ORDERS:
ORDER AND DECISION
On September 13, 1994, the South Carolina Medical Malpractice Liability Insurance Joint
Underwriting Association (JUA) filed an application with the Chief Insurance Commissioner
requesting approval of rate changes in various malpractice insurance policies.
By appropriate notice dated March 9, 10, and 11, 1995, the public was advised that an application
had been made and that a hearing would be held on April 13, 1995.
From the testimony, exhibits and arguments presented at the hearing, I make the following:
FINDINGS OF FACT
1. The JUA is a joint underwriting association which was called into operation in June 1975 by
the South Carolina Department of Insurance to provide medical malpractice insurance within the
state on a reasonable basis.
2. The application requests a reduction in physicians', dentists' and other medical professionals
insurance; and clinical professionals. The application requests an increase in hospital professional,
and general liability insurance coverage. The overall net effect of the request is a reduction in
premiums.
3. After reviewing the supporting data from the JUA, the Department of Insurance recommends
approval of the application.
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 nor unfairly discriminatory, and shall include a
reasonable margin for underwriting profit. S.C. Code of Laws §38-73-330 (Supp. 1994). The
filing must meet both the statutory standards and be supported by a preponderance of evidence.
An independent investigation was made of the proposed filing. All conclusions were based upon
the documents supporting the filing by the JUA, 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 exhibits, testimony, and pleadings filed and on the basis of the independent analysis of the
rate filing formulated by the Department of Insurance.
The proposal of the JUA for a revision of medical malpractice rates would produce rates which
would not be excessive, inadequate or unfairly discriminatory and would be incompliance with
S.C. Code Ann. § 38-73-330.
ORDER
It is therefore ORDERED that the proposed rate changes be approved. The effective date of the
proposed rates must not occur before May 1, 1995.
AND IT IS SO ORDERED.
_______________________
ALISON RENEE LEE
Administrative Law Judge
April _____, 1995
Columbia, South Carolina. |
