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. (Supp. 1994) upon a request for a multiple-peril property
and casualty insurance premium rate increase. A hearing was held on May 26, 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. On February 21, 1995, Petitioners submitted to the South Carolina Department of Insurance a
formal joint filing for a commercial multiple-peril property and casualty insurance premium rate
increase, having an overall premium increase impact of 7.9%, and an individual premium impact
of a 6.4% reduction for Cigna Insurance Company, a 10% increase for Cigna Fire Underwriters
Insurance Company and a 19.4% increase for the other member insurers of the Cigna Group.
2. 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 26, 1995.
3. The last insurance premium rate increase received by the above-named member insurers of the
Cigna Group for its multiple-peril property and casualty insurance premium rate was on
November 1, 1993.
4. The Department of Insurance conducted an independent investigation of the filing.
5. The Department of Insurance, through its Chief Casualty Actuary, Martin M. Simons, testifying
as an expert witness, represented 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. 1994) 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. 1994).
3. Pursuant to S.C. Code Ann. § 38-73-910 (Supp. 1994), notice of the filing and of the public
hearing was given in all newspapers of statewide circulation at least thirty (30) days in advance of
the hearing.
4. Petitioners established by the preponderance of the evidence that their requested rate increase
would not be excessive, inadequate, or unfairly discriminatory. See S.C. Code Ann. §
38-73-10(a)(1) (Supp. 1994).
IT IS THEREFORE ORDERED that the insurance premium rate increase requested by
Petitioners is approved and shall be effective immediately.
AND IT IS SO ORDERED.
______________________________
JOHN D. GEATHERS
Administrative Law Judge
Edgar A. Brown Building
1205 Pendleton Street
Columbia, South Carolina 29201
This ____ day____ 1995
Columbia, South Carolina |
