South Carolina General Assembly
124th Session, 2021-2022

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Indicates Matter Stricken
Indicates New Matter

S. 432

STATUS INFORMATION

General Bill
Sponsors: Senator Alexander
Document Path: l:\s-res\tca\011liab.kmm.tca.docx

Introduced in the Senate on January 12, 2021
Currently residing in the Senate

Summary: Defense costs

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   1/12/2021  Senate  Introduced and read first time (Senate Journal-page 309)
   1/12/2021  Senate  Referred to Committee on Banking and Insurance 
                        (Senate Journal-page 309)
   3/24/2021  Senate  Committee report: Favorable Banking and Insurance 
                        (Senate Journal-page 9)
   5/11/2021  Senate  Read second time (Senate Journal-page 17)
   5/11/2021  Senate  Roll call Ayes-40  Nays-4 (Senate Journal-page 17)

View the latest legislative information at the website

VERSIONS OF THIS BILL

1/12/2021
3/24/2021

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

March 24, 2021

S. 432

Introduced by Senator Alexander

S. Printed 3/24/21--S.

Read the first time January 12, 2021.

            

THE COMMITTEE ON BANKING AND INSURANCE

To whom was referred a Bill (S. 432) to amend Article 1, Chapter 59, Title 38 of the 1976 Code, relating to claims practices, by adding Section 38-59-60, to allow for contributions, etc., respectfully

REPORT:

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

RONNIE W. CROMER for Committee.

            

A BILL

TO AMEND ARTICLE 1, CHAPTER 59, TITLE 38 OF THE 1976 CODE, RELATING TO CLAIMS PRACTICES, BY ADDING SECTION 38-59-60, TO ALLOW FOR CONTRIBUTIONS FOR DEFENSE COSTS FOR THE SAME CLAIM, SUIT, OR ACTION AMONG MORE THAN ONE LIABILITY INSURER.

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

SECTION    1.    Article 1, Chapter 59, Title 38 of the 1976 Code is amended by adding:

"Section 38-59-60.    (A)    A liability insurer owing a duty to defend an insured, and that defends the insured against a claim, suit, or other action, has a right of contribution for defense costs against any other liability insurer owing a duty to defend the insured against the same claim, suit, or other action, provided that contributions may not be sought from any liability insurer for defense costs that are incurred before the liability insurer receives notice of the claim, suit, or other action.

(B)    A court shall allocate defense costs among insurers owing a duty to defend the insured against the same claim, suit, or other action, in accordance with the terms of the liability insurance policies. If defense costs are not otherwise in conflict with the terms of the insurance policies, then the court may use such equitable factors as the court determines appropriate in making the allocation.

(C)    This section is not intended to alter any terms of a liability insurance policy or to create any additional duty on the part of a liability insurer to an insured. An insured may not rely on this section as grounds for a complaint against a liability insurer.

(D)    A liability insurer entitled to contribution from another liability insurer under this section may file an action for contribution in a court of competent jurisdiction.

(E)    This section applies to liability insurance policies issued for delivery in this State, to include surplus lines insurance policies."

SECTION    2.    This act takes effect upon approval by the Governor.

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This web page was last updated on May 12, 2021 at 8:57 AM