Rate Hearing Updates (6/23/08)
Monday, June 23, 2008 at 12:04PM Under the 2007 Prior Approval Regulations, there have been six evidentiary hearings that have taken place or were set to take place. These hearings concerned Explorer Insurance Company (PPA), Fireman's Fund (HO and EQ), GeoVera Insurance Company (EQ), and Allstate Insurance Company (HO and PPA). (Our office is handling all of these matters, with the exception of the Allstate cases. ) The following is an update/recap of these hearings.
Fireman's Fund HO and EQ Rate Hearings
With regards to the Fund's EQ rate hearing, the evidentiary portion of the hearing is essentially completed. The parties are currently awaiting an order setting the briefing schedule for this matter.
With regards to the Fund's HO rate hearing, the CDI, Fireman's Fund and the Intervenor have come to a stipulation settling all the issues raised in the hearing. All hearing dates have been vacated and the parties currently await the Commissioner's approval of the stipulation.
Explorer Insurance Company (PPA)
The evidentiary record was recently closed in this matter. Post-hearing opening briefs by the Explorer, the CDI, and the Intervenors were due at the end of the month on March 27, 2008 and filed. Reply briefs have also been filed.
A proposed decision has been presumably drafted by the ALJ and submitted to the Commissioner. A decision by the commissioner should be shortly forthcoming.
(Note: This hearing is the first under which an ALJ (and consequently the Commissioner) will determine whether an insurer will qualify for a constitutional variance under the new regulations.)
GeoVera Insurance Company (EQ)
The hearing for this matter proceeded on May5, 2008. Pursuant to the ALJ's order in that matter, the insurer applicant was ordered to submit supplemental data to update the rate application to include data beyond the additional "recorded period" set forth by the rate application. Additional hearing dates are set for July 21-22, 2008.
Allstate Insurance Company Rate Application Hearings (PPA and HO)
The evidentiary hearings have been concluded in both of these matters.
With regards to auto, the Commissioner announced a 15.9 % reduction of Allstate's auto rate. Allstate had sought to appeal this decision in court, but has since dismissed that appeal.
With regards to HO, the briefing has been completed and the ALJ is presumably deliberating on his proposed decision and will be submitting it to the Commissioner, if not done so already, for approval.