DEPARTMENT OF INSURANCE ih

1 DEPARTMENT OF INSURANCE EXECUTIVE OFFICE

2 300 Capitol Mall, 1ih Floor

Sacramento, CA 95814 3 Tel. (916) 492-3500 Fax (916) 445-5280

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BEFORE THE INSURANCE COMMISSIONER

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OF THE STATE OF CALIFORNIA

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11 In the Matter of the Rate Application of:

File No. PA-2015-00004

12 STATE FARM GENERAL INSURANCE COMPANY,

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Applicant. 14

ORDER ADOPTING REVISED PROPOSED DECISION (Cal. Ins. Code ? 1861.08, Cal. Govt. Code ? 11517)

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This matter came for hearing before John H. Larsen, Administrative Law Judge (hereafter

17 "ALJ") of the Administrative Hearing Bureau. On October 7, 2016, the Commissioner received

18 the attached Revised Proposed Decision.

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Now, therefore, pursuant to the provisions of California Insurance Code Section

20 1861.08(c) and California Government Code Section 11517(c)(2)(A), IT IS SO ORDERED that

21 the attached Revised Proposed Decision is hereby adopted by the Insurance Commissioner as his

22 Decision in the above entitled matter.

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It is further ordered that the entirety of this Decision is designated precedential pursuant to

24 Government Code section 11425.60, subdivision (b).

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It is so ordered.

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DATED: November l_, 2016.

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Insurance Commissioner

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DEPARTMENT OF INSURANCE ADMINISTRATIVE HEARING BUREAU 45 Fremont Street, 22nd Floor San Francisco, CA 94105 Telephone: (415) 538-4251 FAX No.: (415) 904-5854 insurance.

BEFORE THE INSURANCE COMMISSIONER OF THE STATE OF CALIFORNIA

In the Matter of the Rate Application of

STATE FARM GENERAL INSURANCE COMPANY,

Applicant.

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FILE NO.: PA-2015-00004

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REVISED PROPOSED DECISION

TABLE OF CONTENTS

Introduction I. California Prior Approval Under Proposition 103 II. Rate Review Process Summary of Findings Procedural History Disputed Issues Summary of Parties' Contentions Background I. The State Farm Group II. State Farm General Insurance Company (SFG) Discussion I. Maximum Permitted Rate Without a Variance

A. Catastrophe Adjustment Factor 1. Applicable Law 2. Findings of Fact Regarding Catastrophe Adjustment Factor 3. Contentions Regarding the Catastrophe (CAT) Load Ratio a. Applicant's Proposed Catastrophe CAT Load Ratio b. CDI's Proposed Catastrophe Load Ratio 4. Analysis and Conclusions Regarding Catastrophe Load Ratio 5. Analysis and Conclusions Regarding the Number of Years of Experience

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TABLE OF CONTENTS (Continued)

6. Analysis and Conclusions Regarding Weighting Catastrophe Data

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7. Treatment of the 1991 Oal ................
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