SC| The South Carolina Department of Insurance issued Bulletin 2025-03 to provide guidance on the distribution of funds from the Uninsured Motorist Fund for Fiscal Year 2025. These distributions, based on insurers’ 2023 market shares, aim to reduce the cost of uninsured motorist insurance coverage. Insurers are advised to account for these funds as “other income” in compliance with statutory guidance.
Key Points:
- Distribution Basis: Funds are allocated annually to insurers based on their proportion of premium income for auto liability coverage in the prior year, as mandated by S.C. Code Ann. §38-77-155.
- Purpose: The Fund is designed to offset the cost of uninsured motorist insurance, aligning with the purpose outlined in S.C. Code Ann. §38-77-154.
- Accounting Guidance: Insurers must report these distributions as “other income” per National Association of Insurance Commissioners’ statutory guidelines.