ORDERS:
ORDER
STATEMENT OF THE CASE
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 homeowners insurance
premium rate increase. A hearing was held on June 13, 1995, at the Administrative Law Judge
Division , 1205 Pendleton Street , Columbia, South Carolina. The request was not contested by
the Department of Insurance or any member of the public.
The rate increase requested by the Petitioner is approved.
FINDINGS OF FACT
Having observed the witnesses and exhibits presented at the hearing and closely passed upon their
credibility, taking into consideration the burden of persuasion by the Parties, I make the following
Findings of Fact by a preponderance of evidence:
1. On or about March 2, 1995, Selective Insurance Company filed a request for a 6.4%
homeowner rate increase accompanied by a filing Memorandum and supporting exhibits. The
Department of Insurance reviewed Selective's request on April 12, 1995, and filed a Request for a
case hearing before the Administrative Law Judge Division.
2. Notice of the time, date, place and subject matter of the hearing was given to the Parties and
the State Consumer Advocate. Furthermore, notice of the filing and public hearing was given in
all the newspapers of statewide circulation to the members of the public at least 30 days prior to
the hearing.
3. The rate increase was not contested by any member of the public or the State Consumer
Advocate.
4. The South Carolina Department of Insurance concurred with Selective Insurance Company that
a 6.4% increase on the overall rate of homeowner's insurance policies in South Carolina is based
upon sound actuarial principles, takes into account Selective Insurance Company's actual and
projected loss experience, expenses and investment income, and demonstrated an indicated
increase of 6.4%. The Department of Insurance concluded that the proposed modification in
rates, if approved, would result in a rate of 6.4% which was adequate and not excessive or
unfairly discriminatory.
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 must be published in all newspapers of statewide circulation at least 30 days in advance of
the hearing.
4. Petitioner has sufficiently established that the increase in premium rates 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 (Supp. 1994) 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 June 1, 1993.
ORDERED
IT IS THEREFORE ORDERED, that the insurance rate increase requested by the Selective
Insurance Company in the filing is approved. The effective date of the increase shall not occur
before the date of this Order.
The Honorable Ralph K. Anderson, III
Administrative Law Judge
Columbia, South Carolina
July 5, 1995 |
