Bill > H4299

This bill establishes the "Insurance Savings Program" in South Carolina, which creates a specialized savings account designed to help individuals save money for insurance policy deductibles and property renovations that could reduce insurance premiums. The program allows individuals to open an account with a designated beneficiary, with contributions made only in cash, and managed by the State Treasurer through selected program managers. Account owners can change beneficiaries and transfer funds between insurance savings accounts, and the funds are exempt from creditor claims. The State Treasurer will oversee the program's implementation, including developing marketing plans, establishing fund dispersal methods, and consulting with the Department of Insurance to determine eligible expenses. The bill also provides tax benefits by allowing account owners to deduct contributions from their state taxable income and excluding interest and earnings from state income taxes when funds are used for qualified withdrawals (such as paying insurance deductibles). Importantly, the bill explicitly states that the state does not guarantee the return of principal, interest rates, or investment returns. The program aims to help South Carolina residents more effectively manage their property insurance costs by providing a structured savings mechanism.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=4299&session=126&summary=B