S.C. Code Regs. § § 90-400
Current through Register Vol. 48, 12, December 27, 2024
Section 90-400 - Self-InsurersA. 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.B. Political Subdivisions must meet the following requirements to be self-insured with the Department of Motor Vehicles: (1) Apply annually to be self-insured. The application must be submitted at least thirty (30) days prior to the expiration of the current self-insured period.(2) 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.(3) Annually provide proof that sufficient funds are available and will be maintained to cover the projected losses listed in the actuary's report.(4) 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.(5) If an Excess Liability Insurance Policy is in place, the political subdivision must designate the Department of Motor Vehicles as the Certificate holder on the policy.C. All Other Self-Insured Applicants must meet the following requirements:(1) Apply annually to be self-insured. The application must be submitted at least thirty (30) days prior to the expiration of the current self-insured period and contain the information required by Section 56-9-60.(2) Self-Insured funds for any claims account must be segregated in a federally insured savings or checking account or maintained in another federally insured account such as: (a) Money Market Accounts; or(b) Certificates of Deposits.(3) All accounts containing self-insured funds must either be payable to the South Carolina Department of Motor Vehicles 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 must also be notified when the term has expired for any certificates of deposit containing self-insured funds.(4) The Department must be provided copies of statements of accounts containing self-insured funds on at least a quarterly basis. Failure to provide the Department with copies of the quarterly statements of accounts for self-insured funds within thirty days of when such statements are due to the Department if grounds for cancellation of self-insured status.(5) Should the funds in the segregated self-insured account decrease by more than thirty percent in any given certificate year, the self-insurer must deposit additional funds into the segregated self-insured account within thirty days of that decrease to bring the account back at least the seventy percent funding level required for that self-insurance year.(6) If a self-insured person or company has applied for a renewal of their self-insurance at least thirty (30) days prior to expiration of their current self-insurance certificate issued by the Department, and the Department is unable to complete its review of the application before the self-insured person or company's current self-insurance certificate expires and so long as the delay in reviewing the application is through no fault of the applicant, then the Department may issue a temporary extension of the self-insurance certificate in thirty (30) day increments. In no case may such extensions continue for more than ninety (90) days per application.Added by State Register Volume 48, Issue No. 05, eff. 5/24/2024.