Members of the military and their families should not be penalized for lapses in auto insurance coverage caused by service-related deployments. This legislation prohibits insurers from using deployment-related coverage lapses as a negative rating or underwriting factor and requires acceptance of reasonable military documentation. The bill protects service members and their spouses from unfair insurance penalties while preserving lawful underwriting practices unrelated to military service.

South Carolina drivers who are not responsible for a motor vehicle accident should not be punished with higher insurance premiums or loss of coverage. This legislation prohibits insurers from increasing premiums, canceling policies, or refusing renewal based on accidents the insured did not cause. By requiring notice, transparency, and a clear right to contest fault determinations, the bill ensures fairness and due process in automobile insurance underwriting.

Uninsured and underinsured motorist coverage exists to protect South Carolina drivers who are injured through no fault of their own, yet policyholders are sometimes penalized for using that coverage. This legislation prohibits insurers from raising premiums, canceling policies, or refusing renewal based on the filing or payment of a UM or UIM claim. By establishing clear protections, notice requirements, and a right to challenge retaliatory actions, the bill ensures drivers are not punished for the protection they paid for.

South Carolinians who lose a spouse should not face higher auto insurance costs because of a life event unrelated to driving risk. This legislation prohibits insurers from using widowhood as a rating, underwriting, or eligibility factor in personal automobile insurance. By ensuring premiums are based on driving-related risk rather than marital status, the bill promotes fairness and protects consumers from discriminatory pricing practices.

Insurance companies increasingly rely on artificial intelligence to make decisions about coverage, pricing, and claims, yet existing law does not adequately address the risks posed by automated decision-making. This legislation establishes South Carolina’s first comprehensive framework governing insurer use of AI, ensuring transparency, accountability, and human oversight. The bill protects consumers from unfair discrimination, opaque automated decisions, and AI-driven errors while providing clear compliance standards for insurers and regulators.

This bill requires insurance companies operating in South Carolina to publicly disclose their spending on diversity, equity, and inclusion (DEI) programs, including the portion funded by premiums paid by South Carolina policyholders. By increasing transparency around how premium dollars are used, the legislation promotes accountability, strengthens public trust, and supports informed regulatory oversight of insurance rates and insurer practices.

When policyholders pay insurance premiums, they reasonably expect fair access to coverage and honest claims handling after a loss. This legislation strengthens transparency and accountability in South Carolina by prohibiting undisclosed alterations to claims documents, expanding unfair claims practices, and protecting homeowners from post-loss retaliation. The bill restores trust in the insurance system by ensuring claims decisions are documented, disclosed, and subject to meaningful oversight.

Auto insurance rates should be based on how people drive, not on personal or socioeconomic characteristics unrelated to driving risk. South Carolina should prohibit the use of credit history and other non-driving factors in auto insurance rating to promote fairness, transparency, and nondiscrimination in the insurance marketplace.