ORDERS:
CONSENT ORDER
1. On March 2, 1998, 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 Nobel Insurance Company (the
Company)
requesting an approval of an increase of 8.3% in its dwelling fire insurance rates.
2. On March 6, 1998, 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 Alison Renee
Lee under the Docket No. 98-ALJ-09-0148. The hearing on the matter has not yet been scheduled.
4. Meanwhile, the Consumer Advocate and the Company engaged in discussions with respect
to this filing. In particular, the Consumer Advocate was concerned about the unusually high
catastrophe loading used by the Company in this filing. The Consumer Advocate also recognises that
the Company through this program insures the hard to serve lower value dwellings which are more
vulnerable in severe weather conditions.
As a result of these discussions, the Company agreed to amended its request so that the
overall rate increase will be only 3.6%. The Company's amended Exhibit 7 (Calculation of the rate
level impact) is attached to this Order as Attachment 1.
5. Because the Consumer Advocate believes that the amended filing 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 panics agree to the dismissal
of this matter.
NOW, THEREFORE, the above referenced matter is dismissed.
IT IS SO ORDERED.
________________________________________________________________________
ALISON RENEE LEE
ADMINISTRATIVE LAW JUDGE
March 27, 1998
Columbia, South Carolina
WE CONSENT:
_______________________ ____________________________
Paul Zekert T. Douglas Concannon, Esquire
Acturarial Analyst Associate General Counsel
Nobel Insurance Company South Carolina Department of Insurance
8001 LBJ Freeway Post Office Box 100105
Dallas, TX 75251-1301 Columbia, SC 29202-6160
________________________
Hana Pokorna-Williamson, Esquire
Staff Attorney
South Carolina Department of
Consumer Affairs
P.O. Box 5757
Columbia, SC 29250-5757
ATTACHMENT 1
NOBEL INSURANCE COMPANY
SOUTH CAROLINA
DWELLING PROGRAM
EXHIBIT 7
CALCULATION OF RATE LEVEL IMPACT
1. DWELLING PROPERTY
PERCENT WRITTEN PREMIUM
DESCRIPTION CHANGE DISTRIBUTION
A. BASE RATE CHANGE FIRE COVERAGE A 6.1% 59.7%
BASE RATE CHANGE FIRE COVERAGE C 5.9% 0.2%
BASE RATE CHANGE EXTENDED COVERAGE A 0.0% 39.8%
BASE RATE CHANGE EXTENDED COVERAGE C 0.0% 0.1%
B. TOTAL 3.7% 99.8%
2. DWELLING LIABILITY
A. PERSONAL LIABILITY 0.0% 0.2%
B. TOTAL 0.0% 0.2%
3. TOTAL RATE LEVEL IMPACT 3.6% 100.0% |
