As the 2026 South Carolina Legislative Session comes to a close, several bills of significance to the insurance industry advanced through portions of the legislative process but ultimately failed to receive final approval before adjournment. While the outcome was disappointing, these debates highlighted growing recognition among lawmakers that South Carolina’s legal climate and liability environment continue to affect insurance availability, affordability and the overall business climate.

Below is a summary of several key measures monitored and supported by the Independent Insurance Agents & Brokers of South Carolina (IIABSC).

H. 4817 – Insurance Rate Reduction and Policyholder Protection Act

H. 4817 was a comprehensive insurance reform measure designed to address factors contributing to rising insurance costs and increasing litigation expenses. Among other provisions, the bill sought to strengthen consumer protections, address claims-related practices, combat insurance fraud and establish standards governing auto glass repair and replacement practices.

While many stakeholders supported the bill’s overall goal of reducing costs within the insurance system, the auto glass provisions became a significant point of debate. Opponents raised concerns regarding reimbursement standards, repair shop relationships, consumer choice issues and the role of third-party administrators. As a result, disagreements over the glass provisions became one of the primary obstacles to achieving consensus on the legislation. 

Although the bill advanced through portions of the legislative process and generated substantial discussion, it did not receive final Senate approval before adjournment.

H. 4670 – Time-Limited Settlement Demands

H. 4670 sought to establish standards and procedures governing time-limited settlement demands. These demands, often used in liability claims, can place insurers and defendants under significant pressure to respond within very short timeframes, sometimes creating unnecessary litigation and increasing claim costs.

Supporters argued that the bill would encourage fairer negotiations and more efficient claim resolution while reducing opportunities for “gotcha” litigation tactics. Despite gaining support from business and insurance interests, the bill did not receive final Senate approval before the end of the session.

H. 4000 – Liquor Liability Reform

As amended, H. 4000 sought to address South Carolina’s growing liquor liability insurance crisis by modifying mandatory minimum insurance requirements and implementing additional risk management measures.

One of the bill’s most significant provisions would have eliminated the current requirement that the per-occurrence liability limit be at least fifty percent of the aggregate limit, provided the per-occurrence limit remained at least $500,000. Supporters argued this change would provide greater flexibility in the marketplace while helping businesses obtain affordable coverage without sacrificing meaningful protection.

The legislation was developed in response to continued market challenges that have left many bars, restaurants and other establishments struggling to secure liquor liability coverage at affordable rates. While the bill represented a compromise among various stakeholders, it ultimately did not receive final Senate approval before adjournment.

H. 4544 – Medical Malpractice Reform

H. 4544 proposed reforms related to medical malpractice litigation and liability exposure. Proponents argued that the measure would help improve predictability within the healthcare liability system while reducing pressures contributing to increased insurance costs for medical providers.

Although the bill generated significant discussion, lawmakers were unable to reach final agreement before the legislative deadline, resulting in the measure failing to advance this year.

New Law Affecting Utility Terrain Vehicles (UTVs)

One significant measure that did become law this year involves the operation of Utility Terrain Vehicles (UTVs) on South Carolina roadways.

The new law expands circumstances under which UTVs may be legally operated on certain public roads, subject to specific requirements and restrictions. While this legislation primarily affects vehicle owners and operators, it may also create important insurance considerations.

Independent agents should be prepared for questions from clients regarding how UTV ownership and use may impact their insurance coverage. Depending on the carrier and policy language, coverage considerations may arise under both personal auto and homeowners policies. Agents should encourage clients to discuss how and where their UTVs are being used and determine whether separate recreational vehicle coverage or policy endorsements may be appropriate.

As with any emerging exposure, reviewing carrier guidelines and policy forms will be critical to ensuring clients understand the limitations and availability of coverage.

Looking Ahead

While these legislative setbacks were disappointing, the conversation surrounding meaningful tort reform is far from over. 

IIABSC is already working closely with other business groups, trade associations, industry partners and key lawmakers to evaluate this year’s efforts and develop a strategy for the 2027 legislative session. 

To strengthen our advocacy efforts, IIABSC has formed a Legislative Subcommittee focused on building a stronger grassroots network across the state. One of the committee’s priorities will be identifying IIABSC members who have existing relationships with their local legislators and community leaders. These relationships can play a critical role in helping lawmakers better understand how insurance issues affect businesses, consumers and local communities. If you wish to be a part of the new subcommittee, please contact me at bmccormack@iiabsc.com.

Meaningful reform requires education, engagement and persistence. With the continued involvement of our members and coalition partners, we remain optimistic that progress can be made in the coming year.

Thank you for your continued support of IIABSC and for helping us be a strong voice for independent insurance agents throughout South Carolina.