Property, Casualty, Inland Marine, and Surety Rates and Rate-Making Organizations

What this document is

S.C. Code Ann. ch. 38-73: Property, Casualty, Inland Marine, and Surety Rates and Rate-Making Organizations is a state statute published by South Carolina Legislature (scstatehouse.gov). It is one of the South Carolina documents that insurance license exam questions are written from, including south carolina property & casualty, south carolina personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• S.C. Code Ann. § 38-73-220(A) (Approval process for rate level changes)

  “overall average rate-level increases or decreases, for all coverages combined, of seven percent above or below the insurer's rates then in effect may take effect without prior approval on a file and use basis with respect to rates for fire, allied lines, and homeowner's insurance policies. The...”

• S.C. Code Ann. § 38-73-220(B) (Approval process for rate level changes)

  “No more than two rate increases within the limitation specified in subsection (A) may be implemented during any twelve-month period and the second rate-increase filing in the twelve-month period is subject to prior approval.”

• S.C. Code Ann. § 38-73-240(A) (Rate filings where line declared competitive; Consumer Advocate review of certain filings)

  “In a line of insurance declared competitive, each insurer shall file with the director all rates, supplementary rate information, and supporting information for competitive markets at least thirty days before the proposed effective date. The director or his designee may give written notice, within...”

• S.C. Code Ann. § 38-73-440 (Certain factors may not be considered in determining automobile insurance rates)

  “In determining the premium rates to be charged on automobile insurance, it is unlawful to consider race, religion, national origin, or economic status.”

• S.C. Code Ann. § 38-73-230(A) (Declaration of competitive line; factors considered; hearings before Administrative Law Court)

  “The director may declare a line of insurance competitive by providing public notice on the department website and in major newspapers in South Carolina of the intention of declaring a market competitive in sixty days. A separate notice must be sent to the Consumer Advocate.”

• S.C. Code Ann. § 38-73-230(B) (Declaration of competitive line; factors considered; hearings before Administrative Law Court)

  “The following factors must be considered by the director for purposes of determining if a reasonable degree of competition exists in a particular line of insurance: (1) the number of insurers or groups of affiliated insurers providing coverage in the market; (2) measures of market concentration and...”

• S.C. Code Ann. § 38-73-260(E) (Approval process for rate level changes; Consumer Advocate review of certain filings)

  “With respect to applications for rate increases for fire, allied lines, and homeowner's insurance that exceed the seven percent cap as provided in subsection (A) and if an applicant insurer had earned premiums in this State in the previous calendar year of more than ten million dollars for the line...”

• S.C. Code Ann. § 38-73-330(3) (Making of rates)

  “Due consideration must be given to past and prospective loss experience within and outside this State, to the conflagration and catastrophe hazards, to a reasonable margin for underwriting profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by...”

• S.C. Code Ann. § 38-73-490 (Workers' compensation rates)

  “To secure fair, reasonable, adequate, and nondiscriminatory rates for workers' compensation insurance the director or his designee shall approve the rate for each classification under which workers' compensation insurance is written, which rate and classification must be the same for all insurers.”

• S.C. Code Ann. § 38-73-330 (Making of rates)

  “(3) Due consideration must be given to past and prospective loss experience within and outside this State, to the conflagration and catastrophe hazards, to a reasonable margin for underwriting profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by...”

• S.C. Code Ann. § 38-73-920 (No insurance may be issued except on rates filed)

  “Notwithstanding Section 38-73-10, Section 38-73-330(2), and Section 38-73-430(4), filings for property and casualty rate increases may not be approved for any insurer or rating organization for any line, subline, or otherwise identifiable property and casualty insurance coverage for which a rate...”

• S.C. Code Ann. § 38-73-935 (Rate filings; information based upon; exceptions)

  “No rate filing for private passenger automobile insurance may include or be based upon actual or projected loss or expense data which includes payments made on policies, wherein the amount of the settlement, judgment, or other payment by the insurer was in excess of the policy limits, exclusive of...”

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More South Carolina sources

• S.C. Code Ann. ch. 38-57: Unfair trade practices in the business of insuranceState statute
• S.C. Code Ann. ch. 38-43: Producers (licensing, appointment, discipline)State statute
• S.C. Code Ann. ch. 38-63: Life insurance policy provisionsState statute
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• South Carolina Code of Laws Title 38, Chapters 5, 43 and part of 55 (first third)State statute
• South Carolina Code of Laws Title 38, Chapters 55, 57, 59, 63 and part of 65 (second third)State statute
• South Carolina Code of Laws Title 38, Chapters 65, 71 and 72 (final third)State statute
• South Carolina Insurance Content OutlinesCandidate handbook or exam outline