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TO AMEND SECTION 56-9-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SELF-INSURERS FOR MOTOR VEHICLES AND DETERMINATION OF FINANCIAL RESPONSIBILITY, SO AS TO PROVIDE THAT A SELF-INSURER MAY USE AN IRREVOCABLE LETTER OF CREDIT ISSUED BY CERTAIN BANKS TO MEET THE EIGHTY PERCENT CASH DEPOSIT REQUIREMENT OF THIS SECTION, AND TO PROVIDE THAT COMPLIANCE WITH THIS SECTION PROVIDES THE COVERAGE EQUIVALENT TO A MINIMUM LIMITS STATUTORY POLICY FOR A VEHICLE AS REQUIRED BY LAW.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 56-9-60 of the 1976 Code, as last amended by Act 331 of 1996, is further amended to read:
"Section 56-9-60. A person or company who has more than twenty-five motor vehicles registered in his name may qualify as a self-insurer provided that the department is satisfied that the person or company is able to pay any judgments obtained against the person or company. Upon not less than ten days' notice and a hearing pursuant to the notice, the department may cancel self-insurer status when the requirements for the status no longer are met. The person or company must submit the following information to the department for it to determine financial responsibility:
(1) 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;
(2) a current list of all vehicles registered in applicant's name;
(3) the applicant's procedural guidelines for processing claims; and
(4) the applicant must have a net worth of at least 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. Eighty percent must be cash or an irrevocable letter of credit issued by a bank that is chartered in this State or a member of the Federal Reserve System, and the remaining twenty percent may be satisfied by the 'quick sale' appraised value of real estate located in the State, as certified by a licensed appraiser. The three thousand dollar
a each vehicle amount may not decrease more than thirty percent in any given certificate year.
Compliance with this section provides the coverage equivalent to a minimum limits statutory policy in accordance with Section 38-77-140."
SECTION 2. This act takes effect upon approval by the Governor.
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