Bulletin 2007-09 Notice of Tentative Credit Prop. Insurance Rates and Opp. to Request a Hearing

TO: Capital Center 1201 Main Street, Suite 1000 Columbia, South Carolina 2920 I Mailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone 803-737-6160 BULLETIN NUMBER 2007-09 MARK SANFORD Governor SCOTT H. RICHARDSON, CPCU Director of Insurance Insurers Writing Credit Property Insurance in South Carolina in Conjunction with Consumer Credit Transactions subject to Act 988 of 1966 (the Consumer Finance Law) FROM: Scott H. Richardson ~ Director SUBJECT: Notice of Tentative Credit Property Insurance Rates and Opportunity to Request a Hearing DATE: August I, 2007 l. Notice ofTentative Credit Property Insurance Rates Regulation 69-11 requires the Department to promulgate tentative rates for credit property insurance by August I of each year. The tentative rates are those the Department believes may reasonably be expected to produce a loss ratio of not less than 50% in the following calendar year. This bulletin constitutes official notice of the tentative rates for 2008. The South Carolina Department of Insurance has reviewed the loss experience for 2006 for the above described credit property insurance. The aggregate 2006 loss ratio at prima facie rates was 21.1 %. Thus, the tentative rates proposed for 2008 are decreased from the 2007 rates by 57.8%. The tentative rates expressed as a percentage of the total amount of the loan are as f()llows: ~overage Automobile, Fire and Theft Single Interest Automobile Collision Single Interest Household Goods- Single Interest Household Goods Dual Interest APJ1I_Oved Rates .0135 percent .0506 percent .0131 percent .0688 percent II. Opportunity for a Hearing S.C. Code Ann. Reg. 69-11.1 (1989) provides that "every insurer which feels aggrieved by any of the rates so promulgated may request a public hearing with respect to such rate or rates" within 15 days. See S.C. Code Ann. Reg. 69-11.1 C (4) (1989). Accordingly, all requests for a hearing must be filed with the Department on or before August 17, 2007. Please direct your requests for a hearing to the attention of Jeffrey Jacobs, Chief Legal Counsel. Attach to your request for a hearing documentation supporting your position that the tentative rates for credit property insurance do not 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, 2007. Please direct any questions regarding this bulletin to the attention of Derek McKee at the address and number listed below. Derek McKee Assistant Actuary South Carolina Department of Insurance 145 King St., Suite 207 Charleston, SC 29401 Telephone: 843-579-0527 Facsimile: 843-722-6105 E-mail: dmckee@i~sc.doi.gov NOTE: Bulletins are the method by which the Director of the Department oflnsurance f(mnally communicates with entities ret,rttlated by the Department of Insurance. Bulletins are not law but are positions that the Department of Insurance has taken. They may provide direction, instructions, interpretations, or general information. Bulletins are not intended to set forth legal rights, duties or privileges nor are they intended to provide legal advice. Readers should consult applicable statutes and regulations and contact an attorney of their choice if additional information is needed.