ORDERS:
CONSENT ORDER AND ORDER OF DISMISSAL
1. On February 15, 2000, Philip S. Porter, Consumer Advocate for the State of South Carolina (the Consumer Advocate)
requested the South Carolina Department of Insurance (the Department) to initiate a public hearing on the filing of
Northland Insurance Company (the Company) requesting an approval of an overall increase of +3.61% in its mobile
homeowners insurance rates.
2. On February 22, 2000, the Department filed with the Administrative Law Judge Division an Agency Transmittal Form
requesting a public hearing.
3. The Administrative Law Judge Division assigned this matter to Honorable Ralph King Anderson, III under the Docket
No. 00-ALJ-09-0088-CC. The hearing on the matter was scheduled for May 4, 2000 at 2:00 P.M.
4. An issue on which the Consumer Advocate and the Company disagree is the proper treatment of investment income in
the making of rates. The Consumer Advocate believes that investment income is a relevant factor in fixing of rates,
particularly, income from unearned premium reserve and loss reserve funds supplied by ratepayers and not yet fully earned
by the insurer. The Company disagrees.
5. After taking other considerations into account, the Consumer Advocate has decided not to pursue this issue any further.
In arriving at that decision, the Consumer Advocate considered the relatively small volume of business the Company does
in South Carolina (approximately $2 million in annual earned premiums), the actual dollar difference between the analyses
of the Consumer Advocate's actuary and the Company's numbers, as well as the need for continued availability of mobile
homeowners insurance in South Carolina.
6. Based upon the foregoing, the Consumer Advocate now withdraws his original request for a hearing in this matter.
7. There are no unresolved issues remaining; therefore, all parties agree to the dismissal of this matter.
NOW, THEREFORE, the above referenced matter is dismissed.
IT IS SO ORDERED.
______________________________
Ralph King Anderson, III
Administrative Law Judge
May 3, 2000
Columbia, South Carolina
WE CONSENT:
_____________________________ ______________________________
Lisa Jo Heutmaker T. Douglas Concannon, Esquire
State Filings Administrator Associate General Counsel
Northland Insurance Company South Carolina Department
1295 Northland Drive of Insurance
St. Paul, MN 55120-1146 P.O. Box 100105
Columbia, SC 29202-6160
_____________________________
Hana Pokorna-Williamson, Esquire
Staff Attorney
South Carolina Department of
Consumer Affairs
P.O. Box 5757
Columbia, SC 29250-5757 |
