The following instructions and checklists are intended to be used as a tool by the insurer to properly prepare and submit filings to the South Carolina Department of Insurance. Please know that improper and/or incomplete filings will result in a rejection or disapproval of the filing.
All rate, rule and/or form filings must be submitted via the State Electronic Rate Form Filing system (SERFF). For more information on SERFF, please call 1-816-783-8787 or e-mail email@example.com. Additional information is also available by visitng www.serff.com.
Filings must be submitted by insurer and by line of business.
The South Carolina Department of Insurance will review filings for compliance; however, it remains the responsibility of the insurer to adhere to all applicable federal and South Carolina insurance laws, regulations and policies.
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Statutes and Regulations
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Bulletins and Positions
Highlights for Bulletins
Highlights for Positions
Fire Protection Classes
The use of fire protection classes other than ISO is not permitted.
Scheduled Debits and Credits
Schedule debits may not exceed a maximum of 25% of the standard rate nor shall schedule credits exceed 40% of the standard rate. For workers' compensation, the maximum credit or debit is 25%.
The Department allows the use of rate tiering. Separate tiers within one company must be filed with the Department. The tiers must be mutually exclusive if filed within one company.
A one-term cap may be approved to limit policyholder disruption, but the manual rate must be achieved when the cap is removed at the next policy renewal. A transition plan is another form of rate capping, which may be approved as a transition from one rating plan to another rating plan over a period of time (no more than 3 years).
Multiple Rating or Rule Plans
Rates or Rules that create different rates for risks with the same rating characteristics are not acceptable as they are considered unfairly discriminatory. The Department may approve a transition plan to temporarily limit renewal disruption caused by a rating or rule plan change.
Credit Scoring / Insurance Score
Credit scoring may be used in underwriting and in rating of policies. If used in rating, the specific criteria used in calculating the credit score must be filed with the Department and the filing must include loss experience justifying the applicable surcharge or credit.
The following requirements will be imposed upon insurers that intend to use credit scoring:
Credit scoring will not be allowed as the sole factor upon which any insurer makes its decision not insure an individual risk,
Credit scoring may be used to rate individual insureds among tiers,
The Department will require the individual insurers, as part of their rate filings, include listings of factors used to score individual risks, the methodology used to develop each factor and the weights given to each factor,
Any filer may request that its data be kept proprietary as a commercially-valuable trade secret and designate parts or all of its filings accordingly. The Department, absent court order, will not release information which is filed on a proprietary basis. Section 30-4-40(1).
Each insurer must justify, by appropriate actuarial data, each tier's rate for both liability and physical damage as separate calculations,
No hit/no score factors should be equal to 1.00,
Insureds may request the ordering of a new score every twelve months.
Waiver of Premium Refund
An insurer may file to waive a return premium under a certain amount, but that amount must be refunded to the insured upon request.
Automobile Specific Positions:
Paintless Dent Repair
It is the Department’s position that insurers should not limit payment based upon repair method such as “Dentless Repair.”
Diminution of Value
The Department allows this to be excluded.
As long as a policy fee is not being charged, expense constants are allowed as long as they become part of the premium charged.
Should include at least the insurer’s name, insured’s name, policy number, policy term, VIN, and coverage information or a statement that coverage meets the State’s minimum financial responsibility requirements.
Insurer name, address, and phone number are required on the front of the Declarations page unless such information is provided on the front of the insurer’s policy contract.
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Actuarial Exhibits and Forms
The following exhibits have been prepared in coordination with the National Association of Insurance Commissioners (NAIC), internal and consulting actuaries, and industry product and pricing managers. These exhibits are based on acceptable rating methodologies and serve as a step to our speed to market initiative. Therefore, carriers that submit this information will reduce the processing time for their filing reviews.
If you receive a dialog box asking for a password when opening the documents below, cancel the dialog box and the document will open.
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