SC Administrative Law Court Decisions

1. On November 24, 1997, Philip S. Porter, Consumer Advocate for the State of South Carolina (the Consumer Advocate) requested the South Carolina Department of Insurance (the Department) to initiate a public hearing on the filing of Continental Insurance Company (Continental) requesting an approval of its homeowner rates revision.

2. On December 1, 1997, the Department filed with the Administrative Law Judge Division an Agency Transmittal Form requesting a public hearing.

3. The Administrative Law Judge Division assigned this matter to Honorable Marvin F. Kittrell under the Docket No. 97-ALJ-09-0709. The hearing on the matter has not yet been scheduled.

4. Meanwhile, the Consumer Advocate and Continental engaged in discussions with respect to this filing. In particular, the Consumer Advocate pointed out that the proposed effective date of the requested changes was March 1, 1998 and the effective date of Continental's immediately preceding homeowners filing was October 27, 1997. Even though the filings in question have an overall rate impact of 0.0%, they contain both rate increases and decreases. Pursuant to S. C. Code Ann. §38-73-920 (Supp. 1996), "...filings for property and casualty rate increases may not be approved for any insurer for any line, sub-line or otherwise identifiable property and casualty insurance coverage for which a rate increase has previously been granted within the immediately preceding twelve months."

As a result of these discussions, Continental has amended its request so that rate decreases will be effective May 15, 1998 and rate increases will become effective November 1, 1998, as indicated in the attached letters from Continental dated December 29, 1997.

5. Because the Consumer Advocate believes that the amended filing no longer violates §38-73-920 and that it will result in rates that are not excessive, inadequate or unfairly discriminatory, he now withdraws his original request for a hearing in this matter.

6. There are no unresolved issues remaining; therefore, all parties agree to the dismissal of this matter.

NOW, THEREFORE, IT IS ORDERED THAT this case is dismissed, and

IT IS SO ORDERED.

MARVIN F. KITTRELL

ADMINISTRATIVE LAW JUDGE

January 20, 1998

Columbia, South Carolina.

WE CONSENT:

Senior Actuarial Assistant General Counsel

CNA Personal Insurance South Carolina Department

CNA Plaza of Insurance

Chicago, IL 60685 P.O. Box 100105

Columbia, SC 29202-6160

Staff Attorney

South Carolina Department of

Consumer Affairs

P.O. Box 5757

Columbia, SC 29250-5757