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Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
Insurance Services Office, Inc. vs. SCDOI

AGENCY:
South Carolina Department of Insurance

PARTIES:
Petitioners:
Insurance Services Office, Inc.

Respondents:
South Carolina Department of Insurance
 
DOCKET NUMBER:
98-ALJ-09-0631-CC

APPEARANCES:
n/a
 

ORDERS:

FINAL ORDER AND DECISION

This matter comes before me pursuant to S.C. Code Ann. § 38-73-10 et. seq. (Supp. 1998) and S.C. Ann. §§ 1-23-310, et. seq. (Supp. 1998) on Petitioner's request for revisions to its business owners loss costs. The hearing in this matter was held before me on March 9, 1999. Present at the hearing were Dave J. Clark, Assistant Regional Manager of Insurance Services Office, Inc. and William C. Wood, Esquire, representing Insurance Services Office, Inc.; Dean Kruger, Director of Forms and Rates, South Carolina Insurance Department; and Douglas Concannon, Esquire, Associate General Counsel, representing the South Carolina Department of Insurance.



STATEMENT OF CASE

On October 15, 1998, Insurance Services Office, Inc. (ISO) made a filing with the Director of Insurance, requesting approval of an overall decrease of - 15.0% in its business owners loss costs with supporting material (ISO filing B 98-RLA1). This filing was amended on November 17, 1998, to correct an error in the "EXPLANATORY NOTES TO TABLE 3" shown on page B-8.



FINDINGS OF FACT

Having carefully considered all testimony, evidence and arguments presented at the hearing in this matter, I make the following Findings of Fact by a preponderance of evidence as to the requested revision in business owners loss costs:

1. The Respondent published notice of hearing in newspapers of statewide, general circulation at least 30 days in advance of this hearing.

2. The filer's overall indicated advisory loss cost level change was a decrease of - 15.0% as filed.

3. The filer's most recent business owners loss cost level change was an overall decrease of - 6.3% effective on May 1, 1997. The effective date of this proposed loss cost level change will be May 1, 1999.

4. The South Carolina Department of Insurance Director of Forms and Rates has reviewed this filing, and has determined that the requested loss costs revision, when used by the ISO member and subscriber companies, would produce rates that are not excessive, inadequate or unfairly discriminatory. Therefore, based on these facts, the South Carolina Department of Insurance does not oppose the overall loss costs level changes set forth in Paragraph 2 and requests that these changes be approved.

5. The revision of the loss costs as presented in Filing B 98-RLA1 is appropriate and will not produce rates that are excessive, inadequate or unfairly discriminatory.



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 § 38-73-1320 (Supp. 1998) and Chapter 23 of Title I of the South Carolina Code of Laws, as amended.

2. Generally, a request for an insurance loss cost revision is governed by S.C. Code Ann. § 38-73-10 et seq. (Supp. 1998).

3. S.C. Code Ann. § 38-73-910 (Supp. 1998) requires that notice of the filing and of the public hearing be 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 loss cost revision request by establishing that the revised loss costs would not be excessive, inadequate, or unfairly discriminatory. S.C. Code Ann. § 38-73-10(a)(1) (Supp. 1998).





ORDER

IT IS THEREFORE ORDERED, that the proposed loss costs and other changes requested by Petitioner are approved with an effective date of May 1, 1999.

IT IS SO ORDERED



_____________________________

Ralph K. Anderson, III

Administrative Law Judge





March 10, 1999

Columbia, South Carolina


Brown Bldg.

 

 

 

 

 

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