The bill H. 4087 aims to amend the South Carolina Code of Laws by updating the definition of "exempt commercial policies" to explicitly exclude liquor liability policies and general liability insurance policies with liquor liability endorsements. Additionally, it introduces Chapter 105 to Title 38, which establishes comprehensive regulations for liquor liability insurance. Key provisions include the requirement for insurers to implement risk-based pricing models that consider factors such as claims history, responsible alcohol service training, preventative technology, and safety protocols. Establishments with a clean claims history may receive premium reductions, while those with multiple claims may face increased premiums or restrictions.

Furthermore, the bill establishes a state-administered Liquor Liability Insurance Fund to assist high-risk establishments that struggle to obtain affordable insurance. Funding for this program will come from surcharges on liquor liability policies, alcohol licensing fees, and contributions from private insurers. Insurers are also mandated to disclose their rate-setting criteria and submit annual reports to the South Carolina Department of Insurance, which will oversee compliance and investigate any unfair practices. The bill includes provisions for tax incentives for insurers entering the liquor liability market and aims to streamline the application process for new insurers.

Statutes affected:
02/25/2025: 38-1-20
Latest Version: 38-1-20