Current Status Introducing Body:House Bill Number:3551 Primary Sponsor:J. Bailey Committee Number:26 Type of Legislation:JR Subject:Motor vehicle insurance, index file and use rating Residing Body:House Current Committee:Labor, Commerce and Industry Companion Bill Number:679 Computer Document Number:NO5/7257.BD Introduced Date:Feb 20, 1991 Last History Body:House Last History Date:Feb 20, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:J. Bailey Corning McElveen Quinn Scott Type of Legislation:Joint Resolution
Bill Body Date Action Description CMN
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3551 House Feb 20, 1991 Introduced, read first time, 26
referred to Committee
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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.