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. (1986 & Supp. 1994) upon a request for a
homeowners property and casualty insurance premium rate revision. A hearing was conducted
July 12, 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
revision request is approved.
FINDINGS OF FACT
By a preponderance of the evidence, I find:
(1) Petitioners submitted on March 29, 1995, to the South Carolina Department of Insurance a
formal filing for revision of its title insurance rates, having an overall premium increase impact of
0.0%.
(2) By notice dated May 23, 1995, the public was advised that an application for a rate increase
by Petitioner had been made and that a hearing would be held on July 12, 1995.
(3) The filing details miscellaneous changes, including: instructions for lead poisoning exclusion
form; minimum premium rule introduction; special personal property coverage rules affected;
some replacement cost rates included in key premiums; windstorm or hail exclusion territory
revisions; special coverage basic limits revised; additional rental residence rules; watercraft
liability and damage rules revised; and, combined personal protection program credits revised.
(4) The South Carolina Department of Insurance conducted an independent investigation of the
filing.
(5) While the overall rate change is 0.0%, some policyholders will realize a premium increase.
(6) The South Carolina Department of Insurance, through its Chief Casualty Actuary,
Mr. Martin M. Simons, testifying as an expert witness, represents that the rate increase request
will produce rates that are not excessive, inadequate, or unfairly discriminatory.
(7) The rate increase request was not contested by the State Consumer Advocate or any member
of the public.
(8) Petitioner's last approved rate increase was effective prior to 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 (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) 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).
ORDER
IT IS THEREFORE ORDERED that the insurance rate increase requested by Petitioner is
approved. The effective date of the revisions for new policies is October 1, 1995. The effective
date of the revisions for renewals of existing policies is November 5, 1995.
________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
July ____, 1995
Columbia, South Carolina |