ORDERS:
ORDER AND DECISION
This matter comes before me pursuant to S.C. Code Ann. § 38-73-10, et seq.,
(Supp. 1994) and S.C. Code Ann. §§ 1-23-310, et seq. (Rev. 1986 & Supp. 1994) upon a
request for a property and casualty commercial package insurance rate increase. A hearing was
conducted May 10, 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) Petitioner submitted on December 22, 1994 (amended January 23, 1995 and
March 16, 1995), to the South Carolina Department of Insurance a formal filing for revision of
its Omnibus Businessowners Program policy rules and rates, having an overall premium increase
impact of 4.6% on its businessowner policy insurance premium rates.
(2) By notice dated March 7, 1995, the public was advised that an application for a rate
increase by Petitioners had been made and that a hearing would be held on May 12, 1995.
(3) The filing details miscellaneous revisions to Petitioner's rules and rates for its Omnibus
Business Program, including eligibility expansions in some classes, the addition of optional
coverages in some classes, and an increase in the minimum premium for both Special and
Standard coverage forms.
(4) The South Carolina Department of Insurance conducted an independent investigation
of the filing.
(5) The South Carolina Department of Insurance, through its Assistant Chief Casualty
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.
(7) The date of Petitioner's last rate revision for this line of insurance was December 1,
1993.
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 (Rev. 1989) 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. (Rev. 1989 & Supp. 1994).
(3) Pursuant to S.C. Code Ann. § 38-73-910 (Rev. 1989), notice of the filing and of the
public hearing was given in 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. 1994).
ORDER
IT IS THEREFORE ORDERED that the insurance rate increase requested by Petitioner is
approved. The effective date of the revisions shall be on or after the date of this Order.
Petitioner shall inform the South Carolina Department of Insurance of the date of implementation
of the new rates.
____________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
May ______, 1995
Columbia, South Carolina |
