Bulletin 2006-09 Personal Lines Automobile and Homeowner Rate Filings

South Carolina Department of Insurance 300 Arbor Lake Drive, Suite 1200 Columbia, South Carolina 29223 Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-31 05 Telephone: (803} 737-6160 BULLETIN 2006-09 MARK SANFORD Governor ELEANOR KITZMAN Director of Insurance TO: Insurers Writing Property and Casualty Insurance in South Carolina FROM: RE: DATE: Eleanor Kitzman Director~ Personal Lines Automobile and Homeowner Rate Filings August 17, 2006 I. PURPOSE The Property & Casualty Insurance Personal Lines Modernization Act of 2004 established a flex-band rating system for property coverage. 1 Under the flex- band rating system, filings of +/-7% may take effect without prior approval on a file and use basis not less than thirty days within the date of filing unless disapproved by the Director prior to that date.2 Rate filings with an impact of more than 7% are still subject to prior approval under Sections 38-73-960 and 38-73-990. The purpose of this Bulletin is to describe the level of review the Department considers appropriate for both file and use and prior approval filings, and to outline the information required for automobile and homeowners rate filings. II. STANDARD OF REVIEW Properly supported file and use rate filings will not generally receive the same scrutiny as filings that are subject to prior approval, but they are not exempt from review and must include all statistics necessary to support the rates to be used by the insurer including information that demonstrates that the proposed rate is not excessive, inadequate, or unfairly discriminatory. Rate change requests falling within the flex band may receive a more extensive review if: 1) the filing is incomplete; 2) the actuarial assumptions are inappropriate or do not support the rate change request; 3) the request includes a material change in product design, 1 See Section 38-73-220. 2 See Section 3 8-73-910. proposed rate is not excessive, inadequate, or unfairly discriminatory. Rate change requests falling within the flex band may receive a more extensive review if: 1) the filing is incomplete; 2) the actuarial assumptions are inappropriate or do not support the rate change request; 3) the request includes a material change in product design, 1 See Section 38-73-220. 2 See Section 3 8-73-910. rating algorithm, rules or underwriting standards, or 4) the filing includes a material change in methodology or assumptions from the previous rate filings for the line of business or a coverage within a line of business. The Department is responsible for ensuring that rates are not inadequate, excessive or unfairly discriminatory, may request additional information in order to make that determination and may disapprove filings that are not in compliance with South Carolina law. For flex-band filings, the insurer may use the rates set forth in the filing unless the Department has disapproved such filing with the thirty day period. For prior approval filings, rates may not be used until approved by the Department. Ill. FILING REQUIREMENTS AND RECOMMENDED EXHIBITS Filings by Company, by Line A separate Form #2004 must be completed for each Company and for each Line of Business. Do not complete the form on a group basis. This form must be submitted in duplicate for each company filed. Cover Letter All filings must include a cover letter on the Company's letterhead. The cover letter should briefly explain the purpose and the background of the filing. The cover letter should also include a statement of the overall impact of the rate, rule or form filing. Actuarial Exhibits South Carolina Automobile Exhibits 1-8 and Homeowner Exhibits 1-9 attached to this Bulletin describe the composition of the rate change, its impact on policyholders and support for a change in the overall rate level, and display the information in a logical, easy to follow format letter should also include a statement of the overall impact of the rate, rule or form filing. Actuarial Exhibits South Carolina Automobile Exhibits 1-8 and Homeowner Exhibits 1-9 attached to this Bulletin describe the composition of the rate change, its impact on policyholders and support for a change in the overall rate level, and display the information in a logical, easy to follow format. Insurers are free to modify the exhibit formats according to the company's available data, product design, and the content of the filing. However, use of the sample exhibits or substantially similar exhibits will expedite the review process. Questions regarding the filing process or the content of this Bulletin should be directed to: Carla Lachance, Manager, Forms and Rates South Carolina Department of Insurance 300 Arbor Lake Drive, Suite 1200 Columbia, South Carolina 29223 Telephone: (803) 737-6230 Fax: (803) 737-6233 Email: clachance@doi.sc.gov South Carolina Insurance Department Personal Lines Automobile Rate Filing Underwriting Results Actual Direct: 2002 %of Prem Earned Premium 32,000 1.00 Incurred Losses 27,300 0.85 Incurred LAE 3,000 0.09 Incurred U/W Expenses 7,500 0.23 U/W Results (5,800) -0.18 Actual Net* 2002 %of Prem Earned Premium 28,000 1.00 Incurred Losses 27,300 0.98 Incurred LAE 3,000 0.11 Incurred U/W Expenses 7,500 0.27 U/W Results (9,800) -0.35 * Net of reinsurance. Auto-1 2003 %of Prem 2004 %of Prem 40,000 1.00 41,000 1.00 25,000 0.63 32,000 0.78 3,000 0.08 5,000 0.12 7,500 0.19 7,500 0.18 4,500 0.11 (3,500} -0.09 2003 %of Prem 2004 %of Prem 40,000 1.00 41,000 1.00 25,000 0.63 32,000 0.78 3,000 0.08 5,000 0.12 7,500 0.19 7,500 0.18 4,500 0.11 (3,500) -0.09 7 U/W Results (9,800) -0.35 * Net of reinsurance. Auto-1 2003 %of Prem 2004 %of Prem 40,000 1.00 41,000 1.00 25,000 0.63 32,000 0.78 3,000 0.08 5,000 0.12 7,500 0.19 7,500 0.18 4,500 0.11 (3,500} -0.09 2003 %of Prem 2004 %of Prem 40,000 1.00 41,000 1.00 25,000 0.63 32,000 0.78 3,000 0.08 5,000 0.12 7,500 0.19 7,500 0.18 4,500 0.11 (3,500) -0.09 South Carolina Insurance Department Personal Lines Automobile Rate Filing Rate Level Change Exhibit Off-Balance Exhibit Insurance Company: Effective Date: Component of Change Insert Company Name MM-DD-YYYY Auto-2 Liability Physical (list each component or variable changing, do not include variables not changing) Coverages Damage Covg Base Rate Territory Amount of Insurance Value Deductible Other ____ _ Other ____ _ (use as many lines as necessary) Overall change by Liab or Phys Dam 1.0% 2.0% 3.0% 0.0% n% n% 6.1% 0.8% 1.5% 3.0% 1.0% n% n% 6.4% Premium or Exposure Weight by form 4,505,300 2,1 02,100 Overall change ALL coverages (must be within ±7% for file-and-use filing) Actuarial and/or other explanation: 1. If multiple companies in a group are affected by a rate change, the insurer is to complete this form separately for each company. 2. Insurer is to list each component or rating variable with classifications and factors changing, and provide the average rate change due solely to the changes in that component or variable. 3. The combined impact of all component changes should match the overall change by form. Insurer may list changes by form in columns or on separate sheets, provided each exhibit is clearly labeled. 6.2%1 . Insurer is to list each component or rating variable with classifications and factors changing, and provide the average rate change due solely to the changes in that component or variable. 3. The combined impact of all component changes should match the overall change by form. Insurer may list changes by form in columns or on separate sheets, provided each exhibit is clearly labeled. 6.2%1 South Carolina Insurance Department Personal Lines Automobile Rate Filing Historical Experience Exhibit Insurance Company: Effective Date: Insert Company Name MM-DD-YYYY List all experience on a Direct basis (gross of reinsurance) for South Carolina for the 5 preceding years. Insurers with sufficient experience are encouraged to include accident-year rate level indications, incorporating trends, loss development, credibility and other ratemaking techniques, in a separate actuarial memorandum. Coverage Accident Present Premium EP at Year Loss Earned Level Trend Current Incurred Development Year Premium Factor Factor Rate Level Losses LAE Factor Factor Total 5 Yr Projected Loss Ratio Expense Ratio Permissible Loss Ratio Indicated Change Actuarial and/or other explanation: Auto-3 Projected Accident Loss Year Trend Incurred Factor Cat Load Losses Loss Ratio South Carolina Insurance Department Personal Lines Automobile Rate Filing Auto-4 Ratemaking Expense Assumptions Exhibit Insurance Company: Insert Company Name Effective Date: MM-DD-YYYY Expense Ratio (% Premium) Expense Category Fixed Variable Total Commission Other Acquisition General Expense Reinsurance Costs Taxes, Licenses, Fees Other ____ _ Profit and Contingency Total Expense and Profit Ratio 0.0% 4.5% 1.2% 0.0% 0.0% 0.0% 0.0% 5.7% 12.0% 12.0% 1.3% 5.8% 0.0% 1.2% 3.0% 3.0% 2.2% 2.2% 0.0% 0.0% 4.0% 4.0% 22.5% 28.2% Perrnissable Loss Ratio 71.8%1 Actuarial and/or other explanation: 1-lnsurer may select expense categories according to its accounting format surance Costs Taxes, Licenses, Fees Other ____ _ Profit and Contingency Total Expense and Profit Ratio 0.0% 4.5% 1.2% 0.0% 0.0% 0.0% 0.0% 5.7% 12.0% 12.0% 1.3% 5.8% 0.0% 1.2% 3.0% 3.0% 2.2% 2.2% 0.0% 0.0% 4.0% 4.0% 22.5% 28.2% Perrnissable Loss Ratio 71.8%1 Actuarial and/or other explanation: 1-lnsurer may select expense categories according to its accounting format. 2- Profit and contingency percentage MUST be included. 3- Split between fixed and variable expenses is optional according to the insurer's ratemaking methodology. South Carolina Insurance Department Personal Lines Automobile Rate Filing Rating Variable Support Exhibit Insurance Company: Effective Date: Insert Company Name MM-DD-YYYY Auto-S Rating Variable: Insert variable or component under consideration (Classification, symbol, etc.) Exposure amount or Current Proposed Category percentage Support for change Factor Factor %Change n1 n2 n3 etc. etc. nn Total Actuarial and/or other explanation: 1- Complete this exhibit for each rating variable or rating component affected by the rate change. 2- For each rating variable included, list each category affected by the rate change. 3- "Support for change" should describe the insurer's process and justification for selecting proposed factors. Support could include South Carolina or countrywide loss ratios, frequency, severity, loss costs, competition or a combination. Insurer's with sufficient experience are encouraged to compute indicated factors with consideration for credibility. Use additional columns or sheets as necessary. 4- Insurers are encouraged to explain selected changes that are not apparently supported by the support information provided. 5- If categories are determined based on company codes that do not obviously describe the categories, include category definitions on this sheet or on a separate exhibit. dicated factors with consideration for credibility. Use additional columns or sheets as necessary. 4- Insurers are encouraged to explain selected changes that are not apparently supported by the support information provided. 5- If categories are determined based on company codes that do not obviously describe the categories, include category definitions on this sheet or on a separate exhibit. South Carolina Insurance Department Personal Lines Automobile Rate Filing Auto Annual Premiums by Territory Insurance Company: Effective Date: Form:: Insert Company Name MM-DD-YYYY Insert form type or number COMPARISON OF ANNUAL PREMIUMS DO NOT ADD OR DELETE ANY COVERAGE OR MAKE ANY CHANGES TO THIS EXAMPLE Auto-6 Page I 1. Premiums shown are for an automobile which is driven to or from work less than ten miles one way, no business use and there is no operator under 25 years of age. 2. The driver is a single, male, age 34. 3. Any safe driver discount applies. 4. The liability coverage is for $25,000/$50,000/$25,000, with $25,000/$50,000/$25,000 uninsured motorist. 5. The physical damage coverage coverage is for a $500 deductible on comprehensive and a $500 deductible on collision for the following automobile (and others in a similar price range) 2004 Ford Taurus. 6. For any rating tiers not provided, such as credit, points, etc., please provide a description of the base rate used. 7. Territories with multiple counties, please provide the highest premium rate applicable in the territory. Please provide the name, title, address and phone number of the person who is to be contacted by this Department regarding this Form: Name: Title: Address: Telephone#: I certify that these premiums are the COJTect premiums for South Carolina in accordance with the above example. SIGNATURE DATE TITLE South Carolina Insurance Department Auto-6 t premium rate applicable in the territory. Please provide the name, title, address and phone number of the person who is to be contacted by this Department regarding this Form: Name: Title: Address: Telephone#: I certify that these premiums are the COJTect premiums for South Carolina in accordance with the above example. SIGNATURE DATE TITLE South Carolina Insurance Department Auto-6 Private Passenger Auto Rates Insurance Company: Effective Date: Territory Abbeville Aiken Allendale Anderson Bamberg Barnwell Beaufort Calhoun Charleston Dorchester Berkeley Cherokee Chester Chesterfield Clarendon Colleton Darlington Dillon Edgefield Fairfield Florence Georgetown Greenville Greenwood Hampton I-Iorry Jasper Kershaw Lancaster Laurens Lee Lexington Marion Marlboro McCormick Newberry Oconee Orangeburg Pickens Richland Saluda Spartanburg Sumter Union Williamsburg York Insert Company Name MM-00-YYYY Coverage Current Rate Actuarial and/or other explanation: Page 2 Proposed Rate $Change %Change II South Carolina Insurance Department Personal Lines Automobile Rate Filing Rate Change by Interval Exhibit Insurance Company: Insert Company Name Effective Date: MM-DD-YYYY Rate change Interval from to 25.1% 15.1% 25.0% 10.1% 15.0% 5.1% 10.0% 0.1% 5.0% no change -5.0% -0.1% -10.0% -50.1% -15.0% -10.1% -25.0% -15.1% -25.1% %policies affected xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% Total 100% Briefly describe how this exhibit was computed (actual re-rate of policies, re-rate of a sample of policies, estimate based on distributions, etc.) Auto-7 .1% 25.0% 10.1% 15.0% 5.1% 10.0% 0.1% 5.0% no change -5.0% -0.1% -10.0% -50.1% -15.0% -10.1% -25.0% -15.1% -25.1% %policies affected xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% Total 100% Briefly describe how this exhibit was computed (actual re-rate of policies, re-rate of a sample of policies, estimate based on distributions, etc.) Auto-7 South Carolina Insurance Department Personal Lines Automobile Rate Filing Loss Triangle Exhibit* Accident Year 2000 2001 2002 2000 2001 2002 2003 2004 2005 2006 Total Link Ratios Accident Year 1:2 2:3 3:4 2000 2001 2002 2003 2004 2005 2006 Total ~Average I 2003 2004 2005 2006 4:5 5:6 *This exhibit is not required for filings of +/-7% unless your market share is greater than 10%. Auto-8 Loss Development Factors Ultimate South Carolina Insurance Department Personal Lines Property Rate Filing Underwriting Results H0-1 Latest three calendar years. If fiscal year ending on date other than 12/31, please specify end-date. Actual Direct: 2003 %of Prem 2004 Earned Premium 28,000 1.00 40,000 Incurred Losses 27,300 0.98 25,000 Incurred CAT Losses 500,000 17.86 - Incurred LAE 3,000 0.11 3,000 Incurred CAT LAE 1,000 0.04 - Incurred U/W Expenses 7,500 0.27 7,500 U/W Results _(9,800) -0.35 4,500 * If a CAT Model was used, please indicate which model and version. **Please indicate the parameters used with CAT model. %of Prem 1.00 0.63 0.00 0.08 0.00 0.19 0.11 Cat models will be used to project future losses, not to compute actual losses Actual Net* 2003 %of Prem 2004 %of Prem Earned Premium 28,000 1.00 40,000 1.00 Incurred Losses 27,300 0.98 25,000 0.63 Incurred CAT Losses 500,000 17.86 - 0.00 Incurred LAE 3,000 0.11 3,000 0.08 Incurred CAT LAE 1,000 0.04 - 0.00 Incurred U/W Expenses 7,500 0.27 7,500 0.19 U/W Results (9,800) -0.35 4,500 0.11 * Net of reinsurance not to compute actual losses Actual Net* 2003 %of Prem 2004 %of Prem Earned Premium 28,000 1.00 40,000 1.00 Incurred Losses 27,300 0.98 25,000 0.63 Incurred CAT Losses 500,000 17.86 - 0.00 Incurred LAE 3,000 0.11 3,000 0.08 Incurred CAT LAE 1,000 0.04 - 0.00 Incurred U/W Expenses 7,500 0.27 7,500 0.19 U/W Results (9,800) -0.35 4,500 0.11 * Net of reinsurance. 2005 %of Prem 41,000 1.00 32,000 0.78 - 0.00 5,000 0.12 - 0.00 7,500 0.18 (3,500) -0.09 2005 %of Prem 41,000 1.00 32,000 0.78 - 0.00 5,000 0.12 - 0.00 7,500 0.18 (3,500) -0.09 South Carolina Insurance Department Personal Lines Property Rate Filing Rate Level Change Exhibit Off-Balance Exhibit Insurance Company: Insert Company Name Effective Date: MM-DD-YYYY Component of Change (list each component or variable changing, do not include variables not changing) Base Rate Territory Amount of Insurance Value Deductible Other ____ _ Other ____ _ (use as many lines as necessary) Overall change by form Premium or Exposure Weight by form Overall change ALL forms (must be within ±7% for file-and-use filing) H0-2 % Change by Form List form List form (ex. H03) (ex. Ow/Fire) 1.0% 0.8% 2.0% 1.5% 3.0% 3.0% 0.0% 1.0% n% n% n% n% 6.1% 6.4% 4,505,300 2,102,100 6.2%1 South Carolina Insurance Department Personal Lines Property Rate Filing Historical Experience Exhibit Insurance Company: Effective Date: Form: Insert Company Name MM-DD-YYYY Insert form number or type (H0-3, Dwelling, etc.) List all experience on a Direct basis (gross of reinsurance) for South Carolina for the 5 preceding years. Insurers with sufficient experience are encouraged to include accident-year rate level indications, incorporating trends, loss development, credibility and other ratemaking techniques, in a separate actuarial memorandum y Name MM-DD-YYYY Insert form number or type (H0-3, Dwelling, etc.) List all experience on a Direct basis (gross of reinsurance) for South Carolina for the 5 preceding years. Insurers with sufficient experience are encouraged to include accident-year rate level indications, incorporating trends, loss development, credibility and other ratemaking techniques, in a separate actuarial memorandum. Coverage Accident Present Premium EP at Year Loss Earned Level Trend Current Incurred Development Year Premium Factor Factor Rate Level Losses LAE Factor Factor Total 5 Yr Projected Loss Ratio ExQ_ense Ratio Permissible Loss Ratio Indicated Change Actuarial and/or other explanation: H0-3 Projected Loss AY Trend Incurred Factor Cat Load Losses Loss Ratio South Carolina Insurance Department Personal Lines Property Rate Filing Ratemaking Expense Assumptions Exhibit Insurance Company: Insert Company Name Effective Date: MM-DD-YYYY Form: Insert form number or type (H0-3, Dwelling, etc.) H0-4 Expense Ratio (% Premium) Expense Category Fixed Variable Total Commission Other Acquisition General Expense Reinsurance Costs Taxes, Licenses, Fees Other ____ _ Profit and Contingency Total Expense and Profit Ratio 0.0% 4.5% 1.2% 0.0% 0.0% 0.0% 0.0% 5.7% 12.0% 12.0% 1.3% 5.8% 0.0% 1.2% 3.0% 3.0% 2.2% 2.2% 0.0% 0.0% 4.0% 4.0% 22.5% 28.2% Permissable Loss Ratio 71.8%1 Actuarial and/or other explanation: 1- Insurer may select expense categories according to its accounting format. 2- Profit and contingency percentage MUST be included. 3- Split between fixed and variable expenses is optional according to the insurer's ratemaking methodology. 1.3% 5.8% 0.0% 1.2% 3.0% 3.0% 2.2% 2.2% 0.0% 0.0% 4.0% 4.0% 22.5% 28.2% Permissable Loss Ratio 71.8%1 Actuarial and/or other explanation: 1- Insurer may select expense categories according to its accounting format. 2- Profit and contingency percentage MUST be included. 3- Split between fixed and variable expenses is optional according to the insurer's ratemaking methodology. South Carolina Insurance Department Personal Lines Property Rate Filing Rating Variable Support Exhibit Insurance Company: Effective Date: Form: Insert Company Name MM-DD-YYYY Insert form number or type (H0-3, Dwelling, etc.) H0-5 Rating Variable: Insert variable or component under consideration (Protection Class, Construction type, territory, etc.) Exposure amount or Current Proposed Category percentage Support for change Factor Factor n1 n2 etc. etc. nn Total Actuarial and/or other explanation: 1- Complete this exhibit for each rating variable or rating component affected by the rate change. 2- For each rating variable included, list each category affected by the rate change. 3 -"Exposure amount or percentage" should describe the proportion of business in each category. Possible values include Earned House Years, Policies in Force, or% Earned Premium. %Change 4- "Support for change" should describe the insurer's process and justification for selecting proposed factors. Support could include South Carolina or countrywide loss ratios, frequency, severity, loss costs, competition or a combination. Insurer's with sufficient experience are encouraged to compute indicated factors with consideration for credibility. Use additional columns or sheets as necessary. 5- Insurers are encouraged to explain selected changes that are not apparently supported by the support information provided. 6- If categories are determined based on company codes that do not obviously describe the categories, include category definitions on this sheet or on a separate exhibit. dicated factors with consideration for credibility. Use additional columns or sheets as necessary. 5- Insurers are encouraged to explain selected changes that are not apparently supported by the support information provided. 6- If categories are determined based on company codes that do not obviously describe the categories, include category definitions on this sheet or on a separate exhibit. South Carolina Insurance Department Personal Lines Property Rate Filing Homeowners Annual Premiums by Territory Insurance Company: Effective Date: Form:: Insert Company Name MM-DD·YYYY Insert form type or number COMPARISON OF ANNUAL PREMIUMS DO NOT ADD OR DELETE ANY COVERAGE OR MAKE ANY CHANGES TO THIS EXAMPLE I. Premiums shown are for a single family, owner occupied home with $150,000 amount of insurance written on Form H0-3 or equivalent with full replacement costs. If coverage form is substantially different, please footnote. 2. Protection class= 5. 3. The loss history is 5 years claim-free. 4. Liability coverage= S I 00,000 and Medical Payments = $1000. 5. Deductible amount= $500. If the company docs not offer a deductible of $500 for all perils, quote the closest to $500 and footnote tl1e actual deductible used for rating. 6. For the territories that arc subdivided, enter the highest applicable premiums on the attached form. Please provide the name, title, address and phone number of the person who is to be contacted by this Department regarding this Form: Name: Title: Address: Telephone#: I certify that these premiums are the correct premiums for South Carolina in accordance with the above example. SIGNATURE DATE TITLE H0-6 Page 1 rc subdivided, enter the highest applicable premiums on the attached form. Please provide the name, title, address and phone number of the person who is to be contacted by this Department regarding this Form: Name: Title: Address: Telephone#: I certify that these premiums are the correct premiums for South Carolina in accordance with the above example. SIGNATURE DATE TITLE H0-6 Page 1 South Carolina Insurance Department Homeowners Annual Premiums by Territory Insurance Company: Effective Date: Insert Company Name MM·DD·YYYY Form:: Insert form number or type (H0-3, Dwelling, etc.) TeJTilory Abbeville Aiken Allendale Anderson Bamberg Bam well Beaufort Calhoun Charleston Dorchester Berkeley Cherokee Chester Chesterfield ClaTcndon Colleton Darlington Dillon Edgefield fairfield Florence Georgetown Greenville Greenwood Hampton 1-lmTy Jasper Kershaw Lancaster Laurens Lee Lexingtml Marion Marlboro McCormick NewbeJTY Oconee Orangeburg Pickens Richland Saluda Spartanburg Sumter Union Williamsburg York Current Rate I Proposed Rate $Change %Change I i H0-6 Page 2 South Carolina Insurance Department Personal Lines Property Rate Filing Rate Change by Interval Exhibit Insurance Company: Effective Date: Rate change Interval from to 25.1% 15.1% 25.0% 10.1% 15.0% 5.1% 10.0% 0.1% 5.0% no change -5.0% -0.1% -10.0% -50.1% -15.0% -10.1% -25.0% -15.1% -25.1% I Insert Company Name MM-00-YYYY Total %policies affected xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% 100% I Briefly describe how this exhibit was computed (actual re-rate of policies, re-rate of a sample of policies, estimate based on distributions, etc.) H0-7 0.1% 5.0% no change -5.0% -0.1% -10.0% -50.1% -15.0% -10.1% -25.0% -15.1% -25.1% I Insert Company Name MM-00-YYYY Total %policies affected xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% xx.x% 100% I Briefly describe how this exhibit was computed (actual re-rate of policies, re-rate of a sample of policies, estimate based on distributions, etc.) H0-7 South Carolina Insurance Department Personal Lines Property Rate Filing H0-8 Territorial Base Rate Exhibit Insurance Company: Effective Date: Insert Company Name MM-DD-YYYY Form: Insert form number or type (H0-3, Dwelling, etc.) Define Base Risk Characteristics: (Example: $100,000 Insured Amount, $100,000 Liability, Frame, Protection Class 3, $500 ded, etc.) Territorial Base Rate SCDIIndex Non-Cat Cat Zip Code Description Component Component Total 29204 Columbia Territorial Base Rate Relative to SCDI Index Zip Code Insurer Rating Non-Cat Cat Non-Cat Cat Territory Description Component Component Total Component Component 1 2 3 n n n 1- Complete this form for each form or type affected by this rate change. 2- Define the Base Risk characteristics for the Insurer's base rate category. 3- All insurers must use zip code 29204 as the index zip for this exhibit, regardless of the insurer's actual base territory. 4- List all rating territories with a brief geographical description of each. Include complete territory definitions on a separate exhibit. 5- Compute "Relative to SCDIIndex Zip Code" for each territory using the following formula: (Insurer Territorial Base Rate for each territory) I {Insurer territorial Base Rate for 29204) 6- Do not include expense or policies fees not already included in base rates. Total g territories with a brief geographical description of each. Include complete territory definitions on a separate exhibit. 5- Compute "Relative to SCDIIndex Zip Code" for each territory using the following formula: (Insurer Territorial Base Rate for each territory) I {Insurer territorial Base Rate for 29204) 6- Do not include expense or policies fees not already included in base rates. Total South Carolina Insurance Department Personal Lines Property Rate Filing Loss Triangle Exhibit* Accident Year 2000 2001 2002 2000 2001 2002 2004 2005 2006 Total Link Ratios Accident Year 1:2 2:3 3:4 2000 2001 2002 2003 2004 2005 2006 Total !Average I 2003 2004 2005 2006 4:5 5:6 *This exhibit is not required for filings of +/-7% unless your market share is greater than 10%. H0-9 Loss Development Factor Ultimate Download Home Owner Exhibit Forms Download Auto Exhibit Forms