ORDERS:
ORDER AND DECISION
On May 30, 1995, Insurance Services Office, Inc. (ISO) made a filing with the Chief Insurance
Commissioner requesting approval of an overall increase of +26.1% in its Professional Liability
basic limit loss costs for Hospitals and Physicians, Surgeons, and Dentists. The hearing in this
matter was held before me on September 5, 1995. The requested revision is approved.
FINDINGS OF FACT
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. The filer's most recent loss cost level change was an overall decrease of -20.0% effective April
1, 1994.
2. The filer's proposed statewide advisory loss cost level change is +50.0% for Hospitals and
+25.0% for Physicians, Surgeons, and Dentists representing a combined +26.1% statewide
change from the current ISO loss costs.
3. The revision of various Professional Liability rules to reflect the increases in the basic limits of
the Miscellaneous Medical classes from $25,000/$75,000 to $100,000/$300,000 is properly
supported by the filing.
4. The revision of the Increased Limits Factors for all Hospital Liability and Physicians and
Surgeons Liability Experience classes is properly supported by the filing.
5. The revision of the Hospital Professional Liability and Incidental Liability Experience and
Schedule Rating Plan as presented in the filing is appropriate.
6. The effective date of the revisions December 1, 1995, is supported by the information in the
filing.
7. That the Chief Casualty 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.
8. That based on these facts, the Insurance Department's staff does not oppose that the proposed
overall loss cost changes be approved.
CONCLUSIONS OF LAW
Upon fully considering the preponderance of evidence on the record, I conclude as a mater of law:
1. 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.
2. The proposed loss costs are in compliance with S.C. Code Ann. Title 38 Chapter 73 and meet
all statutory requirements.
ORDER
IT IS THEREFORE ORDERED that requested revisions are approved, effective upon the date
of this Order.
______________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
September 19, 1995
Columbia, South Carolina |
