Committee Report

March 24, 2026

 

H. 4670

 

Introduced by Reps. W. Newton and C. Mitchell

 

S. Printed 3/24/26--H.

Read the first time January 13, 2026

 

________

 

The committee on House Judiciary

To whom was referred a Bill (H. 4670) to amend the South Carolina Code of Laws by adding Section 15-1-350 so as to establish requirements for demands for personal injury, bodily injury, property damage, 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, by striking all after the enacting words and inserting:

SECTION 1.  Chapter 1, Title 15 of the S.C. Code is amended by adding:

 

    Section 15-1-350.  (A) In the event of a time-limited demand for settlement of a claim, loss, or damage, made by or on behalf of a claimant, to a tortfeasor with a liability insurance policy, any such demand must be made in good faith, be reasonable in its terms, provide the insurer with sufficient information to evaluate the claim, and provide the insurer a reasonable time not less than thirty days from receipt of the demand in which to provide a response. 

(B) Nothing in this section shall be construed to alter or affect the doctrine established in Tyger River Pine Co. v. Maryland Casualty Co., 163 S.C. 229, 161 S.E. 491 (1931).

 

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

Renumber sections to conform.

Amend title to conform.

 

W. NEWTON for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill establishes certain requirements for time-limited demands for settlement of tort claims. This bill specifies the process of making a time-limited demand, requires material terms that must be included in the demand, and requires the inclusion of relevant supporting documents. This bill also allows the inclusion and negotiation of nonmaterial additional terms, which will not constitute a rejection or counteroffer to the time-limited demand. This bill further establishes timelines and procedures for payment of time-limited demands if the settlement is accepted.

This bill may result in an increase in the number of civil cases which may increase the workload of the court system. The potential increase will depend on the number of individuals sending time-limited demands that do not comply with this bill and whether time-limited demands that do comply will lead to more settlements outside of court. Judicial anticipates that the increase in cases can be initially managed within existing appropriations. However, Judicial indicated that if the increase in the caseload is significant, it will request additional General Fund appropriations.

SFAA is unsure whether the caps set forth in the South Carolina Torts Claims Act apply in time-limited demand claims pursuant to this bill. Additionally, SFAA is unsure whether extracontractual damages, as defined by this bill, are applicable to governmental entities and the IRF. Based on these uncertainties, SFAA anticipates this bill may have an undetermined impact on the IRF. We anticipate that if there is a significant increase in the IRF expenses, these expenses will be offset by an increase in insurance premium revenue.

This bill may result in a change to state expenditures, depending upon the expenditure impact to the IRF and the need to increase insurance premiums to offset this increase in expenses.

 

State Revenue

This bill may have an Other Fund revenue impact for the potential increase in insurance premium revenue for the IRF as discussed in the State Expenditure Section.

 

Local Expenditure

This bill establishes certain requirements for time-limited demands for settlement of tort claims.

SCDE surveyed the seventy-two regular school districts and the three charter school districts and received responses from twelve districts. Five of the responding districts indicate that the bill will have no expenditure impact. Six districts report that the cost of the bill is currently undetermined dependent upon increases in costs associated with litigation and liability insurance. The remaining responding district reports that the bill will create a non-recurring expense of about $1,000 to revise procedures and train personnel to ensure the district properly tracks and responds to formal demands in a timely manner.

RFA also contacted all counties in the state and MASC to determine the potential local expenditure impact of this bill may have for local governments. Responses received from the counties of Charleston and Florence indicate the local expenditure impact on these counties is expected to be minimal and managed within current resources. MASC anticipates this bill may result in an undetermined increase in costs for municipalities, depending upon increase is insurance premiums.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

_______

 

 

 

 

 

 

 

 

A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 15-1-350 SO AS TO ESTABLISH REQUIREMENTS FOR DEMANDS FOR PERSONAL INJURY, BODILY INJURY, PROPERTY DAMAGE, OR WRONGFUL DEATH.

 

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

 

SECTION 1.  Chapter 1, Title 15 of the S.C. Code is amended by adding:

 

    Section 15-1-350.  (A) For purposes of this section:

       (1) "Claimant" means a person or entity pursuing a tort claim either before or after a civil action has been commenced against a tortfeasor.

       (2) "Extracontractual damages" means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurer's liability insurance policies including uninsured and underinsured motorists applicable to a claim for property damage, bodily injury, or wrongful death.

       (3) "Release" means a general release, pro tanto release, covenant not to sue, covenant not to execute, or any other legal document effectuating settlement.

       (4) "Insurer" means the insurance carrier of the tortfeasor or first-party insurer who is receiving the demand for settlement.

       (5) "Time-limited demand" means any offer to settle any claim for personal injury, property damage, bodily injury, or wrongful death made by, or on behalf of, a claimant to a tortfeasor with a liability insurance policy, for purposes of settling a claim against such tortfeasor, which by its terms, must be accepted within a specified time frame.

       (6) "Tort claim" means a claim for personal injury, property damage, bodily injury, or wrongful death.

       (7) "Tortfeasor" means any person claimed to have caused or contributed to cause personal injury, property damage, bodily injury, or wrongful death to a claimant.

    (B)(1) A time-limited demand must:

           (a) be in writing;

           (b) reference this section;

           (c) be labeled "time sensitive"; and

           (d) be sent certified mail with return receipt requested or overnight delivery to the claims department of the tortfeasor's liability insurer.

       (2) The time-limited demand must contain the following material terms:

           (a) a specific monetary sum to settle the tort claim;

           (b) the type of release the claimant will execute in exchange for the monetary sum demanded;

           (c) the persons or entities to be released;

           (d) a description of the tort claims to be released if such time-limited demand is accepted;

           (e) the specific date and time by which the settlement offer must be accepted;

           (f) the following language in bold type, number twelve font or larger on the first page: "TIME-LIMITED DEMAND";

           (g) the date and location of the loss;

           (h) the claim number, if known;

           (i) a description of all known injuries sustained by the claimant;

           (j) an explanation of the theory of liability against the tortfeasor, or each tortfeasor if the demand is presented to multiple tortfeasors; and

           (k) disclosure of eligibility or information sufficient to verify eligibility for Medicare, Medicaid, any other federal or state benefit program, and any other known liens or assignments granted by the claimant that may apply to any of the damages claimed.

       (3) Any time-limited demand as outlined in this subsection also must include the following:

           (a) Medical records and bills from all healthcare providers who provided treatment or evaluation of the claimant or decedent for the injuries suffered from the tort claim from the date of injury until the date of the time-limited demand.

           (b) Records of earnings, compensation, or wages, however denominated, from the claimant's employers or tax records must be provided by the claimant if he alleges a claim for lost wages.

    (C) Any additional terms included in the time-limited demand, not specifically set forth in subsection (B), are deemed nonmaterial and must be clearly designated in the time-limited demand as "Additional Terms Pursuant to South Carolina Code Section 15-1-350(C)."

    (D) Prior to the expiration of the date and time included in the time-limited demand, the parties have the right to negotiate any nonmaterial terms, and negotiation of nonmaterial terms does not constitute a rejection of or counteroffer to the time-limited demand. Examples of nonmaterial terms of the time-limited demand include, but are not limited to, the following:

       (1) the exact terms and conditions of the release, not including those material terms contained in subsection (B);

       (2) how liens and subrogation claims will be satisfied from the proceeds of the settlement;

       (3) whether the settlement includes the release of tort claims not possessed by the claimant, but that arise out of the same occurrence as the tort claim possessed by the claimant; and

       (4) whether there are additional parties that need to be included in the release based upon the causes of action asserted.

    (E) A person or entity receiving a time-limited demand has at least thirty days from the receipt of the demand to accept the same.

    (F) Upon receipt of a time-limited demand, the person or entity receiving the demand on behalf of the tortfeasor has the right to seek clarification of any material or nonmaterial terms contained in the time-limited demand issued by the claimant. Any attempt to seek clarification of material or nonmaterial terms does not constitute a rejection of or a counteroffer to the time-limited demand by the tortfeasor, and any time limit imposed is deemed extended for a minimum of thirty days from the date of the clarification request or for fifteen days after such clarification is received by the tortfeasor, whichever is greater.

    (G) The person or entity providing payment to satisfy the tort claim shall, within ten business days from the date of written acceptance of the time-limited demand or from the date the settlement is approved by the court, if required, deliver payment to the address specified by the claimant, unless a longer period is agreed upon. The person or entity paying the settlement may do so by one of the following ways:

       (1) cash;

       (2) money order;

       (3) wire transfer;

       (4) cashier's check issued by a bank or other financial institution;

       (5) draft or bank check issued by an insurance company; or

       (6) electronic funds transfer or other method of electronic payment.

    (H) In any lawsuit filed by a claimant, or by a claimant as an assignee of the tortfeasor or by the tortfeasor for the benefit of the claimant, a time-limited demand that does not strictly comply with the terms of this section must not be considered as a reasonable opportunity to settle for the insurer and is not admissible in any lawsuit alleging extracontractual damages against the tortfeasor's liability insurer.

 

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

----XX----