The bill H. 4457 aims to amend Section 38-27-610 of the South Carolina Code of Laws, which pertains to the priority of distribution for claims during insurer liquidation. The amendment specifically adds provisions for funding agreements, stating that claims under life insurance, annuity policies, and funding agreements—whether for death proceeds, annuity proceeds, or investment values—must be classified as loss claims. This inclusion ensures that these types of claims are treated with the same priority as other loss claims during the liquidation process.

Additionally, the bill clarifies that any portion of a loss for which indemnification is provided by other benefits or advantages recovered by the claimant should not be included in this class, except for certain benefits related to familial obligations or life insurance proceeds. The bill also stipulates that payments made by an employer to an employee cannot be classified as gratuities. The act will take effect upon approval by the Governor.

Statutes affected:
04/30/2025: 38-27-610
Latest Version: 38-27-610