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A241, R244, H3554
Sponsors: Rep. Huggins
Document Path: l:\council\bills\swb\6313cm05.doc
Introduced in the House on February 15, 2005
Introduced in the Senate on May 24, 2005
Last Amended on May 19, 2005
Passed by the General Assembly on February 16, 2006
Governor's Action: March 15, 2006, Signed
Summary: Self-insurer may use irrevocable letter of credit issued by certain banks to determine financial responsibility
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/15/2005 House Introduced and read first time HJ-11 2/15/2005 House Referred to Committee on Labor, Commerce and Industry HJ-11 5/18/2005 House Committee report: Favorable with amendment Labor, Commerce and Industry HJ-50 5/19/2005 House Amended HJ-72 5/19/2005 House Read second time HJ-73 5/19/2005 House Unanimous consent for third reading on next legislative day HJ-73 5/20/2005 House Read third time and sent to Senate HJ-2 5/24/2005 Senate Introduced and read first time SJ-11 5/24/2005 Senate Referred to Committee on Transportation SJ-11 5/31/2005 Senate Recalled from Committee on Transportation SJ-53 5/31/2005 Senate Committed to Committee on Banking and Insurance SJ-53 2/14/2006 Senate Committee report: Favorable Banking and Insurance SJ-8 2/15/2006 Senate Read second time SJ-32 2/16/2006 Senate Read third time and enrolled SJ-18 3/14/2006 Ratified R 244 3/15/2006 Signed By Governor 3/21/2006 Copies available 3/21/2006 Effective date 03/15/06 4/5/2006 Act No. 241
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VERSIONS OF THIS BILL
(A241, R244, H3554)
AN ACT TO AMEND SECTION 56-9-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO QUALIFYING AS A SELF-INSURER FOR MOTOR VEHICLES, SO AS TO PROVIDE THAT AN IRREVOCABLE LETTER OF CREDIT ISSUED BY A BANK CHARTERED IN THIS STATE OR A MEMBER BANK OF THE FEDERAL RESERVE SYSTEM MAY BE SUBMITTED TO THE DEPARTMENT OF MOTOR VEHICLES IN LIEU OF THE CASH DEPOSIT REQUIRED TO BE SUBMITTED TO DETERMINE FINANCIAL RESPONSIBILITY OF A POTENTIAL SELF-INSURER, AND TO PROVIDE THAT A PERSON OR COMPANY THAT QUALIFIES AS A SELF-INSURER MAY ISSUE CERTIFICATES OF INSURANCE FOR ALL PURPOSES ONLY ON THE VEHICLES REGISTERED IN THE APPLICANT'S NAME; AND TO AMEND SECTION 58-23-1240, RELATING TO THE PUBLIC TAXI PLATE WHICH MUST BE AFFIXED TO A TAXI, SO AS TO PROVIDE THAT THE PLATE MUST BE AFFIXED ONLY TO THE REAR OF A TAXI, TO PROVIDE THAT A STICKER MAY BE AFFIXED TO THE TAXI IN LIEU OF A METAL PLATE, TO PROVIDE THAT THE CITY WHERE THE TAXI PRINCIPALLY OPERATES MUST APPROVE THE DIMENSIONS OF THE STICKER OR PLATE INSTEAD OF THE GOVERNING BODY OF THE COUNTY, TO REMOVE THE TERM "PUBLIC" AND THE TAXI LICENSE NUMBER FROM THE CONTENTS OF THE STICKER OR PLATE, TO DELETE THE REQUIREMENT THAT THE COLOR OF THE PLATE MUST BE CHANGED ANNUALLY, AND TO PROVIDE THAT THE OWNER OF A TAXI THAT QUALIFIES AS A SELF-INSURER MUST ISSUE TO EACH OPERATOR OF THE TAXI A CERTIFICATE OF INSURANCE WHICH MUST BE MAINTAINED IN THE TAXI WHILE IT IS IN OPERATION.
Be it enacted by the General Assembly of the State of South Carolina:
Qualifying as a self-insurer for motor vehicles
SECTION 1. Section 56-9-60 of the 1976 Code is amended to read:
"Section 56-9-60. (A) A person or company who has more than twenty-five motor vehicles registered in his name may qualify as a self-insurer provided that the department is satisfied that the person or company is able to pay any judgments obtained against the person or company. Upon not less than ten days' notice and a hearing pursuant to the notice, the department may cancel self-insurer status when the requirements for the status no longer are met. The person or company must submit the following information to the department for it to determine financial responsibility:
(1) a copy of the applicant's latest financial statement prepared by a certified public accountant licensed to do business in South Carolina, indicating that the applicant has a positive net worth;
(2) a current list of all vehicles registered in applicant's name;
(3) the applicant's procedural guidelines for processing claims; and
(4) the applicant must have a net worth of at least twenty million dollars or the department may require the applicant to deposit in a segregated self-insured claims account the sum of three thousand dollars for each vehicle to be covered by the self-insurer's certificate. Eighty percent must be cash or an irrevocable letter of credit issued by a bank chartered in this State or a member bank of the federal reserve system, and the remaining twenty percent may be satisfied by the 'quick sale' appraised value of real estate located in the State, as certified by a licensed appraiser. The three thousand dollar a vehicle amount may not decrease more than thirty percent in any given certificate year.
(B) A person or company that qualifies as a self-insurer, pursuant to this section, may issue certificates of insurance only on the vehicles registered in the applicant's name."
Taxi plates and stickers
SECTION 2. Section 58-23-1240 of the 1976 Code is amended to read:
"Section 58-23-1240. The owner of a taxi must obtain and cause to be affixed at all times to the rear of the taxi in a conspicuous place a metal plate or sticker, the dimensions of which must be approved by the city where the taxi principally operates, which shall have on it the words 'Taxi', and be of substantially similar design but a different color from the state license plate.
The owner of a taxi that qualifies as a self-insurer, pursuant to Section 56-9-60, must issue to each operator of the taxi a certificate of insurance. The operator of the taxi must maintain a copy of the certificate of insurance in the taxi while it is in operation."
SECTION 3. This act takes effect upon approval by the Governor.
Ratified the 14th day of March, 2006.
Approved the 15th day of March, 2006.
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