Bulletin Number 2024-01-FY24s Uninsured Motorist Distribution (Based on 2022s Market Share)

TO: FROM: RE: DATE: South Carolina Department of Insurance Capitol Center 120 I Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 BULLETIN NUMBER 2024-01 HENRY MCMASTER Governor MICHAEL WISE Director All Insurers Transacting Private Passenger Automobile Insurance Business in South Carolina Michael Wise ~ UM--L-' Director of Insurance FY24's Uninsured Motorist Distribution (Based on 2022's Market Share) December13,2023 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. These fees are deposited into the Uninsured Motorist Fund ( 11 Fund 11 ) 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. S.C. Code Ann. §38-77-155. Your company may receive a check representing its portion of the uninsured motorist distribution based upon its 2022 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. S.C. Code Ann. §38-77-154. Accounting for these funds as other income should be done in accordance with NAIC statutory guidance. Please contact Mia Mills, Accountant/Fiscal Analyst III, at (803) 737-6111 or via E-mail at mmills@doi.sc.gov if you have any questions or concerns about the amount of this year's distribution. Bulletins are the method by which the Director of Insurance formally communicates with persons and entities regulated by the Department. Bulletins are departmental interpretations of South Carolina insurance laws and regulations and provide guidance on the Department 1s enforcement approach. Bulletins do not provide legal advice. Readers should consult applicable statutes and regulations or contact an attorney for legal advice or for additional information on the impact of that legislation on their specific situation.