ORDERS:
ORDER
This matter comes before me pursuant to S.C. Code Ann. §38-73-10, et. seq. (Law. Co-op.
Supp. 1994) and S.C. Code Ann. §§1-23-310, et. seq. (Law. Co-op. Supp. 1994) on Petitioner's
request for a rate increase for its Boatowners insurance program.
STATEMENT OF CASE
On September 7, 1995, Nationwide Mutual Fire Insurance Company (hereinafter, "Nationwide")
made a filing with the Director of the South Carolina Department of Insurance requesting a rate
increase of 0.1 percent for its Boatowners insurance policy, with supporting material (Nationwide
filing 96H-4 Boat).
The hearing in this matter was held before me on December 12, 1995.
Present at the hearing were Mr. James Gray, Esq. representing Nationwide;
Mr. Martin M. Simons, Deputy Director, Actuarial Services, South Carolina Insurance
Department; and Mr. S. Phillip Lenski, Esq., Staff Attorney, representing the South Carolina
Department of Insurance.
From testimony, exhibits and arguments presented at the hearing, I find and conclude as follows:
FINDINGS OF FACT
Having carefully considered all testimony, evidence and arguments presented at the hearing in this
matter, by a preponderance of the evidence I find as to the requested rate increase for the
Boatowners insurance policy:
1. Respondent published notice advising the public that an application for the establishment of
rates by Petitioners had been made and that a hearing would be held on December 12, 1995, in
The State, The Greenville News, The Post and Courier, The Herald and The DarlingtonPress.
2. That the filer's overall requested change was an increase of 0.1% broken down as follows:
| Coverage |
|
% Change |
| Hull |
|
2.6% |
| Liability |
|
7.9% |
| Trailer |
|
-45.4% |
3. That the last rate change was more than one year ago.
4. That Nationwide's Actuary has reviewed this filing and has determined that the requested rate
revision would not produce rates that are excessive, inadequate or unfairly discriminatory.
6. That, based on these facts, the Insurance Department did not oppose the rate increase for the
Boatowners policy.
5. Nationwide, as the filer, submitted the pre-filed expert testimony of Kevin D. Strous. By
stipulation of the parties on the record, this testimony was admitted without objection. He
testified that the requested rates are not excessive, inadequate or unfairly discriminatory.
CONCLUSIONS
The law governing the making of rates is well defined. 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. Section 1-23-320, (1976), as
amended. The State Administrative Procedures Act, Act 176 of 1977, Section 2(j), 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.
Pursuant to the responsibilities charged to the Department of Insurance, an independent
investigation was made of the proposed filing. All conclusions were based upon evidence, the
testimony adduced at the hearing and matters officially noted during the course of the hearing. I
have resolved all factual questions on the basis of numerous exhibits and testimony in the record
and on the basis of the independent analysis of the rate filing formulated by the staff of the
Insurance Department.
It is my opinion, having fully considered the preponderance of evidence on the record, that the
proposal of Nationwide for a revision in Boatowners program rates would produce rates which
would neither be excessive, inadequate or unfairly discriminatory and would be in compliance
with S. C. Code Ann. Section 38-73-430.
I, THEREFORE, CONCLUDE that the proposed rates meet all statutory requirements and are,
therefore, approved. This rate change shall be effective February 1, 1996.
_____________________________________
Stephen P. Bates
Administrative Law Judge
Columbia, South Carolina
December 18, 1995 |
