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H 4670

Time-limited demands, tort claims

2025-2026 Regular Session Introduced by Rosalyn Henderson-Myers and 2 co-sponsors

Creates a standardized, time-limited settlement demand process for tort claims, requiring detailed disclosures, strict labeling, and defined acceptance timelines.

Recalled from Committee on Judiciary
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Bill Summary · H 4670

Bill Summary — South Carolina H 4670 (2025-2026)

Title

Time-limited demands, tort claims

Purpose and Intent

  • Establish a new statutory framework for time-limited settlement demands in tort claims involving personal injury, bodily injury, property damage, or wrongful death.
  • The goal is to regulate the format, content, timing, and negotiations around settlement offers made to tortfeasors (defendants) or their insurers, with the aim of promoting transparent, well-documented settlements and clarifying how such demands interact with extracontractual damages and existing litigation.

Key Definitions (Section 15-1-350(A))

  • Claimant: Person or entity pursuing a tort claim, before or after a civil action is filed.
  • Extracontractual damages: Damages that exceed the total liability insurance limits available to the tortfeasor (including uninsured/underinsured motorist coverage) for property damage, bodily injury, or wrongful death.
  • Release: Any general or pro tanto release, covenant not to sue, covenant not to execute, or similar instrument settling claims.
  • Insurer: The tortfeasor’s liability insurer or first-party insurer receiving the demand.
  • Time-limited demand: A written settlement offer that must be accepted within a specified time frame.
  • Tort claim: A claim for personal injury, property damage, bodily injury, or wrongful death.
  • Tortfeasor: The person alleged to have caused or contributed to the injuries or damages.

Requirements for a Time-Limited Demand (Section 15-1-350(B))

A time-limited demand must:
- Be in writing, reference the statute, be labeled “time sensitive,” and be sent by certified mail (return receipt requested) or overnight delivery to the tortfeasor’s insurer claims department.
- Include the following material terms:
- A specific monetary settlement amount.
- The type of release in exchange for the settlement.
- The persons or entities to be released.
- A description of tort claims to be released if the demand is accepted.
- A definite date/time to accept.
- Bold “TIME-LIMITED DEMAND” language (12-point font or larger) on the first page.
- Date and location of the loss.
- The claim number (if known).
- A description of all known injuries.
- The liability theory against the tortfeasor (or each tortfeasor if multiple).
- Disclosure of Medicare/Medicaid or other applicable liens or assignments.

  • Include, if available:
    • Medical records and bills from injury date to the demand date.
    • Earnings/compensation records if lost wage is claimed.

Nonmaterial Terms and Negotiation (Sections 15-1-350(C) and (D))

  • Any additional terms not listed in (B) are deemed nonmaterial if clearly designated as “Additional Terms Pursuant to South Carolina Code Section 15-1-350(C).”
  • Before the expiration of the time limit, parties may negotiate nonmaterial terms (e.g., exact release terms, how liens/subrogation will be satisfied, whether to release related but non-possessed tort claims, inclusion of additional parties). Negotiation of nonmaterial terms does not count as a rejection or counteroffer.

Acceptance Window and Clarifications (Sections 15-1-350(E) and (F))

  • The recipient has at least 30 days to accept the demand after receipt.
  • The insurer or representative may request clarification of material or nonmaterial terms without it constituting a rejection or counteroffer; the time limit is extended by at least 30 days (or 15 days after clarification is received), whichever is greater.

Payment and Settlement Mechanics (Section 15-1-350(G))

  • Upon acceptance or court-approval of settlement, the paying party must deliver payment within 10 business days (or as agreed).
  • Acceptable payment methods include cash, money order, wire transfer, cashier’s/check, draft/bank check from insurer, or electronic transfer.

Relevance to Litigation and Extracontractual Damages (Section 15-1-350(H))

  • A time-limited demand that does not strictly comply with the statute cannot be used as a “reasonable opportunity to settle” for insurer purposes and is not admissible in lawsuits alleging extracontractual damages against the tortfeasor’s liability insurer.

Effective Date

  • Takes effect upon approval by the Governor.

Procedural History (Key Points)

  • Precedence: Referred to Judiciary, amended in committee, reported favorable with amendment, and advanced through readings and third-time consideration in 2026.
  • Sponsors: Primary sponsor Henderson-Myers; co-sponsors Cody Mitchell and Weston Newton.

Potential Impact

  • Creates a standardized, document-heavy process for early settlement offers in tort cases.
  • Aims to improve transparency by requiring detailed disclosures (injuries, liens, damages, liability theory) and formal labeling.
  • Could influence negotiation dynamics by clearly delineating nonmaterial terms and extending time for clarifications.
  • May affect cases involving extracontractual damages by limiting or excluding noncompliant time-limited demands from evidence in such lawsuits.
  • Requires insurers to manage settlement communications under a defined protocol (certified/overnight delivery, specific contents, and timelines).

Compiled from official sources — confirm details with the bill’s official record.

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