Bill > H4087

This bill proposes significant changes to liquor liability insurance regulations in South Carolina by establishing a comprehensive framework for risk-based pricing, insurance coverage, and regulatory oversight. The legislation modifies the definition of "exempt commercial policies" to specifically exclude liquor liability insurance and introduces a new chapter of law governing how insurers must price and provide liquor liability coverage. Key provisions include mandating that insurers develop risk-based pricing models that consider factors such as claims history (40%), responsible alcohol service training (25%), preventative technology (20%), and safety protocols (15%). The bill also creates a state-administered Liquor Liability Insurance Fund to provide coverage options for high-risk establishments, funded through insurance policy surcharges, licensing fees, and insurer contributions. Insurers will be required to submit annual detailed reports to the Department of Insurance, disclose their rate-setting criteria, and face potential regulatory review for significant premium increases. Additionally, the bill offers tax incentives for insurers entering the South Carolina liquor liability market and establishes an expedited application process to encourage market participation. Establishments with good safety records may qualify for premium reductions, while those with multiple significant claims could be classified as high-risk and face increased premiums or coverage restrictions.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=4087&session=126&summary=B