ORDERS:
CONSENT ORDER AND ORDER OF DISMISSAL
- On October 18, 2000, Philip S. Porter, Consumer Advocate for the State of South Carolina (Advocate) requested the
South Carolina Department of Insurance (Department) to initiate a public hearing on the filing of Companion Property
& Casualty Insurance Company (Company) requesting an approval of an overall increase of +10.0% in its condominium
property and casualty insurance premium rates.
- On October 26, 2000, the Department filed with the Administrative Law Judge Division an Agency Transmittal Form
requesting a public hearing.
- The Administrative Law Judge Division assigned this matter to the Honorable Carolyn C. Matthews under the Docket
No. 00-ALJ-09-0602-CC. Prehearing Statements were due November 17, 2001. The Consumer Advocate notified the
office of the Honorable Carolyn C. Matthews that more information was needed in order to complete his review of the
filing. A hearing on this matter has not yet been set.
- Meanwhile, the consumer advocate retained a consulting actuary and requested additional information from the
Company primarily consisting of information regarding expenses and profits and rate level calculation for the program,
including justification for all factors and trends used in the rate level calculation.
- Having reviewed the requested information, the Consumer Advocate still believes that the ratemaking methodology
utilized in the filing is not proper. In particular, the Consumer Advocate is of the opinion that the amount of the new
reinsurance cost alone cannot justify the rate level requested by the company. However, taking into account that fact
that, first, this line of insurance is utilized to insure rental condominium units along the coast, which is an area
experiencing insurance availability problems; second, that the program also provides a rare flood coverage; and third,
that the Company has not requested an overall rate increase for this line of insurance since 1994, the Consumer
Advocate in his discretion no longer opposes the Petitioners' rate request.
- Based on the foregoing, the Consumer Advocate now withdraws his original request for a hearing in this matter.
- 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.
____________________________________
CAROLYN C. MATTHEWS
Administrative Law Judge
January 31, 2001
Columbia, South Carolina
WE CONSENT:
John W. Davidson, Esquire
Attorney for the Petitioner
T. Douglas Concannon, Esquire
Attorney for the Department
Hana Pokorna-Williamson, Esquire
Attorney for the Consumer Advocate |