H 3031 Session 112 (1997-1998)
H 3031 General Bill, By J.L.M. Cromer and Bailey
A BILL TO AMEND TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
MOTOR VEHICLES BY ADDING CHAPTER 6 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 8 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.
12/11/96 House Prefiled
12/11/96 House Referred to Committee on Labor, Commerce and Industry
01/14/97 House Introduced and read first time HJ-24
01/14/97 House Referred to Committee on Labor, Commerce and
Industry HJ-24
A BILL
TO AMEND TITLE 56, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO MOTOR VEHICLES, BY
ADDING CHAPTER 6 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 8 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 6
Registration and Licensing of
Uninsured Motor Vehicles
Section 56-6-10. 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 56-8-830, 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 56-8-90; 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 56-6-20. In addition to any other fees prescribed by law,
every person registering and licensing an uninsured motor vehicle, as
defined in Section 56-6-10, 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 56-6-30. 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
56-6-110 whether or not each motor vehicle is an insured motor
vehicle as defined in Section 56-6-10, 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 56-8-90, (b) has given bond or delivered the cash or
securities as provided in Sections 56-8-660 and 56-8-670,
respectively, or (c) pay the fee prescribed in Section 56-6-20.
Section 56-6-40. 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 56-6-50. The department shall, upon receipt of the notice
of cancellation or termination provided for in Section 56-6-40, 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 56-6-30 or pays the fee provided in Section
56-6-20.
Section 56-6-60. 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 56-6-70 to 56-6-90.
Section 56-6-70. 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 56-6-80. The purpose of the Fund is to reduce the cost of
the insurance required by Chapter 8 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 8 of Title 56.
Section 56-6-90. 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 8 of Title 56.
Section 56-6-100. The Director of the Department of Insurance
may promulgate regulations necessary to implement the provisions
of this chapter.
Section 56-6-110. 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 56-6-120. 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 8
Motor Vehicle Safety Responsibility Act
Article 1
General Provisions
Section 56-8-10. This chapter may be cited as the 'Motor Vehicle
Safety Responsibility Act'.
Section 56-8-20. 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 56-8-90.
( 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 56-8-640
or 56-8-650 as proof of financial responsibility and issued, except as
otherwise provided in Section 56-8-650, 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 56-8-90.
Section 56-8-30. This chapter must be construed to effectuate its
general purpose to make uniform the laws of those states which enact
substantially identical legislation.
Section 56-8-40. 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 56-8-310, 56-8-410,
and 56-8-680, 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 56-8-50. 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 56-8-60. 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 56-8-70. 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 56-8-80. 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 56-8-90. 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 56-8-100. A person who forges or, without authority, signs
any notice provided for under Sections 56-8-320 to 56-8-340 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 56-8-120. 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 56-8-130. 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, 1999.
Article 3
Administration and Enforcement
Section 56-8-210. The department shall administer and enforce the
provisions of this chapter and may promulgate regulations necessary
for its administration.
Section 56-8-230. 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 56-8-240. 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 56-8-250. 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 56-8-310. 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 56-8-320 are
inapplicable by reason of the existence of insurance or other
exceptions specified in this chapter.
Section 56-8-320. 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 56-8-330. Section 56-8-320 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
56-8-90;
(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 56-8-320, 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 56-8-340. No policy or bond is effective under Sections
56-8-320 and 56-8-330 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 56-8-320 and 56-8-330 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 56-8-350. The license and registration and nonresident's
operating privilege suspended as provided in Section 56-8-320 must,
except as otherwise provided in Section 56-8-410, 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 56-8-320;
(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 56-8-330(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 56-8-320 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 56-8-360. 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 56-8-370. When a nonresident's operating privilege is
suspended pursuant to Sections 56-8-320 or 56-8-350, 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 56-8-380. 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 56-8-390. 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 56-8-340 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 56-8-400. 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 56-8-410. In no case may
the department reduce the amount of security to a sum less than two
hundred dollars.
Section 56-8-410. 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 56-8-350(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 56-8-330(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 56-8-350(3), the department is given reasonable
evidence that there is no action pending and no judgment rendered in
the action left unpaid.
Section 56-8-420. 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 56-8-430. 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 56-8-510. 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 56-8-520. 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 56-8-530. 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
56-8-540 to 56-8-560 and 56-8-590.
Section 56-8-540. 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 56-8-590 if the
judgment debtor furnishes proof of financial responsibility.
Section 56-8-550. 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 56-8-560. Whenever a person whose license would
otherwise have been suspended for failure to satisfy a judgment as
provided in Section 56-8-530 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 56-8-570. The license, registration, and nonresident's
operating privilege, except as otherwise provided in Section
56-8-560, 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
56-8-580 and until the person gives proof of financial responsibility,
subject to the exemptions stated in Sections 56-8-540 to 56-8-560 and
56-8-590.
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 56-8-580. 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 56-8-590. 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 56-8-600. 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 56-8-610. 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 56-8-620. 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 56-8-630. Proof of financial responsibility when required
under this chapter may be given by filing:
(1) a certificate of insurance as provided in Sections 56-8-640 or
56-8-650;
(2) a bond as provided in Section 56-8-660; or
(3) a certificate of deposit of money or securities as provided in
Section 56-8-670.
Section 56-8-640. 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 56-8-650. 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 56-8-660. 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 56-8-20(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 56-8-670. 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 56-8-680. 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 56-8-690. 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 56-8-700. 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 56-8-710. 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 56-8-720. When a person whose proof has been canceled
or returned under Section 56-8-710(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 56-8-810. As used in this article:
(1) 'Bodily injury' also includes death resulting from an injury to
the body;
(2) 'Insured', as used in Sections 56-8-850, 56-8-860, 56-8-880,
and 56-8-890, 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 56-8-830, 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 56-8-820. 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 56-8-830. 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 56-8-840. No policy or contract may be issued or delivered
as described in Section 56-8-850 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 56-8-830. 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 56-8-850 to 56-8-880.
Section 56-8-850. 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 56-8-860. 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 56-8-870. An insurer paying a claim under the
endorsement or provisions required by Section 56-8-840 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 56-8-840 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 56-8-880. No endorsement or provisions required by
Section 56-8-840 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 56-8-890. 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 56-8-900. 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 56-8-830.
(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 56-8-910. 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 56-8-920. 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 56-8-930. 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 56-8-940. 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 56-8-950. Any binder issued pending the issuance of a
motor vehicle liability policy must be considered as fulfilling the
requirements for the policy.
Section 56-8-960. When an insurer has certified a motor vehicle
liability policy under Section 56-8-640 and 56-8-650, 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 56-8-970. 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 56-8-980. 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 56-8-990. 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 56-8-1110. 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 56-8-1120. 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 56-8-1130. 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 56-8-1140. 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 56-8-1150. 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 56-8-1160. 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 56-8-1170. 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 56-8-1180. 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, 1999.
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