H 3157 Session 111 (1995-1996)
H 3157 General Bill, By J.L.M. Cromer, Inabinett and Lloyd
A Bill to amend Title 56, Code of Laws of South Carolina, 1976, relating to
motor vehicles, by adding Chapter 2 so as to enact provisions for the
registration and licensing of uninsured motor vehicles, including provisions
for an "uninsured motorist fund", and by adding Chapter 4 so as to enact the
"Motor Vehicle Safety Responsibility Act", including provisions covering
administration and enforcement, security following an accident, proof of
financial responsibility for the future, motor vehicle liability policies, and
assignment of insurance risks; and to repeal Articles 1 and 5, Chapter 77,
Title 38, relating to automobile insurance, purposes and definitions, and the
reinsurance facility and designated producers, Chapter 9, Title 56, relating
to the Motor Vehicle Financial Responsibility Act, and Chapter 10, Title 56,
relating to motor vehicle registration and financial security.
12/21/94 House Prefiled
12/21/94 House Referred to Committee on Labor, Commerce and Industry
01/10/95 House Introduced and read first time HJ-55
01/10/95 House Referred to Committee on Labor, Commerce and
Industry HJ-55
A BILL
TO AMEND TITLE 56, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO MOTOR VEHICLES, BY
ADDING CHAPTER 2 SO AS TO ENACT PROVISIONS FOR
THE REGISTRATION AND LICENSING OF UNINSURED
MOTOR VEHICLES, INCLUDING PROVISIONS FOR AN
"UNINSURED MOTORISTS FUND", AND BY
ADDING CHAPTER 4 SO AS TO ENACT THE "MOTOR
VEHICLE SAFETY RESPONSIBILITY ACT", INCLUDING
PROVISIONS COVERING ADMINISTRATION AND
ENFORCEMENT, SECURITY FOLLOWING AN ACCIDENT,
PROOF OF FINANCIAL RESPONSIBILITY FOR THE FUTURE,
MOTOR VEHICLE LIABILITY POLICIES, AND ASSIGNMENT
OF INSURANCE RISKS; AND TO REPEAL ARTICLES 1 AND
5, CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE
INSURANCE, PURPOSES AND DEFINITIONS, AND THE
REINSURANCE FACILITY AND DESIGNATED PRODUCERS,
CHAPTER 9, TITLE 56, RELATING TO THE MOTOR
VEHICLE FINANCIAL RESPONSIBILITY ACT, AND
CHAPTER 10, TITLE 56, RELATING TO MOTOR VEHICLE
REGISTRATION AND FINANCIAL SECURITY.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 56 of the 1976 Code is amended by adding:
"CHAPTER 2
Registration and Licensing of
Uninsured Motor Vehicles
Section 56-2-10. As used in this chapter:
(1) `Conviction' also includes the entry of any plea of guilty or
nolo contendere and the forfeiture of any bail or collateral deposited
to secure a defendant's appearance.
(2) `Insured motor vehicle' is a motor vehicle as to which (a)
there is bodily injury liability insurance and property damage
liability insurance, both in the amounts specified in Section
56-4-830, issued by an insurer authorized to do business in this
State, (b) a bond has been given or cash or securities delivered in
lieu of the insurance, or (c) the owner has qualified as a self-insurer
in accordance with the provisions of Section 56-4-90; and
(3) `Uninsured motor vehicle' is a motor vehicle required to be
registered as to which (a) there is no bodily injury liability
insurance and property damage liability insurance, (b) no bond has
been given or cash or securities delivered in lieu thereof, or (c) the
owner has not qualified as a self-insurer.
Section 56-2-20. In addition to any other fees prescribed by law,
every person registering and licensing an uninsured motor vehicle,
as defined in Section 56-2-10, in this State shall pay, at the time of
registering and licensing an uninsured motor vehicle, a sum equal to
the average cost of a minimum limits automobile liability insurance
policy in the State of South Carolina. Credit for payment made on
a motor vehicle subsequently transferred during the same licensing
year must be applied to any motor vehicle thereafter registered by
the uninsured motorist during the same licensing year.
Section 56-2-30. The Department of Revenue and Taxation may
require that a person applying for licensing and registration of a
motor vehicle shall certify under the penalties set forth in Section
56-2-110 whether or not each motor vehicle is an insured motor
vehicle as defined in Section 56-2-10, or the department may in its
discretion require that a person (a) produce as evidence of financial
responsibility a certificate on a form prescribed by the department
of insurance or self-insurance complying with the requirements of
Section 56-4-90, (b) has given bond or delivered the cash or
securities as provided in Sections 56-4-660 and 56-4-670,
respectively, or (c) pay the fee prescribed in Section 56-2-20.
Section 56-2-40. Upon the termination of insurance by
cancellation or failure to renew, notice of the cancellation or other
termination must be filed by the insurer with the department not
later than five days following the effective date of the cancellation
or other termination.
Section 56-2-50. The department shall, upon receipt of the notice
of cancellation or termination provided for in Section 56-2-40,
revoke the certificate of registration and license plates of the motor
vehicle with respect to which the policy was in force, unless the
owner either gives evidence that the vehicle is an insured vehicle in
the manner provided in Section 56-2-30 or pays the fee provided in
Section 56-2-20.
Section 56-2-60. All funds collected by the department under the
provisions of this chapter must be deposited to the credit of the
State Treasurer and monthly transferred to a special deposit fund to
be known as the `Uninsured Motorists Fund' to be disbursed as
provided in Section 56-2-70 to 56-2-90.
Section 56-2-70. The Uninsured Motorists Fund, referred to in
this chapter as the Fund, shall be under the supervision and control
of the Director of the Department of Insurance. Payments from the
Fund shall be made on warrants of the Comptroller General issued
on vouchers signed by a person designated by the Director of the
Department of Insurance.
Section 56-2-80. The purpose of the Fund is to reduce the cost of
the insurance required by Chapter 4 of Title 56. The Director of
the Department of Insurance shall distribute monies annually from
the Fund among the several insurers writing motor vehicle bodily
injury and property damage liability insurance on motor vehicles
registered in this State. Monies shall be distributed in the
proportion that each insurer's premium income for the basic
uninsured motorists limits coverage bears to the total premium
income for basic uninsured motorists limits coverage written in this
State during the preceding year. Premium income shall be gross
premiums less cancellation and return premiums for coverage
required of Chapter 4 of Title 56.
Section 56-2-90. Only insurers that maintain records satisfactory
to the Director of the Department of Insurance shall receive any
payment from the Fund. Records shall be considered satisfactory if
they adequately disclose the loss experience for the coverage
required by Chapter 4 of Title 56.
Section 56-2-100. The Director of the Department of Insurance
may promulgate regulations necessary to implement the provisions
of this chapter.
Section 56-2-110. A person who knowingly makes a false
certificate as to whether a motor vehicle is an insured motor vehicle
or gives to the Department of Revenue and Taxation false evidence
that any motor vehicle sought to be registered is insured is guilty of
a misdemeanor and, upon conviction, must be fined not less than
five hundred dollars or imprisoned for ninety days. The department
shall deny, for six months, registration of any motor vehicle for
which a false certificate or false evidence is presented to the effect
that the vehicle is insured and shall revoke, and may not thereafter
reissue for six months, the driver's license of a person making a
false certificate or offering false evidence as specified in this
section.
Section 56-2-120. This chapter does not repeal any other
provision contained in this title, but is cumulative to such other
provisions."
SECTION 2. Title 56 of the 1976 Code is amended by adding:
"CHAPTER 4
Motor Vehicle Safety Responsibility Act
Article 1
General Provisions
Section 56-4-10. This chapter may be cited as the `Motor Vehicle
Safety Responsibility Act'.
Section 56-4-20. As used in this chapter:
( 1) `Conviction' also includes the entry of any plea of guilty or
nolo contendere and the forfeiture of bail or collateral deposited to
secure a defendant's appearance in court.
( 2) `Department' means the Department of Revenue and
Taxation acting directly or through its authorized officers and
agents.
( 3) `Insured motor vehicle' means, except in Article 9 of this
chapter, a motor vehicle as to which there is bodily injury liability
insurance and property damage liability insurance, both in the
amounts required by law, issued by an insurer authorized to do
business in this State, or as to which a bond has been given or cash
or securities delivered in lieu of the insurance or as to which the
owner has qualified as a self-insurer in accordance with the
provisions of Section 56-4-90.
( 4) `Judgment' is any judgment which has become final by
expiration without appeal of the time within which an appeal might
have been perfected or by final affirmance on appeal, rendered by a
court of competent jurisdiction of any state of the United States,
upon a cause of action arising out of the ownership, maintenance,
or use of any motor vehicle, for damages, including damages for
care and loss of service, because of bodily injury to or death of a
person or for damages because of injury to or destruction of
property, including the loss of use thereof, or upon a cause of
action on an agreement for such damages.
( 5) `License' is any license, temporary instruction permit, or
temporary license issued under the laws of this State pertaining to
the licensing of persons to operate vehicles.
( 6) `Motor vehicle' is every self-propelled vehicle which is
designed for use upon a highway, including trailers and semitrailers
designed for use with the vehicles, but excepting traction engines,
road rollers, farm tractors, tractor cranes, power shovels, and well
drillers.
( 7) `Motor vehicle liability policy' is an owner's or an
operator's policy of liability insurance, certified as provided in
Section 56-4-640 or 56-4-650 as proof of financial responsibility
and issued, except as otherwise provided in Section 56-4-650, by an
insurer authorized to transact business in this State, to or for the
benefit of the person named in it as insured.
( 8) `Nonresident' means every person who is not a resident of
this State.
( 9) `Nonresident operating privilege' is the privilege conferred
upon a nonresident by the laws of this State pertaining to the
operation by him of a motor vehicle or the use of a motor vehicle
owned by him in this State.
(10) `Operator' means a person who is in actual physical control
of a motor vehicle, whether or not licensed as an operator or
chauffeur under the laws of this State.
(11) `Owner' is a person who holds the legal title of a motor
vehicle, or, if a motor vehicle is the subject of an agreement for the
conditional sale or lease thereof with the right of purchase upon
performance of the conditions stated in the agreement and with an
immediate right of possession vested in the conditional vendee or
lessee or in the event a mortgagor of a vehicle is entitled to
possession, then the conditional vendee or lessee or mortgagor is
considered the owner for the purposes of this chapter.
(12) `Person' means a natural person, firm, partnership,
association, or corporation.
(13) `Proof of financial responsibility' means proof of ability to
respond in damages for liability on account of accidents occurring
after the effective date of the proof, arising out of the ownership,
maintenance, or use of a motor vehicle, in the amount of fifteen
thousand dollars because of bodily injury to or death of one person
in any one accident and, subject to the limit for one person, in the
amount of thirty thousand dollars because of bodily injury to or
death of two or more persons in any one accident and in the
amount of five thousand dollars because of injury to or destruction
of property of others in any one accident.
(14) `Registration' means registration certificates and registration
or license plates issued under the laws of this State pertaining to the
license and registration of motor vehicles.
(15) `State' means any state, territory, or possession of the
United States, the District of Columbia, or any Canadian province.
(16) `Uninsured motor vehicle' means, except in Article 9 of this
chapter, a motor vehicle as to which there is no bodily injury
liability insurance and property damage liability insurance as
described in item (3) of this section or no bond has been given or
cash or securities delivered in lieu thereof as described in that item
or the owner of which has not qualified as a self-insurer in
accordance with the provisions of Section 56-4-90.
Section 56-4-30. This chapter must be construed to effectuate its
general purpose to make uniform the laws of those states which
enact substantially identical legislation.
Section 56-4-40. This chapter does not apply with respect to any
motor vehicle owned by the United States, this State, or any
political subdivision of this State, nor, except for Section 56-4-310,
56-4-410, and 56-4-680, does it apply with respect to any motor
vehicle which is subject to other laws of this State which require
their owners to carry insurance or to place security in a manner
which would make those owners carry insurance or place security in
addition to the amounts required by this chapter.
Section 56-4-50. This chapter does not affect the rights of any
conditional vendor, chattel mortgagee, or lessor of a motor vehicle
registered in the name of another as owner who becomes subject to
the provisions of this chapter.
Section 56-4-60. This chapter does not prevent the owner of a
motor vehicle, the registration of which has been suspended under
this chapter, from effecting a bona fide sale of the motor vehicle to
another person whose rights or privileges are not suspended under
this chapter nor prevent the registration of the motor vehicle by the
transferee.
Section 56-4-70. Nothing in this chapter may be construed to
prevent the plaintiff in any action at law from relying for relief
upon the other processes provided by law.
Section 56-4-80. This chapter may in no respect be considered as
a repeal of any other provision contained in this title or the motor
vehicle laws of this State but must be construed as supplemental
and cumulative thereto.
Section 56-4-90. A person in whose name more than twenty-five
motor vehicles are registered may qualify as a self-insurer by
obtaining a certificate of self-insurance issued by the department as
provided in this section. The department may, in its discretion,
upon the application of the person, issue a certificate of
self-insurance when it is satisfied that the person is possessed and
will continue to be possessed of ability to pay judgments obtained
against him. Upon not less than five days' notice and a hearing
pursuant to the notice the department may, upon reasonable
grounds, cancel a certificate of self-insurance. Failure to pay any
judgment within thirty days after the judgment becomes final
constitutes a reasonable ground for the cancellation of a certificate
of self-insurance.
Section 56-4-100. A person who forges or, without authority,
signs any notice provided for under Sections 56-4-320 to 56-4-340
that a policy or bond is in effect or any evidence of proof of
financial responsibility, or who files or offers for filing any such
notice or evidence of proof, knowing, or having reason to believe,
that it is forged or signed without authority, is guilty of a
misdemeanor and, upon conviction, must be fined not more than
two thousand dollars or imprisoned not more than two years, or
both.
Section 56-4-120. A person who violates any provision of this
chapter, for which no penalty is otherwise provided, is guilty of a
misdemeanor and, upon conviction, must be fined not more than
five hundred dollars or imprisoned not more than ninety days.
Section 56-4-130. This chapter does not apply to any accident
or judgment arising therefrom or violation of the motor vehicle
laws of this State occurring before January 1, 1997.
Article 3
Administration and Enforcement
Section 56-4-210. The department shall administer and enforce
the provisions of this chapter and may promulgate regulations
necessary for its administration.
Section 56-4-230. The department shall, upon request, furnish a
person a certified abstract of the operating record of a person
subject to the provisions of this chapter, which also fully designates
the motor vehicles, if any, registered in the name of that person. If
there is no record of any conviction of that person for violating any
laws relating to the operation of a motor vehicle or of any injury or
damage caused by that person, the department shall so certify.
These abstracts are not admissible as evidence in any action for
damages or criminal proceedings arising out of a motor vehicle
accident.
Section 56-4-240. A person (1) whose license and registration
has been suspended as provided in this chapter, (2) whose policy of
insurance or bond, when required under this chapter, has been
canceled or terminated, or (3) who has neglected to furnish other
proof upon request of the department shall immediately return his
license and registration to the department. If any person fails to
return to the department his license or registration as provided in
this section, the department may secure its possession by a highway
patrolman.
A person wilfully failing to return his license or registration as
required in this section is guilty of a misdemeanor and, upon
conviction, must be fined three hundred dollars or imprisoned sixty
days.
Section 56-4-250. After consultation with insurers authorized to
issue automobile liability policies in this State, the Director of the
Department of Insurance shall approve a reasonable plan or plans
for the equitable apportionment among the insurers of applicants for
the policies and for motor vehicle liability policies who are in good
faith entitled to the policies but are unable to procure them through
ordinary methods or who desire to obtain coverage under the
provisions of this section. Any plan must include the establishment
of uniform premium rates as to each class of risk, based on the
combined loss experience of all companies who participate in the
Associated Automobile Insurers plan, on their risk experience as a
separate class. All insureds must be insured uniformly within every
classification; there may be no discrimination whatsoever. When
the plan has been approved, all insurance companies shall subscribe
to and participate in it.
If the plan contains a provision that under certain circumstances
the carrying insurer shall offer to renew coverage for one year
under a policy form issued to risks not participating in the
Associated Automobile Insurers plan, subject to the rates, minimum
premiums, and classifications in force for these risks, the insured
may request an agent of his choosing to help complete the
transaction and any subsequent renewals or changes, and the agent
may charge the insured a fee of not more than ten percent of the
premium involved. No fee may be charged if the carrying company
recognizes the agent as producer of record and pays him not less
than ten percent commission.
Article 5
Security Following Accident
Section 56-4-310. The driver of a vehicle involved in an
accident resulting in injury to or death of any person or total
property damage to an apparent extent of two hundred dollars or
more, within five days after the accident, shall forward a written
report of the accident to the department as required by law. The
report must contain information to enable the department to
determine whether the requirements for the deposit of security
under Section 56-4-320 are inapplicable by reason of the existence
of insurance or other exceptions specified in this chapter.
Section 56-4-320. The department upon receipt of a report of a
motor vehicle accident in this State which has resulted in bodily
injury or death or damage to the property of any one person in
excess of two hundred dollars shall, within sixty days after the
receipt, suspend the license of each operator or driver and all
registrations of each owner of a motor vehicle involved in the
accident and, if the operator or driver is a nonresident, the privilege
of operating a motor vehicle in this State and the privilege of the
use within this State of any motor vehicle owned by him, unless:
(1) the operator, driver, or owner, or both, deposits security in a
sum not less than two hundred dollars or an additional amount as
the department specifies that is sufficient to satisfy any judgment
that may be recovered for damages resulting from the accident
which may be recovered against the operator or owner and (2) the
owner and operator shall immediately give and thereafter maintain
proof of financial responsibility on all motor vehicles owned or
operated by them. Notice of the suspension must be sent by the
department to the operator and owner at least ten days before the
effective date of the suspension and must state the amount required
as security.
Section 56-4-330. Section 56-4-320 does not apply to any of
the following:
(1) to the operator or owner if the owner had in effect at the
time of the accident an automobile liability policy with respect to
the motor vehicle involved in the accident;
(2) to the operator, if not the owner of the motor vehicle, if
there was in effect at the time of the accident an automobile
liability policy or bond with respect to his operation of motor
vehicles not owned by him;
(3) to the operator or owner if the liability of the operator or
owner for damages resulting from the accident is, in the judgment
of the department, covered by any other form of liability insurance
policy or bond;
(4) to any person qualifying as a self-insurer under Section
56-4-90;
(5) to the operator or owner of a motor vehicle involved in an
accident in which no injury or damage was caused to the person or
property of anyone other than the owner or operator;
(6) to the owner of a motor vehicle if at the time of the accident
the vehicle was being operated without his permission, express or
implied, or was parked by a person who had been operating the
motor vehicle without his permission, express or implied;
(7) if, before the date that the department would otherwise
suspend the license and registration or nonresident's operating
privilege under Section 56-4-320, there must be filed with the
department evidence satisfactory to it that the person who would
otherwise have to file security (a) has been released from liability,
(b) has been finally adjudicated not to be liable, (c) has executed a
warrant for confession of judgment, payable when and in
installments the parties have agreed to, or (d) has executed a duly
acknowledged written agreement, providing for the payment of an
agreed amount in installments, with respect to all claims for injuries
or damages resulting from the accident; or
(8) to the owner of any legally parked vehicle when struck by
another vehicle.
Section 56-4-340. No policy or bond is effective under Sections
56-4-320 and 56-4-330 unless issued by an insurer or surety
company authorized to do business in this State, except that if the
motor vehicle was not registered in this State or was a motor
vehicle which was registered elsewhere than in this State at the
effective date of the policy or bond or the most recent renewal
thereof, the policy or bond is not effective under Sections 56-4-320
and 56-4-330 unless the insurer or surety company, if not
authorized to do business in this State, executes a power of attorney
authorizing the department to accept service on its behalf of notice
or process in any action upon the policy or bond arising out of the
accident. Every policy or bond must be subject, if the accident has
resulted in bodily injury or death, to a limit, exclusive of interest
and costs, of not less than fifteen thousand dollars because of bodily
injury to or death of one person in any one accident and, subject to
this limit for one person, to a limit of not less than thirty thousand
dollars because of bodily injury to or death of two or more persons
in any one accident and, if the accident has resulted in injury to or
destruction of property, to a limit of not less than five thousand
dollars because of injury to or destruction of property of others in
any one accident.
Section 56-4-350. The license and registration and nonresident's
operating privilege suspended as provided in Section 56-4-320
must, except as otherwise provided in Section 56-4-410, remain
suspended and may not be renewed, nor may any license or
registration be issued to him, until:
(1) he deposits, or there is deposited on his behalf, the security
required under Section 56-4-320;
(2) two years have elapsed following the date of the accident
and evidence satisfactory to the department has been filed with it
that during that period no action for damages arising out of the
accident has been instituted; or
(3) evidence satisfactory to the department has been filed with it
of a release from liability, a final adjudication of nonliability, a
warrant for confession of judgment, or a duly acknowledged written
agreement, in accordance with Section 56-4-330(7). If there is any
default in the payment of any installment under any confession of
judgment, then, upon notice of default, the department shall suspend
the license and registration or nonresident's operating privilege of
the person defaulting, which may not be restored until the entire
amount provided for in confession of judgment has been paid. If
there is any default in the payment of any installment under any
acknowledged written agreement, then, upon notice of default, the
department shall suspend the license and registration or
nonresident's operating privilege of the person defaulting, which
may not be restored until (a) he deposits and thereafter maintains
security as required under Section 56-4-320 in the amount the
department determines or (b) two years have elapsed following the
date when the security was required and during that period no
action upon the agreement has been instituted in a court in this
State.
Section 56-4-360. If the driver or the owner of a vehicle of a
type subject to registration under the laws of this State, involved in
an accident within this State, has no license or registration in this
State, the driver is not allowed a license nor is an owner allowed to
register any vehicle in this State until he has complied with the
requirements of this article to the same extent that would be
necessary if at the time of the accident he had held a license or
been the owner of a vehicle registered in this State.
Section 56-4-370. When a nonresident's operating privilege is
suspended pursuant to Sections 56-4-320 or 56-4-350, the
department shall transmit a certified copy of the record of the action
to the official in charge of the issuance of licenses and registration
certificates in the state in which the nonresident resides, if the law
of the other state provides for action in relation thereto similar to
that provided for under the laws of this State.
Section 56-4-380. Upon receipt of the certification that the
operating privilege of a resident of this State has been suspended or
revoked in the other state pursuant to a law providing for its
suspension or revocation for failure to deposit security for the
payment of judgments arising out of a motor vehicle accident under
circumstances which would require the department to suspend a
nonresident's operating privilege had the accident occurred in this
State, the department shall suspend the license of the resident if he
was the driver and all of his registrations if he was the owner of a
motor vehicle involved in the accident. This suspension continues
until the resident furnishes evidence of compliance with the law of
the other state relating to the deposit of the security.
Section 56-4-390. The security required under this article must
be in the form and in the amount that the department requires but in
no case in excess of the limits specified in Section 56-4-340 in
reference to the acceptable limits of a policy or bond. The person
depositing security shall specify in writing the person on whose
behalf the deposit is made and, at any time while the deposit is in
the custody of the department or State Treasurer, the person
depositing it may, in writing, amend the specifications of the
persons on whose behalf the deposit is made to include additional
persons; but a single deposit of security is applicable only on behalf
of persons required to furnish security because of the same accident.
Section 56-4-400. The department may at any time reduce the
amount of security ordered in any case if, in its judgment, the
amount ordered is excessive. In case the security originally ordered
has been deposited, the excess deposited over the reduced amount
ordered must be returned to the depositor or his personal
representative, notwithstanding the provisions of Section 56-4-410.
In no case may the department reduce the amount of security to a
sum less than two hundred dollars.
Section 56-4-410. Security deposited in compliance with the
requirements of this article must be placed by the department in the
custody of the State Treasurer and is applicable only to the payment
of judgments rendered against the persons on whose behalf the
deposit was made for damages arising out of the accident in
question in an action at law begun not later than two years after the
date of the accident or within two years after the date of deposit of
any security under Section 56-4-350(3), and this deposit or any
balance must be returned to the depositor or his personal
representative when evidence satisfactory to the department has
been filed with it that there has been a release from liability, a final
adjudication of nonliability, a warrant for confession of judgment,
or a duly acknowledged agreement, in accordance with Section
56-4-330(7), or when, after the expiration of two years from the
date of the accident or within two years after the date of deposit of
any security under Section 56-4-350(3), the department is given
reasonable evidence that there is no action pending and no judgment
rendered in the action left unpaid.
Section 56-4-420. When any person whose license would
otherwise have been suspended for failure to deposit security
required pursuant to this article is, or later becomes, an operator in
the employ of another owner, the department may in its discretion,
notwithstanding any provisions in this chapter to the contrary, allow
the person to retain his license to operate a vehicle of another
owner, in the pursuit of the employment, if the employer-owner of
the vehicle has furnished proof of financial responsibility covering
the operation of any vehicle which the person may be permitted to
operate. The department shall designate the restrictions imposed
pursuant to this section on that person's license.
Section 56-4-430. Neither the action taken by the department
pursuant to this article, the findings, if any, of the department upon
which action is based, nor the security filed as provided in this
article may be referred to in any way or be any evidence of the
negligence or due care of either party at the trial of any action at
law to recover damages.
Article 7
Proof of Financial Responsibility
for the Future
Section 56-4-510. When any person fails within sixty days to
satisfy any judgment, it is the duty of the clerk of court, or of the
judge of a court which has no clerk, in which any judgment is
rendered within this State to forward to the department immediately
after the expiration of sixty days a certified copy of the judgment.
Section 56-4-520. If the defendant named in any certified copy
of a judgment reported to the department is a nonresident, the
department shall transmit a certified copy of the judgment to the
official in charge of the issuance of licenses and registration
certificates of the state of which the defendant is resident.
Section 56-4-530. The department, upon receipt of a certified
copy of judgment, shall suspend the license and registration and any
nonresident's operating privilege of any person against whom the
judgment was rendered, except as otherwise provided in Sections
56-4-540 to 56-4-560 and 56-4-590.
Section 56-4-540. If the judgment creditor consents in writing,
in the form which the department may prescribe, that the judgment
debtor is allowed license and registration or nonresident's operating
privilege, this may be allowed by the department for six months
from the date of the consent and thereafter until the consent is
revoked in writing, notwithstanding default in the payment of the
judgment or any installment thereof prescribed in Section 56-4-590
if the judgment debtor furnishes proof of financial responsibility.
Section 56-4-550. A person whose license, registration, or
nonresident's operating privilege has been suspended or is about to
be suspended or becomes subject to suspension under the provisions
of this article may be relieved from the effect of the judgment as
prescribed in this article by filing with the department an affidavit
stating that at the time of the accident upon which the judgment has
been rendered the affiant was insured, that the insurer is liable to
pay the judgment, and the reason, if known, why the insurance
company has not paid the judgment. He shall also file the original
policy of insurance or a certified copy thereof, if available, and
other documents which the department may require to show that the
loss, injury, or damage for which the judgment was rendered was
covered by the policy of insurance. If the department is satisfied
from these papers that the insurer was authorized to issue the policy
of insurance at the time and place of issuing the policy and that the
insurer is liable to pay the judgment, at least to the extent and for
the amounts required in this chapter, the department shall not
suspend the license or registration or nonresident's operating
privilege or, if already suspended, shall reinstate them.
Section 56-4-560. Whenever a person whose license would
otherwise have been suspended for failure to satisfy a judgment as
provided in Section 56-4-530 is, or later becomes, an operator in
the employ of another owner, the department may, in its discretion,
notwithstanding any provisions in this chapter to the contrary, allow
the person to retain his license to operate a vehicle of another
owner in the pursuit of the employment, if the employer-owner of
the vehicle has furnished proof of financial responsibility covering
the operation of any vehicle which the person may be permitted to
operate. The department shall designate the restrictions imposed
pursuant to this section on that person's license.
Section 56-4-570. The license, registration, and nonresident's
operating privilege, except as otherwise provided in Section
56-4-560, shall remain suspended and may not be renewed nor may
any license or registration be thereafter issued in the name of that
person, including that person if not previously licensed until every
judgment is satisfied in full or to the extent provided in Section
56-4-580 and until the person gives proof of financial
responsibility, subject to the exemptions stated in Sections 56-4-540
to 56-4-560 and 56-4-590.
A discharge in bankruptcy following the rendering of any
judgment does not relieve the judgment debtor from any of the
requirements of this article.
Section 56-4-580. Judgments referred to in this article, for the
purpose of this article only, must be considered satisfied:
(1) when fifteen thousand dollars has been credited upon any
judgment rendered in excess of that amount because of bodily
injury to or death of one person as the result of any one accident;
(2) when, subject to the limit of fifteen thousand dollars because
of bodily injury to or death of one person, the sum of thirty
thousand dollars has been credited upon any judgments rendered in
excess of that amount because of bodily injury to or death of two or
more persons as the result of any one accident; or
(3) when five thousand dollars has been credited upon any
judgments rendered in excess of that amount because of injury to or
destruction of property of others as a result of any one accident.
Payments made in settlement of any claims because of bodily
injury, death, or property damage arising from a motor vehicle
accident must be credited in reduction of the amounts provided for
in this section.
Section 56-4-590. A judgment debtor upon due notice to the
judgment creditor may apply to the court in which the judgment
was rendered for the privilege of paying the judgment in
installments, and the court, in its discretion and without prejudice to
any other legal remedies which the judgment creditor may have,
may order and fix the amounts and times of payment of the
installments.
The department may not suspend a license, registration, or
nonresident's operating privilege and shall restore any license,
registration, or nonresident's operating privilege suspended
following nonpayment of a judgment when the judgment debtor
gives proof of financial responsibility and obtains an order
permitting the payment of the judgment in installments and while
the payment of any installment is not in default.
If the judgment debtor fails to pay any installment as specified by
the order, then upon notice of the default the department shall
suspend the license, registration, or nonresident's operating privilege
of the judgment debtor until the judgment is satisfied, as provided
in this article.
Section 56-4-600. When the department, under any law of this
State, suspends or revokes the license of a person upon receiving a
record of conviction or forfeiture of bail and in all cases where the
department suspends or revokes the driver's license of a person
under lawful authority possessed by the department, the department
shall also suspend the registration for all motor vehicles registered
in the name of that person, except that it shall not suspend the
registration, unless otherwise required by law, if that person has
previously given or shall immediately give and thereafter maintain
proof of financial responsibility with respect to all motor vehicles
registered by him. The license and registration remain suspended or
revoked and may not at any time thereafter be renewed nor may
any license be thereafter issued to that person nor may any motor
vehicle be thereafter registered in the name of that person until
permitted under the motor vehicle laws of this State and not then
until he gives and thereafter maintains proof of financial
responsibility.
Section 56-4-610. When the department suspends or revokes a
nonresident's operating privilege by reason of a conviction or
forfeiture of bail, this privilege remains suspended or revoked
unless that person has previously given or immediately gives and
thereafter maintains proof of financial responsibility.
Section 56-4-620. If a person is not licensed but by final order
or judgment is convicted of any offense requiring the suspension or
revocation of license, for operating a motor vehicle upon the
highways without being licensed to do so, or for operating an
unregistered motor vehicle upon the highways, no license may
thereafter be issued to that person and no motor vehicle may
continue to be registered or thereafter be registered in his name
until he gives and thereafter maintains proof of financial
responsibility.
Section 56-4-630. Proof of financial responsibility when
required under this chapter may be given by filing:
(1) a certificate of insurance as provided in Sections 56-4-640
or 56-4-650;
(2) a bond as provided in Section 56-4-660; or
(3) a certificate of deposit of money or securities as provided in
Section 56-4-670.
Section 56-4-640. Proof of financial responsibility may be
furnished by filing with the department the written certificate of any
insurer 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 must give the date of the motor vehicle liability policy,
which date must be the same as the effective date of the certificate,
and must 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 one year. A certificate of
insurance remains in full force and effect for at least ninety days
unless the certificate is canceled by the insurance company for some
reason other than nonpayment of premium. If a certificate of
insurance is canceled after ninety days for nonpayment of premium,
the insurance company issuing the certificate shall immediately
notify the department that the reason for the cancellation is for
nonpayment of premium. If a certificate of insurance is canceled
for any reason other than for nonpayment of premium the insurance
company issuing the certificate shall immediately notify the
department that the cancellation is not for nonpayment of premium.
The department may refuse acceptance of the certificate of
insurance required under this section for the following reasons:
(1) if the certificate is filed by an agent or company found to be
in violation of any of the provisions of this chapter; or
(2) if the certificate is filed for any person who has previously
had a certificate canceled for nonpayment of premium, unless the
policy when the certificate is issued is certified to be noncancelable
for one year for nonpayment of premium.
No motor vehicle may be or continue to be registered in the
name of any person required to file proof of financial responsibility
unless the motor vehicle is so designated in the certificate.
Section 56-4-650. The nonresident owner of a motor vehicle not
registered in this State may give proof of financial responsibility by
filing with the department written certificates of an insurer
authorized to transact business in the state in which the motor
vehicle, or motor vehicles, described in the certificate is registered
or, if the nonresident does not own a motor vehicle, then in the
state in which the insured resides, as long as the certificate
otherwise conforms with the provisions of this chapter, and the
department shall accept it upon condition that the insurance carrier
complies with the following provisions with respect to the policies
certified:
(1) the insurance carrier executes a power of attorney
authorizing the department to accept service on its behalf of notice
or process in any action arising out of a motor vehicle accident in
this State; and
(2) the insurance carrier agrees in writing that the policies must
be construed to conform with the laws of this State relating to the
terms of motor vehicle liability policies issued in this State.
If an insurer not authorized to transact business in this State,
which has qualified to furnish proof of financial responsibility,
defaults in any of these undertakings or agreements, the department
may not thereafter accept as proof any certificate of that carrier
whether formerly filed or thereafter tendered as proof, so long as
the default continues.
Section 56-4-660. Proof of financial responsibility may be
evidenced by the bond of a surety company authorized to transact
business within this State or a bond with at least two individual
sureties, each owning real estate in this State and together having
equities equal in value to at least twice the amount of the bond,
which real estate must be scheduled in the bond approved by a
judge of a court of record, which bond must be conditioned for
payment of the amounts specified in Section 56-4-20(13). The
bond must be filed with the department and is not cancelable except
after ten days' written notice to the department. The bond
constitutes a lien in favor of the State upon the real estate scheduled
of any surety. The lien exists in favor of any holder of a final
judgment against the person who has filed the bond for damages,
including damages for care and loss of services, because of bodily
injury to or death of any person or for damage because of injury to
or destruction of property, including the loss of use thereof,
resulting from the ownership, maintenance, use, or operation of a
motor vehicle after the bond was filed, upon the filing of notice to
that effect by the department in the appropriate office of the county
or city where the real estate is located. Any surety scheduling real
estate security shall furnish satisfactory evidence of title and the
nature and extent of all encumbrances thereon and the value of the
surety's interest therein in the manner which the judge of the court
of record may require. The notice filed by the department, in
addition to other matters which are considered to be pertinent by
the department, must contain a legal description of the real estate
scheduled, the name of the holder of the record title, the amount for
which it stands as security, and the name of the person in whose
behalf proof is being made. Upon the filing of the notice, the clerk
of court shall retain it as part of the records of the court and enter
upon the record the date and hour of filing, the name of the surety,
the name of the titleholder of record, the description of the real
estate and a notation that a lien is charged on the real estate
pursuant to the notice filed under this section.
If a judgment rendered against the principal on the bond is not
satisfied within sixty days after it has become final, the judgment
creditor may for his own use and benefit and at his sole expense
bring an action in the name of the State against the company or
persons executing the bond, including an action or proceeding to
foreclose any lien that may exist upon the real estate of a person
who executed the bond. An action to foreclose any lien upon real
estate scheduled by any surety under the provisions of this section
may be brought in the same manner as is provided for the
foreclosure of real estate mortgages in this State.
Section 56-4-670. Proof of financial responsibility may be
evidenced by the certificate of the State Treasurer that the person
named therein has deposited with him forty-five thousand dollars in
cash or securities such as may legally be purchased by savings
banks or for trust funds of a market value of forty-five thousand
dollars. The State Treasurer may not accept the deposit and issue a
certificate therefor and the department may not accept the certificate
unless accompanied by evidence that there are no unsatisfied
judgments of any character against the depositor in the county
where the depositor resides.
The deposit must be held by the State Treasurer to satisfy, in
accordance with the provisions of this chapter, any execution on a
judgment issued against the person making the deposit for damages,
including damage for care and loss of service, because of bodily
injury to or death of any person or for damages because of injury to
or destruction of property, including the loss of use thereof,
resulting from the ownership, maintenance, use, or operation of a
motor vehicle after the deposit was made. Money or securities
deposited are not subject to attachment or execution unless the
attachment or execution arises out of a suit for damages which this
chapter covers.
Section 56-4-680. When a person required to give proof of
financial responsibility under this chapter is, or later becomes, an
operator in the employ of any owner or is, or later becomes, a
member of the immediate family or household of the owner, the
department shall accept proof given by the owner in lieu of proof
by the other person to permit that person to operate a motor vehicle
for which the owner has given proof as provided in this chapter.
The department shall designate the restrictions imposed by this
section on that person's license.
Section 56-4-690. The department shall consent to the
cancellation of any bond or certificate of insurance or the
department shall direct and the State Treasurer shall return the
money or securities to the person entitled thereto upon the
substitution and acceptance of other adequate proof of financial
responsibility pursuant to this chapter.
Section 56-4-700. Whenever any proof of financial
responsibility filed under the provisions of this chapter no longer
fulfills the purposes for which required, the department shall require
other proof as required by this chapter and shall suspend the license
and registration or the nonresident's operating privilege pending the
filing of other proof.
Section 56-4-710. The department, upon request, shall consent
to the immediate cancellation of any bond or certificate of
insurance, or shall return to the person entitled thereto any money
or securities deposited pursuant to this chapter as proof of financial
responsibility, or the department shall waive the requirement of
filing proof, if:
(1) at any time after five years from the date the proof was
required when, during the five-year period preceding the request,
the department has not received record of a conviction or a
forfeiture of bail which would require or permit the suspension or
revocation of the license, registration, or nonresident's operating
privilege of the person by or for whom the proof was furnished;
(2) in the event of the death of the person on whose behalf the
proof was filed or the permanent incapacity of the person to operate
a motor vehicle; or
(3) if the person who has given proof surrenders his license and
registration to the department.
The department may not consent to the cancellation of any bond
or the return of any money or securities if any action for damages
upon a liability covered by the proof is then pending or any
judgment upon this liability is then unsatisfied or if the person who
has filed the bond or deposited the money or securities has, within
one year immediately preceding the request, been involved as an
operator or owner in any motor vehicle accident resulting in injury
or damage to the person or property of others. An affidavit of the
applicant as to the nonexistence of these facts or that he has been
released from all liability or has been finally adjudicated not to be
liable for the injury or damage is sufficient evidence thereof in the
absence of evidence to the contrary in the records of the
department.
Section 56-4-720. When a person whose proof has been
canceled or returned under Section 56-4-710(3) applies for a license
or registration within five years from the date proof was originally
required, this application must be refused unless the applicant
reestablishes the proof for the remainder of the five-year period.
Article 9
Motor Vehicle Liability Policies
Section 56-4-810. As used in this article:
(1) `Bodily injury' also includes death resulting from an injury
to the body;
(2) `Insured', as used in Sections 56-4-850, 56-4-860, 56-4-880,
and 56-4-890, means the named insured and, while resident of the
same household, the spouse of the named insured and relatives of
either, while in a motor vehicle or otherwise, and a person who
uses, with the consent, expressed or implied, of the named insured,
the motor vehicle to which the policy applies and a guest in the
motor vehicle to which the policy applies or the personal
representative of any of the above;
(3) `Uninsured motor vehicle' is a motor vehicle as to which
there is no bodily injury liability insurance and property damage
liability insurance, both in the amounts specified in Section
56-4-830, or there is the insurance but the insurance company
writing it denies coverage thereunder and there is no bond or
deposit of cash or securities in lieu of the bodily injury and
property damage liability insurance. A motor vehicle is `uninsured'
if the owner or operator is unknown.
Section 56-4-820. An owner's policy of liability insurance must
designate by explicit description or by appropriate reference all
motor vehicles with respect to which coverage is granted.
Section 56-4-830. No policy or contract of bodily injury
liability insurance or of property damage liability insurance
covering liability arising from the ownership, maintenance, or use
of any motor vehicle may be issued or delivered in this State to the
owner of the vehicle, or may be issued or delivered by any insurer
licensed in this State upon any motor vehicle then principally
garaged or principally used in this State, unless it contains a
provision insuring the person named therein and any other person,
as insured, using any of those motor vehicles with the express or
implied permission of the named insured, against loss from the
liability imposed by law for damages arising out of the ownership,
maintenance, or use of the motor vehicles within the United States
or Canada, subject to limits exclusive of interest and costs, with
respect to each motor vehicle, as follows: Fifteen thousand dollars
because of bodily injury to or death of one person in any one
accident, and, subject to that limit for one person, thirty thousand
dollars because of bodily injury to or death of two or more persons
in any one accident and five thousand dollars because of injury to
or destruction of property of others in any one accident.
Section 56-4-840. No policy or contract may be issued or
delivered as described in Section 56-4-850 unless it contains an
endorsement or provisions undertaking to pay the insured all sums
which he is legally entitled to recover as damages from the owner
or operator of an uninsured motor vehicle within limits which may
be no less than the requirements of Section 56-4-830. The
endorsement or provisions must also provide for not less than five
thousand dollars coverage for injury to or destruction of the
property of the insured in any one accident but may provide an
exclusion of the first two hundred dollars of the loss or damage.
No additional charge may be made to the policyholder for the
endorsement. Recovery under the endorsement or provisions is
subject to the conditions set forth in Sections 56-4-850 to 56-4-880.
Section 56-4-850. If the owner or operator of any motor vehicle
which causes bodily injury or property damage to the insured is
unknown, the insured or someone on his behalf, in order for the
insured to recover under the endorsement, shall report the accident
as required by Sections 56-5-1260 to 56-5-1280.
Section 56-4-860. If the owner or operator of any vehicle
causing injury or damages is unknown, an action may be instituted
against the unknown defendant as `John Doe' and service of process
may be made by delivery of a copy of the motion for judgment or
other pleadings to the clerk of the court in which the action is
brought and service upon the insurance company issuing the policy
must be made as prescribed by law as though the insurance
company were a party defendant. The insurance company may file
pleadings and take other action allowable by law, in the name of
`John Doe'.
Section 56-4-870. An insurer paying a claim under the
endorsement or provisions required by Section 56-4-840 is
subrogated to the rights of the insured to whom the claim was paid
against the person causing the injury, death, or damage to the extent
that payment was made, but the bringing of an action against the
unknown owner or operator as `John Doe' or the conclusion of this
action does not constitute a bar to the insured, if the identity of the
owner or operator who caused the injury or damages complained of
becomes known, from bringing an action against the owner or
operator theretofore proceeded against as `John Doe', and any
recovery against that owner or operator must be paid to the insurer
to the extent that the insurer paid the named insured in the action
brought against the owner or operator as `John Doe', except that the
insurer shall pay its proportionate part of any reasonable costs and
expenses incurred in connection therewith, including reasonable
attorneys' fees. Nothing in an endorsement or provisions made
under Section 56-4-840 nor any other provisions of law operate to
prevent the joining in an action against `John Doe' of the owner or
operator of the motor vehicle causing injury as a party defendant
and this joinder is specifically authorized.
Section 56-4-880. No endorsement or provisions required by
Section 56-4-840 may contain any provision requiring arbitration of
any claim arising under the endorsement or provisions; nor may
anything be required of the insured except the establishment of
legal liability; nor is the insured restricted or prevented in any
manner from employing legal counsel or instituting legal
proceedings.
Section 56-4-890. The motor vehicle liability policy must state
the name and address of the named insured, the coverage afforded
by the policy, the premium charged for the policy, the policy
period, and the limits of liability and shall contain an agreement, or
must be endorsed, that insurance is provided under the policy in
accordance with the coverage defined in this chapter as respects
bodily injury and death or property damage, or both, and is subject
to all of the provisions of this chapter.
Section 56-4-900. Every motor vehicle liability policy is subject
to the following provisions, which need not be contained in the
policy:
(1) The liability of the insurer with respect to the insurance
required by this chapter becomes absolute whenever injury or
damage covered by the motor vehicle liability policy occurs.
(2) The policy may not be canceled or annulled as to the
liability by any agreement between the insurer and the insured after
the occurrence of the injury or damage.
(3) No statement made by the insured or on his behalf and no
violation of the policy defeats or voids the policy.
(4) The satisfaction by the insured of a judgment for the injury
or damage is not a condition precedent to the right or duty of the
insurer to make payment on account of the injury or damage.
(5) The insurer has the right to settle any claim covered by the
policy, and, if the settlement is made in good faith, the amount of
the settlement is deductible from the limits of liability specified in
Section 56-4-830.
(6) The policy, the written application therefor, if any, and any
rider or endorsement which does not conflict with the provisions of
this chapter constitute the entire contract between the parties.
Section 56-4-910. The motor vehicle liability policy need not
insure any liability under the Workers' Compensation Law nor any
liability on account of bodily injury to or death of an employee of
the insured while engaged in the employment, other than domestic,
of the insured or while engaged in the operation, maintenance, or
repair of the motor vehicle nor any liability for damage to property
owned by, rented to, in charge of, or transported by the insured.
Section 56-4-920. Any policy which grants the coverage
required for a motor vehicle liability policy may also grant any
lawful coverage in excess of or in addition to the coverage specified
for a motor vehicle liability policy, and the excess or additional
coverage is not subject to the provisions of this chapter. With
respect to a policy which grants this excess or additional coverage
the term `motor vehicle liability policy' applies only to that part of
the coverage which is required by this article.
Section 56-4-930. Any motor vehicle liability policy may
provide:
(1) that the insured shall reimburse the insurer for any payment
the insurer would not have been obligated to make under the terms
of the policy except for the provisions of this chapter; and
(2) for the prorating of the insurance under the policy with
other valid and collectible insurance.
Section 56-4-940. The requirements for a motor vehicle liability
policy may be fulfilled by the policies of one or more insurers,
which policies together meet the requirements.
Section 56-4-950. Any binder issued pending the issuance of a
motor vehicle liability policy must be considered as fulfilling the
requirements for the policy.
Section 56-4-960. When an insurer has certified a motor vehicle
liability policy under Section 56-4-640 and 56-4-650, the insurance
so certified may not be canceled or terminated until at least ten days
after a notice of cancellation or termination of the insurance
certified is filed with the department, except that a policy
subsequently procured and certified, on the effective date of its
certification, terminates the insurance previously certified with
respect to any motor vehicle designated in both certificates.
Section 56-4-970. This chapter does not apply to or affect
policies of automobile insurance against liability which may be
required by any other law of this State, and those policies, if they
contain an agreement or are endorsed to conform with the
requirements of this chapter, may be certified as proof of financial
responsibility under this chapter.
Section 56-4-980. This chapter does not apply to or affect
policies insuring solely the insured named in the policy against
liability resulting from the maintenance or use by the persons in the
insured's employ or on his behalf of motor vehicles not owned by
the insured.
Section 56-4-990. The department shall on a daily basis select a
computerized random sample of five hundred of the registered
vehicles in the State and mail to each owner a written request form
to be completed by him and his insurance company or the agent
issuing the policy to verify liability insurance coverage. The form
must be in a manner prescribed by regulation of the department.
The completed and verified form must be returned by the owner to
the department within fifteen days from the date he receives it.
Failure to return the form verified in the proper manner is prima
facie evidence that the vehicle is uninsured, and vehicles determined
to be uninsured under this section are subject to the provisions of
state law dealing with uninsured vehicles.
Article 11
Assignment of Insurance Risks
Section 56-4-1110. Every person who has been unable to obtain
a motor vehicle liability policy has the right to apply to the Director
of the Department of Insurance to have his risk assigned to an
insurance carrier licensed to write and writing motor vehicle
liability insurance in this State, and the insurance carrier, whether a
stock or mutual company, reciprocal, or interinsurance exchange, or
other type or form of insurance organization, as provided in this
article shall issue a motor vehicle liability policy which meets at
least the minimum requirements for establishing financial
responsibility as provided in this chapter and, in addition, shall
provide, at the option of the insured, reasonable motor vehicle
physical damage and medical payments coverages in the same
policy.
Every person who has otherwise obtained a motor vehicle
liability insurance policy, or who has been afforded motor vehicle
liability insurance under the laws of this State but who was not
afforded motor vehicle medical payments insurance or motor
vehicle physical damage insurance in the same policy, or who was
not afforded such coverages under the applicable provisions of law,
has the right to apply to the Director of the Department of
Insurance to have his risk assigned to an insurance carrier, as
provided above, licensed to write and writing either or both
coverages, and the insurance carrier shall issue a policy providing
the coverage or coverages applied for.
Section 56-4-1120. Once an assigned risk policy has been issued to
an insured, every insurer licensed in this State issuing or delivering
any policy or contract of bodily injury liability insurance, or of
property damage liability insurance, covering liability arising from
the ownership, maintenance, or use of any motor vehicle, shall
provide on request of the insured, on payment of premium
established by law for the coverage (i) to the named insured and,
while resident of the named insured's household, the spouse and
relatives of the named insured while occupying a motor vehicle or
if struck by a motor vehicle while not occupying a motor vehicle;
and (ii) to persons occupying the insured motor vehicle, the
following health care and disability benefit for each accident:
1. medical and chiropractic payments coverages incurred within
two years after the date of the accident, up to two thousand dollars
per person;
2. if the person is usually engaged in a remunerative
occupation, an amount equal to the loss of income incurred within
one year after the date of the accident resulting from injuries
received in the accident up to one hundred dollars per week during
the period from the first work day lost as a result of the accident up
to the date on which the person is able to return to his usual
occupation and for a period not to exceed fifty-two weeks or any
part thereof; and
3. the insured has the option of purchasing either or both of
the coverages set forth in items 1 and 2 of this section.
Section 56-4-1130. The Director of the Department of Insurance
may make reasonable regulations for the assignment of risks to
insurance carriers. It shall establish rate classifications, rating
schedules, rates, and regulations to be used by insurance carriers
issuing assigned risk policies of motor vehicle liability, physical
damage, and medical payments insurance in accordance with this
chapter as appear to it to be proper. In the establishment of rate
classifications, rating schedules, rates, and regulations, the Director
of the Department of Insurance shall be guided by the principles
and practices which have been established under his statutory
authority to regulate motor vehicle liability, physical damage, and
medical payments insurance rates and he may act in conformity
with his discretion in such matters.
Section 56-4-1140. The Director of the Department of Insurance
may, in his discretion, after reviewing all information pertaining to
the applicant or policyholder available from the records of the
Department of Insurance or from other sources:
1. refuse to assign an application;
2. approve the rejection of an application by an insurance
carrier;
3. approve the cancellation of a policy of motor vehicle
liability, physical damage, and medical payments insurance by an
insurance carrier; or
4. refuse to approve the renewal or the reassignment of an
expiring policy.
Section 56-4-1150. Any information filed with the Department of
Insurance by an insurance carrier in connection with an assigned
risk is confidential and solely for the information of the Department
of Insurance and its staff and shall not be disclosed to any person,
including an applicant, policyholder, and any other insurance
carrier.
Section 56-4-1160. A. The Director of the Department of
Insurance shall not be required to disclose to any person, including
the applicant or policyholder, his reason for:
1. refusing to assign an application;
2. approving the rejection of an application by an insurance
carrier;
3. approving the cancellation of a policy of motor vehicle
liability, physical damage, and medical payments insurance by an
insurance carrier; or
4. refusing to approve the renewal or the reassignment of an
expiring policy.
B. The Director of the Department of Insurance shall not be
held liable for any act or omission in connection with the
administration of the duties imposed upon him by the provisions of
this chapter, except upon proof of actual malfeasance.
Section 56-4-1170. The provisions of this chapter relevant to
assignment of risks shall be available to nonresidents who are
unable to obtain a policy of motor vehicle liability, physical
damage, and medical payments insurance with respect only to motor
vehicles registered and used in this State.
Section 56-4-1180. Notwithstanding any other provision of law,
the provisions of this chapter relating to assignment of risks shall be
available to carriers by motor vehicle who are required by law to
carry public liability and property damage insurance for the
protection of the public."
SECTION 3. Articles 1 and 5 of Chapter 77, Title 38 of the
1976 Code and Chapters 9 and 10, Title 56 of the 1976 Code are
repealed, except that the provisions of those articles and chapters
continue to apply until the expiration of automobile insurance
policies in effect on the effective date of this act.
SECTION 4. This act takes effect January 1, 1997.
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