SC| The South Carolina Department of Insurance has issued Bulletin 2025-06 to notify insurers of tentative credit accident and health insurance rates for 2026, reflecting regulatory review and industry performance. The Department proposes a 15% rate reduction based on persistently low aggregate loss ratios observed from 2021 to 2024, and specifies new premium rates for varying loan periods. Insurers who disagree with the proposed rates have until August 23, 2025, to request a public hearing, and must provide supporting documentation; final rates will be confirmed or amended by October 1, 2025.
Key Points:
- The Department proposes a 15% reduction in credit accident and health insurance rates for 2026 after reviewing consistently low loss ratios (ranging from 30.6% to 38.4% over several years).
- New single premium rates per $100 of initial indebtedness are outlined for 12- to 180-month periods, with guidelines for interpolation and actuarial equivalence for alternative premium structures; deviations from prima facie rates will not be accepted.
- Insurers may submit hearing requests by August 23, 2025, if aggrieved by the proposed rates, and questions about the bulletin should be directed to the Department’s actuary or legal counsel.