ORDERS:
ORDER AND DECISION
This matter comes before me on the application of State Auto Property and Casualty Insurance
Company for a rate increase on its homeowners property and casualty insurance 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). After notice to the parties, a public hearing and contested case hearing
were conducted on June 20, 1995. The request was not contested by the Department of
Insurance or any member of the public. Upon the review of the testimony and evidence
submitted, the rate increase request is approved.
FINDINGS OF FACT
I make the following findings of fact, taking into consideration the burden on the parties to
establish their cases by a preponderance of the evidence and taking into account the credibility of
the witnesses:
1. State Auto filed an application with the Department of Insurance on March 24, 1995 for a
revision in the base rate, relativities, credits and discounts for homeowners programs resulting in
an overall increase of 3.1%.
2. The filing contains information to support the proposed increase and details various changes.
3. The Department of Insurance conducted an independent investigation of the filing and its Chief
Actuary, Martin Simons, represents that the rate increase request will produce rates that are not
excessive, inadequate, or unfairly discriminatory.
4. The late rate increase for Petitioner was September 13, 1994. In its filing, Petitioner requested
an effective date of October 1, 1995.
5. By notice dated May 8, 1995 and published on May 17, 18, or 19, 1995 in various newspapers
throughout the State, the public was advised that an application for a rate increase by Petitioner
had been made and that a hearing would be held on June 20, 1995. No member of the public
appeared at the hearing.
CONCLUSIONS OF LAW
1. The 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 1, as amended, of the 1976 Code.
2. 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 published in all newspapers of statewide circulation at least 30 days in advance of the
hearing.
4. Petitioner has established that the increase in premium rates request would not be excessive,
inadequate or unfairly discriminatory. See S.C. Code Ann. § 38-73-10(a)(1) (Supp. 1994).
5. S.C. Code Ann. § 38-73-920 (Rev. 1989) prohibits an insurer from receiving an insurance
premium rate increase in any line of insurance or in any type of insurance for which a rate increase
has been granted within the preceding twelve months. Petitioner received a premium rate increase
on September 13, 1994. Therefore, any increase proposed by the current filing must not take
effect before the lapse of twelve months.
ORDER
IT IS THEREFORE ORDERED, that the insurance rate increases requested by State Auto
Property and Casualty Insurance Company in the filing are approved. The effective date of the
increase shall not occurred before September 14, 1995.
AND IT IS SO ORDERED.
_____________________________
ALISON RENEE LEE
Administrative Law Judge Division
June _____, 1995
Columbia, South Carolina. |
