ORDERS:
ORDER AND DECISION
This matter comes before me pursuant to S.C. Code Ann. §§ 38-73-10, et seq.,
(Supp. 1995) and S.C. Code Ann. §§ 1-23-310, et seq. (1986 & Supp. 1995) upon a request for a
business owner's property and casualty insurance premium rate increase. A hearing was
conducted May 30, 1996. 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 increase request is approved.
FINDINGS OF FACT
By a preponderance of the evidence, I find:
(1) Petitioners submitted on March 27, 1996, to the South Carolina Department of Insurance
(hereinafter referred to as "DOI") a formal filing for revision of its business owner's property and
casualty insurance rates, having an overall premium increase impact of 10.0%.
(2) By notice dated April 9, 1996, the public was advised that an application for a rate increase
by Petitioners had been made and that a hearing would be held on May 30, 1996.
(3) The filing requests increases for minimum premiums for its Basic Policy to $300 and Deluxe
Policy to $400.
(4) DOI conducted an independent investigation of the filing.
(5) DOI, 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.
(6) The rate increase request was not contested by the State Consumer Advocate or any member
of the public.
(7) Petitioner's last approved rate increase was effective February 15, 1995.
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. 1995) 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. 1995).
(3) Pursuant to S.C. Code Ann. § 38-73-910 (Supp. 1995), notice of the filing and of the public
hearing was given in all newspapers of statewide circulation at least 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. 1995).
(5) Petitioner is prohibited from receiving an insurance premium rate increase for any line for
which it has been granted an increase within the preceding twelve months. S.C. Code Ann.
§38-73-920 (Supp. 1995).
ORDER
IT IS THEREFORE ORDERED that the insurance rate increases requested by Petitioner are
approved, effective on or subsequent to the date of this Order, upon notification by Petitioner to
the South Carolina Department of Insurance.
___________________________
STEPHEN P. BATES
Administrative Law Judge
June 11, 1996
Columbia, South Carolina |
