The "Insurance Rate Reduction and Policyholder Protection Act" seeks to enhance consumer protection and lower insurance rates in South Carolina by amending various sections of the South Carolina Code of Laws. Key provisions include expanding the responsibilities of the Director of the Department of Insurance to promote consumer outreach regarding homeowners insurance and establishing the Insurance Fraud Division to investigate fraudulent activities related to roofing systems. The bill prohibits residential builders and registered specialty contractors from representing homeowners in insurance claims for roofing repairs and from advertising or promising to pay insurance deductibles, with violations resulting in misdemeanor charges and potential license suspensions. Additionally, it introduces a loss mitigation grant program to assist local governments in reducing property losses from natural disasters and mandates annual reporting on the impact of these changes on insurance rates.

The bill also includes significant amendments to automobile insurance regulations, prohibiting insurers from refusing to issue or renew policies based on discriminatory factors while allowing rate setting based on actuarial data. It establishes penalties for unfair discrimination and introduces a "Disaster Preparedness Sales Tax Holiday" to encourage the purchase of emergency supplies. Furthermore, it creates a "Catastrophe Savings Account" for homeowners to save for disaster-related expenses and outlines the Department of Insurance's authority to enforce violations related to roofing contracts. Overall, the act aims to improve consumer rights and protections in the insurance market while promoting preparedness for natural disasters, with the provisions taking effect upon the Governor's approval.

Statutes affected:
12/17/2025: 38-3-110, 38-55-172, 38-55-520, 38-55-530, 38-55-550, 38-55-560, 38-55-570, 38-55-590, 38-73-1095, 38-75-470, 38-75-480, 38-75-485, 38-77-122, 38-77-123, 38-77-145, 38-77-280, 12-6-1620, 12-6-3660, 12-6-3662, 12-6-3670, 42-9-440, 40-11-125, 40-59-25, 40-59-27
01/06/2026: 38-3-110, 38-55-172, 38-55-520, 38-55-530, 38-55-550, 38-55-560, 38-55-570, 38-55-590, 38-73-1095, 38-75-470, 38-75-480, 38-75-485, 38-77-122, 38-77-123, 38-77-145, 38-77-280, 12-6-1620, 12-6-3660, 12-6-3662, 12-6-3670, 42-9-440, 40-11-125, 40-59-25, 40-59-27
01/09/2026: 38-3-110, 38-55-172, 38-55-520, 38-55-530, 38-55-550, 38-55-560, 38-55-570, 38-55-590, 38-73-1095, 38-75-470, 38-75-480, 38-75-485, 38-77-122, 38-77-123, 38-77-145, 38-77-280, 12-6-1620, 12-6-3660, 12-6-3662, 12-6-3670, 42-9-440, 40-11-125, 40-59-25, 40-59-27
Latest Version: 38-3-110, 38-55-172, 38-55-520, 38-55-530, 38-55-550, 38-55-560, 38-55-570, 38-55-590, 38-73-1095, 38-75-470, 38-75-480, 38-75-485, 38-77-122, 38-77-123, 38-77-145, 38-77-280, 12-6-1620, 12-6-3660, 12-6-3662, 12-6-3670, 42-9-440, 40-11-125, 40-59-25, 40-59-27