ORDERS:
ORDER AND DECISION
On October 17, 1994, the Horace Mann Insurance Company filed an application with the Chief
Insurance Commissioner requesting approval of an overall increase of 3.8% in its homeowner
rates.
By appropriate notice date October 20, 1994, the Department of Insurance requested the
Administrative Law Judge Division convene a hearing based on S.C. Code Ann. Section
38-73-910 (1976, as amended). Orders for Prehearing Statements were issued on November 1,
1994 and Prehearing Statements were furnished by the Department of Insurance dated November
14, 1994, and by Horace Mann Insurance Company dated November 22, 1994. No party
petitioned to intervene.
The hearing was held before Judge Alison Renee Lee on the above referenced matter on January
23, 1995.
Present at the hearing were Mr. Don Closter, Secretary of Casualty Pricing, representing the
company; Mr. Martin M. Simons, Chief Casualty Actuary, and Mr. Lee P. Jedziniak, General
Counsel, representing the South Carolina Department of Insurance.
From the testimony, exhibits and arguments presented at the hearing, I make the following
Findings of Fact and Conclusion of Law:
FINDINGS OF FACT
1. The petitioner, Horace Mann Insurance Company, requested an overall increase of 3.8% in its
homeowners rate.
2. Horace Mann provided evidence demonstrating an indicated rate increase of 11.4%.
3. The last rate change was effective January 1, 1994.
4. The proposed rate level change will vary by policy form, territory and amount of insurance.
5. The Chief Casualty Actuary for the Department of Insurance reviewed this filing and
determined that the requested revision would produce rates that are not excessive, inadequate or
unfairly discriminatory.
6. Based on these facts, the Department's staff recommends that the overall increase of 3.8% in
homeowners rates be approved.
CONCLUSIONS OF LAW
The law governing the making of rates is well defined. Insurance rates are regulated under Title
38 of the South Carolina Code of Laws, 1976, as amended. The pertinent statutory requirement
is that rates shall be neither excessive, inadequate or unfairly discriminatory, and shall include a
reasonable margin for underwriting profit. S.C. Code Ann. § 38-73-330 (Supp. 1993). Section
1-23-320, requires that the decision in a contested case be based upon the evidence and matters
officially noted during the course of the hearing. The filing, in turn, must meet both the statutory
standards and be supported by a preponderance of evidence.
Pursuant to the responsibilities charged to the Department of Insurance, an independent
investigation was made of the proposed filing. All conclusions were based upon evidence, the
testimony adduced at the hearing and matters officially noted during the course of the hearing. I
have resolved all factual questions on the basis of the numerous exhibits and testimony in the
record and on the basis of the independent analysis of the rate filing formulated by the staff of the
Insurance Department.
After fully considering the preponderance of evidence on the record, the proposal of the Horace
Mann Insurance Company for a revision in Homeowners rates would produce rates which would
not be excessive, inadequate or unfairly discriminatory and would be in compliance with S.C.
Code Ann. Section 38-73-330.
ORDER
It is therefore, ORDERED that the proposed rate increase of 3.8% on homeowners policies by
Horace Mann Insurance Company be approved. The increase in rates shall not take effect before
March 1, 1995.
_____________________________
ALISON RENEE LEE
Administrative Law Judge
February ____, 1995
Columbia, South Carolina. |
