South Carolina General Assembly
116th Session, 2005-2006

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A315, R380, H4889

STATUS INFORMATION

General Bill
Sponsors: Reps. Bingham, Perry, Bales, G. Brown, Cato, Chellis, Dantzler, Ott, Sandifer, J.E. Smith, Thompson and Tripp
Document Path: l:\council\bills\dka\3658dw06.doc

Introduced in the House on March 23, 2006
Introduced in the Senate on May 16, 2006
Last Amended on May 9, 2006
Passed by the General Assembly on May 26, 2006
Governor's Action: June 1, 2006, Signed

Summary: Motor vehicle insurance

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/23/2006  House   Introduced and read first time HJ-15
   3/23/2006  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-16
    5/3/2006  House   Committee report: Favorable with amendment Labor, 
                        Commerce and Industry HJ-9
    5/9/2006  House   Amended HJ-37
    5/9/2006  House   Read second time HJ-38
   5/10/2006  House   Read third time and sent to Senate HJ-23
   5/16/2006  Senate  Introduced and read first time SJ-14
   5/16/2006  Senate  Referred to Committee on Banking and Insurance SJ-14
   5/18/2006  Senate  Committee report: Favorable Banking and Insurance SJ-36
   5/25/2006  Senate  Read second time SJ-15
   5/25/2006  Senate  Unanimous consent for third reading on next legislative 
                        day SJ-15
   5/26/2006  Senate  Read third time and enrolled SJ-2
   5/31/2006          Ratified R 380
    6/1/2006          Signed By Governor
    6/6/2006          Copies available
    6/6/2006          Effective date 08/01/06
    6/8/2006          Act No. 315

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/23/2006
5/3/2006
5/9/2006
5/18/2006


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A315, R380, H4889)

AN ACT TO AMEND SECTION 56-10-280, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MINIMUM DURATION OF INSURANCE ISSUED TO MEET MOTOR VEHICLE FINANCIAL RESPONSIBILITY REQUIREMENTS, SO AS TO AUTHORIZE THE CANCELLATION OF A CONTRACT OR INSURANCE POLICY IF THE INSURED FAILS TO PAY THE PREMIUM FOR THE POLICY OR AN INSTALLMENT OF THE PREMIUM WHEN IT IS DUE AND TO PROVIDE A TIME PERIOD FOR WHICH THE CONTRACT OR POLICY OF INSURANCE MUST REMAIN IN EFFECT.

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

Motor vehicle insurance, cancellation

SECTION    1.    Section 56-10-280(A) of the 1976 Code is amended to read:

"(A)    Contracts or policies of insurance issued to meet the financial responsibility requirements prescribed in this chapter must be issued for not less than six months. A contract or policy of insurance remains in effect at least sixty days notwithstanding a power of attorney which may purport to give the attorney-in-fact the right to effect cancellation on behalf of the insured. However, a contract or policy may be canceled within the first sixty days only under one or more of the following circumstances:

(1)    a check or bank draft tendered by the insured for payment to an agent, an insurance company, or a premium finance company is returned unpaid for insufficient funds or other reason by the insured's financial institution. If the check or draft is an initial payment made by an applicant for insurance or a payment made by an insured to renew a policy, the cancellation is effective as of the policy inception or renewal date;

(2)    the insured produces satisfactory proof from the Department of Motor Vehicles that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration;

(3)    the insured has secured another policy that meets the financial responsibility requirements prescribed in this chapter;

(4)    the insured fails to pay when due the premium for the policy, an installment of the premium, or an installment payment under a premium service contract. The contract or policy of insurance must remain in effect for at least thirty days."

Time effective

SECTION    2.    Upon approval by the Governor, this act takes effect August 1, 2006.

Ratified the 31st day of May, 2006.

Approved the 1st day of June, 2006.

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