Insurance Rate Reduction and Policy Holder Protection Act

2025-2026 Bill 4817: Insurance Rate Reduction and Policy Holder Protection Act - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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Indicates Matter Stricken
Indicates New Matter
H. 4817
STATUS INFORMATION
General Bill
Sponsors: Reps. Brewer, Herbkersman, Anderson, Bailey, Gatch, Gagnon, Guffey, Hager, Hixon, J.L. Johnson, Kirby, Oremus, Schuessler, C. Mitchell, Pope, M.M. Smith, Ligon, Sessions, White, Williams, Gibson, J.E. Johnson and W. Newton
Document Path: LC-0235HA26.docx
Introduced in the House on January 13, 2026
Introduced in the Senate on April 7, 2026
Last Amended on April 1, 2026

Currently residing in the Senate
Summary: Insurance Rate Reduction and Policy Holder Protection Act
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

1/6/2026

Scrivener's error corrected

1/9/2026

Scrivener's error corrected

1/13/2026

House

Introduced and read first time (
House Journal-page 99
)

1/13/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 99
)

1/14/2026

House

Member(s) request name added as sponsor: M.M.
Smith, Ligon

1/20/2026

House

Member(s) request name added as sponsor:
Sessions, White

3/5/2026

House

Committee report: Favorable with amendment
Labor, Commerce and Industry
(
House Journal-page 28
)

3/10/2026

Scrivener's error corrected

3/24/2026

House

Member(s) request name added as sponsor: Williams

3/24/2026

House

Requests for debate-Rep(s). Hiott, Brewer, Pace,
Lawson, Caskey, Long, Martin, Edgerton, Taylor,
Oremus, Hixon, Magnuson, Kirby, Cobb-Hunter,
Anderson, Gilliard, Rivers (
House Journal-page 48
)

3/26/2026

House

Member(s) request name added as sponsor: Gibson

4/1/2026

House

Member(s) request name added as sponsor: J.E.
Johnson, W. Newton

4/1/2026

House

Amended (
House Journal-page 34
)

4/1/2026

House

Read second time (
House Journal-page 34
)

4/1/2026

House

Roll call Yeas-96 Nays-17 (
House Journal-page 57
)

4/2/2026

Scrivener's error corrected

4/2/2026

House

Read third time and sent to Senate (
House Journal-page 38
)

4/7/2026

Senate

Introduced and read first time (
Senate Journal-page 4
)

4/7/2026

Senate

Referred to Committee on
Banking and Insurance
(
Senate Journal-page 4
)

4/30/2026

Senate

Committee report: Favorable with amendment
Banking and Insurance
(
Senate Journal-page 10
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/17/2025
01/06/2026
01/09/2026
03/05/2026
03/10/2026
04/01/2026
04/02/2026
04/30/2026

Indicates Matter Stricken

Indicates New Matter

Committee Report

April 30, 2026

H. 4817

Introduced by Reps. Brewer, Herbkersman,
Anderson, Bailey, Gatch, Gagnon, Guffey, Hager, Hixon, J. L. Johnson, Kirby,
Oremus, Schuessler, C. Mitchell, Pope, M. M. Smith, Ligon, Sessions, White,
Williams, Gibson, J. E. Johnson and W. Newton

S. Printed 4/30/26--S.

Read the first time April 7, 2026

________

The committee on Senate Banking and
Insurance

To whom was referred a Bill (H. 4817) to amend
the South Carolina Code of Laws so as to enact the "Insurance Rate Reduction and
Policyholder Protection Act;" by amending Section
38-3-110
, relating to, etc., respectfully

Report:

That they have duly and carefully considered
the same, and recommend that the same do pass with amendment:

Amend the
bill, as and if amended, SECTION 7, by striking Section
38-55-560
(A) and
inserting:

(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
Title 38 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
may
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
may
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 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 for the use of these resources. The Department of Insurance
must reimburse the Office of the Attorney General for any additional costs
required to access these systems for the Insurance Fraud Division.

Amend the bill
further, SECTION 14, by striking Section
38-77-122
(A) and (B) and inserting:

(A) No insurer or agent shall refuse to
issue an automobile insurance policy as defined in Section
38-77-30
because of
any one or more of the following factors: the age, sex, location of residence
in this State, race, color, creed, national origin, ancestry, marital status,
or
income level
, or the existence of
no more than one
uninsured or
underinsured motorist
claims
claim that occurred less than thirty-six months immediately
preceding the upcoming anniversary date
. No insurer or agent shall
refuse to issue an automobile insurance policy as defined in Section
38-77-30

solely because of any one of the following factors: the previous refusal of
automobile insurance by another insurer, prior purchase of insurance through
the Associated Auto Insurers Plan, or lawful occupation, including the military
service, of the person seeking the coverage. Nothing in this section prohibits
any insurer from limiting the issuance of motor vehicle insurance policies only
to persons engaging in or who have engaged in a particular profession or occupation,
or who are members of a particular religious sect.

Nothing in this section prohibits any
insurer from setting rates in accordance with relevant actuarial data.

(B) In determining the premium rates to be
charged for an automobile insurance policy as defined in Section
38-77-30
, it
is unlawful to consider race, color, creed, religion, national origin,
ancestry, location of residence in this State, economic status,
or
income level
, or the existence of

no more than one
uninsured
or underinsured motorist
claims
claim that occurred less than thirty-six months immediately
preceding the upcoming anniversary date
.
The
existence of
no more than one
uninsured or underinsured motorist
claims
claim that occurred
less than thirty-six months immediately preceding the upcoming anniversary date
shall not be considered when determining an insured's
eligibility for premium discounts.
Nor may an insurer, agent, or broker
refuse to write or renew an automobile insurance policy as defined in Section
38-77-30
based upon age, sex, race, color, creed, religion, national origin,
ancestry, location of residence in this State, economic status,
or
income level
, or the existence of
no more than one
uninsured or
underinsured motorist
claims
claim that occurred less than thirty-six months immediately
preceding the upcoming anniversary date
. However, nothing in this
subsection may preclude the use of a territorial plan approved by the director.
Any insurer or agent who violates this section shall be subject to the
penalties as provided in Section
38-2-10
. If the director of the Department of
Insurance or his designee finds that an insurer or agent is participating in a
pattern of unfair discrimination, the director or his designee may impose a
fine of up to two hundred thousand dollars. Provided, however, if the unfair
discrimination is required by an insurer, only the insurer is subject to the
penalty as long as the agent of the insurer has reported the pattern of unfair
discrimination to the department. The director or his designee at any time may
examine an insurer or agent to enforce this section. The expense of examination
must be paid by the insurer, agent, or broker.

Amend the bill
further, SECTION 15, by striking Section
38-77-123
(A)(3) and inserting:

(3) Nothing contained in subsection
(A)(1)(f), (g), and (h) prohibits an insurer from refusing to renew a policy
where a claim is false or fraudulent. Nothing in this section prohibits an
insurer from setting rates in accordance with relevant actuarial data except
that no insurer may set rates based in whole or in part on race, color, creed,
religion, national origin, ancestry, location of residence in this State,
economic status,
or
income level
, or the existence of
no more
than one
uninsured or underinsured motorist
claims
claim that occurred
less than thirty-six months immediately preceding the upcoming anniversary date
.

The existence of
no more
than one
uninsured or underinsured motorist
claims
claim that occurred
less than thirty-six months immediately preceding the upcoming anniversary date
shall not be considered when determining an insured's
eligibility for premium discounts.
However, nothing in this subsection
may preclude the use of a territorial plan approved by the director.

Amend the bill
further, SECTION 16, by striking Section
38-77-280
(B)(2) and inserting:

(2) Beginning
January 1, 2027,
every automobile insurer
offering
any

automobile physical damage
insurance coverage may
offer a zero dollar deductible option for automobile safety glass
deductible does not apply to an initial repair made to
automobile safety glass
.
The deductible for replacement of automobile safety glass
may not exceed one hundred dollars. Insurers must make available a zero dollar
deductible for automobile safety glass.

Amend the bill
further, SECTION 16, by striking Section
38-77-280
(C) and (D) and inserting:

(C) Notwithstanding
Section
38-77-111
, automobile physical damage insurance coverage may be ceded
to the facility. However, automobile physical damage coverages ceded to the
facility by an insurer or servicing carrier must be at the facility physical damage
rate as defined in Section
38-77-30
.

(D)
(C)
In determining the premium rates to be charged on
physical damage coverage or single interest collision coverage, it is unlawful
to consider race, color, creed, religion, national origin, ancestry, location
of residence in this State, economic status,
or
income
level
, or the existence of
no more than one
uninsured or
underinsured motorist
claims
claim that occurred less than thirty-six months immediately
preceding the upcoming anniversary date
. The
existence of
no more than one
uninsured or underinsured motorist
claims
claim that occurred
less than thirty-six months immediately preceding the upcoming anniversary date
shall not be considered when determining an insured's
eligibility for premium discounts
. Nor may an insurer, agent, or broker
refuse to write or renew physical damage insurance coverage or single interest
collision coverage based upon race, color, creed, religion, national origin,
ancestry, location of residence in this State, economic status,
or
income level
, or the existence of

no more than one
uninsured
or underinsured motorist
claims
claim that occurred less than thirty-six months immediately
preceding the upcoming anniversary date
. However, nothing in this
subsection may preclude the use of a territorial plan approved by the director.
If the director of the Department of Insurance or the director's designee finds
that an insurer, agent, or broker is participating in a pattern of unfair
discrimination, the director or the director's designee may impose a fine of up
to two hundred thousand dollars. The director or the director's designee at any
time may examine an insurer, agent, or broker to enforce this section. The
expense of examination must be paid by the insurer, agent, or broker.

(D) No insurer may
increase an automobile insurance premium, cancel, or refuse to renew an
automobile insurance policy for a named insured as a result of a motor vehicle
accident unless it is determined that the accident was caused, in whole or in
part, by an insured or a permissive user of the insured vehicle.

Amend the bill
further, by adding an appropriately numbered SECTION to read:

S
ECTION
X.
S
ection
38-21-225
(B) of the S.C. Code is
amended to read:

(
6) Notwithstanding the exemptions
from filing the group capital calculation stated in this section, the lead
state commissioner has the discretion to exempt the ultimate controlling person
from filing the annual group capital calculation or to accept a limited group
capital filing or report in accordance with criteria as specified by the
director in regulation.
The director or his designee
may exempt the ultimate controlling person of an insurance holding company
system from filing the annual group capital calculation if a determination is
made that a holding company system request meets the exemption criteria
pursuant to Regulation 69-14, Section XVIII, even if the annual group capital
calculation has not been previously filed at least once.

Renumber sections to conform.

Amend title to conform.

RONNIE CROMER for Committee.

_______

A bill

TO AMEND THE SOUTH
CAROLINA CODE OF LAWS SO AS TO ENACT THE "INSURANCE RATE REDUCTION AND
POLICYHOLDER PROTECTION ACT;" BY AMENDING SECTION
38-3-110
, RELATING TO DUTIES
OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, SO AS TO EXPAND THOSE DUTIES;
BY ADDING SECTION
38-55-172
SO AS TO PROHIBIT RESIDENTIAL BUILDERS AND
REGISTERED RESIDENTIAL SPECIALTY CONTRACTORS FROM CERTAIN ACTIONS MADE ON
BEHALF OF OWNERS OR POSSESSORS OF RESIDENTIAL REAL ESTATE ON INSURANCE CLAIMS
IN CONNECTION WITH ROOFING SYSTEM REPAIRS OR REPLACEMENTS TO PROHIBIT
RESIDENTIAL BUILDERS AND REGISTERED RESIDENTIAL SPECIALTY CONTRACTORS FROM
ADVERTISING OR PROMISING TO PAY OR REBATE AN INSURANCE DEDUCTIBLE AS AN
INDUCEMENT TO THE SALE OF GOODS OR SERVICES, TO PROVIDE PENALTIES FOR
VIOLATIONS, TO PROVIDE THE INSURANCE FRAUD DIVISION OF THE DEPARTMENT OF
INSURANCE MAY INVESTIGATE CLAIMS OF FRAUDULENT ACTIVITY RELATING TO THE
PERFORMANCE OF GOODS OR SERVICES FOR A ROOFING SYSTEM PURSUANT TO A WRITTEN
CONTRACT AND REFER CERTAIN FINDINGS TO THE DEPARTMENT OF LABOR, LICENSING AND
REGULATION; BY AMENDING SECTION
38-55-520
, RELATING TO THE PURPOSE OF THE
ARTICLE, SO AS TO MAKE A TECHNICAL CHANGE; BY AMENDING SECTION
38-55-530
,
RELATING TO DEFINITIONS, SO AS TO AMEND THE DEFINITIONS OF "AUTHORIZED AGENCY"
AND "FALSE STATEMENT OR MISREPRESENTATIONS"; BY AMENDING SECTION
38-55-550
,
RELATING TO CIVIL PENALTIES, SO AS TO PRESCRIBE DUTIES OF THE DIRECTOR OF THE
DEPARTMENT OF INSURANCE; BY AMENDING SECTION
38-55-560
, RELATING TO THE
INSURANCE FRAUD DIVISION, SO AS TO ESTABLISH THE INSURANCE FRAUD DIVISION IN
THE DEPARTMENT OF INSURANCE AND TO PROVIDE THE DUTIES FOR THE DIVISION, THE
ATTORNEY GENERAL, AND THE STATE LAW ENFORCEMENT DIVISION; BY AMENDING SECTION
38-55-570
, RELATING TO NOTIFICATION OF FALSE STATEMENTS OR MISREPRESENTATIONS
AND ABILITY TO SHARE INFORMATION, SO AS TO REQUIRE THE INSURANCE FRAUD DIVISION
TO PROSECUTE CRIMINAL VIOLATIONS OF TITLE 38 AND ANY OTHER CRIMES RELATED TO
INSURANCE, AS WELL AS DIVISION STAFF REQUIREMENTS, AND TO PROVIDE FOR
INVESTIGATIVE DUTIES OF THE ATTORNEY GENERAL AND THE STATE LAW ENFORCEMENT
DIVISION; BY AMENDING SECTION
38-55-590
, RELATING TO ANNUAL REPORTS BY THE
DIRECTOR OF THE INSURANCE FRAUD DIVISION, SO AS TO MAKE A CONFORMING CHANGE; BY
AMENDING SECTION
38-73-1095
, RELATING TO ESSENTIAL PROPERTY INSURANCE AND
RATING PLAN FACTORS, SO AS TO PROVIDE ADDITIONAL REQUIREMENTS FOR ANY INSURER
REQUIRED TO SUBMIT RATES AND RATING PLANS TO THE DEPARTMENT OF INSURANCE
RELATED TO ADJUSTMENTS TO REDUCE PREMIUMS AND FOR OWNERS OF INSURABLE PROPERTY
CLAIMING A CREDIT OR DISCOUNT; BY AMENDING SECTION
38-75-470
, RELATING TO
MEMBERSHIP OF THE ADVISORY COMMITTEE FOR THE DIRECTOR OF INSURANCE, SO AS TO
PROVIDE MITIGATION OF PROPERTY LOSSES DUE TO WILDFIRE AMONG THE ISSUES TO BE
CONSIDERED AND TO PROVIDE FOR TERMS OF SERVICE FOR ADVISORY COMMITTEE MEMBERS;
BY AMENDING SECTION
38-75-480
, RELATING TO THE LOSS MITIGATION GRANT PROGRAM,
SO AS TO PROVIDE FOR WHEN GRANTS MAY BE GIVEN TO LOCAL GOVERNMENTS; BY AMENDING
SECTION
38-75-485
, RELATING TO THE SOUTH CAROLINA HURRICANE DAMAGE MITIGATION
PROGRAM, SO AS ESTABLISH THE "SC SAFE HOME PROGRAM" AND TO ESTABLISH
REQUIREMENTS; BY AMENDING SECTION
38-77-122
, RELATING TO PROHIBITED FACTORS FOR
ISSUING AUTOMOBILE INSURANCE POLICIES OR PREMIUM RATES, SO AS TO ADD UNINSURED
AND UNDERINSURED MOTORIST CLAIMS; BY AMENDING SECTION
38-77-123
, RELATING TO
PROHIBITED FACTORS FOR AUTOMOBILE INSURANCE POLICY RENEWALS OR CANCELLATIONS,
SO AS TO ADD UNINSURED AND UNDERINSURED MOTORIST CLAIMS; BY ADDING SECTION
38-77-145
SO AS TO PROHIBIT NONECONOMIC DAMAGES FOR PERSONS OPERATING A MOTOR
VEHICLE WHILE KNOWINGLY NOT IN COMPLIANCE WITH AUTOMOBILE INSURANCE
REQUIREMENTS AND TO PROVIDE EXCEPTIONS; BY AMENDING SECTION
38-77-280
, RELATING
TO AUTOMOBILE COLLISION AND COMPREHENSIVE INSURANCE, SO AS TO REQUIRE INSURERS
TO OFFER A ZERO DOLLAR DEDUCTIBLE FOR AUTOMOBILE SAFETY GLASS AND TO PROHIBIT
INSURERS FROM CONSIDERING UNINSURED OR UNDERINSURED MOTORISTS CLAIMS FOR
CERTAIN INSURANCE POLICY DECISIONS; BY AMENDING SECTION
12-6-1620
, RELATED TO
CATASTROPHE SAVINGS ACCOUNTS, SO AS TO INCLUDE CERTAIN APPROVED RETROFITS TO
PRIMARY RESIDENCES FOR HURRICANE OR WIND DAMAGE RESILIENCE, AND FOR THE
DEPARTMENT OF REVENUE TO PROVIDE AN ANNUAL REPORT TO THE GENERAL ASSEMBLY; BY
AMENDING SECTION
12-6-3660
, RELATING TO TAX CREDITS FOR HURRICANE RESISTANT
RETROFITS TO RESIDENCES, SO AS TO INCREASE THE TAX CREDIT OPTION FROM ONE
THOUSAND TO TWO THOUSAND DOLLARS; BY ADDING SECTION
12-6-3662
SO AS TO
ESTABLISH A "DISASTER PREPAREDNESS SALES TAX HOLIDAY" AND TO PROVIDE FOR ITS
REQUIREMENTS; BY AMENDING SECTION
12-6-3670
, RELATED TO TAX CREDITS FOR EXCESS
PAID FOR PROPERTY AND CASUALTY INSURANCE, SO AS TO INCREASE THE CREDIT AMOUNT
TO THREE THOUSAND DOLLARS; BY AMENDING SECTION
42-9-440
, RELATING TO SUSPECTED
FALSE STATEMENTS OR MISREPRESENTATIONS REQUIRED TO BE REPORTED TO THE INSURANCE
FRAUD DIVISION, SO AS TO MAKE CONFORMING CHANGES; BY ADDING SECTION
40-11-125

SO AS TO PROVIDE THE DEPARTMENT OF INSURANCE HAS THE EXCLUSIVE AUTHORITY TO
ENFORCE ANY VIOLATIONS RELATED TO INSURANCE OR INSURANCE FRAUD ARISING FROM
ROOFING SYSTEMS CONTRACTS OR THE DELIVERY OF GOODS OR SERVICES RELATED TO
ROOFING SYSTEMS INVOLVING LICENSEES OF THE SOUTH CAROLINA CONTRACTOR'S
LICENSING BOARD; BY AMENDING SECTION
40-59-25
, RELATING TO ROOFING CONTRACT
CANCELLATIONS FOR INSURANCE COVERAGE DENIALS, SO AS TO REMOVE CERTAIN
PROVISIONS TRANSFERRED TO THE DEPARTMENT OF INSURANCE AND TO REVISE THE
PROVISIONS; BY ADDING SECTION
40-59-27
SO AS TO PROVIDE THE DEPARTMENT OF
INSURANCE AS THE EXCLUSIVE AUTHORITY TO ENFORCE ANY VIOLATIONS RELATED TO
INSURANCE OR INSURANCE FRAUD ARISING FROM ROOFING SYSTEMS CONTRACTS OR THE
DELIVERY OF GOODS OR SERVICES RELATED TO ROOFING SYSTEMS INVOLVING LICENSEES
AND REGISTRANTS OF THE SOUTH CAROLINA RESIDENTIAL BUILDERS COMMISSION; TO
REQUIRE THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO SUBMIT AN ANNUAL REPORT
TO THE GENERAL ASSEMBLY REGARDING THE IMPACT ON INSURANCE RATES AND REQUIRE
ANNUAL TESTIMONY BEFORE THE HOUSE LABOR, COMMERCE AND INDUSTRY COMMITTEE AND
THE SENATE BANKING AND INSURANCE COMMITTEE; AND TO MAKE CONFORMING OR TECHNICAL
CHANGES.

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

S
ECTION 1.
This act may be cited as the "Insurance Rate Reduction and Policyholder
Protection Act".

S
ECTION 2.
S
ection
38-3-110
of the S.C. Code is amended to read:

S
ection
38-3-110
.
T
he director or his designee has the
following duties:

(
1)
supervise and regulate the rates and service of every insurer in this State and
fix just and reasonable standards, classifications, regulations, practices, and
measurements of service to be observed and followed by every insurer doing
business in this State. Nothing contained in this title authorizes or requires
a review by the department or the director of any order of the director's
designee or the deputy director under the Administrative Procedures Act. This
item does not grant any additional authority to the director or his designee
with regard to insurance rates other than the ratemaking authority specifically
granted to the director or his designee, or the Department of Insurance for
certain kinds of insurance in other provisions of this title;

(
2)
see that all laws of this State governing insurers or relating to the business
of insurance are faithfully executed and make regulations to carry out this
title and all other insurance laws of this State, the enforcement or
administration of which is not otherwise specifically provided for;

(
3)
report to the Attorney General or other appropriate law enforcement officials
criminal violations of the laws relative to the business of insurance or the
provisions of this title which he considers necessary to report;

(
4)
institute civil actions, either through his office or through the Attorney
General, relative to the business of insurance or the provisions of this title
which he considers necessary to institute
.
;

(
5) make legislative recommendations to
the Governor and the South Carolina General Assembly based on data and market
analytics on changes necessary to protect South Carolina consumers and to
promote and maintain competitive and solvent insurance markets; and

(
6) recruit insurance companies to do
business in this State in a manner which will promote and maintain competitive
and solvent insurance markets for the citizens of this State.

(5)
(
7)
(
a) The
director may hold a public hearing at a location within the seacoast area, as
defined in Section
38-75-310
(7), to provide the public with information and an
opportunity to discuss and offer input concerning the rates, territory, and
other pertinent issues regarding the South Carolina Wind and Hail Underwriting
Association. The director must provide publicized notice of the hearing at
least thirty days before the date of the public hearing.

(
b)
The director must engage in efforts to provide market assistance and promote
consumer
outreach and
education to South Carolina
residential property
insurance consumers. These efforts
may include, but are not limited to:

(
i)
posting on its website information to assist consumers in understanding the
general

provisions of
homeowners
insurance
policies;

(
ii)
providing information on the mitigation discounts and credits available
pursuant to Section
38-73-1095
(C)
and other provisions of
Title 38
, including a summary of those offered by the twenty largest
homeowners property insurance issuers by premium volume;

(
iii)
providing information regarding the factors that can affect premium rates;

(
iv)
providing information to assist consumers in identifying insurers writing
property insurance coverage in their area;

(
v)
providing a listing of licensed property and casualty producers in their area;
and

(
vi)
providing information on catastrophe savings accounts available pursuant to
Article 11, Chapter 6, Title 12.

(
c)
The director must submit a report to the President of the Senate, the Speaker
of the House of Representatives, the Chairman of the Senate Banking and
Insurance Committee, and the Chairman of the House Labor, Commerce and Industry
Committee by January thirty-first of each year regarding the status of the
coastal property insurance market. The report shall be posted in an electronic
format on the department's website within five days of its submission. The
report shall include, but not be limited to, the following:

(
i)
status of the South Carolina Wind and Hail Underwriting Association, including
any recommended modifications to statutory or regulatory law regarding the
operation of the South Carolina Wind and Hail Underwriting Association and its
territory;

(
ii)
status of operations and grants issued under the South Carolina Hurricane
Damage Mitigation Program as provided for in Section
38-75-485
;

(
iii)
availability and affordability of coverage in the coastal area as defined in
Section
38-75-310
(5), including any portion of the area as it may be expanded
pursuant to Section
38-75-460
;

(
iv)
consumer outreach and education efforts relating to coastal property insurance
issues, including, but not limited to:

(
a)
summary of the annual meeting as required pursuant to item
(5)
(7)
(a); and

(
b)
specific projects and efforts undertaken pursuant to item
(5)
(7)
(b).

S
ECTION 3.
A
rticle 1, Chapter 55, Title 38 of the S.C. Code is
amended by adding:

S
ection
38-55-172
.
(
A)
(
1) A licensee or registrant with
either the Residential Builders Commission or the Contractor's Licensing Board
within the South Carolina Department of Labor, Licensing and Regulation shall
not represent or negotiate, or offer or advertise to represent or negotiate, on
behalf of an owner or possessor of residential real estate on any insurance
claim in connection with the repair or replacement of a roofing system.

(
2)
Notwithstanding item (1) or another provision of state law, an owner is not
prevented from consulting with a builder, contractor, or other person of his
choice to provide an evaluation of the condition of his roofing system and
using the evaluation to negotiate the repair or replacement of his roofing
system.

(
B) A
licensee or registrant with either the Residential Builders Commission or the
Contractor's Licensing Board shall not advertise or promise to pay or rebate
all or any portion of any insurance deductible as an inducement to the sale of
goods or services. As used in this subsection, the term "promise to pay or
rebate" means:

(
1)
granting any allowance or offering any discount against the fees to be charged
including, but not limited to, an allowance or discount in return for
displaying a sign or other advertisement at the insured's premises;

(
2)
paying the insured or any person directly or indirectly associated with the
property any form of compensation, gift, prize, bonus, coupon, credit, referral
fee, or other item of monetary value for any reason; or

(
3)
advertising an activity prohibited in this section.

(
C) A
person who violates a provision of subsection (A), (B), or both is guilty of a
misdemeanor and may be imprisoned not more than one year, fined not more than
five hundred dollars, or both. The violation is also grounds for disciplinary
action by the Residential Builders Commission or the Contractor's Licensing
Board. Disciplinary action may include, but is not limited to, suspension or
revocation of licenses or registrations by the Residential Builders Commission
or the Contractor's Licensing Board. In addition, a violation of a provision of
subsection (A) or (B) also constitutes misconduct pursuant to Section
40-59-110
.

(
D)
The Insurance Fraud Division of the Department of Insurance may investigate and
prosecute claims of fraudulent activity relating to the performance of goods or
services for a roofing system pursuant to a written contract. If the
investigation yields findings concerning a licensee or registrant with either
the Residential Builders Commission or the Contractor's Licensing Board that provides
goods or services related to a roofing system, the Insurance Fraud Division
shall refer the findings to the Residential Builders Commission or the
Contractor's Licensing Board for use in any action against that licensee or
registrant.

S
ECTION 4.
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 5.
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 or of this State;
another 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
Health and Environmental Control
Public
Health
;
the Department of Environmental Services;

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; or 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 6.
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 the
Department 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
Department of Insurance
.
When requested by the director
of the Department of
Insurance or his designee
, the Attorney General may assign one or more
deputies attorneys general to assist the bureau in any civil court proceedings
against the person.

(
C)
Nothing in subsections (A) and (B) shall be construed to prohibit the 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 7.
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
Title 38 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 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 for the use of these resources. The Department of
Insurance must reimburse the Office of the Attorney General for any additional
costs required to access these systems for the Insurance Fraud Division.

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

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

(2)
(
3)
prosecute persons determined to be in violation of
Sections
38-55-170
and
38-55-540
and related criminal insurance activity in a
court of competent jurisdiction;
and

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

(3)
(
5)
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
.
;

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

(
7) refer the matter to another
authorized agency;

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

(
9) enter into 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.

N
othing in this section 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. Subject to availability of resources and funds, the Department of
Insurance shall provide State Law Enforcement Division personnel assigned to
the Insurance Fraud Division secure office space within the Department of
Insurance for daily use, as well as office supplies, office equipment, and furnishings.
Also subject to the availability of resources and funds, the Department of
Insurance shall reimburse the State Law Enforcement Division for investigative
services rendered pursuant to this section. The State Law Enforcement Division
shall quarterly submit an itemized bill to the Department of Insurance 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. The State Law Enforcement Division may bill the
Department of Insurance for initial nonrecurring expenses for additional
employees hired to perform and support the work of the Insurance Fraud
Division, and the department may reimburse the State Law Enforcement Division,
subject to the availability of funds and approval of the department.

(
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
.

(
D)
The Insurance Fraud Division of the
Office of Attorney
General
Department of Insurance
and the
investigative services of the State
law
Law
Enforcement Division as provided by this section must
be funded by an
annual
appropriation
of not less than two hundred thousand dollars annually

sufficient to fully fund the costs of operating the division
based on the positions needed to effectively investigate, prosecute, and
prevent insurance fraud
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 in 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.
Additionally, the Department of Insurance may use any fines
assessed pursuant to 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 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 the division or his designee is authorized to employ the staff members
deemed necessary and appropriate by the Director of the Department of Insurance
in accordance with state budget procedures.

S
ECTION 8.
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.
Failure to comply with the
provisions of this subsection shall be subject to the penalties described in
Section
38-2-10
.

(
B)
Upon request by the Insurance Fraud Division
and subject
to the penalties described in Section
38-2-10
, any person, insurer, or
authorized agency shall release to the Insurance Fraud Division any or 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
, or any information or documentation arising out
of or in connection with 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 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
in accordance with Section
38-55-75
.
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 9.
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 the
Office of the Attorney General
Department of Insurance
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 10.
S
ection
38-73-1095
of the S.C. Code is amended to read:

S
ection
38-73-1095
.
(
A) Any private
insurer licensed to underwrite "essential property insurance" as defined by
Section
38-75-310
(1), notwithstanding any limitations included within this
title, may file and use any rates for the coverages detailed within Section
38-75-310
(1) which result in insurance premium rates of ninety percent, or
less, of the insurance premium rates then approved for the South Carolina Wind
and Hail Underwriting Association for use within the coastal area of South
Carolina as defined by Section
38-75-310
(5). Filings for these insurance
premium rates must be made upon forms prescribed by the director or his
designee and must apply only to essential property insurance premium rates for
the coastal area. Within thirty days after the filing of the rates, the
director or his designee must notify the insurer or rating organization filing
the rates of his approval or his disapproval of those rates. If the rates are
disapproved, then the director or his designee must notify the insurer or the
rating organization of the specific reason for disapproval. The director or his
designee may extend for up to an additional thirty days the period within which
he must approve or disapprove the rates. Any rates received, which are neither
approved nor disapproved by the director, must be deemed approved at the
expiration of the thirty-day period or, if that period has been extended, at
the expiration of the extended period. However, no insurer or rating
organization may use rates considered approved under the provisions of this
section unless and until the insurer or rating organization has filed a written
notice of its intent to use the rates. The notice must be filed with the
director or his designee at least ten days before the insurer's or rating
organization's use of the deemed rates.

(
B)
In considering any rate filing for insurance premium rates for essential
property insurance in the coastal area or in the seacoast area, the director or
his designee, in addition to other factors considered under this title, may
consider past and prospective expenses and recoveries associated with
catastrophe reinsurance and past and prospective loss experience including
windstorm catastrophe models and simulations.

(
C) Any insurer required to submit
rates and rating plans to the director or his designee shall provide an
actuarially justified discount, credit, rate differential, adjustment in
deductible, or any other adjustment to reduce the insurance premium to insureds
who build or retrofit a structure to comply with the requirements of the
fortified home or fortified commercial standards created by the Insurance
Institute for Business and Home Safety.

(
D) Any insurer required to submit
rates and rating plans to the director or his designee shall provide an
actuarially justified discount, credit, rate differential, adjustment in
deductible, or any other adjustment to reduce the insurance premium to insureds
who install mitigation improvements or retrofit

their property utilizing
construction techniques demonstrated to reduce the amount of loss from a
windstorm or hurricane. The mitigation improvements or construction techniques
shall include, but not be limited to, roof deck attachments; secondary water barriers;
roof coverings; brace gable ends; construction techniques which enhance or
reinforce roof strength; roof-covering performance; roof-to-wall strength,
wall-to-floor-to-foundation strength; opening protection; and window, door, and
skylight strength.

(
E)
(
1) Any insurer required to submit
rating plans to the director or his designee shall provide an actuarially
justified discount, credit, rate differential, adjustment in deductible, or any
other adjustment to reduce the insurance premium charged to any insured who
builds or retrofits a structure to comply with the requirements of the
fortified home and fortified commercial standards created by the Insurance
Institute for Business and Home Safety.

(
2) To obtain a credit or discount
provided in this subsection, an insurable property located in this State shall
be certified as constructed in accordance with the fortified home or fortified
commercial standards provided by the Insurance Institute for Business and Home
Safety or other standard designated by the director or his designee via order
of the director.

(
3) An insurable property shall be
certified as in conformance with the fortified home or fortified commercial
standards only after inspection and certification by an Insurance Institute for
Business and Home Safety or other certified inspector.

(
4) An owner of insurable property
claiming a credit or discount shall maintain and provide certification records
and construction records, including certification of compliance with the
Insurance Institute for Business and Home Safety standards or other applicable
standard, for which the owner seeks a discount. Such documents may include, but
are not limited to, receipts for contractors, receipts for materials, and
records from local building officials.

(
5) An owner of insurable property
claiming a credit or discount shall maintain the Insurance Institute for
Business and Home Safety certification documents, which shall be considered
evidence of compliance with the fortified home or fortified commercial standards.
The certification shall be presented to the insurer or potential insurer of a
property owner before the adjustment becomes effective for the insurable
property along with any other necessary records.

(
6) The credit or discount shall
apply only to policies that provide wind coverage and may apply to the portion
of the premium for wind coverage or to the total premium, if the insurer does
not separate out the premium for wind coverage in the rate filing. The
adjustment shall apply exclusively to the premium designated for the improved
insurable property. The adjustment is not required to be in addition to other
mitigation adjustments provided by the insurer and shall be in lieu of those
other adjustments, if they are deemed to be duplicated.

(
7) The records required by this
subsection shall be subject to audit by the director or his designee.

(
8) Nothing in this section shall
prohibit insurers from offering additional adjustments in deductible, other
credit rate differentials, or a combination thereof. These adjustments shall be
available under the terms specified in this section to any owner who builds or
locates a new insurable property in this State to resist loss due to hurricane,
tornado, or other catastrophic windstorm events.

(C)
(
F)
Rating plans for essential property insurance in the
coastal area or in the seacoast area, shall include discounts and credits or
surcharges and debits calculated upon the following rating factors:

(
1)
use of storm shutters;

(
2)
use of roof tie downs;

(
3)
construction standards;

(
4)
building codes;

(
5)
distance from water;

(
6)
elevation;

(
7)
flood insurance;

(
8) Insurance Institute for Business
and Home Safety FORTIFIED ROOF;

(8)
(
9)
policy deductibles; and

(9)
(
10)
other applicable factors requested by the insurer or
rating organization or
selected
established
by order of the director involving the risk
or hazard. An order issued pursuant to this section must comply with the
requirements of Section
1-23-140
.

T
he
director or his designee may conduct a study or otherwise review data
concerning mitigation discounts and credits offered in the State.
The
department may by regulation
or order: (1) establish benchmark
values for discounts or credits to be offered for specific mitigation measures,
or (2)
define how the implementation of these factors
qualify
qualifies
for credits
or discounts
based on the data or study findings
.
The regulation
or order
must specify what evidence
or proof the policyholder or applicant shall present to obtain the credit or
discount.
An insurer applying a discount or credit that
differs from the benchmark values determined by the department is required to
provide relevant actuarial justification for the deviation.
This section applies to policies issued or renewed after
December 31, 2007.

(D)
(
G)
This section does not preclude any insurer from using
consent-to-rate pursuant to Section
38-73-1060
for any essential property
insurance risk in the coastal area or the seacoast area of this State.

S
ECTION 11.
S
ection
38-75-470
of the S.C. Code is amended to read:

S
ection
38-75-470
.
(
A) The Director of
Insurance shall appoint an advisory committee to the director to study issues
associated with the development of strategies for reducing loss of life and to
address the

mitigation of property losses due to hurricane,
earthquake, flood,
wildfire,
and fire. The advisory

committee also shall consider the associated costs
to individual property owners. The advisory committee is composed of:

(
1)
the director or his designee;

(
2)
the Chairman of the Building Codes Council or his designee;

(
3)
a representative from Clemson University involved with wind engineering;

(
4)
a representative from an academic institution involved with the study of
earthquakes;

(
5)
a representative from an insurer writing property insurance in South Carolina;

(
6)
a representative from the Department of Commerce;

(
7)
a representative from the South Carolina's Municipal Association;

(
8)
a representative from the South Carolina Association of Counties;

(
9)
a representative from the Homebuilders Association;

(
10)
a representative from the Manufactured Housing Institute of South Carolina;

(
11)
a representative from the State Fire Marshal's office;

(
12)
a representative from the South Carolina Emergency Management Division;

(
13)
a representative from the State Flood Mitigation Program;

(
14)
two at-large members appointed by the director;

(
15)
two at-large members appointed by the Governor;

(
16)
a general contractor;

(
17)
a representative from the South Carolina Association of Realtors; and

(
18)
a structural engineer.

(
B)
Members shall
serve for terms of two years and shall
receive no per diem, mileage, or subsistence
be appointed
by the Director of Insurance and shall serve at the pleasure of the director
.

The term for a member is for four years and may be
reappointed by the director; however, in no event shall any member serve more
than three consecutive four-year terms. Members shall not receive per diem,
mileage, or subsistence.
Vacancies must be filled in the same manner as
the original appointment.

(
C)
Within thirty days after its appointment, the advisory committee shall meet at
the call of the Director of Insurance. The advisory committee shall elect from
its members a
chairman
chair

and a secretary and shall adopt rules not inconsistent with this chapter.
Meetings may be called by the
chairman
chair
on his own initiative and must be called at the
request of three or more members of the advisory committee. All members must be
notified by the
chairman
chair

of the time and place of the meeting at least seven days in advance of the
meeting. All meetings must be open to the public. At least two-thirds vote of
those members in attendance at the meeting shall constitute an official
decision of the advisory committee. Implementation of this program and continued
existence of this program is subject to the availability of funding through
legislative appropriations or alternative funding sources.

S
ECTION 12.
S
ection
38-75-480
of the S.C. Code is amended to read:

S
ection
38-75-480
.
(
A) There is established
within the Department of Insurance a loss mitigation grant program
to aid local governments in the development of mitigation
strategies to reduce certain losses
. Funds may be appropriated to the
grant program, and any funds appropriated must be used for the purpose of
making grants to local governments
or
for the
study and
development of strategies for reducing loss of
life and mitigating property losses due to hurricane, flood, earthquake, and
fire. Grants to local governments must be for the following purposes:

(
1)
mitigating losses for eligible residential properties within the local
jurisdiction in accordance with the guidelines established by the director or
his designee; and

(
2)
providing technical assistance to and acting as an information resource for
local governments in the development of proactive hazard mitigation strategies
as they relate to reducing the loss of life and mitigating property losses due
to natural hazards to include hurricane, flood, earthquake, and fire.

(
B)
Funds may be appropriated for a
particular grant only
after a majority affirmative vote on each grant by the advisory committee and
submission of a resolution approved by a majority of the members of the
relevant local governing body approving the application for grant funds
local government project following approval by the director or
his designee
.

(
C)
The Department of Insurance may make application and enter into contracts for
and accept grants in aid from federal and state government and private sources
for the purposes of:

(
1)
mitigating losses for eligible residential properties in accordance with the
guidelines established by the director or his designee; and

(
2)
conducting loss mitigation studies for the development of strategies or
measures aimed at reducing loss of life and mitigating property losses due to
hurricane, flood, earthquake, and fire; or

(
3)
any other purposes consistent with this article.

S
ECTION 13.
S
ection
38-75-485
of the S.C. Code is amended to read:

S
ection
38-75-485
.
(
A) There is established
within the Department of Insurance, the South Carolina Hurricane Damage
Mitigation Program
to aid eligible homeowners in
retrofitting insurable property to reduce losses due to hurricane, tornado, or
other catastrophic windstorm events
.
This program
shall be known as the "SC Safe Home Program."
The advisory committee,
established pursuant to Section
38-75-470
, shall provide advice and assistance
to the program administrator with regard to his administration of the program.

(
B)
This section does not create an entitlement for property owners or obligate the
State in any way to fund the inspection or retrofitting of residential property
in this State. Implementation of this program

is subject to
the availability
of funds through
annual legislative appropriations
,
receipt of federal grants

or funds, or funding from
other sources
.

(
C)
The program shall develop and implement a comprehensive and coordinated
approach for hurricane damage mitigation that includes the following:

(
1)
The program may award matching or nonmatching grants based upon the
availability of funds. The program administrator also shall apply for financial
grants to be used to assist single-family, site-built or manufactured or
modular, owner-occupied, residential property owners to retrofit their primary
legal residence to make them less vulnerable to hurricane damage.

(
a)
To be eligible for a matching grant, a residential property must:

(
i) be the applicant's primary legal
residence;

(
ii) be actually owned and occupied
by the applicant;

(
iii) be the owner's legal residence
as described in Section
12-43-220
(c);

(
iv) be a single-family, site-built,
manufactured, or modular, owner-occupied residential property;

(
v) be a residential property covered
by a current homeowners or dwelling insurance policy that:

(
A) is issued by an insurer licensed
in this State or a surplus lines insurer, where the policy is lawfully placed
by a broker authorized to do business in this State; and

(
B) provides insurance coverage of the
residential property equal to or greater than the fair market value of the
residential property as defined in Section
12-37-3135
(a)(2) and reflected in
the county records;

(
vi) have undergone an acceptable
wind certification and hurricane mitigation inspection in accordance with
program requirements.

(
b)
All matching grants must be matched on a dollar-for-dollar basis up to the
maximum allowed depending on the type of retrofit. Grants will be awarded based
on the following requirements:

(
i) a Resilient Mitigation Award will
be awarded for roof retrofits meeting SC Safe Homes Retrofit Guidelines and
Insurance
Institute for Business and Home Safety
Fortified Roof
FORTIFIED ROOF

Retrofit Guidelines for a residential property and may not exceed
seven thousand five hundred dollars
the
dollar amount outlined in the annual allocation bulletin published by the
Department of Insurance
for nonmatching grant awards or six thousand
dollars for matching grants; and

(
ii) a Sustainable Mitigation Award
will be awarded
for roof retrofits meeting SC Safe Home
Retrofit Guidelines only or
for Window Replacement and Opening
Protection Retrofits meeting SC Safe Home Opening Protection Guidelines for
residential property and
may
shall

not exceed
five thousand dollars for nonmatching grants
awards or four thousand dollars
the dollar amount
outlined in the annual allocation bulletin published by the Department of
Insurance
for matching grants.
For
Hurricane
Shuttering and Protective Barrier Systems
only meeting
must meet
SC Safe Home Opening

Protection Guidelines
, grants
may not exceed three thousand dollars

and must not
exceed the dollar

amount outlined in the annual
allocation bulletin published by the Department of Insurance
for both
matching and nonmatching grants.

(
c)
The program must create a process in which mitigation contractors agree to
participate and seek reimbursement from the State and homeowners
.

selected
Homeowners may select the contractor of their choice
from
a list of participating contractors
provided on the SC
Safe Home Program webpage under Participating Contractors and Inspectors
.

All mitigation projects must be based upon the securing
of
To be eligible for a mitigation grant,
all
required local permits and inspections
must be secured and
the property must have successfully completed a SC Safe Home Program inspection
.
Mitigation projects are subject to random reinspection. The program may
reinspect up to ten percent of all projects
in any fiscal
year
.

(
d)
Matching fund grants also must be made available to local governments and
nonprofit entities, on a first-come, first-served basis, for projects that
reduce hurricane damage to single-family, site-built or manufactured or modular
owner-occupied, residential property, provided that:

(
i) no matching grant for any one
local government or nonprofit entity may exceed
fifty
thousand dollars
the dollar amount outlined in the
annual allocation bulletin published by the Department of Insurance
in
any fiscal year;

(
ii) the total amount of matching
grants awarded to all local governments and nonprofit entities combined may not
exceed
two hundred fifty thousand dollars
the dollar amount outlined in the annual allocation bulletin
published by the Department of Insurance
in any fiscal year;
and

(
iii)
the
difference between two hundred fifty thousand dollars and the total amount of
grants awarded to all local governments and nonprofit entities combined in any
fiscal year may be applied to grants to individual homeowners who meet the
qualifications for a grant described in subitems (a) through (d) or in subitem
(g).
subject to the availability of funds and a
disaster declaration by the Governor, the director may award additional loss
mitigation grants for SC Safe Home Program eligible residential properties
within ninety days following a wind or hail related catastrophic event that do
not exceed the dollar amount outlined in the annual allocation bulletin
published by the Department of Insurance; and

(
iv) grants awarded by the SC Safe
Home Program must be used for approved mitigation projects to retrofit an
insurable property to resist losses due to hurricane, tornado, or other
catastrophic windstorm events if permitted under the SC Safe Home Program operating
rules and procedures. Any nonprofit must administer the grant in accordance
with SC Safe Home Program standards, operating rules, and procedures. The
nonprofit entity must prepare and maintain documentation required by the SC
Safe Home Program and produce that documentation immediately upon the request
of the director or his designee.

(
e)
Grants may be used for the following improvements:

(
i) roof deck attachment;

(
ii) secondary water barrier;

(
iii) roof covering;

(
iv) brace gable ends;

(
v) reinforce roof-to-wall
connections;

(
vi) opening protection;

(
vii) exterior doors, including
garage doors;

(
viii) tie downs;

(
ix) problems associated with
weakened trusses, studs, and other structural components;

(
x) inspection and repair or
replacement of manufactured home piers, anchors, and tiedown straps; and

(
xi) any other mitigation techniques
approved by the advisory committee.

(
f)
To be eligible for a nonmatching grant, a residential property must comply with
the requirements set forth in subsection (C)(1)(a), (c), and (e).

(
i)
For
nonmatching grants, applicants who otherwise meet the requirements of subitems
(a), (c), and (e) may be eligible for a grant of up to seven thousand five
hundred dollars for a Resilient Mitigation Grant Award and may not be required
to provide a matching amount to receive a Resilient Mitigation Grant Award, up
to five thousand dollars for a Sustainable Mitigation Grant Award or up to
three thousand dollars for a Sustainable Mitigation Hurricane Shutters and
Protective Barrier Systems Award.
These grants must be used to retrofit
single-family, site-built or manufactured or modular, owner-occupied,
residential properties
in order
to make them less
vulnerable to hurricane damage. The grant must be used for the retrofitting
measures set forth in Section
38-75-485
(C)(1)(e).

(
ii) Nonmatching grant award amounts
will be determined based on the cost of the mitigation project and a percentage
of the total adjusted household income of the applicant according to the most
recent federal income tax return. Those applicants with a total annual adjusted
gross household income of which does not exceed eighty percent of the median
annual adjusted gross income for households within the county in which the
person or family resides may be eligible for the maximum grant award amount.
Applicants with a higher total annual adjusted household income may be awarded
a lower amount. The director or his designee shall issue a bulletin annually
that sets forth the maximum grant award amounts based on the total annual
adjusted gross household income of the applicant adjusted for family size
relative to the county area median income or the state median family income,
whichever is higher, as published annually by the United States Department of
Housing and Urban Development. If the cost of the mitigation project exceeds
the amount of the grant award, the remaining cost is the applicant's
responsibility.

(
2)
The department shall define by
order or
regulation
the details of the mitigation measures necessary to qualify for the grants
described in this section.

(
3)
Multimedia public education, awareness, and advertising efforts designed to
specifically address mitigation techniques must be employed
, as well as a component to support ongoing consumer resources
and referral services
.
Additionally, the SC Safe
Home Program shall support ongoing consumer education resources and referral
services.

(
4)
The department shall use its best efforts to obtain grants or funds from the
federal government to supplement the financial resources of the program. In
addition to state appropriations, if any, this program must be implemented by
the department through the use of the premium taxes due to this State by the
South Carolina Wind and Hail Underwriting Association, and
one
five
percent of the
premium taxes collected annually and remitted to the Department of Insurance.

(
5) Mitigation grants for insurable
residential properties are subject to the availability of funds and must meet
the eligibility criteria established by the SC Safe Home Program. Grant funding
shall be allocated as follows:

(
a) mitigation grants in the seacoast
area, as defined by Section
38-75-310
, of the State shall be funded by the
premium taxes collected by the South Carolina Wind and Hail Joint Underwriting
Association; and

(
b) of the five percent of additional
premium taxes collected pursuant to item (4):

(
i) fifty percent shall be allocated
to residential and loss mitigation grants in the seacoast area, as defined by
Section
38-75-310
, of the State; and

(
ii) fifty percent shall be allocated
to retrofitting eligible insurable residential properties on a first-come,
first-served basis and to local loss mitigation grants in other parts of the
State.

(5)
(
6)
The director or his designee may promulgate
regulations
or issue orders
necessary to implement
the provisions of this article.

S
ECTION 14.
S
ection
38-77-122
of the S.C. Code is amended to read:

S
ection
38-77-122
.
(
A) No insurer or agent
shall refuse to issue an automobile insurance policy as defined in Section
38-77-30
because of any one or more of the following factors: the age, sex,
location of residence in this State, race, color, creed, national origin,
ancestry, marital status,
or
income level
, or the existence of uninsured or underinsured motorist claims
.
No insurer or agent shall refuse to issue an automobile insurance policy as
defined in Section
38-77-30
solely because of any one of the following factors:
the previous refusal of automobile insurance by another insurer, prior purchase
of insurance through the Associated Auto Insurers Plan, or lawful occupation,
including the military service, of the person seeking the coverage. Nothing in
this section prohibits any insurer from limiting the issuance of motor vehicle
insurance policies only to persons engaging in or who have engaged in a
particular profession or occupation, or who are members of a particular
religious sect.

N
othing in this
section prohibits any insurer from setting rates in accordance with relevant
actuarial data.

(
B)
In determining the premium rates to be charged for an automobile insurance
policy as defined in Section
38-77-30
, it is unlawful to consider race, color,
creed, religion, national origin, ancestry, location of residence in this
State, economic status,
or
income level
, or the existence of uninsured or underinsured motorist claims
.

The existence of uninsured or underinsured motorist claims
shall not be considered when determining an insured's eligibility for premium
discounts.
Nor may an insurer, agent, or broker refuse to write or renew
an automobile insurance policy as defined in Section
38-77-30
based upon age,
sex, race, color, creed, religion, national origin, ancestry, location of
residence in this State, economic status,
or
income
level
, or the existence of uninsured or underinsured
motorist claims
. However, nothing in this subsection may preclude the
use of a territorial plan approved by the director. Any insurer or agent who
violates this section shall be subject to the penalties as provided in Section
38-2-10
. If the director of the Department of Insurance or his designee finds
that an insurer or agent is participating in a pattern of unfair
discrimination, the director or his designee may impose a fine of up to two
hundred thousand dollars. Provided, however, if the unfair discrimination is
required by an insurer, only the insurer is subject to the penalty as long as
the agent of the insurer has reported the pattern of unfair discrimination to
the department. The director or his designee at any time may examine an insurer
or agent to enforce this section. The expense of examination must be paid by
the insurer, agent, or broker.

S
ECTION 15.
S
ection
38-77-123
(A) of the S.C. Code is amended to
read:

(
A)
(
1) No insurer shall refuse to renew
an automobile insurance policy because of any one or more of the following
factors:

(
a)
age;

(
b)
sex;

(
c)
location of residence in this State;

(
d)
race;

(
e)
color;

(
f)
creed;

(
g)
national origin;

(
h)
ancestry;

(
i)
marital status;

(
j)
income level.

(
2)
No insurer shall refuse to renew an automobile insurance policy solely because
of any one of

the following factors:

(
a)
lawful occupation, including the military service;

(
b)
lack of driving experience or number of years of driving experience;

(
c)
lack of supporting business or lack of the potential for acquiring such
business;

(
d)
one or more accidents or violations that occurred more than thirty-six months
immediately preceding the upcoming anniversary date;

(
e)
one or more claims submitted under the uninsured motorists coverage
or the underinsured motorists coverage
of the policy
where the uninsured motorist is known or there is physical evidence of contact;

(
f)
single claim by a single insured submitted under the medical payments coverage
or medical expense coverage due to an accident for which the insured was
neither wholly nor partially at fault;

(
g)
one or more claims submitted under the comprehensive or towing coverages.
However, nothing in this section prohibits an insurer from modifying or
refusing to renew the comprehensive or towing coverages at the time of renewal
of the policy on the basis of one or more claims submitted by an insured under
those coverages, provided that the insurer mails or delivers to the insured at
the address shown in the policy, written notice of the change in coverage at
least thirty days before the renewal;

(
h)
two or fewer motor vehicle accidents within a three-year period unless the
accident was caused either wholly or partially by the named insured, a resident
of the same household, or other customary operator; or

(
i)
an insured who uses his personal automobile for volunteer emergency services
and who provides a copy of the policy promulgated by the chief of his
department to his insurer on request.

(
3)
Nothing contained in subsection (A)(1)(f), (g), and (h) prohibits an insurer
from refusing to renew a policy where a claim is false or fraudulent. Nothing
in this section prohibits an insurer from setting rates in accordance with
relevant actuarial data except that no insurer may set rates based in whole or
in part on race, color, creed, religion, national origin, ancestry, location of
residence in this State, economic status,
or
income
level
, or the existence of uninsured or underinsured
motorist claims
.
The existence of uninsured or
underinsured motorist claims shall not be considered when determining an
insured's eligibility for premium discounts.
However, nothing in this
subsection may preclude the use of a territorial plan approved by the director.

S
ECTION 16.
S
ection
38-77-280
of the S.C. Code is amended to read:

S
ection
38-77-280
.
(
A) Any automobile
insurer may, at its own election, make collision coverage and either
comprehensive or fire, theft, and combined additional coverage available to an
insured or qualified applicant who requests the coverage at such rates and
under such rules as have been approved by the director.

Automobile insurers contracted pursuant to Section
38-77-590
for risks written
by them through producers assigned by the facility governing board pursuant to
that section may make available collision coverage and either comprehensive or
fire, theft, and combined additional coverage available to an insured or
qualified applicant who requests the coverage. Notwithstanding Section
38-77-590
(g), a designated producer may have one or more voluntary outlets for
automobile physical damage.

(
B)
(
1)

Through December 31, 2026,
Any
any
automobile physical
damage insurance coverage deductible or policy deductible does not apply to
automobile safety glass.

(
2) Beginning January 1, 2027, every
automobile insurer offering automobile physical damage insurance coverage may
offer a zero dollar deductible option for automobile safety glass.

(
C) Notwithstanding Section
38-77-111
, automobile physical damage insurance coverage may be ceded to the
facility. However, automobile physical damage coverages ceded to the facility
by an insurer or servicing carrier must be at the facility physical damage rate
as defined in Section
38-77-30
.

(D)
(
C)
In determining the premium rates to be charged on
physical damage coverage or single interest collision coverage, it is unlawful
to consider race, color, creed, religion, national origin, ancestry, location
of residence in this State, economic status,
or
income
level
, or the existence of uninsured or underinsured
motorist claims. The existence of uninsured or underinsured motorist claims shall
not be considered when determining an insured's eligibility for premium
discounts
. Nor may an insurer, agent, or broker refuse to write or renew
physical damage insurance coverage or single interest collision coverage based
upon race, color, creed, religion, national origin, ancestry, location of
residence in this State, economic status,
or
income
level
, or the existence of uninsured or underinsured
motorist claims
. However, nothing in this subsection may preclude the
use of a territorial plan approved by the director. If the director of the
Department of Insurance or the director's designee finds that an insurer,
agent, or broker is participating in a pattern of unfair discrimination, the
director or the director's designee may impose a fine of up to two hundred
thousand dollars. The director or the director's designee at any time may
examine an insurer, agent, or broker to enforce this section. The expense of
examination must be paid by the insurer, agent, or broker.

(
D) No insurer may increase an
automobile insurance premium, cancel, or refuse to renew an automobile
insurance policy for a named insured as a result of a motor vehicle accident
unless it is determined that the accident was caused, in whole or in part, by
an insured or a permissive user of the insured vehicle.

S
ECTION 17.
S
ection
12-6-1620
(B) of the S.C. Code is amended to
read:

(
B)
(
1) As used in this article,
"Catastrophe Savings Account" means a regular savings account or money market
account established by an insurance policyholder for residential property in
this State to cover
: (a) SC Safe Home or Insurance
Institute for Business and Home Safety approved retrofits for the insured
property owner's primary residence to make the property resilient to hurricane
or other wind-related damage; or (b)
an insurance deductible under an
insurance policy for the taxpayer's legal residence property that covers
hurricane, rising floodwaters, or other catastrophic windstorm event damage or
by an individual to cover self-insured losses for the taxpayer's legal
residence from a hurricane, rising floodwaters, or other catastrophic windstorm
event. The account must be labeled as a Catastrophe Savings Account in order to
qualify as a Catastrophe Savings Account as defined in this article. A taxpayer
shall establish only one Catastrophe Savings Account and shall specify that the
purpose of the account is to cover the amount of
retrofits,

insurance deductibles and other uninsured portions of risks of loss from
hurricane, rising floodwater, or other catastrophic windstorm event.

(
2)
A Catastrophe Savings Account is not subject to attachment, levy, garnishment,
or legal process in this State.

(
3)
The total amount that may be contributed to a Catastrophe Savings Account must
not exceed:

(
a)
in the case of an individual whose qualified deductible is less than or equal
to one thousand dollars, two thousand dollars;

(
b)
in the case of an individual whose qualified deductible is greater than one
thousand dollars, the amount equal to the lesser of fifteen thousand dollars or
twice the amount of the taxpayer's qualified deductible; or

(
c)
in the case of a self-insured individual who chooses not to obtain insurance on
his legal residence, two hundred fifty thousand dollars, but shall not exceed
the value of the individual taxpayer's legal residence.

(
4)
If a taxpayer contributes in excess of the limits provided in item (3), the
taxpayer shall withdraw the amount of the excess contributions and include that
amount in South Carolina income for purposes of Section
12-6-510
in the year of
withdrawal.

(
5) The South Carolina Department of
Revenue shall provide an annual report to the South Carolina General Assembly
on the number of exemptions or the total amount of tax credits that have been
claimed by South Carolina taxpayers for mitigation or retrofitting measures.

S
ECTION 18.
S
ection
12-6-3660
(D) of the S.C. Code is amended to
read:

(
D) The tax credit allowed pursuant to
this section for any taxable year must not exceed the lesser of:

(
1)
twenty-five percent of the cost incurred; or

(
2)

one
two
thousand
dollars.

S
ECTION 19.
C
hapter 6, Title 12 of the S.C. Code is amended by
adding:

S
ection
12-6-3662
.
(
A) There is established
an annual "Disaster Preparedness Sales Tax Holiday." The initial tax holiday
shall begin at 12:01 a.m. on Friday, May 2, 2026, and end at 11:59 p.m. on
Sunday, May 4, 2026, with subsequent years beginning at 12:01 a.m. on the Friday
of the last full weekend in April and ending at 11:59 p.m. the immediately
following Sunday. This section describes the items eligible for tax exemption
during the Disaster Preparedness Sales Tax Holiday.

(
B)
The following emergency supply items which sell for sixty dollars or less per
item shall be tax exempt during the Disaster Preparedness Sales Tax Holiday:

(
1)
any package of AAA-cell, AA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries,
but excludes coin batteries, automobile batteries, and boat batteries;

(
2)
any cellular phone battery or cellular phone charger;

(
3)
any portable self-powered or battery-powered radio, two-way radio, weather band
radio, or NOAA weather radio;

(
4)
any portable self-powered light source, including battery-powered flashlights,
lanterns, or emergency glow sticks;

(
5)
any tarpaulin, plastic sheeting, plastic drop cloths, or other flexible,
waterproof sheeting;

(
6)
any ground anchor system including, but not limited to, bungee cords, rope, or
tie-down kits;

(
7)
any duct tape;

(
8)
any plywood, window film, or other materials specifically designed to protect
window openings;

(
9)
any nonelectric food storage cooler or water storage container;

(
10)
any nonelectric can opener;

(
11)
any artificial ice, blue ice, ice packs, or reusable ice;

(
12)
any self-contained first-aid kit;

(
13)
any fire extinguisher, smoke detector, or carbon monoxide detector;

(
14)
any gas or diesel fuel tank or container that can hold five gallons or less.

(
C)
In addition, portable generators and power cords that may be used to provide
light, communications, or preserve food in the event of a power outage, are
exempt from sales tax up to the first one thousand dollars of the sales price.

(
D)
Items normally sold in pairs or packages shall not be separated to qualify for
the exemption provided for in this section.

S
ECTION 20.
S
ection
12-6-3670
of the S.C. Code is amended to read:

S
ection
12-6-3670
.
(
A) An individual
taxpayer may claim a credit against the income tax imposed

pursuant to Section
12-6-510
for excess premium paid
during the applicable tax year for property and casualty insurance, as defined
in Articles 1, 3, and 5 of Chapter 75, Title 38, providing coverage on the
taxpayer's legal residence pursuant to Section
12-43-220
(c).

(
B)
For the purposes of computing the credit allowed by this section, excess
premium paid is the amount by which the premium paid exceeds five percent of
the taxpayer's adjusted gross income.

(
C)
(
1) The credit allowed pursuant to
this section for any taxable year may not exceed
one
thousand two hundred fifty
three thousand
dollars.

(
2)
If the credit allowed under this section exceeds the state income tax liability
for the taxable year, any unused credit may be carried forward for five
succeeding taxable years.

S
ECTION 21.
S
ection
42-9-440
of the S.C. Code is amended to read:

S
ection
42-9-440
. The 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 22.
C
hapter 11, Title 40 of the S.C. Code is amended by
adding:

S
ection
40-11-125
. Notwithstanding another provision of this chapter, the Department of
Insurance has the authority to enforce any violations related to insurance or
insurance fraud arising from roofing systems contracts or the delivery of goods
or services related to roofing systems as provided in Article 5, Chapter 55,
Title 38. The Department of Insurance shall refer any findings of violations
related to insurance fraud arising from roofing contracts or the delivery of
goods or services related to roofing systems to the South Carolina Residential
Builders Commission or the South Carolina Contractor's Licensing Board,
whichever is appropriate, for use in any action against a licensee or
registrant who is licensed or registered with either the Residential Builders
Commission or the Contractor's Licensing Board.

S
ECTION 23.
S
ection
40-59-25
of the S.C. Code is amended to read:

S
ection
40-59-25
.
(
A)
(
1) A person who enters into a written
contract for goods or services related

to a roofing system with a party who will be paid
from proceeds of a property and casualty insurance policy and who subsequently
receives written notice from the insurer that all or part of the claim or
contract is not a covered loss under the policy may cancel the contract prior
to midnight on the fifth business day after the insured has received the
written notice of the denial of coverage.

(
2)
This section applies to the following persons performing goods or services
related to a roofing system:

(
a)
a licensed residential builder;

(
b)
a registered residential specialty contractor; and

(
c)
a person or firm who engages or offers to engage in the business of residential
building or residential specialty contracting without first having registered
with the commission or procured a license from the commission.

(
3)
Cancellation must be evidenced by the insured giving written notice of
cancellation to the builder or contractor at the address provided in the
contract. Notice of cancellation, if given by mail, must be effective upon
deposit into the United States mail, postage prepaid and properly addressed to
the builder or contractor. Notice of cancellation need not take a particular
form and shall be sufficient if it indicates, by any form of written
expression, the intention of the insured not to be bound by the contract.

(
4)
For purposes of this subsection, "roof system" means a roof covering, roof
sheathing, roof weatherproofing, roof framing, roof ventilation system, or
insulation.

(
B)
Before entering a contract as provided in subsection (A), the builder or
contractor shall:

(
1)
provide the insured a statement in boldface type of a minimum size of ten
points, in substantially the following form:

"
You may cancel this
contract at any time before midnight on the fifth business day after you have
received written notification from your insurer that all or any part of this
claim or contract is not a

covered loss under the insurance policy. This right
to cancel is in addition to any other rights of cancellation which may be found
in state or federal law or regulation. See attached notice of cancellation form
for an explanation of this right"; and

(
2)
provide each insured a fully completed form, in duplicate, prominently
captioned "NOTICE OF CANCELLATION", which must be attached to the contract but
easily detachable, and which must contain in boldface type of a minimum size of
ten points the following statement:

"
NOTICE OF
CANCELLATION

I
f you are notified
by your insurer that all or any part of the claim or contract is not a covered
loss under the insurance policy, you may cancel the contract by mailing or
delivering a signed and dated copy of this cancellation notice or any other
written notice to (insert name of contractor) at (insert address of
contractor's place of business) any time prior to midnight on the fifth
business day after you have received such notices from your insurer.

I
HEREBY CANCEL THIS
TRANSACTION

_
_____________________________________

D
ATE

_
_____________________________________

S
IGNATURE OF INSURED"

(
C)
In circumstances in which payment may be made from the proceeds of a property
and casualty insurance policy, a builder or contractor shall not require any
payments from an insured until the five-day cancellation period has expired.
If, however, the builder or contractor has performed any emergency services,
acknowledged by the insured in writing to be necessary to prevent damage to the
premises, the builder or contractor must be entitled to collect the amount due
for the emergency services at the time they are rendered. A provision in a
contract as provided in subsection (A) that requires payment of any fee for
anything except emergency services must not be enforceable against an insured
who has canceled a contract under this section.

(
D)
(
1) A builder or contractor shall not
represent or negotiate, or offer or advertise to represent or negotiate, on
behalf of an owner or possessor of residential real estate on any insurance
claim in connection with the repair or replacement of roof systems.

(
2) Notwithstanding item (1), or any
other provision of state law, an owner is not prevented from consulting with a
builder, contractor, or other person of his choice to provide an evaluation of
the condition of his roof system and using the evaluation he receives in the
negotiation for the repair or replacement of his roof system.

(
E)
(
1) A builder or contractor shall not
advertise or promise to pay or rebate all or any portion of any insurance
deductible as an inducement to the sale of goods or services.

(
2) A person who violates a provision
of this subsection is guilty of a misdemeanor. The violation is grounds for
suspension or revocation of licenses issued pursuant to this chapter.

(
3) As used in this subsection, the
term "promise to pay or rebate" means:

(
a) granting any allowance or offering
any discount against the fees to be charged, including, but not limited to, an
allowance or discount in return for displaying a sign or other advertisement at
the insured's premises; or

(
b) paying the insured or any person
directly or indirectly associated with the property any form of compensation,
gift, prize, bonus, coupon, credit, referral fee, or other item of monetary
value for any reason.

S
ECTION 24.
A
rticle 1, Chapter 59, Title 40 of the S.C. Code is
amended by adding:

S
ection
40-59-27
. Notwithstanding another provision of this chapter, the Department of
Insurance has the authority to enforce any violations related to insurance or
insurance fraud arising from roofing

systems contracts or the delivery of goods or
services related to roofing systems as provided in Article 5, Chapter 55, Title
38. The Department of Insurance shall refer any findings of violations related
to insurance fraud arising from roofing contracts or the delivery of goods or
services related to roofing systems to the South Carolina Residential Builders
Commission or the South Carolina Contractor's Licensing Board, whichever is
appropriate, for use in any action against the licensee or registrant.

S
ECTION 25. No
later than January 31, the director of the Department of Insurance shall submit
an annual report to the General Assembly that provides data illustrating the
impact this act has had on insurance rates for South Carolina policyholders.
This annual report must also include information regarding South Carolina's
insurance rates in this State for the preceding five years. Additionally, the
director or his designee shall provide annual testimony before the House Labor,
Commerce and Industry Committee and the Senate Banking and Insurance Committee
regarding the status of the insurance market and the performance of that market
during the previous year.

S
ECTION 26.
S
ection
38-55-540
of the S.C. Code is amended to read:

S
ection
38-55-540
.
(
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 be received
is
less than
one
two

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 be received
is

one
two
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 be received
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 be received
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 be
received
. 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.

(
B)
In addition to the criminal penalties set forth in subsection (A), a person
convicted pursuant to the provisions of this section must be ordered by the
court to make full restitution to a victim for any economic advantage or
benefit which has been obtained by the person as a result of that violation,
and to pay the difference between any taxes owed and any taxes the person paid,
if applicable.

S
ECTION 27.
A
rticle 1, Chapter 55, Title 38 of the S.C. Code is
amended by adding:

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

(
a)
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;

(
b)
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;

(
c)
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

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

(
2)
A person who is convicted of violating the provisions of item (1) is subject to
the following penalties:

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

(
b)
for a second offense, by imprisonment for not less than two years nor more than
ten years, fined not more than fifteen thousand dollars, or both;

(
c)
for a third or subsequent offense, by imprisonment for not less than five years
nor more than fifteen years, fined not more than fifteen thousand dollars, or
both.

(
B) 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.

(
1)
(
a) 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
imprisonment of not less than ninety days nor more than ten years, fined not more
than ten thousand dollars, or both.

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

(
2)
A person who is convicted of a violation of this subsection which results in
great bodily injury, as defined in Section
16-3-600
(A)(1), to any person must
be punished by imprisonment of not less than two years nor more than fifteen
years, fined not more than fifteen thousand dollars, or both.

(
3)
A person who is convicted of this subsection which results in the death of any
person must be punished by imprisonment of not less than two years nor more
than thirty years, fined not less than ten thousand dollars nor more than
thirty thousand dollars, or both.

(
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 28.
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
Environmental
Services
. 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 29.
S
ection
17-25-45
(C)(2)(b) of the S.C. Code is amended
to read:

(
C) As used in this section:

(
2)
"Serious offense" means:

(
b)
those felonies enumerated as follows:

31

16-3-220

Lynching, Second degree

32

33

16-3-210(C)

Assault and battery by mob, Second degree

34

35

16-3-600(B)

Assault and battery of a high and aggravated
nature

36

37

16-3-810

Engaging child for sexual performance

1

2

16-9-220

Acceptance of bribes by officers

3

4

16-9-290

Accepting bribes for purpose of procuring
public office

5

16-11-110(B)

Arson, Second degree

6

16-11-312(B)

Burglary, Second degree

7

8

16-11-380(B)

Theft of a person using an automated teller
machine

9

16-13-210(1)

Embezzlement of public funds

10

11

16-13-230(B)(3)

Breach of trust with fraudulent intent

12

13

16-13-240(1)

Obtaining signature or property by false
pretenses

14

16-25-20(B)

Domestic violence, First degree

15

16

16-25-65

Domestic violence of a high and aggravated
nature

17

18

38-55-170(1)

Presenting false claims
for payment

19

20

38-55-171(A)

Staging a motor vehicle
collision

21

22

38-55-171(B)

Aggravated staging a
motor vehicle collision

23

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

Insurance fraud

24

25

44-53-370(e)

Trafficking in controlled substances

26

27

44-53-375(C)

Trafficking in ice, crank, or crack cocaine

28

29

30

31

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

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

1

2

3

56-5-2945

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

S
ECTION 30.
S
ection
40-59-110
of the S.C. Code is amended to read:

S
ection
40-59-110
. In addition to the grounds provided for in Section
40-1-110
, the
commission, upon a majority vote, may revoke, suspend, or restrict the license
or registration of a licensee or registrant who the commission finds has
committed fraud or deceit in obtaining a license or registration under this
chapter or has engaged in misconduct in the practice of residential building or
residential specialty contracting. For purposes of this section, misconduct
includes a violation of Section
40-59-25
,
a violation of
Section
38-55-172
,
or a pattern of repeated failure by a residential
builder or residential specialty contractor to pay labor or material bills. For
purposes of disciplinary matters, or otherwise, compliance with the
construction standards adopted by the commission is prima facie evidence of
compliance with applicable professional standards.

S
ECTION 31. The General Assembly finds that the
sections presented in this act constitute one subject as required by Section
17, Article III of the South Carolina Constitution, in particular finding that
each change and each topic relates directly to or in conjunction with other
sections to the subject of insurance rates and policyholder protection as
clearly enumerated in the title. The General Assembly further finds that a
common purpose or relationship exists among the sections, representing a
potential plurality but not disunity of topics, notwithstanding that reasonable
minds might differ in identifying more than one topic contained in the act.

S
ECTION 32. If any section, subsection,
paragraph, subparagraph, sentence, clause, phrase, or word of this act is for
any reason held to be unconstitutional or invalid, such holding shall not
affect the constitutionality or validity of the remaining portions of this act,
the General Assembly hereby declaring that it would have passed this act, and
each and every section, subsection, paragraph, subparagraph, sentence, clause,
phrase, and word thereof, irrespective of the fact that any one or more other
sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases,
or words hereof may be declared to be unconstitutional, invalid, or otherwise
ineffective.

S
ECTION 33. This act takes effect upon
approval by the Governor, except as otherwise noted in this SECTION. The
provisions of Section
38-75-485
and Sections
12-6-1620
(B),
12-6-3660
(D),
12-6-3662
, and
12-6-3670
shall take effect on July 1, 2027.

----XX----

This web page was last updated on April 30, 2026 at 3:07 PM