING TO SUBJECT
MATTERS OF THE STATE GRAND JURY, SO AS TO INCLUDE CERTAIN CRIMES INVOLVING
INSURANCE FRAUD.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
A
rticle 1, Chapter 55, Title 38 of the S.C. Code is
amended by adding:

S
ection
38-55-171
.
(
A)(1)(a) A person shall
be guilty of a felony known as "staging a motor vehicle collision" when such
person, with intent to defraud:

(
i)
causes, attempts to cause, or in any way participates in a motor vehicle
collision, or any other motor vehicle accident, for the purpose of presenting
any false or fraudulent claim or to obtain anything of value;

(
ii)
provides information in connection with a motor vehicle collision, knowing that
the collision was intentionally caused, for the purpose of presenting any false
or fraudulent claim or to obtain anything of value;

(
iii)
provides false information in connection with a motor vehicle collision that
did not occur for the purpose of presenting any false or fraudulent claim or to
obtain anything of value; or

(
iv)
attempts, assists, abets, solicits, or conspires with another to commit any of
the actions described in this item.

(
b)
A person who is convicted of violating the provisions of item (1) is subject to
the following penalties:

(
i)
for a first offense, by imprisonment for not more than ten years, fined not
more than ten thousand dollars, or both;

(
ii)
for a second offense, by mandatory imprisonment for not less than two years nor
more than ten years and a mandatory ten thousand dollars;

(
iii)
for a third or subsequent offense, by mandatory imprisonment for not less than
five years nor more than fifteen years and a mandatory fine of fifteen thousand
dollars.

(
2)
No portion of the mandatory minimum sentence described in item (1) may be
suspended. However, any remaining portion of imprisonment may be suspended upon
the service of probation, payment of fines, payment of restitution, and any
other special conditions as ordered by the court.

(
B)
(
1) A person shall be guilty of a
felony known as "aggravated staging a motor vehicle collision" when such person
violates a provision in subsection (A) and the staged motor vehicle collision,
directly or indirectly, results in bodily injury or death to any person.

(
a)
(
i) A person who is convicted of a
violation of this subsection which results in moderate bodily injury, as
defined by Section
16-3-600
(A)(2), to any person shall be punished by mandatory
imprisonment of not less than ninety days nor more than ten years and shall be
fined not more than ten thousand dollars.

(
ii) A person who is convicted of
this item and has previously been convicted of this item or of subsection (A),
must be punished by mandatory imprisonment of not less than two years nor more
than fifteen years and fined not more than fifteen thousand dollars.

(
b)
A person who is convicted of a violation of this subsection that results in
great bodily injury, as defined in Section
16-3-600
(A)(1), to any person must
be punished by a mandatory imprisonment of not less than two years nor more
than fifteen years and fined not more than fifteen thousand dollars.

(
c)
A person who is convicted of this subsection which results in the death of any
person must be punished by mandatory imprisonment of not less than two years
nor more than thirty years and fined not less than ten thousand dollars nor
more than thirty thousand dollars. No portion of this sentence may be suspended
nor probation granted.

(
2)
No portion of the mandatory minimum sentence of this subsection may be
suspended. However, any remaining portion of imprisonment may be suspended upon
the service of probation, payment of fines, and any other special conditions as
ordered by the court.

(
C)
When restitution is requested by the State, the trial court shall hold a
hearing, waivable by the defendant, to determine the amount of restitution to
which each victim is entitled. After such hearing is either held or waived, the
trial court shall order full restitution to all victims of the staged motor
vehicle collision, including innocent drivers, innocent passengers, innocent
pedestrians, insurance carriers, emergency responder agencies, and any other
affected third parties.

S
ECTION 2.
S
ection
38-55-520
of the S.C. Code is amended to read:

S
ection
38-55-520
. The purpose of this article is to confront aggressively the problem
of insurance fraud in South Carolina by facilitating the detection of insurance
fraud; to allow reporting of suspected insurance fraud; to grant immunity for
reporting suspected insurance fraud; to prescribe penalties for insurance
fraud; to require restitution for victims of insurance fraud; to establish a
division within the
Office of the Attorney General
Department of Insurance
to prosecute insurance fraud;
and to require the investigation of alleged insurance fraud by State Law
Enforcement Division.

S
ECTION 3.
S
ection
38-55-530
of the S.C. Code is amended to read:

S
ection
38-55-530
.
A
s used in this article:

(
A)
"Authorized agency" means any duly constituted criminal investigative
department or agency of the United States
, another state,

or
of
this State; the Department of Insurance; the
Department of Revenue; the Department of Public Safety; the Department of
Motor Vehicles; the Workers' Compensation Commission; the State Accident
Fund; the Second Injury Fund; the Department of Employment and Workforce; the
Department of Consumer Affairs; the Human Affairs Commission; the Department
of
Public
Health
and
Environmental Control
; the Department of Social Services; the
Department of Health and Human Services; the Department of Labor, Licensing and
Regulation; all other state boards, commissions, and agencies; the Office of
the Attorney General of South Carolina;

o
r the prosecuting
attorney of any judicial circuit, county, municipality, or political
subdivision of this State or of the United States, and their respective
employees or personnel acting in their official capacity.

(
B)
"Insurer" shall have the meaning set forth in Section
38-1-20
(25) and includes
any authorized insurer, self-insurer, reinsurer, broker, producer, or any agent
thereof.

(
C)
"Person" means any natural person, company, corporation, unincorporated
association, partnership, professional corporation, or other legal entity and
includes any applicant, policyholder, claimant, medical providers, vocational
rehabilitation provider, attorney, agent, insurer, fund, or advisory
organization.

(
D)
"False statement or misrepresentation" means a statement or representation made
by a person that is false, material, made with the person's knowledge of the
falsity of the statement and made with the intent of obtaining or causing
another to obtain or attempting to obtain or causing another to obtain an
undeserved economic advantage or benefit or made with the intent to deny or
cause another to deny any benefit or payment in connection with an insurance
transaction, and such shall constitute fraud. "False statement or
misrepresentation" specifically includes, but is not limited to, an
intentional:

(
1)
false report of business activities;

(
2)
miscount or misclassification by an employer of its employees;

(
3)
failure to timely reduce reserves;

(
4)
failure to account for Second Injury Fund reimbursements or subrogation
reimbursements;
or

(
5)
failure to provide verifiable information to public or private rating bureaus
and the Department of Insurance
.
;

(
6) false information on an
application for insurance; or

(
7) false information regarding an
insurance claim.

An undeserved economic
benefit or advantage includes, but is not limited to, a favorable insurance
premium, payment schedule, insurance award, or insurance settlement.

(
E)
"Immune" means that neither a civil action nor a criminal prosecution may arise
from any action taken pursuant to this article unless actual malice on the part
of the reporting person or gross negligence or reckless disregard for the
rights of the reported person is present.

(
F) "Undeserved economic benefit or
advantage" includes, but is not limited to, a favorable insurance premium,
payment schedule, insurance award, or insurance settlement.

S
ECTION 4.
S
ection
38-55-540
(A) of the S.C. Code is amended to
read:

(
A) A person who knowingly makes a
false statement or misrepresentation, and any other person knowingly, with an
intent to injure, defraud, or deceive, or who assists, abets, solicits, or
conspires with a person to make a false statement or misrepresentation, is
guilty of a:

(
1)
misdemeanor, for a first offense violation, if the amount of the economic
advantage or benefit received
or attempted to receive
is
less than one thousand dollars. Upon conviction, the person must be fined not
less than one hundred nor more than five hundred dollars or imprisoned not more
than thirty days;

(
2)
misdemeanor, for a first offense violation, if the amount of the economic
advantage or benefit received
or attempted to receive
is
one thousand dollars or more but less than ten thousand dollars. Upon
conviction, the person must be fined not less than two thousand nor more than
ten thousand dollars or imprisoned not more than three years, or both;

(
3)
felony, for a first offense violation, if the amount of the economic advantage
or benefit received
or attempted to receive
is ten
thousand dollars or more but less than fifty thousand dollars. Upon conviction,
the person must be fined not less than ten thousand nor more than fifty
thousand dollars or imprisoned not more than five years, or both;

(
4)
felony, for a first offense violation, if the amount of the economic advantage
or benefit received
or attempted to receive
is
fifty thousand dollars or more. Upon conviction, the person must be fined not
less than twenty thousand nor more than one hundred thousand dollars or
imprisoned not more than ten years, or both;

(
5)
felony, for a second or subsequent violation, regardless of the amount of the
economic advantage or benefit received
or attempted to
receive
. Upon conviction, the person must be fined not less than twenty
thousand nor more than one hundred thousand dollars or imprisoned not more than
ten years, or both.

S
ECTION 5.
S
ection
38-55-550
of the S.C. Code is amended to read:

S
ection
38-55-550
.
(
A) In addition to any
criminal liability, any person who is found by a court of competent
jurisdiction to have violated any provision of this article, including Section
38-55-170
and Section
38-55-540
, is subject to a
civil penalty
, to be levied by the Director of Insurance
or his designee,
for each violation as follows:

(
1)
for a first offense, a fine not to exceed five thousand dollars;

(
2)
for a second offense, a fine of not less than five thousand dollars but not to
exceed ten thousand dollars;

(
3)
for a third and subsequent offense, a fine of not less than ten thousand
dollars but not to exceed fifteen thousand dollars.

(
B)
The civil penalty must be paid to the director of the Insurance Fraud Division
to be used in accordance with subsection (D) of this section. The court may
also award court costs and reasonable attorneys' fees to the director. When
requested by the
director
Director
of Insurance or his designee
, the Attorney General may assign one or
more
deputies
assistant

attorneys general to assist the

b
ureau
Insurance Fraud Division

in any civil court proceedings against the person.

(
C)
Nothing in subsections (A) and (B) shall be construed to prohibit the
director
Director
of the
Insurance Fraud Division and the person alleged to be guilty of a violation of
this article from entering into a written agreement in which the person does
not admit or deny the charges but consents to payment of the civil penalty. A
consent agreement may not be used in a subsequent civil or criminal proceeding
relating to any violation of this article.

(
D)
All revenues from the civil penalties imposed pursuant to this section must be
used to provide funds for the costs of enforcing and administering the
provisions of this article.

S
ECTION 6.
S
ection
38-55-560
of the S.C. Code is amended to read:

S
ection
38-55-560
.
(
A) There is established
in the
Office of the Attorney General
Department of Insurance
a division to be known as the
Insurance Fraud Division, which must prosecute
criminal
violations
of
Sections
38-55-170
and
38-55-540
and related criminal
insurance activity
this title and any other crimes
related to insurance
.
Upon receipt of any claims
or allegations of violations of Section
38-55-170
and
38-55-540
and related
criminal insurance activity, the Attorney General shall forward the information
to the State Law Enforcement Division for investigation.
To fulfill this purpose, the Attorney General shall appoint
certain attorneys, employed by the Department of Insurance in the Insurance
Fraud Division, including the Director of the Insurance Fraud Division, as
assistant attorneys general pursuant to Sections
1-7-30
and
1-7-160
. The
Office of the Attorney General shall cooperate and work with the Insurance
Fraud Division by providing access to and use of the Attorney General's
criminal justice and prosecution resources including, but not limited to,
criminal history record information and insurance claim history information
using systems such as Criminal Justice Information Services (CJIS), National
Crime Information Center (NCIC), National Law Enforcement Telecommunications
System (NLETS), Insurance Services Office (ISO), or Verisk ClaimSearch or
similar government or private databases. Employees of the Insurance Fraud
Division granted such access shall be subject to the same requirements and
policies as employees of the Office of the Attorney General. The Department of
Insurance shall reimburse the Office of the Attorney General for any additional
costs required to access these systems for the Insurance Fraud Division.

(
B)
(
1)
The
Attorney General
Insurance Fraud Division
, upon receipt of any claims or
allegations of violations of Sections
38-55-170
and
38-55-540
and related
criminal insurance activity,
or at any other time,
is
empowered to:

(1)
(
a)
refer the matter for
investigation to the State Law Enforcement Division;

(
b) present the matter to the Office
of the Attorney General for review and approval of the indictment;

(2)
(
c)
prosecute persons determined to be in violation of
Sections
38-55-170
and
38-55-540
and

r
elated criminal
insurance activity in a court of competent jurisdiction;

and

(
d) resolve the matter through consent
agreements with the suspect in accordance with Section
38-55-550
; and

(3)
(
e)
collect fines and restitution ordered by the court.
Where considered appropriate, the
Attorney General
Department of Insurance
may use the Setoff Debt
Collection Act
and any other legal means available to
state agencies
to collect fines and restitution ordered as a result of
actions brought pursuant to Sections
38-55-170
,
and

38-55-540
, and
38-55-550
;

(
f) refer the matter to the Attorney
General for prosecution;

(
g) refer the matter to another
authorized agency;

(
h) refer the matter to any affected
insurer; and

(
i) enter agreements with the Office
of the Attorney General or other state, local, or federal agencies related to
the deterrence, detection, investigation, and prosecution of insurance fraud.

(
2) Nothing in this subsection shall
be interpreted to affect or undermine the criminal jurisdiction, investigative
authority, or prosecutorial authority of the Office of the Attorney General or
other law enforcement agencies.

(
C)
The State Law Enforcement Division shall
investigate
thoroughly

review
all claims or allegations of violations of
Sections
38-55-170
and
38-55-540
and related criminal insurance activity
received from the
Attorney General
Insurance Fraud Division
pursuant to this section
and investigate such matters as deemed appropriate. Subject to
availability of resources and funds, the Department of Insurance shall provide
State Law Enforcement Division (SLED) personnel assigned to the Insurance Fraud
Division:

(
1) secure office space within the
department for daily use;

(
2) office supplies, office equipment,
and furnishings; and

(
3) shall reimburse SLED for the
investigative services rendered pursuant to this section. SLED shall quarterly
submit an itemized bill to the department for the actual payroll, fringe,
overtime, fuel, travel, training, and equipment, for all investigators assigned
to the Insurance Fraud Division pursuant to this section. The department is not
liable for reimbursement for time or expenses for the performance of other
duties not related to the investigation or prevention of insurance fraud.
Subject to the availability of funds and approval of the department, SLED may
bill the department for initial nonrecurring expenses for additional employees
hired to perform and support the work of the Insurance Fraud Division.

(
D)
The Insurance Fraud Division of the
Office of Attorney
General
Department of Insurance
and the
investigative services of
the State law Enforcement
Division
SLED
as provided by this section
must be funded by an
appropriation of not less than two
hundred thousand dollars annually from the general revenues of the State
derived from the insurance premium taxes collected by the Department of
Insurance and/or from fines assessed under Sections
38-55-170
and
38-55-540

which must be deposited

i
n the general revenue fund to the credit of the Office of the
Attorney General and the State Law Enforcement Division to offset the costs of
this program; provided, that the funds generated from these fines, to be
utilized by either the Office of the Attorney General or the State Law
Enforcement Division shall not total more than five hundred thousand dollars.
These monies must be shared equally on a fifty-fifty basis by the Office of the
Attorney General and the State Law Enforcement Division, and the balance must
go to the general fund of the State.
annual
appropriation sufficient to fully fund the costs of operating the Insurance
Fraud Division based on the positions needed to effectively investigate,
prosecute, and prevent insurance fraud. Additionally, the department may use
any fines assessed under Sections
38-55-170
,
38-55-540
, and
38-55-550
to offset
the costs of the Insurance Fraud Division.

(
E)
The Office of the Attorney General is authorized to hire,
employ, and reasonably equip one forensic accountant, and this forensic
accountant must be assigned to the Insurance Fraud Division of the Office of
the Attorney General. A person is not qualified to be hired and the Insurance
Fraud Division may not hire a forensic accountant unless he possesses and
maintains a current license to engage in the practice of accounting pursuant to
the provisions of Chapter 2, Title 40.
The Insurance
Fraud Division shall be managed by a director who must be eligible to serve as
an assistant attorney general. The Director of the Insurance Fraud Division and
attorneys hired to prosecute insurance fraud are subject to the approval of the
Office of the Attorney General in accordance with Sections
1-7-30
and
1-7-160
. The
Director of Insurance or his designee is authorized to hire and employ the
staff members deemed necessary and appropriate by the Director of Insurance to
prosecute and fight insurance fraud in accordance with state budget procedures.

S
ECTION 7.
S
ection
38-55-570
of the S.C. Code is amended to read:

S
ection
38-55-570
.
(
A) Any person, insurer,
or authorized agency having reason to believe that another has made a false
statement or misrepresentation or has knowledge of a suspected false statement
or misrepresentation shall, for purposes of reporting and investigation, notify
the Insurance Fraud Division of the Office of the
Attorney
General
Department of Insurance
of the
knowledge or belief and provide any additional information within his
possession relative thereto.

(
B)
Upon request by the Insurance Fraud Division, any person, insurer, or
authorized agency shall release to the Insurance Fraud Division any
or
and
all information
relating to any suspected false statement or misrepresentation including, but
not limited to:

(
1)
insurance policy information relevant to the investigation, including any
application for such a
polity
policy
;

(
2)
policy premium payment records, audits, or other documents which are available;

(
3)
history of previous claims, payments, fees, commission, service bills, or other
documents which are available; and

(
4)
other information relating to the investigation of the suspected false
statement or misrepresentation.

(
C)
Any authorized agency provided with or obtaining information relating to a
suspected false statement or misrepresentation as provided for above may
release or provide the information to any other authorized agency. The
Department of Insurance, the
Department of Revenue, the
Department of Public Safety, and the Department of Motor Vehicles shall report,
but not adjudicate, all cases of suspected or reported false statement or
misrepresentation to the Insurance Fraud Division of the
Office
of Attorney General of South Carolina
Department of
Insurance
for appropriate investigation or prosecution, or both. The
Workers' Compensation Commission
may
shall
refer such cases as provided in Section
42-9-440
.

(
D)
Except as otherwise provided by law, any information furnished pursuant to this
section is privileged and shall not be part of any public record. Any
information or evidence furnished to an authorized agency pursuant to this
section
or any information or documentation arising out of
or in connection with information furnished pursuant to this section is
privileged and
is not subject to subpoena or subpoena duces tecum in any
civil or criminal proceeding
unless, after reasonable
notice to any person, insurer, or authorized agency which has an interest in
the information and after a subsequent hearing, a court of competent
jurisdiction determines that the public interest and any ongoing investigation
will not be jeopardized by obedience of the subpoena or subpoena duces tecum
.
The Department of Insurance may receive and must maintain as confidential any
documents or information furnished to it by the National Association of
Insurance Commissioners or insurance departments of other states which is
classified as confidential by that association or state. The Department of
Insurance may share documents or information, including confidential documents
or information, with the National Association of Insurance Commissioners or
insurance departments of other states, if the association or other state agrees
to maintain the same level of confidentiality as is provided under South
Carolina law.
If the documents or information received by
the Department of Insurance from the National Association of Insurance Commissioners
or the insurance departments of other states involve allegations of insurance
fraud, the documents or information must be forwarded by the Department of
Insurance to the Insurance Fraud Division of the Office of the Attorney
General.

S
ECTION 8.
S
ection
38-55-590
of the S.C. Code is amended to read:

S
ection
38-55-590
.
T
he Director of the Insurance Fraud
Division
in
of the Department
of Insurance
the Office of the Attorney General

shall annually report to the General Assembly regarding:

(
A)
the status of matters reported to the division, if not privileged information
by law;

(
B)
the number of allegations or reports received;

(
C)
the number of matters referred to the State Law Enforcement Division for
investigation;

(
D)
the outcome of all investigations and prosecutions under this article, if not
privileged by law;

(
E)
the total amount of fines levied by the court and paid to or deposited by the
division; and

(
F)
patterns and practices of fraudulent insurance transactions identified in the
course of performing its duties. The director shall also periodically report
this information to insurers transacting business in this State, health
maintenance organizations transacting business in this State, and other
persons, including the State of South Carolina, which provide benefits for
health care in this State, whether these benefits are administered directly or
through a third person.

S
ECTION 9.
S
ection
17-25-45
(C)(2) of the S.C. Code is amended to
read:

(
2) "Serious offense" means:

(
a)
any offense which is punishable by a maximum term of imprisonment for thirty
years or more which is not referenced in subsection (C)(1);

(
b)
those felonies enumerated as follows:

15

16-3-220

Lynching, Second degree

16

17

16-3-210(C)

Assault and battery by mob, Second degree

18

19

16-3-600(B)

Assault and battery of a high and aggravated
nature

20

21

16-3-810

Engaging child for sexual performance

22

23

16-9-220

Acceptance of bribes by officers

24

25

16-9-290

Accepting bribes for purpose of procuring
public office

26

16-11-110(B)

Arson, Second degree

27

16-11-312(B)

Burglary, Second degree

28

29

16-11-380(B)

Theft of a person using an automated teller
machine

30

16-13-210(1)

Embezzlement of public funds

31

32

16-13-230(B)(3)

Breach of trust with fraudulent intent

33

34

16-13-240(1)

Obtaining signature or property by false
pretenses

35

16-25-20(B)

Domestic violence, First degree

1

2

16-25-65

Domestic violence of a high and aggravated
nature

3

4

38-55-170(1)

Presenting false claims
for payment

5

6

38-55-171(A)

Staging a motor vehicle
collision

7

8

38-55-171(C)

Aggravated staging a
motor vehicle collision

9

38-55-540(3)
, (4), and
(5)

Insurance fraud

10

11

44-53-370(e)

Trafficking in controlled substances

12

13

44-53-375(C)

Trafficking in ice, crank, or crack cocaine

14

15

16

17

44-53-445(B)(1)&(2)

Distribute, sell, manufacture, or possess
with intent to distribute controlled substances within proximity of school

18

19

20

56-5-2945

Causing death by operating vehicle while
under influence of drugs or alcohol; and

(
c)
the offenses enumerated below:

23

24

25

16-1-40

Accessory before the fact for any of the
offenses listed in subitems (a) and (b)

26

27

28

16-1-80

Attempt to commit any of the offenses listed
in subitems (a) and (b)

29

30

31

43-35-85(E)

Abuse or neglect of a vulnerable adult
resulting in great bodily injury.

S
ECTION 10.
S
ection
42-9-440
of the S.C. Code is amended to read:

S
ection
42-9-440
.
T
he commission shall report all cases of
suspected false statement or misrepresentation, as defined in Section
38-55-530
(D), to the Insurance Fraud Division of the
Office

of the Attorney General
Department of Insurance
for investigation and
prosecution, if warranted, pursuant to the Omnibus Insurance Fraud and
Reporting Immunity Act.

S
ECTION 11.
S
ection
14-7-1630
(A) of the S.C. Code is amended to
read:

(
A) The jurisdiction of a state grand
jury impaneled pursuant to this article extends throughout the State. The
subject matter jurisdiction of a state grand jury in all cases is limited to
the following offenses:

(
1)
a crime involving narcotics, dangerous drugs, or controlled substances, or a
crime arising out of or in connection with a crime involving narcotics,
dangerous drugs, or controlled substances, including, but not limited to, money
laundering as specified in Section
44-53-475
, obstruction of justice, perjury
or subornation of perjury, or any attempt, aiding, abetting, solicitation, or
conspiracy to commit one of the aforementioned crimes, if the crime is of a
multi-county nature or has transpired or is transpiring or has significance in
more than one county of this State;

(
2)
a crime involving criminal gang activity or a pattern of criminal gang activity
pursuant to Article 3, Chapter 8, Title 16;

(
3)
a crime, statutory, common law or other, involving public corruption as defined
in Section
14-7-1615
, a crime, statutory, common law or other, arising out of
or in connection with a crime involving public corruption as defined in Section
14-7-1615
, and any attempt, aiding, abetting, solicitation, or conspiracy to
commit a crime, statutory, common law or other, involving public corruption as
defined in Section
14-7-1615
;

(
4)
a crime involving the election laws, including, but not limited to, those named
offenses specified in Title 7, or a common law crime involving the election
laws if not superseded, or a crime arising out of or in connection with the
election laws, or any attempt, aiding, abetting, solicitation, or conspiracy to
commit a crime involving the election laws;

(
5)
a crime involving computer crimes, pursuant to Chapter 16, Title 16, or a
conspiracy or solicitation to commit a crime involving computer crimes;

(
6)
a crime involving terrorism, or a conspiracy or solicitation to commit a crime
involving terrorism. Terrorism includes an activity that:

(
a)
involves an act dangerous to human life that is a violation of the criminal
laws of this State;

(
b)
appears to be intended to:

(
i) intimidate or coerce a civilian
population;

(
ii) influence the policy of a
government by intimidation or coercion; or

(
iii) affect the conduct of a
government by mass destruction, assassination, or kidnapping; and

(
c)
occurs primarily within the territorial jurisdiction of this State;

(
7)
a crime involving a violation of Chapter 1, Title 35 of the Uniform Securities
Act, or a crime related to securities fraud or a violation of the securities
laws;

(
8)
a crime involving obscenity, including, but not limited to, a crime as provided
in Article 3, Chapter 15, Title 16, or any attempt, aiding, abetting,
solicitation, or conspiracy to commit a crime involving obscenity;

(
9)
a crime involving the knowing and wilful making of, aiding and abetting in the
making of, or soliciting or conspiring to make a false, fictitious, or
fraudulent statement or representation in an affidavit regarding an alien's
lawful presence in the United States, as defined by law, if the number of
violations exceeds twenty or if the public benefit received by a person from a
violation or combination of violations exceeds twenty thousand dollars;

(
10)
a crime involving financial identity fraud or identity fraud involving the
false, fictitious, or fraudulent creation or use of documents used in an
immigration matter as defined in Section
16-13-525
, if the number of violations
exceeds twenty, or if the value of the ascertainable loss of money or property
suffered by a person or persons from a violation or combination of violations
exceeds twenty thousand dollars;

(
11)
a crime involving the knowing and wilful making of, aiding or abetting in the
making of, or soliciting or conspiring to make a false, fictitious, or
fraudulent statement or representation in a document prepared or executed as
part of the provision of immigration assistance services in an immigration
matter, as defined by law, if the number of violations exceeds twenty, or if a
benefit received by a person from a violation or combination of violations
exceeds twenty thousand dollars;

(
12)
a knowing and wilful crime involving actual and substantial harm to the water,
ambient air, soil or land, or both soil and land. This crime includes a knowing
and wilful violation of the Pollution Control Act, the Atomic Energy and
Radiation Control Act, the State Underground Petroleum Environmental Response
Bank Act, the State Safe Drinking Water Act, the Hazardous Waste Management
Act, the Infectious Waste Management Act, the Solid Waste Policy and Management
Act, the Erosion and Sediment Control Act, the South Carolina Mining Act, and
the Coastal Zone Management Act, or a knowing and wilful crime arising out of
or in connection with environmental laws, or any attempt, aiding, abetting,
solicitation, or conspiracy to commit a knowing and wilful crime involving the
environment if the anticipated actual damages, including, but not limited to,
the cost of remediation, is two million dollars or more, as certified by an
independent environmental engineer who must be contracted by the Department of
Health and Environmental Control. If the knowing and wilful crime is a
violation of federal law, a conviction or an acquittal pursuant to federal law
for the same act is a bar to the impaneling of a state grand jury pursuant to
this section;

(
13)
a crime involving or relating to the offense of trafficking in persons, as
defined in Section
16-3-2020
, when a victim is trafficked in more than one
county or a trafficker commits the offense of trafficking in persons in more
than one county;
and

(
14)
a crime involving a violation of the South Carolina Anti-Money Laundering Act
as set forth in Chapter 11, Title 35, or a crime related to a violation of the
Anti-Money Laundering Act
.
;
and

(
15) a crime involving insurance
fraud including, but not limited to, a violation of the statutes under the
South Carolina Omnibus Insurance Fraud and Reporting Immunity Act or a crime
arising out of or in connection with insurance fraud.

S
ECTION 12. This act takes effect upon
approval by the Governor.

----XX----

This web page was last updated on January 13, 2026 at 2:40 PM