Consumer Advocate v. South Carolina Department of Insurance

The Consumer Advocate for the State of South Carolina appeals the Administrative Law Court’s (ALC’s) ruling that the South Carolina Department of Insurance (DOI) was not required to publish notice of a proposed change in loss costs rates for workers’ compensation insurance because the overall change was a decrease. We reverse.

FACTS

Workers’ compensation rates are composed of two components: loss costs and loss-costs multipliers. Loss costs are the medical expenses and lost wages component of the rate. The loss-costs multiplier represents the insurer’s expenses and profit. Each insurer files…