Regulation — South Carolina
SC Code Title 38 Chapter 73 — Rate Regulation
SC rating law says rating factors must be actuarially supported and cannot be unfairly discriminatory. The statute reaches into claim-handling when the inputs that drive routing decisions look and act like rating factors.
What the statute actually says
"Rates shall not be excessive, inadequate, or unfairly discriminatory. … Consideration shall be given, to the extent applicable, to past and prospective loss experience within and outside this State … and to all other relevant factors within and outside this State."
SC Code Ann. §38-73-330 -- Making of rates (rate standards)
"No rate shall be held to be unfairly discriminatory unless, considering classifications, practical limitations, and all other relevant factors, the rate is deemed to be unfairly discriminatory."
SC Code Ann. §38-73-340 -- Unfair discrimination standard
What this means in plain English
Two load-bearing standards for anything the carrier does that looks like classification:
- Actuarial support. Whatever factor is driving the differential outcome for a group has to be tied to loss experience.
- Not unfairly discriminatory. If the differential outcome is not actuarially justified, it is unfair discrimination — regardless of intent.
Rate law usually shows up at rate-filing time. It also shows up when the SC DOI or a plaintiff argues that a claims-handling decision was actually a de-facto rating decision — the fact that the AI used ZIP, credit score, and territory to route a claim can pull the routing engine into rating-law scrutiny.
What triggers the exposure in the sample
The C3 (coastal-county) group is a geographic classification. ZIP inputs feed the severity classifier. The AI produces a routing decision that stretches investigation time for that geographic group by ~14 percentage points. If the SC DOI or a plaintiff argues the routing engine is functionally rating claims down (delaying payment = de-facto premium erosion for that group), the actuarial-support and unfair-discrimination standards apply. The carrier must be ready to show the C3 differential is loss-supported, not a data quirk.
What the $499 Snapshot shows against this rule
- Documented input chain — which geographic + credit-adjacent inputs feed the severity classifier
- Per-county-group outcome differential with baseline vs recent comparison
- Rate-filing-adjacent evidence set — the exact records a Chief Actuary can hand to filed-rate defense counsel
- Independent-verifier declaration — separating the modeling team from the review layer
See the baseline-vs-drifted shape shift →
$499 Snapshot. 3 business days.
Independent-verifier determination scoped to your carrier's actual claims + rating AI surfaces + 3 fix-first items + signed declaration.
Buy $499
Snapshot credit applies to Baseline ($2,500) or Enterprise Attestation ($35-55K) upgrade within 30 days.