Bulletin 2011-08 Notice of Tentative Accident and Health Insurance Rates and Opportunity to Request

[LOGO] # South Carolina Department of Insurance NIKKI R. HALEY Governor Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 DAVID BLACK Director of Insurance Mailing Address: P. O. Box 100105, Columbia, SC 29202-3105 Telephone: (803) 737-6160 # BULLETIN NUMBER 2011-08 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 David Black Director SUBJECT: Notice of Tentative Accident and Health Insurance Rates for such Insurance and Opportunity to Request a Hearing DATE: July 29, 2011 # 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 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 2012. 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 loss ratio for credit accident and health insurance at the prima facie rates are: fifty and one tenth percent (50.1%) in 2010, fifty-one and five tenths percent (51.5%) in 2009, and fifty and four tenths percent (50.4%) in 2008. With the current year experience producing an aggregate loss ratio of approximately fifty percent (50%) and a weak but growing national economy, the tentative rate proposed for 2012 for 3-day Retro Accident and Health Insurance remains unchanged from the 2011 rate of $0.31 per year per $5.00 unit of monthly indemnity. # II. OPPORTUNITY FOR A HEARING Regulation 69-11.1.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 15, 2011. 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 accident and health 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, 2011. ### III. QUESTIONS Any questions or concerns about this Bulletin should be submitted in writing to the attention of: Andrew Dvorine, ASA, MAAA Life Actuary South Carolina Department of Insurance 145 King Street, Suite 228 Charleston, South Carolina 29401 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 are departmental interpretations of South Carolina insurance laws and regulations and provide guidance on the Department's 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.