Bulletin 2009-11 Notice of Tentative Accident and Health Insurance Rates for Such Insurance and Oppo

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 2009-11 MARK SANFORD Governor SCOTT RICHARDSON Director of Insurance TO: Insurers Writing Credit Accident and Health Insurance in South Carolina in Conjunction with Loans subject to 1966 S.C. Act No. 988, Consumer Finance Law FROM: S~ott H. Richardson, CPcu<::::::/ -~~~ Duector ~ p;t.' ~ SUBJECT: Notice of Tentative Accident and Health Insurance Rates for Such Insurance and Opportunity to Request a Hearing DATE: July 31,2009 I. NOTICE OF TENTATIVE CREDIT ACCIDENT AND HEALTH INSURANCE RATES Regulation 69-11.1, Regulation of Credit Insurance, requires the South Carolina Department of Insurance to promulgate tentative rates for credit accident and health insurance by August 1 of each ye<IT.-- The tentative rates are those the Department believes may reasonably be expected to produce a loss ratio of not less than fifty percent (50%) in the following calendar year. This bulletin constitutes official notice of the tentative rates for 201 0. The Department has reviewed the last several years' experience for credit accident and health insurance written in conjunction with loans subject to the Consumer Finance Law. The aggregate l0ss ratio for credit accident and health insurance at the prima facie rates are: fifty and four tenths percent (50.4%) in 2008, forty-six and eight tenths percent (46.8%) in 2007, and forty-seven and six tenths percent (47.6%) in 2006. With the current year experience producing an aggregate loss ratio in excess of fifty percent (50%) and continued weakness in the national economy, the tentative rate proposed for 2010 for 3-day Retro Accident and Health Insurance remains unchanged from the 2009 rate of $0.31 per year per $5.00 unit of monthly indemnity. II. OPPORTUNITY FOR A HEARING Regulation 69-ll.l.C.( 4) provides that "every insurer which feels aggrieved by any of the rates so promulgated shall have fifteen days to request a public hearing with respect to such rate or rates." Accordingly, all requests for a hearing must be submitted to the Department in writing on or before August 17, 2009. Please direct any requests for a hearing to the attention of: Jeffrey Jacobs, ChiefLegal Counsel South Carolina Department of Insurance Post Office Box 100105 Columbia, South Carolina 29202-3105 All requests must include documentation supporting your accident and health insurance needs to be changed. After or an affirmation of the tentative rate shall be sent to all companies before October 1, 2009. III. QUESTIONS rate for credit the final rate Any questions or concerns about this Bulletin should be submitted in vvTiting to the attention of: Andrew Dvorine, ASA, ~fAAA Life Actuary South Carolina Department of Insurance 145 King Street, Suite 228 Charleston, South Carolina 2940 I Facsimile: (843) 722-6105 E-mail: advorine@doi.sc.gov Bulletins are the method by which the Director of Insurance formally communicates with persons and entities regulated by the Department Bulletins arc departmental interpretations of South Carolina insurance laws and regulations and provide guidance on the Department's enforcement approach. Bulletins do not provide advice. Readers should consult applicable statutes and regulations or contact an attorney for legal advice or for additional information on the impact of that legislation on their specific situation.