ORDERS:
CONSENT ORDER AND ORDER OF DISMISSAL
1. On May 31, 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 American Modern Home
Insurance (the Company) requesting an approval of an overall increase of +2.14% in its mobile homeowners insurance rates with
some territories having a proposed increase of up to 82.8%.
2. On June 7, 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 C. Dukes Scott under the Docket No. 00-ALJ-09-0321-CC. Prehearing statements were due July 7, 2000. As of today, no hearing date has been set.
4. Meanwhile, the Consumer Advocate retained a consulting actuary and requested additional information from the Company.
Specifically, the Consumer Advocate was concerned that no investment income was included in the calculation of the requested rate.
The Consumer Advocate believes that investment income is a relevant factor in fixing of rates. At a minimum, income from
unearned premium reserve and loss reserve funds supplied by ratepayers and not yet fully earned by the insurer should be reflected in
the rates. In response to these concerns, the Company included investment income consideration in its amended filing pages. The
Company simultaneously revised its proposed rate level change to +1.09%.
In addition, the Company agreed to move Kershaw County into different territory so that the biggest increase will be 38.5% rather
than 82.8% and that the overall increase for Kershaw County will drop from 38.5% to 6.5%. All amended exhibits are attached to
this Order as Attachment
No. 1.
5. 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.
_________________________________
C. DUKES SCOTT
ADMINISTRATIVE LAW JUDGE
August 1, 2000
Columbia, South Carolina
WE CONSENT:
_____________________________ ________________________________
Brian Mayer T. Douglas Concannon, Esquire
Product Manager Associate General Counsel
American Modern Home Insurance Company South Carolina Department
Post Office Box 5323 of Insurance
Cincinnati, OH 45201 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 |
