ORDERS:
ORDER AND DECISION
This matter comes before me pursuant to S.C. Code Ann. § 38-73-10, et seq.,
(Supp. 1993) and S.C. Code Ann. §§ 1-23-310, et seq. (Rev. 1986 & Supp. 1993) upon a request
for a joint property and casualty homeowners insurance rate increase. A hearing was conducted
January 12, 1995. The request was not contested by the Department of Insurance or any member
of the public. Upon review of the testimony and evidence submitted, the rate increase request is
approved.
FINDINGS OF FACT
By a preponderance of the evidence, I find:
(1) Petitioners submitted on September 1, 1994 (amended September 14, 1994), to the South
Carolina Department of Insurance a formal filing for revision of Monoline Homeowners Link base
rates, having an overall premium increase impact of 5.8%, and revision to Link Plus Premises
base rates, having an overall premium increase impact of 0.4%.
(2) By notice dated December 7, 1994, the public was advised that an application for a rate
increase by Petitioners had been made and that a hearing would be held on January 12, 1995.
(3) The filing details miscellaneous changes including the following: territory redefinition;
revision of maximum deductible credit caps; revision of new home discount; revision of deductible
credits; and revision of current u-curve relativities.
(4) The Department of Insurance conducted an independent investigation of the filing.
(5) The Department of Insurance, through its Chief Casualty Actuary, Mr. Martin M. Simons,
testifying as an expert witness, represents that the rate increase request will produce rates that are
not excessive, inadequate, or unfairly discriminatory.
(6) The rate increase request was not contested by the State Consumer Advocate or any member
of the public.
CONCLUSIONS OF LAW
Based upon the foregoing Findings of Fact, I conclude, as a matter of law, the following:
(1) The South Carolina Administrative Law Judge Division is empowered to hear this case
pursuant to S.C. Code Ann. § 38-73-910 (1993 Supp.) and Chapter 23 of Title I of the 1976
Code, as amended.
(2) Generally, a request for an insurance rate increase is governed by S.C. Code Ann.
§§ 38-73-10, et seq. (1993 Supp.).
(3) Pursuant to S.C. Code Ann. § 38-73-910 (1993 Supp.), notice of the filing and of the public
hearing was given in all newspapers of statewide circulation at least 30 days in advance of the
hearing.
(4) Petitioner met the burden of proof in a rate increase request by establishing that the revised
rates would not be excessive, inadequate, or unfairly discriminatory. See, S.C. Code Ann. §
38-73-10(a)(1) (1993 Supp.).
ORDER
IT IS THEREFORE ORDERED that the insurance rate increases requested by Petitioners are
approved. The effective date of the revisions are not to be effective prior to January 12, 1995.
___________________________
STEPHEN P. BATES
Administrative Law Judge
January ____, 1995
Columbia, South Carolina |