Bulletin 2015-09 FY16's Uninsured Motorist Distribution (2014's Market Share)

 # South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 NIKKI R. HALEY Governor RAYMOND G. FARMER Director Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 # BULLETIN NUMBER 2015-09 TO: All Insurers Transacting Private Passenger Automobile Insurance Business in South Carolina FROM: Raymond G. Farmer Director of Insurance Raymond G. Farmer RE: FY16's Uninsured Motorist Distribution (2014's Market Share) DATE: December 22, 2015 South Carolina law provides that 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. §56-10-510 (Supp. 2013). These fees are deposited into the Uninsured Motorist Fund ("Fund") to be disbursed in accordance with §§ 38-77-151 through 38-77-155. Section 38-77-155 states that the Director of Insurance 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. Your company may receive a check representing your company's portion of the uninsured motorist distribution based upon its 2014 market share. This amount was calculated pursuant to the requirements of §38-77-155. The purpose of the Fund is to reduce the cost of uninsured 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 done in accordance with NAIC statutory guidance. Please do not hesitate to contact Tom Watson, Finance Director, at (803) 737-6141 or via e-mail at twatson@doi.sc.gov if you have any questions or concerns about the amount of this year's distribution.