H 3551 Session 109 (1991-1992)
H 3551 Joint Resolution, By J.J. Bailey, R.S. Corning, J.T. McElveen, Quinn and
Scott
A Joint Resolution to provide for insurers of private passenger automobile
insurance and individual members of rating organizations to elect to file
private passenger automobile insurance rates or premium charges under the
"index file and use" rating methodology.
02/20/91 House Introduced and read first time HJ-13
02/20/91 House Referred to Committee on Labor, Commerce and
Industry HJ-13
A JOINT RESOLUTION
TO PROVIDE FOR INSURERS OF PRIVATE PASSENGER
AUTOMOBILE INSURANCE AND INDIVIDUAL MEMBERS OF
RATING ORGANIZATIONS TO ELECT TO FILE PRIVATE
PASSENGER AUTOMOBILE INSURANCE RATES OR PREMIUM
CHARGES UNDER THE "INDEX FILE AND USE"
RATING METHODOLOGY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. (A) For three years after the effective date of this
resolution insurers of private passenger automobile insurance and
individual members of rating organizations may elect to file private
passenger automobile insurance rates or premium charges under the
"Index File and Use" rating methodology described in this
resolution.
(B) At least sixty days before their effective dates insurers of
private passenger automobile insurance shall file with the Chief
Insurance Commissioner and the Consumer Advocate proposed rates or
premium charges and certify under oath that the average of the overall
change in the proposed rates or premium charges for all classes, all
territories, and all coverages is equal to or less than the average annual
change, for the previous twelve-months, of the Consumer Price Index
Medical Care published by the United States Department of Labor,
Monthly Labor Review Gross Weekly Earnings published by the United
States Department of Labor, and Producer Price Index Motor Vehicles
and Equipment published by the United States Department of Labor.
Included in each filing also must be exhibits showing what each change
would be using the same twelve-months Consumer Price Index
published by the United States Department of Labor. In addition, for
each filing under this section, the insurer shall file the rate report, with
investment income and expense exhibits, set forth in Section 38-73-465
of the 1976 Code.
(C) Filings meeting the requirements of this section are considered
approved after being on file at the Department of Insurance for sixty
days. However, insurers of private passenger automobile insurance may
elect only to file under the "Index File and Use" rating
methodology one time during a consecutive six-month period, and the
medical, labor, and motor vehicles and equipment index in subsection
(B) must be annualized appropriately.
(D) If the commissioner finds that the filed proposed rates do not
meet the requirements of this section he may hold an expedited hearing
on the matter that need not meet the requirements of Chapter 23, Title
1, the Administrative Procedures Act. As a result of this hearing, the
commissioner may order the return of the filings to insurers for failing
to meet the requirements of this section.
(E) If the commissioner finds that the rates considered approved
produce excess profits described in Section 38-73-1100, he shall hold a
hearing on the matter in accordance with Section 38-73-1020. As a
result of this hearing, the commissioner may order a reduction in the
rates previously considered approved and order rebates as prescribed in
Section 38-73-465 of the 1976 Code. However, the amount of rates
subject to rebate must be no more than the difference between the filed
rates as approved and what they would have been using only the
Consumer Price Index referenced in this section.
SECTION 2. This joint resolution takes effect upon approval by the
Governor.
-----XX----- |