ORDERS:
DECISION AND ORDER
STATEMENT OF CASE
This matter comes before me pursuant to S. C. Code Ann. 38-73-10., et. seq. (Supp. 1995); S.C.
Code Ann. § 38-73-410., et. seq. (Supp. 1995); S. C. Code Ann. § 38-73-910 (Supp. 1995); and
S.C. Code Ann. § 1-23-600 (B) (Supp. 1995) on Petitioner's request for an increase in its Fourth
Tier Private Passenger Automobile Rates. A hearing was held June 12, 1996 at the
Administrative Law Judge Division, 1205 Pendeleton Street, Columbia, South Carolina. The
request was not contested by the Department of Insurance or any member of the public.
Present at the hearing were Debra L. Prince, representing Universal Insurance Company; Martin
M. Simons, Chief Actuary, South Carolina Department of Insurance and T. Douglas Concannon,
Esq., representing the South Carolina Department of Insurance; and Catherine Edwards Heigel,
Esq., representing the Department of Consumer Affairs.
The rate increase requested by the Petitioner is approved.
FINDINGS OF FACT
Having carefully considered all testimony, evidence and arguments presented at the hearing in this
matter, by a preponderance of the evidence I find as to the requested revision in Fourth Tier
Private Passenger Automobile Rates:
1. Respondent published notice advising the public that an application for a rate level increase by
Petitioner had been made and that a hearing would be held on June 12, 1996, in The Charleston
Post & Courier, The Greenville News, The News & Press, The Rock Hill Evening Herald, and
The State.
2. On March 13, 1996, Universal Insurance Company made a filing with the Director of Insurance
requesting approval of an overall increase of +17.3% in its Fourth Tier Private Passenger
Automobile Rates with supporting material (see Rate Filing). An update to the filing was
submitted on April 8, 1996, which included an Actuarial Memorandum.
3. The filer's most recent rate change was an overall increase of -6.9% effective on March 1,
1995.
4. As filed, the filer's indicated and filed statewide rate level change was:
| Line of Business |
|
|
|
|
|
Indicated |
Filed |
|
| Fourth Tier Private Passenger Automobile
Rates |
|
+32.2% |
+17.3% |
5. The revision of the rate as presented in Paragraph 4 above is appropriate.
6. The filer's proposed effective or distribution date will be July 1, 1996.
7. Based on these facts the Insurance Department does not oppose the overall rate level change
set forth in Paragraph 4.
8. The requested rate revision would produce rates that are not excessive, inadequate or unfairly
discriminatory.
CONCLUSIONS OF LAW
Based upon the foregoing Findings of Fact, I conclude, as a matter of law, the following:
1. The Administrative Law Judge Division is empowered to hear this case pursuant to S.C. Code
Ann. § 38-73-910 (Supp. 1995) and Chapter 23 of Title 1, as amended, of the 1976 Code.
2. A request for an insurance rate increase is governed by S.C. Code Ann. §§ 38-73-10 et. seq.
(Supp. 1995).
3. Pursuant to S.C. Code Ann. § 38-73-910 (Supp. 1995), notice of the filing and of the public
hearing must be published in all newspapers of statewide circulation at least 30 days in advance of
the hearing.
4. The Petitioner has sufficiently established that the increase in the rate level would not be
excessive, inadequate, or unfairly discriminatory. See S.C. Code Ann. § 38-73-10(a) (1) (Supp.
1995).
5. S.C. Code Ann. § 38-73-920 (Supp. 1995) prohibits an insurer from receiving an insurance rate
increase in any line of insurance or in any type of insurance for which a rate increase has been
granted within the preceding twelve months.
ORDER
IT IS THEREFORE ORDERED, that the overall insurance Fourth Tier Private Passenger
Automobile Rate increase requested by Universal Insurance Company in the filing is approved.
The effective date of the increase shall not occur before the date of this Order.
AND IT IS SO ORDERED.
_________________________________
RALPH K. ANDERSON, III
Administrative Law Judge
Columbia, South Carolina
June 24, 1996 |