H*4889(Rat #0380, Act #0315 of 2006)  General Bill, By Bingham, Perry, Bales, 
G. Brown, Cato, Chellis, Dantzler, Ott, Sandifer, J.E. Smith, Thompson and 
Tripp
 AN ACT TO AMEND SECTION 56-10-280, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE MINIMUM DURATION OF INSURANCE ISSUED TO MEET MOTOR VEHICLE
 FINANCIAL RESPONSIBILITY REQUIREMENTS, SO AS TO AUTHORIZE THE CANCELLATION OF
 A CONTRACT OR INSURANCE POLICY IF THE INSURED FAILS TO PAY THE PREMIUM FOR THE
 POLICY OR AN INSTALLMENT OF THE PREMIUM WHEN IT IS DUE AND TO PROVIDE A TIME
 PERIOD FOR WHICH THE CONTRACT OR POLICY OF INSURANCE MUST REMAIN IN EFFECT. -
 ratified title

   03/23/06  House  Introduced and read first time HJ-15
   03/23/06  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-16
   05/03/06  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-9
   05/09/06  House  Amended HJ-37
   05/09/06  House  Read second time HJ-38
   05/10/06  House  Read third time and sent to Senate HJ-23
   05/16/06  Senate Introduced and read first time SJ-14
   05/16/06  Senate Referred to Committee on Banking and Insurance SJ-14
   05/18/06  Senate Committee report: Favorable Banking and Insurance SJ-36
   05/25/06  Senate Read second time SJ-15
   05/25/06  Senate Unanimous consent for third reading on next
                     legislative day SJ-15
   05/26/06  Senate Read third time and enrolled SJ-2
   05/31/06         Ratified R 380
   06/01/06         Signed By Governor
   06/06/06         Copies available
   06/06/06         Effective date 08/01/06
   06/08/06         Act No. 315

(A315, R380, H4889)

AN ACT TO AMEND SECTION 56-10-280, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MINIMUM DURATION OF INSURANCE ISSUED TO MEET MOTOR VEHICLE FINANCIAL RESPONSIBILITY REQUIREMENTS, SO AS TO AUTHORIZE THE CANCELLATION OF A CONTRACT OR INSURANCE POLICY IF THE INSURED FAILS TO PAY THE PREMIUM FOR THE POLICY OR AN INSTALLMENT OF THE PREMIUM WHEN IT IS DUE AND TO PROVIDE A TIME PERIOD FOR WHICH THE CONTRACT OR POLICY OF INSURANCE MUST REMAIN IN EFFECT.

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

Motor vehicle insurance, cancellation

SECTION    1.    Section 56-10-280(A) of the 1976 Code is amended to read:

"(A)    Contracts or policies of insurance issued to meet the financial responsibility requirements prescribed in this chapter must be issued for not less than six months. A contract or policy of insurance remains in effect at least sixty days notwithstanding a power of attorney which may purport to give the attorney-in-fact the right to effect cancellation on behalf of the insured. However, a contract or policy may be canceled within the first sixty days only under one or more of the following circumstances:

(1)    a check or bank draft tendered by the insured for payment to an agent, an insurance company, or a premium finance company is returned unpaid for insufficient funds or other reason by the insured's financial institution. If the check or draft is an initial payment made by an applicant for insurance or a payment made by an insured to renew a policy, the cancellation is effective as of the policy inception or renewal date;

(2)    the insured produces satisfactory proof from the Department of Motor Vehicles that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration;

(3)    the insured has secured another policy that meets the financial responsibility requirements prescribed in this chapter;

(4)    the insured fails to pay when due the premium for the policy, an installment of the premium, or an installment payment under a premium service contract. The contract or policy of insurance must remain in effect for at least thirty days."

Time effective

SECTION    2.    Upon approval by the Governor, this act takes effect August 1, 2006.

Ratified the 31st day of May, 2006.

Approved the 1st day of June, 2006.