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 commercial multiple peril insurance rate increase. A hearing was
conducted February 14, 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 19, 1994, to the South Carolina Department of
Insurance a formal filing for revision of the Comprehensive Business Policy premium adjustment
plan's multi-peril factors.
(2) The overall impact of the requested revision is -1.0%, ranging from -11.1% to 15.4%,
depending upon the particular type of policy and subline.
(3) By notice dated December 19, 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 February 14, 1995.
(4) The filing details the adjustment of Property and Liability Premium Modification Factors for
the Comprehensive Business Policy.
(5) The Department of Insurance conducted an independent investigation of the filing.
(6) The Department of Insurance, through its Assistant Chief Property Actuary, Mr. Dean
Kruger, 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 (Supp. 1993) 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. (Supp. 1993).
(3) Pursuant to S.C. Code Ann. § 38-73-910 (Supp. 1993), 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) (Supp. 1993).
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 April 1, 1995.
__________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
February ____, 1995
Columbia, South Carolina |
