Bulletin 1999-1 Offer of Optional Additional Uninsured Motorist Coverage and Optional Underinsured M

Offer of Optional Additional Uninsured Motorist Coverage and

Optional Underinsured Motorist Coverage Form, SCDOI Form Number 2006

To: All Insurers Licensed to Transact Property and Casualty Insurance

Business within the State of South Carolina

From: Mr. Ernst N. Csiszar, Director

Subject: Offer of Optional Additional Uninsured Motorist Coverage and Optional

Underinsured Motorist Coverage Form, SCDOI Form Number 2006

[S. C. Code Ann. §38-77-350 (Supp. 1998)]

The purpose of this Bulletin is to issue a revised South Carolina Department of Insurance Offer of Optional Additional Uninsured

Motorist Coverage and Optional Underinsured Motorist Coverage Form, SCDOI Form Number 2006. The attached revised Form

may be utilized by insurers for all newly-issued automobile insurance policies with effective dates on, and after, March 1, 1999;

or an insurer may submit a form for approval to the director or his designee in accordance with §38-77-350.

Section 38-77-350(A) (Supp. 1998) requires that the director or his designee to approve a form by which automobile insurers

must offer optional additional uninsured motorist coverage and optional underinsured motorist coverage to all applicants for

automobile insurance policies. This requirement has been in effect since December 1, 1989. See 1998 S. C. Act Number 148,

Section 22 (effective upon July 1, 1989). On August 18, 1989, by memorandum to all licensed insurers transacting automobile

insurance business within the State of South Carolina, the Chief Insurance Commissioner for this State attached a "suggested"

form to that memorandum. That 1989 form has withstood some limited judicial review. See Osborne v. Allstate Insurance

Company, 318 S. C. 479, 462 S. E. 2d 291 (Ct. App. 1995), cert. granted, affirmed by Memorandum Opinion Number 96-Mo-

222 (filed upon October 9, 1996).

On July 3, 1997, the State of South Carolina's Automobile Insurance Residual Market and Delivery Systems Reform Act became

law

form to that memorandum. That 1989 form has withstood some limited judicial review. See Osborne v. Allstate Insurance

Company, 318 S. C. 479, 462 S. E. 2d 291 (Ct. App. 1995), cert. granted, affirmed by Memorandum Opinion Number 96-Mo-

222 (filed upon October 9, 1996).

On July 3, 1997, the State of South Carolina's Automobile Insurance Residual Market and Delivery Systems Reform Act became

law. See 1997 S. C. Act Number 154 (Act 154). A complete copy of that Act can be found upon the State of South Carolina's

Internet home page at http://www.scstatehouse.net/bills/254.htm. Act 154 made a number of dramatic changes to

this State's automobile liability insurance delivery system requirements, mandates to underwrite, and mandates to offer. Those

statutory changes necessitated changes to the 1989 Offer of Optional Additional Uninsured and Underinsured Coverage Form.

The attached, revised SCDOI Form Number 2006, in the opinion of the State of South Carolina Department of Insurance, meets

the statutory requirements of S. C. Code Ann. § 38-77-350 (Supp. 1998). This revised Form, therefore, may be utilized by all

insurers for all newly-issued automobile insurance policies with effective dates on, and after, March 1, 1999. It is important to

note that the Statute does not require that the Director "promulgate" a form; the statute only requires that the Director "approve"

a form. Therefore, any insurer may develop its own version of the offer form and submit that form for prior review and approval

or disapproval. Those insurer-developed forms should be forwarded to this Department's Office of Actuarial Services at the

above address.

STATE OF SOUTH CAROLINA DEPARTMENT OF INSURANCE SCDI FORM NUMBER 2006 [REVISED EFFECTIVE UPON

MARCH 1, 1999] OFFER OF OPTIONAL ADDITIONAL UNINSURED MOTORIST COVERAGE AND OPTIONAL

UNDERINSURED MOTORIST COVERAGE

I

bmit that form for prior review and approval

or disapproval. Those insurer-developed forms should be forwarded to this Department's Office of Actuarial Services at the

above address.

STATE OF SOUTH CAROLINA DEPARTMENT OF INSURANCE SCDI FORM NUMBER 2006 [REVISED EFFECTIVE UPON

MARCH 1, 1999] OFFER OF OPTIONAL ADDITIONAL UNINSURED MOTORIST COVERAGE AND OPTIONAL

UNDERINSURED MOTORIST COVERAGE

I. Explanation of Services

The State of South Carolina's automobile insurance laws now allow any insurance company to refuse to underwrite your

automobile liability insurance coverage. That refusal may be based upon a number of reasons. Automobile liability insurance

coverage pays other motor vehicle drivers and their passengers whom you damage for the damages which you cause and for

which you are legally responsible. There are two types of automobile liability insurance coverage: bodily injury and property

damage. Bodily injury coverage is a coverage which pays people upon whom your motor vehicle inflicts bodily injury. Property

damage coverage is a coverage which pays people for damages which your automobile causes to their motor vehicles or

property.

Once any insurance company makes the business decision to underwrite your automobile liability insurance coverage, then it

must provide to you at least $15,000.00 of bodily injury coverage for each person whom you may injure in any single accident

and $30,000.00 of bodily injury coverage for two or more people whom you may injure in any single accident. The insurance

company must also provide to you at least $10,000.00 in property damage coverage for each accident which you may cause.

You may have seen these limits described as $15,000/$30,000/$10,000 or 15-30-10. These limits are commonly-known as

minimum limits. If you purchase automobile liability insurance, then, in order to drive your automobile upon the roads of this

State, you must have at least minimum limits.

lso provide to you at least $10,000.00 in property damage coverage for each accident which you may cause.

You may have seen these limits described as $15,000/$30,000/$10,000 or 15-30-10. These limits are commonly-known as

minimum limits. If you purchase automobile liability insurance, then, in order to drive your automobile upon the roads of this

State, you must have at least minimum limits.

There is no requirement under the laws of this State that an insurance company which underwrites your minimum limits of

$15,000/$30,000/$10,000 must also agree to underwrite higher than those minimum limits of automobile liability insurance

coverage for you. If your insurance company does agree to offer to you more than the minimum limits, then you will be required

to pay an increased automobile insurance premium for those increased limits of protection.

In addition, under this State's insurance laws, once an insurance company agrees to underwrite your automobile liability

insurance coverage, you must be offered, at your option, two additional automobile insurance coverages which will protect you

in the event you are damaged in an automobile accident by an at-fault automobile driver who either has no automobile

insurance or whose automobile insurance liability limits are less than the damages which you suffer in that accident. These

coverages are legally termed additional uninsured motorist coverage and underinsured motorist coverage. You may see them

referred to within your automobile insurance policy as UM and UIM. If you decide to purchase either of these two optional

coverages, then you will be required to pay an additional automobile insurance premium for each of these additional coverages.

Uninsured motorist coverage compensates you, or other persons insured under your automobile insurance policy, for amounts

which you may be legally entitled to collect as damages from an owner or operator of an at-fault uninsured motor vehicle

ither of these two optional

coverages, then you will be required to pay an additional automobile insurance premium for each of these additional coverages.

Uninsured motorist coverage compensates you, or other persons insured under your automobile insurance policy, for amounts

which you may be legally entitled to collect as damages from an owner or operator of an at-fault uninsured motor vehicle. An

uninsured motor vehicle is a motor vehicle which either has no liability insurance coverage or is operated by a hit-and-run driver.

By law, your automobile insurance policy automatically must provide uninsured motorist coverage of $15,000/$30,000/$10,000.

All uninsured motorist coverages provide for a $200 deductible for property damage claims.

You also have the right to buy additional uninsured motorist coverage, in various limits, up to the limits of the liability coverage

which you will carry under your automobile insurance policy. Some of the more commonly-sold limits of additional uninsured

motorist coverage, together with the additional premiums which you will be charged, have been printed by your insurance

company upon this Form. If there are other limits in which you are interested, but which are not shown upon this Form, then fill-

in those limits in the blanks provided. If your insurance company is allowed to market those limits within this State, then your

insurance agent will fill-in the amounts of increased premium.

Underinsured motorist coverage compensates you, or other persons insured under your automobile insurance policy, for

amounts which you legally may be entitled to collect as damages from an owner or operator of an at-fault underinsured motor

vehicle. An underinsured motor vehicle is a motor vehicle which is covered by some form of liability insurance, but that liability

insurance coverage is not sufficient to fully compensate you for your damages.

Your automobile insurance policy does not automatically provide any underinsured motorist coverage

titled to collect as damages from an owner or operator of an at-fault underinsured motor

vehicle. An underinsured motor vehicle is a motor vehicle which is covered by some form of liability insurance, but that liability

insurance coverage is not sufficient to fully compensate you for your damages.

Your automobile insurance policy does not automatically provide any underinsured motorist coverage. However, you have the

right to buy underinsured motorist coverage in limits up to the limits of liability coverage which you will carry under your

automobile insurance policy. Some of the more commonly-sold limits of underinsured motorist coverage, together with the

additional premiums which you will be charged, have been printed by your insurance company upon this Form. If there are other

limits in which you are interested, but which are not shown upon this Form, then fill-in those limits in the blanks provided. If your

insurance company is allowed to market those limits within this State, then your insurance agent will fill-in the amounts of

increased premium.

It is important that you understand that, if you reject either one of these coverages upon this Form and if you are involved in an

automobile accident, then this Form may be used by your insurance company as evidence against you if it denies your claim for

additional uninsured motorist coverage or underinsured motorist coverage.

If you do not complete this Form and return it to your insurance company or to your insurance agent within 30 days from your

receipt of this Form, then the law requires that additional uninsured motorist coverage and underinsured motorist coverage, in

the same limits as the automobile liability insurance which you purchase, must be automatically added on to your automobile

insurance policy. You will be required to pay an additional premium for each of these two coverages. If you do not pay that

additional premium, then your automobile insurance policy may be canceled

ditional uninsured motorist coverage and underinsured motorist coverage, in

the same limits as the automobile liability insurance which you purchase, must be automatically added on to your automobile

insurance policy. You will be required to pay an additional premium for each of these two coverages. If you do not pay that

additional premium, then your automobile insurance policy may be canceled.

In the future, if you wish to increase or to decrease your limits either of additional uninsured motorist coverage or of

underinsured motorist coverage, then you must then contact either your insurance agent or your insurance company. You will

not be presented with another copy of this Form by your insurance agent or by your insurance company upon the renewal of

your automobile liability insurance policy. You will not be presented with another copy of this Form by your insurance agent or by

your current insurance company when you extend, change, supersede, or replace your automobile liability insurance policy.

Please read this Form carefully. Your insurance agent or your insurance company must answer any questions which you may

have. If you have any further questions, then you should contact the State of South Carolina Department of Insurance. Its

address and telephone numbers are:

Office of Consumer Services

State of South Carolina Department of Insurance

300 Arbor Lake Drive, Suite 1200

Post Office Box 100105

Columbia, South Carolina 29202-3105

(803) 737-6180

nce company must answer any questions which you may

have. If you have any further questions, then you should contact the State of South Carolina Department of Insurance. Its

address and telephone numbers are:

Office of Consumer Services

State of South Carolina Department of Insurance

300 Arbor Lake Drive, Suite 1200

Post Office Box 100105

Columbia, South Carolina 29202-3105

(803) 737-6180

(800) 768-3467

E-mail Address: CnsmMail@doi.sc.gov .

II. Offer of Additional Uninsured Motorist Coverage

Limits of Coverage Amounts of Increased Premium

(These increased premium charges must be filled in by your insurance agent prior to your decision and signature.)

$15,000 / $30,000 / $10,000 Minimum limits of uninsured motorist coverage are automatically provided by your insurance policy.

__________/_________/____________

__________/_________/____________

__________/_________/____________

__________/_________/____________

Your Policy's Liability Coverage Limits:

__________/_________/____________

Do you wish to purchase additional uninsured motorist coverage? Yes ______ No ______

If your answer is "no", then you must then sign here.

If your answer is "yes", then specify the limits which you desire. These limits cannot exceed your automobile insurance liability

limits.

I select _______________/________________/_________________.

III. Offer of Underinsured Motorist Coverage

Limits of Coverage Amounts of Increased Premium

(These increased premium charges must be filled in by your insurance agent prior to your decision and signature.)

$15,000 / $30,000 / $10,000.

__________/_________/____________

__________/_________/____________

__________/_________/____________

__________/_________/____________

Your Policy’s Liability Coverage Limits:

__________/_________/____________

Do you wish to purchase additional underinsured motorist coverage? Yes ______ No ______

If your answer is "no", then you must then sign here.

If your answer is "yes", then specify the limits which you desire

_______

__________/_________/____________

__________/_________/____________

__________/_________/____________

Your Policys Liability Coverage Limits:

__________/_________/____________

Do you wish to purchase additional underinsured motorist coverage? Yes ______ No ______

If your answer is "no", then you must then sign here.

If your answer is "yes", then specify the limits which you desire. These limits cannot exceed your automobile insurance liability

limits.

I select _______________/________________/_________________.

IV. Applicant's Acknowledgment

By my signature, I acknowledge that I have read -- or I have had read to me -- the above explanations and offers of additional

uninsured motorist coverage and underinsured motorist coverage. I have indicated whether or not I wish to purchase each

coverage in the spaces provided. I understand that the above explanations of these coverages are intended only to be brief

descriptions of additional uninsured motorist coverage and underinsured motorist coverage, and that payment of benefits under

either of these coverages is subject both to the terms and conditions of my automobile insurance policy and to the State of

South Carolina's laws.

Type or Print Your Name:

Your Signature:

Your Address:

Today’s Date: