ORDERS:
ORDER
Petitioners, members of the Aetna Life and Casualty Group of insurers, seek approval of their
jointly filed commercial multi-peril property and casualty insurance premium rate increase. A
contested case hearing was held before me on April 11, 1996, as required by S.C. Code Ann.
§38-73-910 (1976). Based upon the pleadings, evidence and testimony presented before me, I
make the following findings of fact and conclusions of law.
I.
FINDINGS OF FACT
On January 22, 1996, Petitioners filed with the South Carolina Department of Insurance this
commercial multiple peril property and casualty insurance premium rate increase request. The
base rate revision sought by the filing will produce a +8.8 percent change in overall premium
level, constituting an estimated premium impact of $165,902.00. In addition, the filing also seeks
revisions of certain market segment base rates by territory, revisions of equipment breakdown
rates, introduction of class of business factors in specified market programs, expansion of the
Custom Market program to include a new auto service program and editorial and clarifying
revisions of previously filed forms and manual rules. Petitioners' last rate increase for this line and
type of business was effective March 17, 1995.
Notice of the public hearing was published by the Department of Insurance in all newspapers of
general, Statewide circulation more than thirty (30) days in advance of the hearing before me. No
person appeared in response to these publications or sought to intervene or to otherwise
participate in this hearing as a matter of right.
The Department of Insurance's staff property and casualty actuary testified and, based upon his
review of the filing and supporting materials, found that, if approved as filed, that the resulting
rates would not be inadequate, excessive or unfairly discriminatory. The Department has no
objection to the filing and recommends approval.
II.
CONCLUSIONS OF LAW
The Administrative Law Judge Division has jurisdiction over the matters asserted herein pursuant
to S.C. Code Ann. §§ 38-73-910 and 1-23-600(B) (Cum. Supp. 1995).
Appropriate public notice was given by the Department through publication of the Hearing Notice
in five (5) newspapers of general, Statewide publication, satisfying the requirements of S.C. Code
Ann. §38-73-910.
The burden of proof imposed upon Petitioners in connection with this filing is to establish, by the
preponderance of the evidence, that approval of the commercial multiple peril property and
casualty insurance premium rates must not result in rates which are excessive, inadequate or
unfairly discriminatory. S.C. Code Ann. §38-73-10(a)(1) (Cum. Supp. 1995).
Based upon the undisputed evidence and testimony, including the filing itself and all supporting
documentation, the proposed increase in the Petitioners' commercial multiple peril property and
casualty insurance rate request will result in rates that are not excessive, inadequate or unfairly
discriminatory and otherwise comply with all statutory standards for approval of such rates, rules
and forms.
III.
CONCLUSION
Accordingly, Petitioners' filed request to enhance its current commercial multiple peril property
and casualty insurance program and to increase its base rates applicable to such insurance are
approved as filed.
AND IT IS SO ORDERED.
JOHN D. GEATHERS
ADMINISTRATIVE LAW JUDGE
Edgar A. Brown Building
1205 Pendleton Street
Columbia, South Carolina 29201
Columbia, S.C.
April , 1996 |
