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Bill 3564

                    Current Status

Bill Number:                      3564
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20010215
Primary Sponsor:                  Law
All Sponsors:                     Law
Drafted Document Number:          l:\council\bills\pt\1190dw01.doc
Residing Body:                    House
Current Committee:                Judiciary Committee 25 HJ
Subject:                          Insurer refusing to pay claim, liability 
                                  for attorneys fees when without cause; number 
                                  of days to pay reduced; Insurance


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   20010215  Introduced, read first time,           25 HJ
                  referred to Committee


              Versions of This Bill

TO AMEND SECTION 38-59-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIABILITY FOR ATTORNEYS' FEES WHERE AN INSURER HAS REFUSED TO PAY A CLAIM AND APPEALS FROM IT, SO AS TO REDUCE FROM NINETY TO FORTY-FIVE THE NUMBER OF DAYS CLAIMS MUST BE PAID AND ESTABLISH A FORTY-FIVE DAY REQUIREMENT FOR PAYMENT WHEN THE PARTIES HAVE REACHED A SETTLEMENT AGREEMENT REGARDING A CLAIM AGAINST THE INSURER.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 38-59-40(1) of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:

    "(1)    In the event of If a claim, loss, or damage which is covered by a policy of insurance or a contract of a nonprofit hospital service plan or a medical service corporation and the refusal of the insurer, plan, or corporation to pay the claim within ninety forty-five days after a demand has been made by the holder of the policy or contract and a finding on suit of the contract made by the trial judge that the refusal was without reasonable cause or in bad faith, the insurer, plan, or corporation is liable to pay the holder, in addition to any sum or any amount otherwise recoverable, all reasonable attorneys' fees for the prosecution of the case against the insurer, plan, or corporation. The amount of reasonable attorneys' fees must be determined by the trial judge and the amount added to the judgment. The amount of the attorneys' fees may not exceed one-third of the amount of the judgment."

SECTION    2.    Section 38-59-40 of the 1976 Code, as last amended by Act 148 of 1989, is further amended by adding a new subsection at the end to read:

    "(5)    Notwithstanding the provisions of subsection (1), if the parties reach a settlement agreement regarding a claim against the insurer, the insurer has forty-five days in which to pay the agreed upon amount."

SECTION    3.    This act takes effect upon approval by the Governor.

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