ORDERS:
CONSENT ORDER AND ORDER OF DISMISSAL
1. On October 11, 1999, 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 Horace
Mann Insurance Company (the Company) requesting an approval of an overall decrease of -6.7% in its homeowners
insurance rates. Included in the rate change request were base rate increases of 6.0% for Forms 1, 2 and 3, 0.6% for Tenants
and Condos Forms and 4.0% for Form 7.
2. On October 20, 1999, 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 John D. Geathers under the Docket No. 99-ALJ-09-0544-CC. The hearing on the matter has been scheduled for February 10, 2000 at 2:00 P.M.
4. Meanwhile, the Consumer Advocate requested additional information from the Company. Subsequently, the Consumer
Advocate and his consulting actuary discussed with the Company various concerns with respect to the filing. Specifically, the
Consumer Advocate was concerned that the filing did not properly reflect the actual claim frequency data supplied by the
Company.
As a result of these discussions, the Company agreed to amend its request so that the overall rate decrease will be -8.12%.
This was accomplished by reducing Tenant and Condo base rates to 0.0%, Form 1, 2 and 3 base rates by 1.5% resulting in a
base rate change of 4.5% and Form 7 base rates by 1.5% resulting in a base rate change of 2.5%. The Company's amended
Exhibits I and Exhibit IX, pages 1, 3, 4, 5 and 6 showing the base rate changes described above are attached to this Order as
Attachment 1.
5. Based on these amendments to the filing, 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. There are no unresolved issues remaining; therefore, all parties agree to the dismissal of this matter.
NOW, THEREFORE, the above referenced matter is dismissed.
IT IS SO ORDERED.
______________________________
JOHN D. GEATHERS
ADMINISTRATIVE LAW JUDGE
February 15, 2000
Columbia, South Carolina
WE CONSENT:
_____________________________ ______________________________
Georgia Hepworth, CPCU T. Douglas Concannon, Esquire
Senior Regulatory Affairs Analyst Associate General Counsel
Horace Mann Insurance Company South Carolina Department
One Horace Mann Plaza of Insurance
Springfield, IL 62715-0001 P.O. Box 100105
Columbia, SC 29202-6160
_____________________________
Hana Pokorna-Williamson, Esquire
Staff Attorney
South Carolina Department of
Consumer Affairs
3600 Forest Drive, 3rd Floor
Columbia, SC 29204 |