ORDERS:
CONSENT ORDER
1. On July 7, 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 State Farm Fire and Casualty Insurance Company (the
Company) requesting an approval of an increase of +13.9% in its homeowners insurance rates and
coverages.
2. The Administrative Law Judge Division assigned this matter to the Honorable John
D. Geathers under the Docket No. 98-ALJ-09-0423-CC. The hearing on the matter was initially
scheduled for September 22, 1998 and then rescheduled for October 15, 1998.
3. On October 9, 1998, the Honorable John D. Geathers issued an Order of Continuance
and an Order of Recusal. On the same day the Honorable Marvin F. Kittrell, Chief Administrative
Law Judge, issued an order which reassigned the matter to the Honorable Stephen P. Bates. No new
hearing has been set yet, but the parties have agreed that the hearing would take place in late
December 1998 or early January 1999.
4. Meanwhile, the Consumer Advocate requested additional information from the
Company. In ensuing discussions with the Company the Consumer Advocate expressed his concerns
that the proposed changes in rates and coverages in coastal areas of South Carolina would result in
rates that would be excessive and unfairly discriminatory. The Company subsequently proposed
modifications to its original filing.
5. Having carefully considered the proposed modifications, the Consumer Advocate no
longer believes that the filing will result in rates that are excessive, inadequate or unfairly
discriminatory, and now withdraws his original request for a hearing in this matter.
6. The Company's original filing is modified in the following respects:
(a) The Company will not implement a 5% hurricane deductible in coastal areas
15, 16, 27, 28 and 29 for all forms but instead will implement a 2%
hurricane deductible in all coastal areas for all forms. The Company will also make
available an option to the insureds to purchase a 5% deductible at a discount and
in zones 27, 28, and 29 will make available an option for a $500 [35 & 36 (inserted)]
deductible for an additional charge.
(b) The Company will cap the combined rate and coverage effect in coastal areas
at a maximum of 25%.
(c) The Company will make no changes in its original filing for the non-tenant
inland rates and coverages and for the tenant rates.
(d) The overall statewide rate impact of the filing changes from 6.5% to 6.3% for
non-tenant coverages and from 6.3% to 6.2% for all coverages combined.
(e) The overall statewide rate and coverage impact of the filing changes
from 13.9% to 10.8% for non-tenant coverages and from 13.6% to 10.5%
for all coverages combined.
7. There are no unresolved issues remaining; therefore, all parties agree to the
dismissal of this matter.
NOW, THEREFORE, the above reference matter is dismissed.
IT IS SO ORDERED.
________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
November 30, 1998
Columbia, South Carolina
WE CONSENT:
__________________________________ __________________________________
Karen F. Terry, F.C.A.S., M.A.A.A. Gwendolyn L. Fuller, Esq.
State Farm Fire and Casualty General Counsel
Insurance Company South Carolina Department
One State Farm Plaza of Insurance
Bloomington, IL 61710-0001 P.O. Box 100105
Columbia, SC 29202-6160
_________________________________
Hana Pokorna-Williamson, Esq.
Staff Attorney
South Carolina Department of
Consumer Affairs
P.O. Box 5757
Columbia, SC 29250-5757 |
