Bulletin 2009-09 Loss Run Reports

TO: FROM: SUBJECT: DATE: South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: P. 0. Box 100105, Columbia, SC 29202-3105 Telephone: (803) 737-6150 BULLETIN NUMBER 2009-09 MARK SANFORD Governor SCOTT RICHARDSON Director of Insurance All insurers, Producers and Brokers Transacting the Business of Insurance in South Carolina Scott H. Richardson, CPCr ~~ 1AAf ..-- Director ~.....- Loss Run Reports July 24, 2009 I. PURPOSE OF THIS BULLETIN It has come to the Department's attention that some insurers may be withholding claims experience information from insureds when the renewal of a policy is approaching. The purpose of this bulletin- is to remind insurers, producers and brokers that the claims experience data of insureds belongs to the insured and must be furnished to insureds and former insureds upon request. II. LOSS RUN STATEMENTS AND CLAIMS EXPERIENCE REPORTS Insurers routinely collect the claims experience of insureds occurring within a policy term. Reports of this claims experience are sometimes called "loss run statements," "loss run reports" or 'simply "loss runs." Loss runs reflect key claims data including reserves, payments and case status, as well as summarized policy information, such as policy number, policy period, and limits. Loss runs are useful for developing tisk management plans, setting maintenance priorities and tracking the results of current risk management efforts. A loss run statement must be provided by an insurer within ten (1 0) business days of receipt of a written request submitted by an insured, fonner insured, or a producer or broker acting on behalf of an insured or former insured. The loss run statement provided pursuant to a written request should be a three (3) year loss run history for the prior three (3) years or a complete loss run history with the insurer if the history is less than three (3) years. No fees may be charged to prepare and furnish one (1) loss run statement for each policy term. In the event that more than one request is made by an insured, former insured, or a producer or broker acting on behalf of an insured for the same policy term, an insurer may make a nominal charge for the cost of preparing and mailing such a report not to exceed twenty-five cents (25¢) per page plus mailing costs. A producer or broker that run statement pursuant to a request from an insured or former insured shall the or former insured within five (5) business days of its receipt from the that a loss run statement shall not divulge consumer to of consumer financial law to be held as with applicable laws governing the privacy health information, or other information that is otherwise required by Failure to provide a run statement within the timetrames set forth above shall be considered an unfair trade practice pursuant to S.C. Code Ann. § 38-57-10 et IV. QUESTIONS Any questions or concerns about this Bulletin should be addressed to the attention of: Jim Byrd, Deputy Director Consumer Services and Individual Licensing South Carolina Department of Insurance Post Office Box 1 00 1 05 Columbia, South Carolina 29202-3105 Phone: (803) 737-6143 jbyrd@doi.sc.gov which the Director of Insurance communicates with persons and entities regulated by the Department. of South Carolina insurance laws and regulations and provide guidance on the Department's enforcement nnnrmH'h advice. Readers should consult applicable statutes and regulations or contact an attomey for of that on their specific situation.