S 0858 General Bill, By Bryan and Washington
 A Bill to amend Section 56-9-550, Code of Laws of South Carolina, 1976,
 relating to certificates of insurance as proof of meeting the requirements of
 the Motor Vehicle Financial Responsibility Act, so as to provide that these
 insurance policies must be written for a minimum term of one year rather than
 six months.

   09/27/93  Senate Prefiled
   09/27/93  Senate Referred to Committee on Transportation
   01/11/94  Senate Introduced and read first time SJ-21
   01/11/94  Senate Referred to Committee on Transportation SJ-21

A BILL

TO AMEND SECTION 56-9-550, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CERTIFICATES OF INSURANCE AS PROOF OF MEETING THE REQUIREMENTS OF THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT, SO AS TO PROVIDE THAT THESE INSURANCE POLICIES MUST BE WRITTEN FOR A MINIMUM TERM OF ONE YEAR RATHER THAN SIX MONTHS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 56-9-550 of the 1976 Code is amended to read:

"Section 56-9-550. Proof of financial responsibility may be furnished by filing with the department Department of Revenue and Taxation the written certificate or notice by magnetic or electronic media in a manner satisfactory to the department Department of Revenue and Taxation of any insurance carrier authorized to do business in this State certifying that there is in effect a motor vehicle liability policy for the benefit of the person required to furnish proof of financial responsibility. The certificate or notice shall give the date of the motor vehicle liability policy, which must be the same as the effective date of the certificate or notice and shall designate by explicit description or by appropriate reference all motor vehicles covered, unless the policy is issued to a person who is not the owner of a motor vehicle. The policy must be written for a minimum term of six months one year. A and the certificate or notice of insurance shall remain in full force and effect for a period of at least ninety days one year. unless the certificate or notice is canceled by the insurance company for some reason other than nonpayment of premium. Should a certificate or notice of insurance be canceled after ninety days for nonpayment of premium, the insurance company issuing the certificate or notice immediately shall notify the department that the reason for cancellation is for nonpayment of premium. Should a certificate or notice of insurance be canceled for any reason other than for nonpayment of premium, the insurance company issuing the certificate or notice immediately shall notify the department that the cancellation is not for nonpayment of premium. The department Department of Revenue and Taxation may refuse acceptance of the certificate or notice of insurance required under this section if the certificate or notice is filed:

(1) by an agent or company found to be in violation of any of the provisions of this chapter; or

(2) for a person who previously has had a certificate or notice canceled for nonpayment of premium, unless the policy under which the certificate or notice is issued is certified to be noncancellable for a period of one year for nonpayment of premium. No motor vehicle may be or may continue to be registered in the name of a person required to file proof of financial responsibility unless the motor vehicle is designated in the certificate or notice."

SECTION 2. This act takes effect upon approval by the Governor.