The Supreme Court Of South Carolina Adopts The Post-Loss Exception

• Published date: 18 August 2022
• Subject Matter: Insurance, Insurance Laws and Products
• Law Firm: Womble Bond Dickinson
• Author: Mr Ryan D. Ellard

In PCS Nitrogen, Inc. v. Cont'l Cas. Co., 436 S.C. 254, 871 S.E.2d 590 (2022), the Supreme Court of South Carolina formally adopted the 'post-loss exception' - a common law rule providing that insurer consent is not required for an assignment of insurance benefits made after a loss has occurred. The case involved a series of primary and excess liability policies insuring a fertilizer manufacturing plant in Charleston from 1966-1985. The plant and its assets were sold in 1986. The transaction included an assignment of rights under the primary and excess policies, despite the fact that the policies included the following Consent-to-Assignment provision: 'Assignment of interest under this policy shall not bind the company until its consent is endorsed hereon.' The policies also...