Recoupment and Regulation 69-63

To:          Private Passenger Automobile Insurers

From:     Ernst N. Csiszar

                Director  

Subject:  Recoupment and Regulation 69-63

Date:       October 5, 2001

Bulletin 2001-4(B) was issued on September 18, 2001. Several questions have been asked concerning the implementation of the recoupment method. This bulletin is intended to respond to those questions.

The contact person for this Bulletin is Dean Kruger, Property and Casualty Actuary, S.C. Department of Insurance. P.O. Box 100105, Columbia, SC 29202, Phone 803-737-6230, Fax 803-737-6233, E-mail dkruger@doi.sc.gov.

The main issue to be clarified concerned question 2 of Bulletin 2001-4. That question read as follows: Does recoupment follow the driver, or apply to all vehicles on the policy if a driver was pointed on 3/1/99?

Recoupment should follow the driver.  

The recoupment will apply to as many vehicles in the household as there are drivers in the household with points under the Old Merit Rating Plan.

Recoupment charges are applied only once per vehicle.

The rules for assignment of operators to vehicles will be based upon the individual insurer's rate and rule filing with the Department.