South Carolina H 4733: Jamal Bradley's community service

Bill Text

2025-2026 Bill 4733 Text of Previous Version (Dec. 17, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4733

Indicates Matter Stricken
Indicates New Matter

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

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE 
"BAD FAITH PRESUMPTION IN INSURANCE SETTLEMENT OFFER ACT" BY ADDING SECTION 
38-59-60 SO AS TO PROVIDE A REBUTTABLE PRESUMPTION OF BAD FAITH BY AN INSURER 
IN CERTAIN CIRCUMSTANCES INVOLVING INSURANCE SETTLEMENT AGREEMENTS, TO DEFINE 
NECESSARY TERMS, TO PROVIDE THE PRESUMPTION IS REBUTTABLE, AND TO PROVIDE THE 
ADMISSIBILITY OF SETTLEMENT AGREEMENTS IN SUBSEQUENT BAD FAITH ACTIONS, AMONG 
OTHER THINGS.

Whereas, the South 
Carolina General Assembly finds that insureds, claimants and defendants often 
reach a mutual agreement to settle a claim within the available liability 
coverage limits of an insurance policy; and

Whereas, when the 
insurance company or its adjuster refuses to settle within the policy limits 
despite the agreement of the insured, defendant, and claimant, the insured is 
exposed to the risk of a judgment in excess of coverage, even though settlement 
was available within policy limits; and

Whereas, the failure to 
accept a settlement within policy limits under such circumstances undermines 
the purpose of liability insurance, increases costs to the civil justice 
system, and may constitute bad faith by the insurer; and

Whereas, in order to 
protect insureds and promote settlement within policy limits, this act creates 
a rebuttable presumption of bad-faith conduct by the insurer when certain 
conditions are met. Now, therefore,

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

SECTION 1. This act may be cited as the "Bad Faith Presumption in Insurance 
Settlement Offer Act."

SECTION 2. Article 1, Chapter 59, Title 38 of the S.C. Code is 
amended by adding:

 Section 
38-59-60. (A) For purposes of this 
section:

 (1) 
"Bad faith" means the insurer's unreasonable refusal to settle within policy 
limits when liability is reasonably clear and an offer within limits is 
available and accepted by the claimant and defendant, such that the insurer's 
conduct falls outside of the standards of good faith and fair dealing.

 (2) 
"Claimant" means the person or entity asserting a compensation claim against 
the insured under the subject policy.

 (3) 
"Defendant" means the insured or other party covered under the liability policy 
that is being defended by the insurer against the claimant's claim.

 (4) 
"Insurer" means the liability insurance company that issued the policy and is 
responsible for handling and settling claims under the policy.

 (5) 
"Policy limits" means the maximum amount of liability coverage available under 
the insurance policy, including any applicable umbrella or excess coverage, at 
the time the settlement offer is made.

 (6) 
"Settlement agreement" means a written agreement signed by the claimant, the 
defendant, and counsel for each of those parties, specifying resolution of the 
claim for the policy limits and designated as confidential under Rule 43(k), 
South Carolina Rules of Civil Procedure.

 (B)(1) A rebuttable presumption of bad 
faith by the insurer shall arise if all of the following conditions are 
satisfied:

 (a) 
a settlement agreement has been executed by the claimant, the defendant, and 
their respective counsel, in which the claimant agrees to resolve the claim 
within the available policy limits, and the defendant and counsel join in that 
agreement;

 (b) 
the insurer, after being timely notified of the settlement agreement and given 
a reasonable opportunity to accept and execute it, refuses or fails to accept 
the settlement agreement and effectuate payment within the policy limits; and

 (c) 
the case thereafter proceeds to trial, and a final judgment or binding 
arbitration award is entered in favor of the claimant in an amount that exceeds 
the insurer's policy limits.

 (2) 
The insurer may rebut this presumption by presenting evidence that the refusal 
to settle was reasonable under the circumstances including, but not limited to:

 (a) 
existence of a material factual or legal defense;

 (b) 
exposure to greater liability than reasonably anticipated at the time of the 
Settlement Agreement; or

 (c) 
information not reasonably available to the insurer at the time the Settlement 
Agreement was proposed.

 (3) 
If the presumption is not rebutted, the insurer may be liable for such 
additional damages, interest, and attorney's fees as provided under existing 
bad-faith law in this State.

 (C) A 
settlement agreement as provided in subsection (B) must be admissible in any 
subsequent bad-faith action against the insurer solely for the purpose of 
establishing the presumption referenced in that section. The settlement 
agreement may not be used in