2014-15 FY15's Uninsured Motorist Distribution (2013's Market Share)

South Carolina NIKKI R. HALEY Governor Department of Insurance Capitol Center 1201 Main Street, Suite 1000 RAYMOND G. FARMER Columbia, South Carolina 29201 Director Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 BULLETIN NUMBER 2014-15 TO: All Insurers Transacting Private Passenger Automobile Property and Casualty Insurance Coverage in South Carolina FROM: Raymond G. Farmer Director of Insurance RE: FYI5's Uninsured Motorist Distribution (2013's Market Share) DATE: December 18,2014 As you are aware, South Carolina drivers seeking to drive uninsured must pay annually a fee of five hundred fifty dollars ($550) for the privilege of operating an uninsured vehicle on South Carolina highways or a three hundred dollar ($300) reinstatement fee. See, e.g., S.C. Code Ann. §56-1 0-51 0 (Supp. 2005). These fees are deposited into the Uninsured Motorist Fund ("Fund") to be disbursed in accordance with §§ 38-77-154 and 38-77-155. S.C. Code Ann. §38-77-151 (2002). South Carolina law provides that the Director shall distribute monies annually from the Fund among the several insurers writing motor vehicle bodily injury and property damage liability insurance on motor vehicles registered in this state. See S.C. Code Ann. §38-77-155 (2002). Your company may receive a check representing your company's portion of the uninsured motorist distribution based upon its market share for calendar year 2013. This amount was calculated pursuant to the requirements of §38-77-155. The purpose of the Fund is to reduce the cost ofuninsured motorist insurance coverage. Therefore, the method used to account for these funds must be consistent with the purpose set forth in §38-77­ 154. Accounting for these funds as other income should be in accordance with NAIC statutory guidance. Please do not hesitate to contact Tom Watson, Finance Director, at (803) 737-6141 or via E-mail attwatson@doi.sc.gov if you have any questions or concerns about the amount ofthis year's distribution.