South Carolina H 4299: Insurance Savings Program

Bill Text

2025-2026 Bill 4299 Text of Previous Version (Apr. 03, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4299

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 adding article 
7 to chapter 5, Title 11 so as to ESTABLISH THE "INSURANCE SAVINGS PROGRAM," TO 
EMPOWER INDIVIDUALS TO SAVE PRIVATE FUNDS TO PAY INSURANCE POLICY DEDUCTIBLES 
ON REAL PROPERTY, AND TO MAKE RENOVATIONS TO REAL PROPERTY THAT MAKE THE 
PROPERTY MORE INSURABLE SO AS TO REDUCE INSURANCE POLICY PREMIUMS AND 
DEDUCTIBLES; AND BY AMENDING SECTION 12-6-1140, RELATING TO DEDUCTIONS FROM 
INDIVIDUAL TAXABLE INCOME, SO AS TO DEDUCT AMOUNTS DEPOSITED INTO THE INSURANCE 
SAVINGS PROGRAM AND ANY EARNINGS THEREON.

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

SECTION 1. Chapter 5, Title 11 of the S.C. Code is amended by 
adding:

Article 7

Insurance Savings Program

 Section 
11-5-700. There is established the "Insurance Savings Program." The purpose of 
the Insurance Savings Program is to authorize the establishment of savings 
accounts empowering individuals to save private funds to pay insurance policy 
deductibles on real property and to make renovations to real property that make 
the property more insurable so as to reduce insurance policy premiums and 
deductibles on real property.

 Section 
11-5-710. As used in this article:

 (1) "Account 
owner" means the person who enters into an insurance savings account agreement 
pursuant to the provisions of this article. The account owner also must be the 
designated beneficiary; however, a trustee, guardian, or conservator may be 
appointed as an account owner for a designated beneficiary who is a minor or 
lacks capacity to enter into an agreement. Also, the agent of the designated 
beneficiary acting under durable power of attorney may open and manage an 
account on behalf of and in the name of a designated beneficiary who lacks 
capacity.

 (2) 
"Financial organization" means an organization authorized to do business in 
this State and is:

 (a) 
licensed or chartered by the Director of Insurance;

 (b) 
licensed or chartered by the State Commissioner of Banking;

 (c) 
chartered by an agency of the federal government; or

 (d) 
subject to the jurisdiction and regulation of the federal Securities and 
Exchange Commission.

 (3) "Insurance 
savings account" or "account" means an individual savings account established 
in accordance with the provisions of this article.

 (4) 
"Management contract" means a contract executed by the State Treasurer and a 
program manager selected to act as a depository or manager of the program, or 
both.

 (5) 
"Nonqualified withdrawal" means a withdrawal from an account which is not:

 (a) 
a qualified withdrawal; or

 (b) 
a rollover distribution.

 (6) 
"Program" means the Insurance Savings Program established pursuant to this 
article.

 (7) 
"Program manager" means a financial organization or an agency or department of 
another state that has been designated to administer a qualified Insurance 
Savings Program selected by the State Treasurer to act as a depository or 
manager of the program, or both.

 (8) "Qualified 
withdrawal" means a withdrawal from an account to pay the qualifying insurance 
expense of the designated beneficiary of the account.

 (9) "Rollover 
distribution" means a rollover distribution as defined in Section 529A of the 
federal Internal Revenue Code of 1986, as amended.

 (10) "Savings agreement" means an agreement 
between the program manager or the State Treasurer and the account owner.

 Section 
11-5-720. (A) The State Treasurer 
shall implement and administer the program under the terms and conditions 
established by this article. The State Treasurer has the authority and 
responsibility to:

 (1) 
develop and implement the program in a manner consistent with the provisions of 
this article;

 (2) 
engage the services of consultants on a contract basis for rendering 
professional and technical assistance and advice;

 (3) 
charge, impose, and collect administrative fees and service charges in 
connection with any agreement, contract, or transaction relating to the 
program;

 (4) 
develop marketing plans and promotional materials;

 (5) 
establish the methods by which the funds held in accounts must be dispersed;

 (6) 
establish the method by which funds must be allocated to pay for administrative 
costs;

 (7) 
do all things necessary and proper to carry out the purposes of this article;

 (8) 
adopt rules and promulgate regulations necessary to effectuate the provisions 
of this article; and

 (9) 
prepare an annual report of the Insurance Savings Program to the Governor, the 
Senate, and the House of Representatives.

 (B) 
The State Treasurer shall consult with the Department of Insurance to dete