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Bulletins and Orders

Posted on: August 1, 2022

Bulletin 2022-06


Regulation 69-11.1, Regulation of Credit Insurance, requires the South Carolina Department of Insurance to promulgate tentative rates for credit property insurance by August 1 of each year.  The tentative rates are those the Department believes may reasonably be expected to produce a loss ratio of not less than fifty percent (50%) in the following calendar year.   This bulletin constitutes official notice of the tentative rates for 2023.

The Department has reviewed past loss experience for credit property insurance written in conjunction with consumer credit transactions subject to the Consumer Finance Law. The aggregate 2021 loss ratio at prima facie rates is thirty-two and four tenths percent (32.4%). The aggregate 2020 loss ratio at prima facie rates was nineteen and six tenths percent (19.6%). It appears that previous rate decreases have begun to increase the aggregate loss ratio, though year-to-year fluctuations do occur. Since there is a statutory minimum premium of $3, we will continue to monitor the results to be assured that further reductions in rates will effectively increase the aggregate loss ratio.  

The average loss ratios from 2007 to 2021 by coverage are as follows:


Coverage                                                                               Loss Ratio

Automobile, Fire and Theft – Single Interest              42.3 percent

Automobile Collision – Single Interest                          42.3 percent

Household Goods – Single Interest                                86.5 percent

 Household Goods – Dual Interest                                     5.6 percent


We propose to hold the rate for Household Goods – Single Interest coverage at the 2022 level and to decrease the other rates ten percent from their current levels. The tentative rates expressed as a percentage of the total amount of the loan are as follows:


            Coverage                                                                          Tentative Rate

            Automobile, Fire and Theft – Single Interest          0.61 percent

            Automobile Collision – Single Interest                     2.29 percent

            Household Goods – Single Interest                           5.81 percent

            Household Goods – Dual Interest                             0.68 percent


Based on premiums earned in 2021, the overall impact resulting from these tentative rates would be a decrease of nine and one tenth percent (-9.1%).  




Regulation 69-11.1.C.(4) provides that “every insurer which feels aggrieved by any of the rates so promulgated shall have fifteen days to request a public hearing with respect to such rate or rates.”  Accordingly, all requests for a hearing must be submitted to the Department in writing on or before August 16, 2022.  Please direct any requests for a hearing to the attention of:


Gwendolyn McGriff

South Carolina Department of Insurance

Post Office Box 100105

Columbia, South Carolina 29202-3105


All requests must include documentation supporting your position that the tentative rates for credit property insurance need to be changed.  After any requested hearings have been held, the final rate or an affirmation of the tentative rate shall be sent to all companies before October 1, 2022.   




Any questions or concerns about this Bulletin should be submitted in writing to the attention of:


Will Davis, FCAS, MAAA

South Carolina Department of Insurance

1201 Main Street, Suite 1000

Columbia, South Carolina 29201

Facsimile:  (803) 737-6145


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