2013-05 Notice of Tentative Credit Property Insurance Rates and Opportunity to Request a Hearing

South Carolina NIKKI R. HALEY Governor Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Mailing Address: P. O. Box 100105, Columbia, SC 29202·3105 Telephone: (803) 737·6160 BULLETIN NUMBER 2013-05 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: Raymond G. Farmer f? Cr. Director I~ SUBJECT: Notice of Tentative Credit Property Insurance Rates and Opportunity to Request a Hearing DATE: August 1,2013 I. NOTICE OF TENTATIVE CREDIT PROPERTY INSURANCE RATES Regulation 69-11.1, Regulation of Credit Insurance, requires the South Carolina Department of Insurance (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 fifty percent (50%) in the following calendar year. This bulletin constitutes official notice of the tentative rates for 2014. 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 2012 loss ratio at prima facie rates is twenty-seven and nine tenths percent (27.9%). The aggregate 2011 loss ratio was twenty-five and four tenths percent (25.4%). Both loss ratios reflect the rate decrease of fifty-seven and eight tenths percent (57.8%) effective January 1, 2008, and the aggregate 2012 loss ratio reflects the rate decrease of fifty-three and eight tenths percent (53.8%) effective January 1, 2013. Because of the persistence of these low loss ratios, we are making revisions to the rates. The tentative rates expressed as a percentage of the total amount of the loan are as follows: Coverage Approved Rates Automobile, Fire and Theft Single Interest .0093 percent Automobile Collision - Single Interest .0348 percent Household Goods - Single Interest .0233 percent Household Goods - Dual Interest .0102 percent 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 15,2013. Please direct any requests for a hearing to the attention of: Steve Dubois 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 rate or an affirmation of the tentative rate shall be sent to all companies before October 1, 2013. III. QUESTIONS Any questions or concerns about this Bulletin should be submitted in writing to the attention of: Will Davis, FCAS, MAAA P&C Actuary South Carolina Department of Insurance 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 Facsimile: (803) 737-6145 E-mail: WDavis@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.