Current through Register Vol. 48, No. 3, March 22, 2024
I. Pursuant to
Section
15-78-140,
political subdivisions are allowed to procure automobile liability insurance by
becoming self-insured. Additionally, pursuant to Section
56-9-30
political subdivisions are exempted from the self-insured requirements
contained in Chapter 9 of Title 56. However, pursuant to Section
56-10-10
political subdivisions who wish to be self-insured must still provide proof
that adequate security is in place to meet the minimum coverage specified in
Section
56-10-20.
II. Political Subdivisions must meet the
following requirements to be self-insured with the Department of Public Safety:
A. Apply annually to be self-insured. The
application must be submitted thirty (30) days prior to the expiration of the
current self-insured period.
B.
Annually provide a recent actuary's report, not more than six months old from
the date of application, of the political subdivisions's projected automobile
liability losses for the upcoming self-insured period.
C. Annually provide proof that sufficient
funds are available and will be maintained to cover the projected losses listed
in the actuary's report.
D.
Annually provide a copy of the political subdivisions's most recent financial
statement, which shall be not more than six months old from the date of
application.
E. If an Excess
Liability Insurance Policy is in place, the political subdivision must
designate the Department of Public Safety as the Certificate holder on the
policy.
III. Other
Self-Insured Applicants must meet the following requirements:
A. Apply annually to be self-insured. The
application must be submitted thirty (30) days prior to the expiration of the
current self-insured period and contain the information required by Section
56-9-60.
B. Pursuant to Section
56-9-60
to be self-insured an applicant must:
1. have
more than twenty-five motor vehicles registered in the applicant's
name;
2. provide the Department
with a copy of the applicant's latest financial statement prepared by a
certified public accountant licensed to do business in South Carolina,
indicating that the applicant has a positive net worth;
3. provide the Department with a current list
of all vehicles registered in the applicant's name;
4. provide the Department with the
applicant's procedural guidelines for processing claims;
5. the applicant must have a net worth of
twenty million dollars or the Department may require the applicant to deposit
in a segregated self-insured claims account the sum of three thousand dollars
for each vehicle to be covered by the self-insurer's certificate.
C. Self-Insured funds must be
segregated in a federally insured savings or checking account or maintained in
another federally insured account such as:
1.
Money Market Accounts or
2.
Certificates of Deposits
All accounts containing self-insured funds must either be
payable to the South Carolina Department of Public Safety or designate the
Department as a lienholder. The account, however, shall be in the name of the
Self-Insurer and all interest which accrues to the account shall belong to the
Self-Insurer. The Department of Public Safety must be provided copies of
statements of accounts containing self-insured funds on either a monthly or
quarterly basis depending upon how often the statements are issued. The
Department must also be notified when the term has expired for any certificates
of deposit containing self-insured funds.
D. If a portion of the required self-insured
funds are to be covered by real estate, a quick sale appraisal of the property
must be submitted at the time of the initial application. Thereafter, an
appraisal update must be submitted annually with the renewal application.
Pursuant to Section
56-9-60,
no more than twenty percent of the required self-insured funds may be covered
by the "quick sale" appraised value of real estate located in the
State.
