In South Carolina in 2025, Big Insurance Corporations have launched an unprecedented effort to make it harder for individual consumers to recover from their insurance companies when bad things happen to them. Conservatives need to stand up and call their legislators to make their voices heard.
In South Carolina in 2025, Big Insurance Corporations have launched an unprecedented effort to make it harder for individual consumers to recover from their insurance companies when bad things happen to them. Conservatives need to stand up and call their legislators to make their voices heard.
Insurance is meant to provide financial protection and stability—not create new hardships for consumers. Reform Insurance Now SC (RINSC) supports a set of consumer-focused insurance reforms that promote fairness, accountability, and transparency in the insurance market. These policies address common practices that raise costs unfairly, limit the usefulness of coverage, or rely on pricing methods unrelated to real risk.
Together, these reforms like these reflect RINSC’s core purpose: ensuring insurance works as meaningful financial protection for households, particularly during moments of vulnerability. They focus on practical improvements that protect responsible consumers, strengthen trust in insurance, and modernize oversight as industry practices evolve.
Below are key consumer protection areas supported by RINSC, along with why each matters to everyday policyholders.
Protection from Penalties for Not-At-Fault Accidents
These protections prevent insurers from increasing premiums or imposing penalties on consumers who were not responsible for an accident or loss.
Why it matters:
Responsible drivers should not pay higher insurance rates because of someone else’s mistake. Fair insurance pricing should reflect fault and behavior, not simply the presence of a claim.
Protection from Penalties for Using Purchased Coverage
These protections ensure insurers cannot raise rates, deny coverage, or impose penalties when consumers use coverage they legally purchased, including uninsured and underinsured motorist protection.
Why it matters:
Insurance coverage only has value if people can safely use it. Penalizing consumers for accessing their own coverage discourages adequate protection and undermines the purpose of insurance.
Limits on the Use of Credit and Financial Proxies in Insurance Pricing
These reforms restrict or eliminate the use of credit scores and other non-driving financial factors in auto insurance pricing.
Why it matters:
Credit-based pricing reflects income and life circumstances rather than driving behavior. Its use can embed economic and racial disparities into insurance rates without improving safety or accurately measuring risk.
Consumer Safeguards for Artificial Intelligence and Automated Decision-Making
These safeguards establish oversight for insurers’ use of artificial intelligence, algorithms, and automated systems in underwriting, pricing, and claims decisions.
Why it matters:
As insurance companies increasingly rely on automated tools, consumers need transparency and accountability. Clear standards help prevent biased or opaque systems from unfairly limiting access or affordability.
Strengthened Protections Against Improper Insurance Claims Denials
These protections reinforce consumer rights when insurers improperly deny or delay claims despite valid coverage and paid premiums.
Why it matters:
Insurance that cannot be relied on during emergencies fails its core purpose. Strong claims-handling standards ensure coverage delivers real financial protection when consumers need it most.
Protections Against Insurance Penalties Related to Military Service
These protections prevent insurers from penalizing consumers based on military service, deployment-related circumstances, or service-connected disruptions.
Why it matters:
Service members and their families should not face higher insurance costs or reduced access to coverage because of obligations beyond their control.
Protections Against Insurance Penalties Following the Death of a Spouse
These protections prevent insurers from increasing rates or altering coverage solely due to changes in marital status following the death of a spouse.
Why it matters:
Consumers experiencing loss should not face additional financial hardship. Fair insurance practices should support stability during periods of grief and transition.
Transparency in Insurance Company Spending and Reporting
These reforms require clearer, standardized disclosure of certain insurer expenditures to improve public understanding and accountability.
Why it matters:
Transparency helps ensure insurance practices align with consumer interests and stated commitments, strengthening trust in the insurance system.
Why These Insurance Reforms Matter
Taken together, these consumer-focused insurance reforms promote fair pricing, meaningful coverage, and responsible oversight. They address both long-standing inequities and emerging challenges in the insurance market while reinforcing the fundamental role of insurance as a tool for financial security.
by Reform Insurance Now SC