Bulletin 2008-13 Notice of Tentative Credit Property Insurance Rates

TO: BULLETI~ NUMBER 2008-13 Insurers Writing Credit Property Insurance in South Carolina in Conjunction with Consumer Credit Transactions subject to Act 988 of 1966 (the Consumer Finance Law) FROM: Scott H. Richardson Director SUBJECT: Notice of Tentative Credit Property Insurance Rates and Opportunity to Request a Hearing DATE: August I, 2008 I. Notice of Tentative Credit Property Insurance Rates Regulation 69-11 requires the Department to promulgate tentative rates for credit property insurance by August 1 of each year. The tentative rates are those the Department believes may reasonably be expected to produce a loss ratio of not less than in the following calendar year. This bulletin constitutes official notice of the tentative rates for 2009. The South Carolina Department of Insurance has reviewed the loss experience for 2007 for the above described credit property insurance. The aggregate 2007 loss ratio at prima facie rates was 28.6<~~. Last year a rate decrease of 57.8% was implemented and became effective January 1, 2008. The effects of this rate decrease cannot be observed until next year. when the credit experience report data for 2008 becomes available. Thus, no further changes m the current rates are proposed for 2009. The tentative rates expressed as a percentage of the total amount of the loan are as Automobile, Fire and Theft Single Interest Automobile Collision Single Interest Household Goods Single Interest Household Goods Dual Interest .0135 percent .0506 percent .0131 percent .0688 percent II. S.C. Code Ann. Reg. 69-ll.l (1989) provides that "every insurer which feels aggrieved by any of the rates so promulgated may request a public hearing \Vith respect to such rate or rates" vvithin 15 days. See S.C. Code Ann. Reg. 69-11.1 C (4) (1989). Accordingly, all requests for a hearing must be filed with the Department on or before August 16, 2008. Please direct your requests for a hearing to the attention of Jeffrey Jacobs, Chief Legal Counsel. Attach to your request for a hearing documentation supporting your position that the tentative rates for credit property insurance need to be changed. After all such hearings have been held, the final rate or an affirmation of the tentative rate shall be sent to all companies before October 1, 2008. Please direct any questions regarding this bulletin to the attention of Derek McKee at the address and number listed below. Derek McKee Assistant Actuary South Carolina Department of Insurance 145 King St., Suite 207 Charleston, SC 29401 Telephone: 843-579-0527 Facsimile: 843-722-6105 E-mail: dmckee@dm.sc.gov