2014-10 Notice of Tentative Credit A&H Insurance Rates, Opportunity to Request Hearing

South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 NIKKI R. HALEY Governor RAYMOND G. FARMER Director Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 # BULLETIN NUMBER 2014-10 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: Raymond G. Farmer Director of Insurance Raymond G. Farmer SUBJECT: Notice of Tentative Accident and Health Insurance Rates for such Insurance and Opportunity to Request a Hearing DATE: July 31, 2014 # 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 (Department) to promulgate tentative rates for credit accident and health insurance by August 1st 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 2015. 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: forty-one and six tenths percent (41.6%) in 2013, forty-six and six tenths percent (46.6%) in 2012, and forty-seven percent (47.0%) in 2011. With the current year experience producing an aggregate loss ratio of approximately forty two percent (42%) and three years of loss ratios below 50%, the Department is reducing by 10% the tentative rate proposed for 2015. The proposed tentative rates for 3-day Retro Accident and Health Insurance in 2015 are $0.28 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 18, 2014. 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, 2014. ### 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