The flex rating law in South Carolina has a 7% band and it works well. The band was developed by the regulator and the legislators in South Carolina. The problem with other states is that industry trade groups tout the advantages of flex rating but then change the bands to 12%. What is perceived as fair at 7% may not be perceived as fair at 12%. It is the perception that the 7% rating band is fair to consumers and the industry that appeals to legislators. Changing the band to 12% changes that perception. The industry has a nice solution in front of it with 7% but they always want more.
The flex rating law in South Carolina has a 7% band and it works well. The band was developed by the regulator and the legislators in South Carolina. The problem with other states is that industry trade groups tout the advantages of flex rating but then change the bands to 12%. What is perceived as fair at 7% may not be perceived as fair at 12%. It is the perception that the 7% rating band is fair to consumers and the industry that appeals to legislators. Changing the band to 12% changes that perception. The industry has a nice solution in front of it with 7% but they always want more.