South Carolina General Assembly
116th Session, 2005-2006

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Bill 3554


Indicates Matter Stricken
Indicates New Matter


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

A BILL

TO AMEND SECTION 56-9-60, AS AMENDED, 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 LISTED 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:

SECTION    1.    Section 56-9-60 of the 1976 Code, as last amended by Act 331 of 1996, is further 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; and

(2)    a current list of all vehicles registered in applicant's name; and

(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 for all purposes only on the vehicles listed in the applicant's name."

SECTION    2.    Section 58-23-1240 of the 1976 Code is amended to read:

"Section 58-23-1240.    The owner of any such a taxi shall must obtain and cause to be affixed at all times to the front and rear of the taxi in a conspicuous places place a metal plate or sticker, the dimensions of which shall must be approved by the governing body of the county city where the taxi principally operates, which shall have on it the words "Public Taxi", and the taxi license number, and be of substantially similar design but a different color from the State license plate, the color of such plate to be changed annually.

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.

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