ORDERS:
ORDER AND DECISION
On May 30, 1995, the Auto-Owners Insurance Company and Owners Insurance Company filed an
joint application with the Chief Insurance Commission requesting an overall approval for a
businessowners property and casualty insurance premium rate increase.
After appropriate notice, the parties and the public were advised that an application had been
made and that a public hearing and contested hearing would be held on Thursday, August 31,
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 is approved.
FINDINGS OF FACT
1. The Auto-Owners Insurance Company and Owners Insurance Company filed an application
with the Department of Insurance on May 30, 1995 for an overall rate increase of 5.3% in its
businessowners property and casualty insurance rates affecting mercantile/service; office; regular
apartments/condominiums; and premier apartments and condominiums areas.
2. The company provided documentation to support its request.
3. The Chief Casualty Actuary for the Department of Insurance reviewed this filing and
determined that the requested revision would produce rates that are not excessive, inadequate or
unfairly discriminatory and still provides a reasonable margin for underwriting profit.
4. Based on these facts, the Department's staff recommends that the overall increase of 5.3% in
businessowners property and casualty insurance rates be approved.
5. The last rate change was effective November 10, 1994.
6. By notice dated July 19, 1995, published on July 28, 29; August 1, 2 and 4, 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 August 31, 1995. No member of
the public appeared at the hearing.
CONCLUSIONS OF LAW
1. Insurance rates are regulated under Title 38 of the South Carolina Code of Laws, 1976, as
amended. The pertinent statutory requirement is that rates shall be neither excessive, inadequate
or unfairly discriminatory, and shall include a reasonable margin for underwriting profit. S.C.
Code Ann. § 38-73-330 (Supp. 1993).
2. S. C. Code Ann.§ 1-23-320 requires that the decision in a contested case be based upon the
evidence and matters officially noted during the course of the hearing. The filing, in turn, must
meet both the statutory standards and be supported by a preponderance of evidence. The burden
of proof is upon the company to establish that the filing meets with the statutory criteria.
3. S. C. Code Ann. § 38-73-910 requires that notice of the filing must be published in all
newspapers of statewide circulation at least 30 days in advance of the hearing.
4. 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 type of insurance for which a rate increase has
been granted within the preceding twelve months. Petitioner received a premium rate increase on
November 10, 1994.
After fully considering the evidence in the record, the proposal of the Auto-Owners Insurance
Company and Owners Insurance Company for a revision in its businessowners property and
casualty insurance rates would not be excessive, inadequate or unfairly discriminatory and would
be in compliance with S.C. Code Ann. § 38-73-10(a)(1)(Supp. 1994).
ORDER
It is therefore, ORDERED that the proposed rate increase of 5.3% on businessowners property
and casualty insurance premium rate requested by the Company is approved. The increase in
rates shall not take effect before November 10, 1995.
AND SO IT IS ORDERED.
_________________________
ALISON RENEE LEE
Administrative Law Judge
August ____, 1995
Columbia, South Carolina. |
