Litigation Funding, Other New Laws in SE States Could Impact Liability Insurance
New laws in Southeastern states took effect this week, impacting several aspects of property and casualty insurance.
In Georgia, Senate Bill 69 puts new restrictions on third-party litigation financing, a lawsuit funding practice that has raised growing concerns for insurers. The bill, signed into law in early 2025, now requires financiers to register with the state Department of Banking and Finance and to provide information about principals and affiliations with foreign interests.
It also bars funders from making legal decisions about attorney representation, settlements and expert witnesses, and requires disclosure in discovery of litigation financing agreements, the National Law Review reported. The bill text can be seen here.
The bill also added something that could affect auto insurers.
The use of seat belts may be considered in lawsuits but “the failure of an occupant of a motor vehicle to wear a seat safety belt in any seat of a motor vehicle which has a seat safety belt or belts shall not be any basis for a cancellation of insurance coverage or an increase in insurance rate,” the law reads.
Another new law requires that manufacturers’ warranties for air-conditioning and heating systems transfer to the new owner of a home. It also bars manufacturers from requiring consumers to register their products for the warranty to be valid, according to news reports.
In Florida, Senate Bill 655, signed into law in April, requires pet insurance providers to do a better job of explaining policies, coverage and the basis for claims denials. The bill’s text is here.
Dexter’s Law, the result of House Bill 255, requires the Florida Department of Law Enforcement to post a searchable list of people convicted of or pleaded guilty to animal cruelty. The law could make it easier to show a pattern of neglect in dog-attack lawsuits and insurance coverage.
In South Carolina, long-awaited but still-controversial changes to the state’s liquor liability law took effect Jan. 1. Since 2018, state law had required $1 million in liquor liability coverage for most bars and restaurants, a requirement that led to huge insurance premiums and reportedly drove many establishments out of business.
The new law lowers the coverage requirement for most places where alcohol is less than 40% of total sales. It also limits liability for businesses found to be less than 50% at fault. The law allows establishments to lower their liquor liability coverage by requiring only an aggregate limit of $1 million, and if the bars and restaurants stop selling booze at midnight, provide training to servers, and other measures.
Read more about the law here. A version of a bill aimed at broader “joint-and-several” liability changes failed to pass in 2025.