H 4644 Session 109 (1991-1992)
H 4644 General Bill, By T.L. Farr
A Bill to repeal Section 38-77-110, as amended, Code of Laws of South
Carolina, 1976, relating to the requirement on automobile insurers to insure,
and exceptions; to provide that no recoupment fee may be imposed upon, or
charged to, an insured under a policy of motor vehicle insurance issued or
renewed in this State who has no motor vehicle, traffic, or related violations
on his driving record for the three years immediately preceding the issuance
or renewal of the policy; to amend Chapter 77, Title 38, relating to
automobile insurance, by adding Article 2 so as to require a sticker or emblem
evidencing insurance coverage to be affixed to motor vehicles, including
provision for penalties and the payment of fines to the South Carolina
Reinsurance Facility; to amend Section 56-10-270, relating to the operation of
an uninsured motor vehicle, so as to increase the penalties, delete certain
language and provisions, provide for the payment of fines to the South
Carolina Reinsurance Facility, and increase the period for the suspension of
driving privileges and license plates and registration certificates; to amend
Section 56-5-6240, relating to forfeiture, confiscation, and sale of certain
motor vehicles and disbursement and use of the proceeds, so as to provide for
such forfeiture upon a second or subsequent, rather than a fourth or
subsequent, violation of DUS (Driving Under Suspension) and upon a second or
subsequent, rather than a fourth or subsequent violation of DUI (Driving Under
the Influence), provide for such forfeiture upon a second or subsequent
violation within the last ten years of knowingly operating an uninsured motor
vehicle subject to registration in this State or knowingly allowing the
operation of an uninsured motor vehicle subject to registration in this State,
and provide that, upon the sale of the vehicle, the law enforcement agency
making the arrest or its authorized agent shall pay over one-fourth, rather
than all, of the net proceeds, after certain other payments, to the State or
the political subdivision of this State of which the law enforcement agency is
a part and shall pay over the remaining three-fourths of the net proceeds to
the South Carolina Reinsurance Facility; and to provide that no insurance
merit rating points may be assessed nor may any charge be imposed which
increases an insured's premium on a policy of motor vehicle insurance as a
result of an accident that is proximately caused by poor road conditions or
hazardous weather conditions wherein the operator of the motor vehicle is
involved in an unavoidable accident.
03/31/92 House Introduced and read first time HJ-41
03/31/92 House Referred to Committee on Labor, Commerce and
Industry HJ-42
A BILL
TO REPEAL SECTION 38-77-110, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO THE
REQUIREMENT ON AUTOMOBILE INSURERS TO INSURE, AND
EXCEPTIONS; TO PROVIDE THAT NO RECOUPMENT FEE MAY
BE IMPOSED UPON, OR CHARGED TO, AN INSURED UNDER A
POLICY OF MOTOR VEHICLE INSURANCE ISSUED OR
RENEWED IN THIS STATE WHO HAS NO MOTOR VEHICLE,
TRAFFIC, OR RELATED VIOLATIONS ON HIS DRIVING
RECORD FOR THE THREE YEARS IMMEDIATELY PRECEDING
THE ISSUANCE OR RENEWAL OF THE POLICY; TO AMEND
CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE
INSURANCE, BY ADDING ARTICLE 2 SO AS TO REQUIRE A
STICKER OR EMBLEM EVIDENCING INSURANCE COVERAGE
TO BE AFFIXED TO MOTOR VEHICLES, INCLUDING
PROVISION FOR PENALTIES AND THE PAYMENT OF FINES TO
THE SOUTH CAROLINA REINSURANCE FACILITY; TO AMEND
SECTION 56-10-270, RELATING TO THE OPERATION OF AN
UNINSURED MOTOR VEHICLE, SO AS TO INCREASE THE
PENALTIES, DELETE CERTAIN LANGUAGE AND PROVISIONS,
PROVIDE FOR THE PAYMENT OF FINES TO THE SOUTH
CAROLINA REINSURANCE FACILITY, AND INCREASE THE
PERIOD FOR THE SUSPENSION OF DRIVING PRIVILEGES AND
LICENSE PLATES AND REGISTRATION CERTIFICATES; TO
AMEND SECTION 56-5-6240, RELATING TO FORFEITURE,
CONFISCATION, AND SALE OF CERTAIN MOTOR VEHICLES
AND DISBURSEMENT AND USE OF THE PROCEEDS, SO AS TO
PROVIDE FOR SUCH FORFEITURE UPON A SECOND OR
SUBSEQUENT, RATHER THAN A FOURTH OR SUBSEQUENT,
VIOLATION OF DUS (DRIVING UNDER SUSPENSION) AND
UPON A SECOND OR SUBSEQUENT, RATHER THAN A FOURTH
OR SUBSEQUENT VIOLATION OF DUI (DRIVING UNDER THE
INFLUENCE), PROVIDE FOR SUCH FORFEITURE UPON A
SECOND OR SUBSEQUENT VIOLATION WITHIN THE LAST TEN
YEARS OF KNOWINGLY OPERATING AN UNINSURED MOTOR
VEHICLE SUBJECT TO REGISTRATION IN THIS STATE OR
KNOWINGLY ALLOWING THE OPERATION OF AN UNINSURED
MOTOR VEHICLE SUBJECT TO REGISTRATION IN THIS STATE,
AND PROVIDE THAT, UPON THE SALE OF THE VEHICLE, THE
LAW ENFORCEMENT AGENCY MAKING THE ARREST OR ITS
AUTHORIZED AGENT SHALL PAY OVER ONE-FOURTH,
RATHER THAN ALL, OF THE NET PROCEEDS, AFTER CERTAIN
OTHER PAYMENTS, TO THE STATE OR THE POLITICAL
SUBDIVISION OF THIS STATE OF WHICH THE LAW
ENFORCEMENT AGENCY IS A PART AND SHALL PAY OVER
THE REMAINING THREE-FOURTHS OF THE NET PROCEEDS TO
THE SOUTH CAROLINA REINSURANCE FACILITY; AND TO
PROVIDE THAT NO INSURANCE MERIT RATING POINTS MAY
BE ASSESSED NOR MAY ANY CHARGE BE IMPOSED WHICH
INCREASES AN INSURED'S PREMIUM ON A POLICY OF MOTOR
VEHICLE INSURANCE AS A RESULT OF AN ACCIDENT THAT
IS PROXIMATELY CAUSED BY POOR ROAD CONDITIONS OR
HAZARDOUS WEATHER CONDITIONS WHEREIN THE
OPERATOR OF THE MOTOR VEHICLE IS INVOLVED IN AN
UNAVOIDABLE ACCIDENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-110 of the 1976 Code is repealed.
SECTION 2. No recoupment fee may be imposed upon, or charged to,
an insured under a policy of motor vehicle insurance issued or renewed
in this State who has no motor vehicle, traffic, or related violations on
his driving record for a period of three years immediately preceding the
issuance or renewal of the policy.
SECTION 3. Chapter 77, Title 38 of the 1976 Code is amended by
adding:
"Article 2
Sticker or Emblem Evidencing Insurance
Coverage to be Affixed to Motor Vehicles
Section 38-77-80. (A) The owner of a motor vehicle registered in
this State who is required by Section 56-10-10 to provide the security
required for the maintenance or use of the vehicle and who has owned
the motor vehicle for thirty days or more, as prima facie evidence that
the security is currently in full force and effect, shall affix on the front
windshield an identifying sticker or emblem which indicates the month,
day, and year for which the policy has been paid plus any grace period
allowed by the automobile insurer. Policies must expire at the end of a
month regardless of the period for which it is issued. If requested by the
insured to issue the sticker or emblem for a period less than the paid-up
period, the sticker or emblem must be issued for at least three months.
(B) The form and content of the sticker or emblem required by
subsection (A) must be prescribed by the Department of Highways and
Public Transportation. All stickers or emblems must be supplied by or
under the authority of the Department of Highways and Public
Transportation, be serially numbered, and be an easily removable void
sticker. An automobile insurer shall purchase the stickers or emblems
from the Department of Highways and Public Transportation at a cost
not to exceed fifty cents each. The department shall require monthly
reports to be made by persons to whom stickers or emblems have been
supplied which must include, at least, the number of the sticker or
emblem, the license tag number of the motor vehicle for which it was
issued, the name of its owner, and the date issued.
(C) All stickers or emblems issued pursuant to this section are the
property of the State and must be affixed permanently by the owner to
the vehicle covered by the required security only during the time for
which the security which it represents remains in full force and effect.
Every vehicle owner immediately shall remove from the vehicle any
sticker or emblem purporting to represent security which he knows has
been terminated, canceled, impaired, expired, or is otherwise ineffective.
(D) When a vehicle owner meets the security requirements of this
section through the purchase of a contract of insurance, the authorized
automobile insurer or its authorized agent with which he has contracted
for the security shall provide a sticker or emblem as described in
subsection (A). The commissioner shall furnish or authorize for each
insurer sufficient quantities of the stickers or emblems as it may require
and request. In no case may the quantity supplied exceed the number of
vehicles which the insurer reasonably expects to insure during each
annual period for which its policies of insurance are expected to be in
force.
(E) To receive a refund from an insurance company for policies
canceled before the date on the sticker or emblem, in addition to any
requirements of the auto insurer, the sticker or emblem must be
delivered to the insurer.
(F) A vehicle being operated in this State which does not have the
requisite sticker or emblem affixed to the vehicle as required by this
article or which has affixed a sticker or emblem which is invalid must
have the license plate removed from the motor vehicle by the law
enforcement officer at the time of the violation. In addition, the owner
of the vehicle is guilty of a misdemeanor and, upon conviction, must be
fined five hundred dollars, which must be paid to the South Carolina
Reinsurance Facility for the maintenance of that facility. If, within ten
days of the confiscation of the license plate, proof is provided by the
owner of the vehicle that security required by this article was in effect
at the time the license plate was removed, the vehicle's license plate
must be returned to the owner and the five hundred dollar fine is waived.
If no proof is provided that security existed at the time the license plate
was removed, the license plate on this motor vehicle is suspended until
he can demonstrate to the Department of Highways and Public
Transportation that he has a paid-up policy for six months in effect on
the motor vehicle and pays the five hundred dollar fine which must be
paid to the South Carolina Reinsurance Facility for the maintenance of
that facility.
(G) (1) No person may:
(a) alter a sticker or emblem issued under the provisions of
this article;
(b) manufacture, possess, or display an imitation or
counterfeit sticker or emblem;
(c) remove a sticker or emblem from a motor vehicle unless
he is the owner of the motor vehicle or removes the sticker or emblem
at the request or direction of the owner.
(2) A person violating the provisions of this subsection is guilty
of a misdemeanor and, upon conviction, for each violation must be fined
in an amount not to exceed five hundred dollars or imprisoned for a
period not to exceed thirty days, and the fine must be paid to the South
Carolina Reinsurance Facility for the maintenance of that facility."
SECTION 4. Section 56-10-270 of the 1976 Code is amended to read:
"Section 56-10-270. (a) Any A person
knowingly operating an uninsured motor vehicle subject to registration
in this State or any a person knowingly allowing the
operation of an uninsured motor vehicle subject to registration in this
State is guilty of a misdemeanor and, upon conviction, must be fined not
less than one hundred thousand dollars nor more than
two hundred thousand dollars or imprisoned for
thirty ninety days and, upon conviction of a second
offense, be fined not less than two hundred
thousand dollars or and imprisoned for
thirty ninety days, or both, and for a third and
subsequent offenses must be imprisoned for not less than forty-five
days one year nor more than six months. Only
convictions which occurred within five years including and immediately
preceding the date of the last conviction constitute prior convictions
within the meaning of this section. An uninsured motor vehicle includes
an insured vehicle with respect to which the operator has been excluded
from coverage pursuant to the provisions of Section 38-77-340.
The fines provided for under this subsection must be paid to the
South Carolina Reinsurance Facility for the maintenance of that
facility.
(b) The department upon receipt of information to the effect that
any a person has been convicted of violating subsection
(a) of this section shall suspend the driving privilege and all license
plates and registration certificates issued in the person's name for a
period of thirty days one year and may not reinstate that
person's privileges until proof of financial responsibility has been filed.
(c) Any person whose license plates and registration certificates
which are suspended as provided in this section, which are not
suspended for any other reason, may have them immediately restored,
if he files proof of financial responsibility with the
department."
SECTION 5. Section 56-5-6240(A) of the 1976 Code is amended to
read:
"(A) In addition to the penalties for persons convicted of a
fourth second or subsequent violation within the last ten
years of operating a motor vehicle while his license is canceled,
suspended, or revoked (DUS), or a fourth second or
subsequent violation within the last ten years of operating a motor
vehicle while under the influence of intoxicating liquor or drugs (DUI),
or a second or subsequent violation within the last ten years of
knowingly operating an uninsured motor vehicle subject to registration
in this State or knowingly allowing the operation of an uninsured motor
vehicle subject to registration in this state, the persons must have
the motor vehicle they drove during this offense forfeited if the offender
is the owner of record, or a resident of the household of the owner of
record under the terms and conditions as provided in subsections (B) and
(C) and must be confiscated by the arresting officer or other law
enforcement officer of that agency at the time of arrest, which officer
shall deliver it immediately to the head of his law enforcement agency
or his authorized agent who shall notify the clerk of court within
forty-eight hours of the confiscation. However, the clerk of court shall
issue a Rule to Show Cause immediately upon notification of the
confiscation which must be returnable before the presiding judge of the
judicial circuit or his designated hearing officer within ten days from the
date of issuance of the Rule to Show Cause and the vehicle must be
returned to the owner of record if he can show by a preponderance of the
evidence that (1) the use of the vehicle was not either expressly or
impliedly authorized, or (2) the owner of record did not know that the
driver had no valid license. Forfeiture of a vehicle is subordinate in
priority to all valid liens.
The law enforcement agency confiscating the vehicle shall provide
notice by certified mail of the confiscation to all lienholders of record
within ten days of the confiscation."
SECTION 6. Section 56-5-6240(C) of the 1976 Code is amended to
read:
"(C) The law enforcement agency making the arrest or its
authorized agent shall sell the confiscated vehicle at public auction for
cash to the highest bidder in front of the county courthouse in the county
where it was confiscated or at another suitable location in that county
after having given ten days' public notice of the sale by posting
an advertisement on the door or bulletin board of the county
courthouse or other location of the public auction, and by
publishing an advertisement of the auction at least once in a newspaper
of general circulation in the county at least ten days before the auction.
Upon the sale, the agency or its agent shall pay over one-fourth
of the net proceeds, after payment of the liens and encumbrances on
the vehicle, and after payment of the proper costs and expenses, if any,
of the seizure, advertisement, and sale including any proper expense
incurred for the storage of the confiscated vehicle, to the State or the
political subdivision of this State of which the law enforcement agency
is a part, for use in law enforcement and shall pay over the
remaining three-fourths of the net proceeds to the South Carolina
Reinsurance Facility for the maintenance of that facility."
SECTION 7. No insurance merit rating points may be assessed nor may
any charge be imposed which increases an insured's premium on a
policy of motor vehicle insurance as a result of an accident, whether a
chargeable traffic violation or not, that is proximately caused by poor
road conditions or hazardous weather conditions wherein the operator
of the motor vehicle is involved in an unavoidable accident.
SECTION 8. This act takes effect one year after approval by the
Governor.
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