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 homeowners
property and casualty insurance premium rate increase. A hearing was conducted on June 19,
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) Petitioner submitted on April 4, 1996, to the South Carolina Department of Insurance
(hereinafter referred to as "DOI") a formal filing for revision of its homeowners property and
casualty insurance rates, having an overall premium increase impact of 16.24%.
(2) By notice dated April 19, 1996, the public was advised that an application for a rate increase
by Petitioner had been made and that a hearing would be held on June 19, 1996.
(3) The net effect of the rate increase is $284,944.00 or adjusted loss ratio of 67.89% for an
average rate increase of 16.24%.
(4) DOI conducted an independent investigation of the filing.
(5) DOI, through its Chief Actuary, Mr. Martin M. Simons, testifying as an expert witness,
represents that the rate increase 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) This is Petitioner's first request for a rate increase. The original approval date of the rates for
Jefferson Insurance Company of New York was October 18, 1994.
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 increase requested by the Petitioner is
approved, effective on or subsequent to the date of this Order, upon notification by Petitioner to
the South Carolina Department of Insurance.
AND IT IS SO ORDERED.
_______________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
June 20, 1996
Columbia, South Carolina |
