ORDERS:
ORDER AND DECISION STATEMENT OF THE CASE
On February 27, 1995, Insurance Services Office Commercial Risk Services, Inc. (ISO) made a
filing with the Chief Insurance Commissioner requesting approval of an overall decrease of -5.8%
in its Commercial Property loss costs in addition to revising certain miscellaneous multistate rules
and the Specific Property Evaluation Schedule (SCOPES) (ISO filing CF 95-RLA1).
The hearing in this matter was held before me on June 7, 1995.
Present at the hearing were Lester H. Hammond, III, Assistant Regional Manager, representing
Insurance Services Office, Inc.; Mr. Dean Kruger, Assistant Actuary, South Carolina Department
of Insurance; and Lee P. Jedziniak, General Counsel, representing the South Carolina
Department of Insurance.
From testimony, exhibits and arguments presented at the hearing, I find and conclude as follows:
FINDINGS
Having carefully considered all testimony, evidence and arguments presented at the hearing in this
matter, I find as to the requested revision in Commercial Property loss costs:
1. That the filer's overall indicated advisory loss cost level change was a decrease of -5.8% as
filed.
2. That the filer's most recent loss cost level change was an overall increase of +1.8% effective on
September 22, 1994.
3. That, as filed, the filer's proposed statewide advisory loss cost level changes were:
|
Coverage |
|
|
Indicated/Filed |
| Basic Group I |
|
|
|
+ 0.7% |
| Basic Group II |
|
|
|
- 30.3% |
| Special Causes of Loss |
|
|
+ 17.1% |
|
|
|
|
|
| Total |
|
|
|
- 5.8% |
4. That the revised South Carolina Exception Rules; revised Condominium Commercial
Unit-Owners Optional Coverages Endorsement; and the revised Specific Property Evaluation
Schedule (SCOPES) found in Sections II, III and IV of filing CF 95-RLA1 are properly
supported by the aforesaid filing.
5. That the filer's proposed effective date of December 1, 1995, is supported by the information
in the filing.
6. That the Assistant Actuary has reviewed this filing and has determined that the requested loss
cost revision, when used by the ISO member and subscriber companies, would produce rates that
are not excessive, inadequate or unfairly discriminatory.
7. That based on these facts, the Insurance Department's staff does not oppose that the overall
loss cost changes set forth in Paragraph 3 above be approved.
CONCLUSIONS
It is my opinion, having fully considered the preponderance of evidence on the record, that the
proposal of Insurance Services Office Commercial Risk Services, Inc., for a revision in
Commercial Property loss costs, when used by its member and subscriber companies, would
produce rates that would not be excessive, inadequate or unfairly discriminatory and would be in
compliance with S.C. Code Ann. § 38-73-430.
Further, it is my opinion, having fully considered the preponderance of evidence on the record,
that the proposal of Insurance Services Office Commercial Risk Services, Inc. for a revision in
Commercial Property - South Carolina Exception Rules; the change in the Condominium
Commercial Unit-Owners Optional Coverages Endorsement; and the revised Specific Property
Evaluation Schedule (SCOPES), found in filing CF 95-RLA1 are in compliance with S.C. Code
Ann. Title 38 Chapter 73 and are approved with an effective date of December 1, 1995.
I therefore conclude that the proposed loss costs meet all statutory requirements and are therefore
approved with an effective date of December 1, 1995.
______________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
June _____, 1995
Columbia, South Carolina |
