Hurricane Florence: South Carolina Claim Guidelines
With the Imminent Arrival of Hurricane Florence in South Carolina, Insurers Should Keep in Mind the Following Requirements Contained in the South Carolina Insurance Code:
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Acknowledge pertinent claims communications with “reasonably promptness.” S.C. Code Ann. §38-59-20(2)
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If the Policy requires the submission of a proof of loss, a blank form must be provided within 20 days of the receipt of the claim. S.C. Code Ann. §38-59-10
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“Promptly” settle claims where liability has become reasonably clear. S.C. Code Ann. §38-59-20(4)
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Avoid unreasonable delay in the payment of claims. S.C. Code Ann. §38-59-20(8)
Some Additional Issues to Consider:
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A reservation of rights should be issued as appropriate. Be cognizant of Harleysville Group Ins. v. Heritage Communities, Inc. 420 S.C. 321 (S.C. 2017) which requires that any reservation of rights letter be specific and unambiguous on the basis for the reservation of rights. A boiler plate reservation of rights letter simply cutting and pasting policy provisions without specific factual application may later be deemed to have failed to preserve coverage defenses.
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Civil Authority – Mandatory evacuations have been issued in advance of Florence.
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Service Interruption – Power and telephone/cell service may be disrupted.
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Sue and Labor – Businesses may shut down operations in advance.
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Adjuster licensing- South Carolina requires that all adjusters and public adjusters to be licensed in South Carolina. S.C. Code Ann. §38-47-10; S.C. Code Ann. §38-48-20. However, on September 11, 2018, the South Carolina Department of Insurance issued a bulletin pursuant to S.C. Code Ann. Regs. § 69-1 that permits the emergency licensing of adjusters in the event of a catastrophe. The bulletin contains information on how to apply and extended the application of the bulletin for 120 days.
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Flood hazard zone areas—Areas identified on the Flood Insurance Rate Map can change so be aware of applicable policy limits by hazard zone.
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Flood and Wind sublimits and/or deductibles.
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Definition of “occurrence” (in case of stalled storm)
