SC| South Carolina Department of Insurance Bulletin No. 2026-03, dated September 10, 2026, gives formal notice of proposed 2027 prima facie single-premium credit accident and health insurance rates for insurers writing coverage with consumer-credit transactions under the South Carolina Consumer Protection Code (excluding Consumer Finance Law loans). The Department proposes a 15% rate reduction based on persistently low aggregate loss-ratio experience—35.4% in 2025, 29.2% in 2024, 33.8% in 2023, and 36.7% in 2022—relative to the regulatory expectation that rates produce at least a 50% loss ratio. The bulletin provides rates per $100 of initial indebtedness by policy term and retroactive elimination period, requires non-single-premium policies to be actuarially equivalent, applies an 80% factor to eligible open-ended monthly outstanding-balance policies, and states that deviations from the stated prima facie rates will not be approved.
- Operational implications: Insurers should evaluate affected South Carolina credit accident and health products, confirm that filed or planned rates conform exactly to the 2027 schedule or are actuarially equivalent where premiums are paid differently, and incorporate the 80% adjustment for applicable NAIC Part 2C open-ended monthly outstanding-balance business. Questions may be submitted in writing to Emily Gatenby Osborn, ASA, MAAA, at the Department.
- Proposed 2027 rate schedule: Single-premium rates range from $0.76 per $100 of initial indebtedness for a 12-month, 14-day retroactive plan to $3.01 for a 180-month plan; corresponding 30-day retroactive rates range from $0.71 to $2.97. For nonannual terms, rates may be interpolated, including to the nearest month; the bulletin illustrates a 0–3 month 14-day rate of $0.19.
- Hearing rights and timing: An insurer that considers itself aggrieved may request a public hearing in writing by September 25, 2026, with documentation supporting why the tentative rates should change. Requests are directed to Gwendolyn McGriff, General Counsel, South Carolina Department of Insurance, P.O. Box 100105, Columbia, SC 29202-3105; following any hearing, final rates or affirmation of the tentative rates will be sent to companies before November 1, 2026.