North Carolina Rethinks Rate Regulation

Frustrated by rising home insurance rates, some North Carolina residents want a greater role in the rate approval process and state lawmakers are looking to give it to them.

The North Carolina Insurance Committee is weighing a bill that would create the Citizens’ Property Advisory Board, which would review homeowners and dwelling and fire rate filings and make recommendations to the state’s Department of Insurance on behalf of the public. Currently, the North Carolina Rating Bureau negotiates rates on behalf of the industry with the department, then the insurance commissioner gets to have final day.

But after three homeowners’ rate increases in five years, lawmakers think it is time to balance the scales.

Senator Thom Goolsby (R-New Hanover) is sponsoring a bill (SB 395) that would create an 11-member advisory board that would be authorized to review rate filings, make recommendations and investigate policyholder complaints.

Goolsby has lined-up 11 co-sponsors including Senate Majority Leader Harry Brown (R-Jones/Onslow). But perhaps his greatest asset this year is the support of Insurance Commissioner Wayne Goodwin. Last year, lawmakers tried to advance a bill that would have abolished the commissioner’s authority to approve rates, handing that responsibility over to a seven-member board. At the time, Goodwin came out strongly against the bills. The current bill, however, would preserve Goodwin’s role as the final voice on insurance rates.

Topics Legislation North Carolina