South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
Auto-Owners Insurance Company vs. SCDOI

AGENCY:
South Carolina Department of Insurance

PARTIES:
Petitioners:
Auto-Owners Insurance Company

Respondents:
South Carolina Department of Insurance
 
DOCKET NUMBER:
95-ALJ-09-0086-CC

APPEARANCES:
Wayne Davies and Tom Marshall, for Petitioner

Lee P. Jedziniak, Attorney for Respondent
 

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 Homeowner Property and Casualty Insurance premium rate increase. A hearing was conducted on May 18, 1995. The request was not contested by the South Carolina 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 February 7, 1995 (amended April 25, 1995), to the South Carolina Department of Insurance a formal filing for revision of homeowner property and casualty insurance rule and premium rates in its Independent Homeowner program, having an overall premium increase impact of 3.7%.

(2) By notice dated March 20, 1995, published in several newspapers of general circulation throughout the State thirty (30) or more days in advance of the hearing, the public was advised that an application for a rate increase by Petitioner had been made and that a hearing would be held on May 18, 1995.

(3) The filing contains miscellaneous revisions to homeowner policies, including the following: the introduction of non-bind rules; decrease in all optional deductible charges; adjustment of certain territorial relativities; increase in base premium rates; and various modification to renter and condominium programs.

(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 Property and Casualty Actuary, Mr. Dean Kruger, testifying as an expert witness, represents that the rate increase request, as amended, 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 last rate revision approved for this line of insurance was effective December 23, 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 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. 1994).

(5) Issues raised at the hearing but not specifically addressed in this Order are deemed denied. ALJD Rule 29.

ORDER

IT IS THEREFORE ORDERED that the insurance rate increase requested by Petitioner is approved. The approved revisions are not to be effective prior to the date of this Order. Petitioner shall inform the South Carolina Department of Insurance of the date of implementation of the revised rules and rates.



______________________________________

STEPHEN P. BATES

ADMINISTRATIVE LAW JUDGE

May ___, 1995

Columbia, South Carolina


Brown Bldg.

 

 

 

 

 

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