Under S.C. Code Ann. § 38-77-140, what are South Carolina's minimum automobile liability insurance limits?
A. $15,000/$30,000/$10,000
B. $25,000 bodily injury per person / $50,000 bodily injury per accident / $25,000 property damage
C. $100,000/$300,000/$50,000
D. $50,000 combined single limit with no per-person cap
Show answer and reasoning
Correct answer: B. $25,000 bodily injury per person / $50,000 bodily injury per accident / $25,000 property damage
Correct. S.C. Code Ann. § 38-77-140 sets South Carolina's minimum financial responsibility limits at $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more persons in one accident, and $25,000 for property damage, commonly shorthanded as 25/50/25.
- A: $15,000/$30,000/$10,000 is not South Carolina's statutory minimum; it understates South Carolina's actual required limits.
- C: $100,000/$300,000/$50,000 is well above South Carolina's statutory minimum; it is not the required floor under § 38-77-140.
- D: South Carolina's minimum is structured as split limits (per person/per accident/property damage) under § 38-77-140, not as a single combined limit with no per-person cap.
Source: S.C. Code Ann. § 38-77-140
South Carolina law requires auto liability policies to include uninsured motorist (UM) coverage. Which statement about this requirement is accurate?
A. UM coverage is optional and can be waived entirely by the insured with no minimum required
B. UM coverage must be included at limits no less than the statutory minimum liability limits, and it cannot be rejected outright by the insured, though the insured may generally select higher limits
C. UM coverage only applies to accidents that occur outside South Carolina
D. UM coverage replaces the need for liability coverage altogether
Show answer and reasoning
Correct answer: B. UM coverage must be included at limits no less than the statutory minimum liability limits, and it cannot be rejected outright by the insured, though the insured may generally select higher limits
Correct. Under S.C. Code Ann. §§ 38-77-140 and 38-77-150, automobile liability policies must include uninsured motorist coverage at least equal to the state's minimum liability limits; this coverage cannot be rejected entirely by the insured, though higher optional limits may typically be purchased.
- A: South Carolina UM coverage is mandatory (cannot be waived outright), unlike some states that allow full rejection of UM coverage.
- C: UM coverage is not limited to out-of-state accidents; it applies to covered accidents involving uninsured motorists generally, subject to the policy's terms.
- D: UM coverage supplements liability coverage for situations involving an uninsured at-fault driver; it does not replace the insured's own separate liability coverage obligation.
Source: S.C. Code Ann. §§ 38-77-140, 38-77-150
South Carolina's automobile insurance statute defines an 'uninsured motor vehicle.' Which scenario would generally fall within that definition?
A. A vehicle owned and insured by the same insured under the same policy
B. A vehicle whose owner or operator has no bodily injury and property damage liability insurance in at least the amounts required by South Carolina law (or, in some cases, a hit-and-run vehicle)
C. A rental vehicle with valid full coverage
D. A vehicle insured through an out-of-state carrier with limits above South Carolina's minimum
Show answer and reasoning
Correct answer: B. A vehicle whose owner or operator has no bodily injury and property damage liability insurance in at least the amounts required by South Carolina law (or, in some cases, a hit-and-run vehicle)
Correct. Under S.C. Code Ann. § 38-77-30, an 'uninsured motor vehicle' generally includes a vehicle for which there is no liability insurance meeting South Carolina's minimum required limits, and the concept also extends to certain hit-and-run situations where the at-fault vehicle cannot be identified.
- A: A vehicle already insured under the insured's own policy is not the scenario the uninsured motorist definition is designed to address.
- C: A properly insured rental vehicle with valid full coverage does not meet the definition of an uninsured motor vehicle.
- D: A vehicle insured by an out-of-state carrier at or above South Carolina's minimum limits is not treated as uninsured merely because the policy was written out of state.
Source: S.C. Code Ann. § 38-77-30
In a Personal Auto Policy (PAP), which coverage part pays for damage to the insured's own vehicle caused by collision with another object or vehicle?
A. Part A - Liability
B. Part B - Medical Payments
C. Part C - Uninsured Motorists
D. Part D - Collision (under Physical Damage)
Show answer and reasoning
Correct answer: D. Part D - Collision (under Physical Damage)
Correct. Part D of the PAP, Physical Damage coverage, includes the collision peril, which pays for damage to the insured's own covered auto resulting from a collision with another vehicle or object, subject to the applicable deductible.
- A: Part A (Liability) pays for bodily injury and property damage the insured causes to others, not damage to the insured's own vehicle.
- B: Part B (Medical Payments) covers medical expenses for the insured and passengers regardless of fault, not vehicle repair costs.
- C: Part C (Uninsured Motorists) addresses injuries (and in some states, property damage) caused by an uninsured or underinsured at-fault driver, not general collision damage to the insured's own car.
Source: General insurance principle
Comprehensive coverage (Other Than Collision) under a PAP's Physical Damage section typically covers which type of loss?
A. Damage from colliding with another vehicle in a parking lot
B. Damage from causes such as theft, fire, vandalism, falling objects, and animal collisions
C. Bodily injury the insured causes to a pedestrian
D. Medical bills for the insured driver after any accident
Show answer and reasoning
Correct answer: B. Damage from causes such as theft, fire, vandalism, falling objects, and animal collisions
Correct. Comprehensive (Other Than Collision) coverage addresses non-collision physical damage perils such as theft, fire, vandalism, falling objects, glass breakage, and animal strikes.
- A: Collision with another vehicle is specifically the collision peril, not comprehensive/other-than-collision coverage.
- C: Bodily injury the insured causes to others is addressed under liability coverage (Part A), not comprehensive physical damage coverage.
- D: Medical bills for the insured are addressed under Medical Payments (Part B), not the comprehensive physical damage peril.
Source: General insurance principle
