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 (hereinafter
referred to as "DOI") 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 to DOI on March 25, 1996, a formal filing for revision of its
homeowners insurance rates and rules, having an overall premium impact of 4.0%.
(2) By notice dated April 9, 1996, the public was advised that an application for a rate revision by
Petitioners had been made and that a hearing would be held on May 30, 1996.
(3) The filing outlines changes in rates and rules for its homeowners policies, which include
changes to base rates, coverage amounts, protection classes, and deductibles related to revisions
to windstorm and hail exclusions and its earthquake program.
(4) DOI conducted an independent investigation of the filing.
(5) DOI, through its Chief Casualty Actuary, Mr. Martin M. Simons, testified as an expert
witness and represented 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 a 4.6% increase effective April 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 13, 1996
Columbia, South Carolina |