(A) Overall average rate level increases or decreases, for all coverages combined, of seven percent above or below the insurer's current rates in effect may take effect without prior approval on a file and use basis with respect to rates for automobile insurance policies as set forth in this section. The seven percent cap does not apply on an individually insured basis. Insurers are limited to two rate increases during any twelve-month period as set forth in subsections (B) and (C).
(B)(1) Notwithstanding any other provision of this chapter, for any policies governed by this section, filings that produce rate level changes based on the limitation specified in subsection (A) become effective without prior approval; provided, that no more than one rate increase of seven percent above or below the insurer's current rates in effect may be implemented during any twelve-month period on a file and use basis. Any other increase request is subject to prior approval. A rate increase may not be implemented until the onset of the new policy period.
(2) A rate increase or decrease falling within the limitation in subsection (A) may become effective no less than thirty days after the date of the filing with the director. The filing is considered to meet the requirements of this chapter unless the director or his designee notifies the insurer that the filing does not comply with this chapter within that thirty-day time period. If, after the filing becomes effective, the director finds the filing does not comply with the requirements of this chapter, the director shall issue a written order specifying in detail the provisions with which the insurer has not complied and state a reasonable period thereafter in which the filing is considered no longer effective. Any order by the director pursuant to this section that is issued more than thirty days from the date on which the director received the rate filing must be on a prospective basis only and may not affect any contract issued or made before the effective date of the order.
(C) Rate filings for automobile insurance also may be made outside the limitation specified in subsection (A), however those filings are subject to the prior approval of the director. The director shall approve or disapprove these filings in accordance with the provisions of Sections 38-73-960 and 38-73-990. No more than two rate increases may be implemented during a twelve-month period. If the two rate increases fall above or below seven percent as specified in subsection (B), the second rate increase request within a twelve-month period is subject to prior approval. The limitation provided in Section 38-73-920 relating to the number of permissible filings within a twelve-month period does not apply to automobile filings made pursuant to the provisions of this section.
(D) Individual automobile insurance companies and member companies of an affiliated group of automobile insurers may utilize different filed rates for automobile insurance coverages in accordance with rating plans filed with and approved by the director. These rating plans may provide for different rates, rating tiers, and rating plans among affiliated companies. For the purposes of this subsection, an affiliated group of automobile insurers includes a group of automobile insurers under common ownership, management, or control.
(E) The Director of the Department of Insurance or his designee may promulgate regulations to implement the provisions of this section.
(F) This section does not apply to rate or rule filings of insurers who write only exempt commercial policies. Rate or rule filings for exempt commercial policies must comply with the requirements of S.C. Code Ann. Regs. Section 69-64, Section 38-73-920, and other applicable provisions of this title.
HISTORY: 2021 Act No. 33 (S.623), Section 1, eff May 6, 2021.
Structure South Carolina Code of Laws
Chapter 73 - Property, Casualty, Inland Marine, And Surety Rates And Rate-making Organizations
Section 38-73-10. Declaration of purpose; construction.
Section 38-73-20. Scope of chapter.
Section 38-73-30. Insurance subject to dual regulation.
Section 38-73-40. Recording and reporting of loss and expense experience.
Section 38-73-50. Interchange of rating plan data.
Section 38-73-60. Consultation with other states.
Section 38-73-70. Regulations.
Section 38-73-80. Withholding or giving false or misleading information.
Section 38-73-90. Examinations of rating organizations, advisory groups, and other organizations.
Section 38-73-110. Suspension of license.
Section 38-73-120. Hearing as prerequisite to imposition of penalty or suspension of license.
Section 38-73-130. Hearing procedure; judicial review.
Section 38-73-210. Article title and application.
Section 38-73-220. Approval process for rate level changes.
Section 38-73-250. Rate filings where line declared noncompetitive.
Section 38-73-270. Consumer information system.
Section 38-73-310. Scope of article.
Section 38-73-320. Insurance subject to both this article and Article 5.
Section 38-73-325. Absence of credit information.
Section 38-73-330. Making of rates.
Section 38-73-340. Rate filings required.
Section 38-73-410. Scope of article.
Section 38-73-420. Insurance subject to both this article and Article 3.
Section 38-73-425. Absence of credit information.
Section 38-73-430. Making of rates.
Section 38-73-440. Certain factors may not be considered in determining automobile insurance rates.
Section 38-73-470. Disposition of uninsured motorist premium.
Section 38-73-480. Rate for group automobile insurance.
Section 38-73-490. Workers' compensation rates.
Section 38-73-500. Merit rating for workers' compensation insurance; credit; testing.
Section 38-73-505. Reductions in premiums.
Section 38-73-510. Nonpartisan rating bureau for workers' compensation.
Section 38-73-515. Deductibles.
Section 38-73-520. Rate filings required.
Section 38-73-525. Filing of multiplier for expenses by insurers writing workers' compensation.
Section 38-73-526. Report as to availability and affordability of workers' compensation coverage.
Section 38-73-530. Competitive rate on specific risk.
Section 38-73-540. Assigned risk.
Section 38-73-545. Applicability to self-insurers.
Section 38-73-710. State Rating and Statistical Division established; executive director.
Section 38-73-737. Rate reductions for youthful operator completing approved driver training course.
Section 38-73-740. Certain information must be retained; inspection by applicant.
Section 38-73-905. Prior approval not required for certain rate changes.
Section 38-73-920. No insurance may be issued except on rates filed.
Section 38-73-930. Guidelines and formats for filing.
Section 38-73-935. Rate filings; information based upon; exceptions.
Section 38-73-940. Information in support of filing.
Section 38-73-950. Additional information may be required.
Section 38-73-960. Effective date of filing.
Section 38-73-965. Filing; effective date.
Section 38-73-970. Effective date for specially rated inland marine rates.
Section 38-73-980. Effective date for certain surety or guaranty bonds.
Section 38-73-990. Disapproval of filings generally.
Section 38-73-1000. Disapproval of specially rated specific inland marine rates.
Section 38-73-1010. Disapproval of special surety or guaranty filings.
Section 38-73-1020. Disapproval after applicable review period.
Section 38-73-1030. Review of filings on application of person aggrieved.
Section 38-73-1040. No disapproval of certain fire, allied lines, or inland marine filings.
Section 38-73-1050. No disapproval of certain casualty or automobile filings.
Section 38-73-1060. Use of rates and policy forms different from those filed; exceptions.
Section 38-73-1070. Suspension or modification of filing requirement.
Section 38-73-1080. Information to be furnished insureds; hearings and appeals of insureds.
Section 38-73-1085. Publication of representative sample of premiums.
Section 38-73-1090. Determination of discrimination and removal.
Section 38-73-1095. Essential property insurance; rating plan factors.
Section 38-73-1097. Applicability of certain provisions.
Section 38-73-1100. Determination of excessive or unreasonable rates; general reduction; refund.
Section 38-73-1105. Insurer's use of definition of "underinsured motor vehicle".
Section 38-73-1110. Regulation of calculation and refunding of excess profit.
Section 38-73-1120. Provisions to ensure expenses are allocated and treated properly; penalty.
Section 38-73-1215. Applicability to self-insurers.
Section 38-73-1220. Application for license as rating organization.
Section 38-73-1230. Issuance or denial of license; duration; fee.
Section 38-73-1240. Suspension or revocation of license.
Section 38-73-1250. Changes within rating organization.
Section 38-73-1260. Subscribers to rating organizations.
Section 38-73-1270. Changes in rules and regulations; review of reasonableness.
Section 38-73-1280. Rules may not regulate certain payments.
Section 38-73-1290. Filings must be adhered to.
Section 38-73-1300. Application for modification by fire or inland marine insurer.
Section 38-73-1310. Application for modification by casualty or automobile insurer.
Section 38-73-1330. Examination of policies and other papers; correction of errors.
Section 38-73-1340. Appeal by minority.
Section 38-73-1350. Cooperation.
Section 38-73-1360. Actuarial, technical, and other services.
Section 38-73-1410. Refiling of final rates or premium charges previously approved not required.
Section 38-73-1510. "Advisory organization" defined.
Section 38-73-1520. Filing certain data and agreement authorizing examination.
Section 38-73-1530. Requiring discontinuance of certain acts or practices.
Section 38-73-1710. Regulation of joint underwriting and joint reinsurance.
Section 38-73-1720. Discontinuance of unfair activity or practice may be ordered.