Bulletin 2009-13 Notice of Tentative Credit Property Insurance Rates and Opportunity to Request a He

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 2009-13 MARK SANFORD Governor SCOTT RICHARDSON Director oflnsurance TO: Insurers Writing Credit Property Insurance in South Carolina in Conjunction with Consumer Credit Transactions subject to 1966 S.C. Act No. 988, Consumer Finance Law FROM: S~ott H. Richardson, CPcue/ .... ~ ~ ,. Dtrector ~ ~ ~- SUBJECT: Notice of Tentative Credit Property Insurance Rates and Opportunity to Request a Hearing DATE: July 31,2009 I. NOTICE OF TENTATIVE CREDIT PROPERTY INSURANCE RATES Regulation 69-11.1, Regulation of Credit Insurance, requires the South Carolina Department of Insurance 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 fifty percent (50%) in the following calendar year. This bulletin constitutes official notice of the tentative rates for 2010. The Department has reviewed past loss experience for credit property insurance written in conjunction with consumer credit transactions subject to the Consumer Finance Law. The aggregate 2008 loss ratio at prima facie rates is twenty-seven and nine tenths percent (27.9%). Effective January 1, 2008, a rate decrease of fifty-seven and eight tenths percent (57.8%) was implemented. The effect of this rate decrease is being observed and evaluated. Until credible data is available and analyzed, no further changes in the rates are proposed for 2010. The tentative rates expressed as a percentage of the total amount of the loan are as follows: Coverage Automobile, Fire and Theft- Single Interest Automobile Collision- Single Interest Household Goods - Single Interest Household Goods - Dual Interest Approved Rates .0135 percent .0506 percent .0131 percent .0688 percent II. OPPORTUNITY FOR A HEARING Regulation 69-ll.LC.(4) provides that aggrieved by any of the rates so promulgated shall have fifteen days to request a 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, Chief Legal Counsel South Carolina Department of Insurance Post Office Box 100105 Columbia, South Carolina 29202-3105 All requests must include 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 rates or an affirmation of the tentative rates shall be sent to all companies before October 1, 2009. III. QUESTIONS Any questions or concerns about this Bulletin should be submitted in writing to the attention of: Vibha Jayasinghe, Associate Actuary South Carolina Department of Insurance 145 King Street, Suite 228 Charleston, South Carolina 29401 Facsimile: (843) 722-6105 E-mail: vjayasinghe@doi.sc.gov Bulletins are the method by which the Director of Insurance formally communicates with persons and entities regulated by the Department Bulletins are departmental interpretations of South Carolina insurance laws and regulations and provide guidance on the enforcement approach. Bulletins do not provide legal 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.