Download This Version in Microsoft Word format
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.
Be it enacted by the General Assembly of the State of South Carolina:
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 the premium for the policy or an installment of the premium, when due."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Tuesday, June 23, 2009 at 2:43 P.M.