The South Carolina Department of Insurance has set a deadline for auto insurers in the state to meet the requirements of the recently passed moped safety legislation.
The new moped law, which takes effect July 1, amends South Carolina’s motor vehicle law to include mopeds in the definition of a motor vehicle and requires owners of mopeds to register them with the South Carolina Department of Motor Vehicles. Mopeds were not previously classified as motor vehicles in the state.
The main purpose of the new law is to allow for intoxicated drivers to be prosecuted for drunken driving; moped owners must now obtain a special moped license, which can be suspended if a moped operator is arrested for driving under the influence. The law also requires teens to wear a helmet when operating a moped.
But their are also implications for auto insurers writing business in South Carolina, even though moped operators are not required to maintain auto liability insurance. Though mopeds are now classified as motor vehicles under the new law, they are still excluded from the definition of an individual private passenger automobile, thus excluding them from the state’s auto insurance requirement.
However, mopeds are now included in the definition of a motor vehicle for the purposes of uninsured and underinsured motor vehicle insurance coverages.
“Mopeds are not included in the definition of a motor vehicle for any [insurance] purpose other than uninsured and underinsured motor vehicle coverages,” the SCDOI bulletin reads.
In other words, insurers must provide uninsured or underinsured motor vehicle coverage that includes compensation for losses resulting from accidents involving mopeds, and cannot deny coverage in the event of an accident involving a moped.
South Carolina Sen. Greg Hembree, a Republican from North Myrtle Beach, told the Associated Press in May that adding mopeds to the definition of a motor vehicle closed an insurance loophole insurers were using to deny coverage if a moped caused damage to a vehicle in a crash.
“This takes care of that,” he said.
South Carolina automobile insurance policies issued or renewed on or after Nov. 19, 2018 must provide uninsured and underinsured motor vehicle coverage that includes compensation for losses resulting from accidents involving mopeds.
SCDOI said in its bulletin that auto insurers must submit any form, rate, and rule filing changes as a result of the new law by June 1, 2018 via its SERFF filing system. Each filing should include references to the new law (S.C. Act No. 89 (R. 99, H. 3247)) and the SCDOI bulletin in its filing description.
Additional information and a copy of the new law are available on the SCDOI website. SCDOI said questions regarding the bulletin should be directed to the department via email at PCmail@doi.sc.gov.
Topics Carriers Auto Legislation South Carolina
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