H 3028 General Bill, By J.J. Bailey
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 56-10-242 so as to provide the insurance requirements for a motor vehicle that
 is not driven because it is being restored and penalties for violations; and
 to amend Section 38-77-120, relating to the requirements for notice of
 cancellation of or refusal to renew an automobile insurance policy, so as to
 require notice of the range of potential penalties regarding the Financial
 Responsibility Law.

   01/12/93  House  Introduced and read first time HJ-25
   01/12/93  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-25
   02/02/93  House  Tabled in committee

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-10-242 SO AS TO PROVIDE THE INSURANCE REQUIREMENTS FOR A MOTOR VEHICLE THAT IS NOT DRIVEN BECAUSE IT IS BEING RESTORED AND PENALTIES FOR VIOLATIONS; AND TO AMEND SECTION 38-77-120, RELATING TO THE REQUIREMENTS FOR NOTICE OF CANCELLATION OF OR REFUSAL TO RENEW AN AUTOMOBILE INSURANCE POLICY, SO AS TO REQUIRE NOTICE OF THE RANGE OF POTENTIAL PENALTIES REGARDING THE FINANCIAL RESPONSIBILITY LAW.

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

SECTION 1. The 1976 Code is amended by adding:

"Section 56-10-242. (A) A motor vehicle that is not driven because it is being restored is not required to have liability insurance upon it. The tags of the motor vehicle need not be turned in to the department because there is no insurance. The owner of a motor vehicle that is being restored shall verify under oath in writing that fact to the department upon request.

(B) An individual who drives a motor vehicle which has no liability insurance in accordance with this section and who knows the vehicle has no liability insurance is guilty of a misdemeanor and, upon conviction, must be punished as follows:

(1) first offense: fined not less than one hundred nor more than two hundred dollars or imprisoned thirty days;

(2) second offense: fined not less than two hundred nor more than five hundred dollars or imprisoned not more than thirty days;

(3) subsequent offense: fined not less than five hundred nor more than one thousand dollars or imprisoned not more than thirty days, or both.

(C) Only convictions which have occurred within the ten years immediately preceding the date of the latest conviction constitute prior convictions within the meaning of this section.

(D) An individual who verifies falsely under oath that a motor vehicle is being restored is guilty of perjury and must be punished accordingly."

SECTION 2. Section 38-77-120 of the 1976 Code is amended to read:

"Section 38-77-120. (a)(A) No cancellation or refusal to renew by an insurer of a policy of automobile insurance is effective unless the insurer delivers or mails, to the named insured at the address shown in the policy, a written notice of the cancellation or refusal to renew. This notice must:

(1) Must be approved as to form by the commissioner prior to before use.;

(2) Shall state the date not less than fifteen days after the date of the mailing or delivering on which the cancellation or refusal to renew becomes effective.;

(3) Shall state the specific reason or reasons of the insurer for cancellation or refusal to renew.;

(4) state the range of potential penalties to be paid to the state by individuals who fail to comply with the financial responsibility law.

(b)(B) Subsection (a) of this section (A) does not apply if the:

(1) If the insurer has manifested to the insured its willingness to renew by actually issuing or offering to the insured to issue a renewal policy, certificate, or other evidence of renewal, or has manifested such that intention to the insured by any other means.;

(2) If the named insured has demonstrated by some overt action to the insurer or its agent that he expressly intends that the policy be canceled or that it not be renewed."

SECTION 3. Section 1 of this act takes effect July 1, 1991. Section 2 takes effect upon approval by the Governor and applies to notices made at least one hundred eighty days after approval by the Governor.