Bulletin 2017-06 Notice of Tentative 2018 Credit Property Insurance Rates and Opportunity to Request

# South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 HENRY MCMASTER Governor RAYMOND G. FARMER Director Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 # BULLETIN NUMBER 2017-06 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 Director SUBJECT: Notice of Tentative 2018 Credit Property Insurance Rates and Opportunity to Request a Hearing DATE: July 28, 2017 # 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 2018. 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 2016 loss ratio at prima facie rates is forty-one and three tenths percent (41.3%). The aggregate 2015 loss ratio at prima facie rates was twenty-six and two tenths percent (26.2%). The average loss ratios from 2007 to 2016 by coverage are as follows: Coverage Automobile, Fire and Theft – Single Interest Automobile Collision – Single Interest Household Goods – Single Interest Household Goods – Dual Interest Loss Ratio 41.6 percent 41.6 percent 95.6 percent 6.4 percent 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 Tentative Rate .0093 percent .0348 percent .0484 percent .0102 percent Based on premiums earned in 2016, the overall impact resulting from these tentative rates would be zero and two tenths percent (0.2%). # 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, 2017. 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 any requested hearings have been held, the final rate or an affirmation of the tentative rate shall be sent to all companies before October 1, 2017. # 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