Bulletin 2007-01 2007 Uninsured Motorist Distribution

South Carolina Department of Insurance 300 Arbor Lake Drive, Suite 1200 Columbia, South Carolina 29223 _________________________ Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6223 MARK SANFORD Governor ELEANOR KITZMAN Director of Insurance BULLETIN NUMBER 2007-01 TO: All Insurers Transacting Private Passenger Automobile Property and Casualty Insurance Coverage in South Carolina FROM: Eleanor Kitzman Director RE: 2007 Uninsured Motorist Distribution DATE: January 18, 2007 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. §56-10-510 (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). As of the date of this bulletin, your company should have received a check representing your company's portion of the uninsured motorist distribution based upon its 2005 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. Generally, such funds are treated as other income the uninsured motorist distribution based upon its 2005 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. Generally, such funds are treated as other income. 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.