Process Service on Insurance Companies and Unauthorized Insurers

2025-2026 Bill 4786: Process Service on Insurance Companies and Unauthorized Insurers - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 4786
STATUS INFORMATION
General Bill
Sponsors: Rep. McCravy
Document Path: LC-0548WAB26.docx
Introduced in the House on January 13, 2026
Currently residing in the House Committee on
Labor, Commerce and Industry
Summary: Process Service on Insurance Companies and Unauthorized Insurers
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 90
)

1/13/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 90
)

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 AMENDING
SECTION
38-25-520
, RELATING TO SERVICE OF PROCESS ON UNAUTHORIZED INSURERS, SO
AS TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING; BY AMENDING
SECTION
15-9-270
, RELATING TO SERVICE OF PROCESS ON INSURANCE COMPANIES, SO AS
TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING; BY AMENDING
SECTION
15-9-280
, RELATING TO SERVICE OF PROCESS ON UNAUTHORIZED INSURERS, SO
AS TO AUTHORIZE ELECTRONIC DELIVERIES AND ELECTRONIC FORWARDING, AND TO PROVIDE
COMPLIANCE DEMONSTRATION MEASURES; AND BY AMENDING SECTION
15-9-285
, RELATING
TO SERVICE OF PROCESS ON UNAUTHORIZED INSURERS, SO AS TO AUTHORIZE ELECTRONIC
DELIVERIES AND ELECTRONIC FORWARDING, AND TO CORRECT ARCANE REFERENCES.

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

S
ECTION 1.
S
ection
38-25-520
of the S.C. Code is amended to read:

S
ection
38-25-520
.
(
a) The issuance and
delivery of a policy of insurance or contract of insurance or indemnity to any
person in this State or the collection of a premium thereon by an insurer not
licensed in this State, as herein required, irrevocably constitutes the director
and any successor of his in office the true and lawful attorney in fact upon
whom service of any and all processes, pleadings, actions, or suits arising out
of the policy or contract in behalf of the insured may be made.

(
b)
Service of process in this action is made by
delivering to
and leaving with
electronic or physical delivery to

the director
or his designee

or some person in apparent charge of his office
two copies of it and by
payment to the director
or his designee
of a fee of
ten dollars, of which five dollars must be retained by the director to offset
the costs he incurs in service of process and of which five dollars must be
deposited to the credit of the general fund of the state.

(
c)
The director or his designee shall immediately
mail
transmit electronically or sent
by registered mail one of
the copies of the process to the defendant at its last known principal place of
business and shall keep a record of all process served upon him. The service
of process is sufficient if: (1) notice of the service and a copy of the
process are sent within ten days thereafter by registered mail by the plaintiff's
attorney to the defendant at its last known principal place of business, and
(2) the defendant's receipt or a receipt issued by the post office with which
the letter is registered, showing the name of the sender of the letter and the
name and address of the person to whom the letter is addressed, and the
affidavit of the plaintiff's attorney showing compliance herewith are filed
with the clerk of court in which the action is pending by the date the
defendant is required to appear or within any further time which the court may
allow.

(
d)
No plaintiff is entitled to a judgment by default, a judgment with leave to
prove damages, or a judgment pro confesso under this section until the
expiration of thirty days from the date of filing of the affidavit of
compliance.

(
e)
Nothing in this section limits or abridges the right to serve any process,
notice, order, or demand upon any person or insurer in any other manner
permitted by law.

S
ECTION 2.
S
ection
15-9-270
of the S.C. Code is amended to read:

S
ection
15-9-270
. The summons and any other legal process in any action or proceeding
against it must be served on an insurance company as defined in Section
38-1-20
, including fraternal benefit associations,
electronically
as prescribed via bulletin or order of the director or
by delivering two
copies of the summons or any other legal process to the Director of
the Department of
Insurance, as attorney of the company
with a fee of ten dollars, of which five dollars must be retained by the
director to offset the costs he incurs in service of process and of which five
dollars must be deposited to the credit of the general fund of the State. A
company shall appoint the director as its attorney pursuant to the provisions
of Section
38-5-70
. This service is considered sufficient service upon the
company. When legal process against any company with the fee provided in this
section is served upon the director, he shall immediately forward
electronically as prescribed by the director or deliver
by
registered or certified mail one of the duplicate copies prepaid directed
toward the company at its home office or, in the case of a fraternal benefit
association, to its secretary or corresponding officer at the head of the
association.

S
ECTION 3.
S
ection
15-9-280
of the S.C. Code is amended to read:

S
ection
15-9-280
.
(
a) Any act of
transacting an insurance business as set forth in Section
38-25-110
by an
unauthorized insurer is equivalent to and constitutes an irrevocable
appointment by the insurer, binding upon him, his executor or administrator, or
successor in interest if a corporation, of the Secretary of State or his
successor in office to be the true and lawful attorney of the insurer upon whom
may be served all lawful process in any action, suit, or proceeding in any
court by the Director of the Department of Insurance or his designee, or by the
State and upon whom may be served any notice, order, pleading, or process in
any proceeding before the Department of Insurance and which arises out of
transacting an insurance business in this State by the insurer. Any act of
transacting an insurance business in this State by an unauthorized insurer is
signification of its agreement that any such lawful process in such court
action, suit, or proceeding and any such notice, order, pleading, or process in
such administrative proceeding before the Department of Insurance so served are
of the same legal force and validity as personal service of process in this
State upon the insurer.

(
b)
Service of process in such action is made by
delivering to
and leaving with
electronic or physical delivery to

the Secretary of State, or some person in apparent charge of his office, two
copies thereof and by payment to the Secretary of State of the fee prescribed
by law. Service upon the Secretary of State as attorney is service upon the
principal.

(
c)
The Secretary of State shall immediately forward by certified mail one of the
copies of the process or the notice, order, pleading, or process in proceedings
before the Department of Insurance to the defendant in the court proceeding or
to whom the notice, order, pleading, or process in the administrative
proceeding is addressed or directed at its last known principal place of
business and shall keep a record of all process so served on him which shall
show the day and hour of service. The service is sufficient if:

(
1)
notice of the service and a copy of the court process or the notice, order,
pleading, or process in the administrative proceeding are sent within ten days
thereafter by certified mail by the plaintiff or the plaintiff's attorney in
the court proceeding or
electronically or by certified
mail
by the Department of Insurance in the administrative proceeding to
the defendant in the court proceeding or to whom the notice, order, pleading,
or process in the administrative proceeding is addressed or directed at the
last known principal place of business of the defendant in the court or
administrative proceeding; and

(
2)
the defendant's receipt or receipts issued by the post office with which the
letter is registered, showing the name of the sender of the letter and the name
and address of the person or insurer to whom the letter is addressed, and an
affidavit of the plaintiff or the plaintiff's attorney in a court proceeding or
of the Department of Insurance in an administrative proceeding, showing
compliance therewith, are filed with the clerk of court in which the action,
suit, or proceeding is pending or with the Department of Insurance in
administrative proceedings, by the date the defendant in the court or
administrative proceeding is required to appear or respond thereto, or within
any further time as the court or the Department of Insurance may allow.
When the Department of Insurance has electronically transmitted
the notice of the service and a copy of the court process or the notice, order,
pleading, or process as prescribed by the director, evidence showing compliance
therewith may be filed with the affidavit of compliance in lieu of receipts
issued by the post office.

(
d)
No plaintiff is entitled to a judgment by default, a judgment with leave to
prove damages, or a judgment pro confesso in any court or administrative
proceeding in which court process or notice, order, pleading, or process in
proceedings before the Department of Insurance is served under this section
until the expiration of thirty days from the date of filing of the affidavit of
compliance.

(
e)
Nothing in this section limits or affects the right to serve any process,
notice, order, or demand upon any person or insurer in any other manner
permitted by law.

S
ECTION 4.
S
ection
15-9-285
of the S.C. Code is amended to read:

S
ection
15-9-285
.
(
a) The issuance and
delivery of a policy of insurance or contract of insurance or indemnity to any
person in this State or the collection of a premium thereon by an insurer not
licensed in this State, as required, irrevocably constitutes the
Chief Insurance Commissioner
Director
of Insurance
, and his successors in office, the true and lawful attorney
in fact upon whom service of any and all processes, pleadings, actions, or
suits arising out of the policy or contract in behalf of the insured may be
made.

(
b)
Service of process in the action is made by
delivering to
and leaving with the Chief Insurance Commissioner or some person in apparent
charge of his office
electronic or physical delivery
to the Director of Insurance or his designee
two copies of it and by
payment to the
Chief Insurance Commissioner
director
of a fee of ten dollars, of which five dollars
must be retained by the
Chief Insurance Commissioner
director
to offset the costs he incurs in service of
process and of which five dollars must be deposited to the credit of the
general fund of the State.

(
c)
The
Chief Insurance Commissioner
director
shall immediately
mail
transmit electronically or send
by registered mail one of
the copies of the process to the defendant at its last known principal place of
business and shall keep a record of all process serviced upon him. The service
of process is sufficient if:

(
1)
Notice of the service and a copy of the process are sent within ten days
thereafter by registered mail by the plaintiff's attorney to the defendant at
its last known principal place of business; and

(
2)
The defendant's receipt or a receipt issued by the post office with which the
letter is registered, showing the name of the sender of the letter and the name
and address of the person to whom the letter is addressed, and the affidavit of
the plaintiff's attorney showing compliance herewith are filed with the clerk
of court in which the action is pending by the date the defendant is required
to appear or within such further time as the court may allow.

(
d)
No plaintiff is entitled to a judgment by default, a judgment with leave to
prove damages, or a judgment pro confesso under this section until the
expiration of thirty days from the date of filing of the affidavit of
compliance.

(
e)
Nothing in this section limits or abridges the right to serve any process,
notice, order, or demand upon any person or insurer in any other manner
permitted by law.

S
ECTION 5. This act takes effect upon approval
by the Governor.

----XX----

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