South Carolina law
Insurance Disputes Laws in South Carolina.
South Carolina insurance law includes the Unfair Claims Practices provisions (S.C. Code § 38-59-20). South Carolina recognizes common-law first-party bad faith based on the implied covenant of good faith and fair dealing (*Nichols v. State Farm*, 279 S.C. 336 (1983)). Punitive damages available for egregious conduct. SC Department of Insurance regulates insurers. South Carolina auto insurance is tort-based with mandatory minimum liability coverage.
Last verified: 2026-04-17
State law
Key South Carolina Statutes
South Carolina recognizes first-party bad faith based on breach of implied covenant of good faith and fair dealing. Plaintiffs may recover consequential damages beyond policy limits plus punitive damages for egregious conduct.
Prohibits specified unfair claim settlement practices. Enforcement through SC Department of Insurance.
South Carolina requires UM coverage; UIM must be offered but may be rejected in writing. Minimum limits 25/50/25.
State law
Official Sources
Not Legal Advice
This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in South Carolina.
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