SC H4733

Creates the "Bad Faith Presumption in Insurance Settlement Offer Act" establishing a rebuttable presumption of bad faith when an insurer refuses to settle a claim within policy limits after the claimant, defendant, and their attorneys have all agreed to settle

Triggers the presumption when three conditions are met: a settlement agreement is signed by all parties agreeing to resolve within policy limits, the insurer refuses to accept after being notified, and a subsequent judgment or arbitration award exceeds policy limits

Allows insurers to rebut the presumption by showing reasonable grounds for refusal, such as existence of a material legal defense, exposure to greater liability than anticipated, or information not reasonably available at the time

Makes insurers liable for additional damages, interest, and attorney's fees under existing state bad-faith law if the presumption is not rebutted

Permits settlement agreements to be admitted as evidence only in subsequent bad-faith actions against the insurer, not in the underlying liability case