The "Bad Faith Presumption in Insurance Settlement Offer Act" aims to amend the South Carolina Code of Laws by introducing a rebuttable presumption of bad faith against insurers in specific circumstances related to insurance settlement agreements. The bill defines key terms such as "bad faith," "claimant," "defendant," "insurer," "policy limits," and "settlement agreement." It establishes that a presumption of bad faith arises if a settlement agreement is executed by the claimant and defendant, the insurer is notified but refuses to accept the settlement within policy limits, and the case goes to trial resulting in a judgment exceeding those limits. Insurers can rebut this presumption by demonstrating that their refusal to settle was reasonable under the circumstances.

Additionally, the bill stipulates that the settlement agreement must be admissible in any subsequent bad faith action solely to establish the presumption, but it cannot be used in the underlying liability action for other purposes. The act clarifies that it does not affect the underlying rights or defenses of the involved parties regarding coverage or liability matters, except as specifically outlined. The bill will take effect upon approval by the Governor.

Statutes affected:
Latest Version: 38-59-60