While our system is far from perfect, eliminating the use of Consent to Rate would be a disaster. Consent to Rate is the only reason why many carriers are still in NC. Several carriers would likely leave the state. There would be a huge capacity issue. Our market would instantly be as bad if not worse than Florida. I understand their concern for looking out for homeowners. The good intentions will backfire unless accompanied by major rate reform.
Consent to Rate allows the Commissioner to look good by disapproving necessary rate increases. He knows there is a relief valve to keep the market from crumbling.
State Farm is apparently sending a CTR form to every customer when your HO policy is approaching renewal . My agent said they had started in August 2014 and the triangle is the last part of the state they getting around to . He said they show $1 above Rate Bureau max so they satisfy letter of law to require signing the form; and that they are requiring all customers in the state to sign it . So, all State Farm customers in NC will be outside the regulated rates of the Dept. of Insurance .
Incidentally, he gave me same B.S. as others here about how I am his perfect customer with longevity, no claims, and good credit score and that this will only help me in future … then told me that the rate limit + $1 on the letter won’t be my bill because he lower my house value and increase my deductible and my bill will go “way down” . In short he’s happy to sell me less insurance for the same money . So, why did they need the CTR ? He says it is so they will be free to charge me less than all those people who he needs to charge more – that it frees SF to “micro-adjust” our policy to fit exactly the liability where we live which he portrayed as creating savings to us .
He contradicted himself numerous times, leading me to believe the whole thing is a scheme cooked up above his level .
Consent to rate is the only reason North Carolina still has a homeowners market. Time and again the insurance commissioner has declined or minimized rate increases filed by the rate bureau. It’s a popularity contest for him. However, most major carriers have had to resort to CTR to remain in the market. The rate bureau is a relic. Let the market determine what is an approproiate rate…in other words open commpetition, not government fiat.
Any idea where I can find one of those “more customer-friendly insurers” mentioned in the article? Is there any data on which insurers use CTR less frequently than others?
State Farm is apparently subjecting all it’s NC customers to their To Jim:
CTR form . They are simply side-stepping the NC Dept. of Ins. regs. by requiring customers to sign or go elsewhere for coverage . They say they are “in compliance” with the consent to rate statute . But, as I understand it, consent to rate was meant to allow for the rare, odd situation – not to remove every customer in the state from the regulatory protection of the Dept. of Insurance .
In light of this, State Farm is not the answer to your question .
USAA is sending out CTR letters, too. Amica is not, but their discounts require that they provide both HO and auto, and I found that their auto rates weren’t great.
I just received my policy renewal. My premium is going up 78% this year, with no claims since I bought the house three years ago. I requested quotes from 2 other companies who used the same data and they quoted around the same so basically there is no competition. I live in Johnston county with a Raleigh address. My premium went from 898 to 1596. The only ways I can save money is increase my deductible and bundle my car with home owners. I did not get a consent to rate letter with my renewal. I hope all of our legislators get a HUGE rate increase.
My insurance rates from a BIG NAME insurer went up 32% in three years. Then I got a CTR for a rate of $1 over the legal limit, but of course if I signed I would agree to a 250% rate increase.
It was the most insulting and annoying business letter I ever received.
I called around to independent insurers. I got all new auto and home insurance for 42 percent LESS than BIG NAME.
Those letters are an insult and in my view a corruption of the law.
The law should be enforced by the government rather than enabling the insurance lobby to skirt the law.
Just received my do-or-die CRF from our mega-insurer. 23% increase. Three generations of our family have had our coverage with them…but clearly that’s not a factor. Nor is a complete absence of any claim (home or auto) in 17 years.
When I complained to my agent, she tells me that this type of practice will “benefit long-term customers like you”. Really? 23% increase is a benefit?
One question I hope to ask my agent: these firms spend a lot of time & money attracting new business…a much harder task with these higher rates. Do you think such rates are waived to new customers in the first 2-3 years? If so, (and they are) then the letter/increase I received is still at the discretion of the insurer. In other words, despite my excellent claim history, credit rating, long-term relationship, etc. they still are choosing to stick it to me (vs. them having no alternative, as suggested by some here).
Final note: it took me three phone calls in 2 days to secure BETTER coverage at literally HALF the new rate! GO SHOP!!!
I also received the “Consent to Rate Form” from State Farm. My family and I are new to NC but I am truly appalled at the lack of a functioning Insurance Comm. who won’t allow a “reasonable” rate increase based solely on actual claims and by a worthless legislature and Governor that allows a law to stay on the books that allows insurance companies to charge, at their whim, up to 250% above the North Carolina Rate Bureau. I also think it is fear mongering that these insurance companies without these obscene rate increases will leave the state.
The Insurance Commissioner, the Legislature and the Governor are not doing their job and should be ashamed of their lack of integrity and duty and responsibility to the public that they are supposed to represent (& that pays their salary and insurance!).
I will not sign the Consent letter and will find an insurance company (never State Farm again) to deal with that is not using this tactict.
I don’t know how the people of North Carolina can be proud of (or elect) a Governor, Legislature and Insurance Commissioner who behave like this.
OK, so the scumbags at SafeCo approved me before I closed on my new house, then sent me a letter a month later saying I hadn’t sent them a Consent to Rate form–like it was something I’d forgotten but which in reality they had never sent–and that my policy would be cancelled on May 10th. They’d “carefully considered it,” they said. So I called up the company in a panic, asking if I could just send it right away, not knowing what they were even talking about. They are all, “yeah sure, we’ll email it right away.” So I signed it (again, not knowing what the deal was), scanned it, and sent it back. Then today, WELL before May 10th, I get a check from them refunding my payment, which directly contradicts not only what their threatening letter said, but what their agent told me on the phone.
I SO want to sue them. What can I do? Our scumbag insurance commissioner I am sure will be no help. Apart from finding a new carrier, which frankly I really want to do since I would hate to see how they treat me if I ever have to file a claim, what can I do?
Farm Bureau: Perhaps not using CTR “Letters,” but YES, using CTR SURCHARGES!! My HO policy shows $992 premium plus $668 Consent to Rate Surcharge (that is nearly 67.5% additional charge)…and no, I don’t remember getting a letter about it, it is just THERE on my renewal policy declaration. Do independent agents get to decide whether or not to use it??? Good for you, MIKE, if that is the case & you chose not to do so…maybe you can replace my agent. Somehow I doubt FB allows agents that flexibility on what customers are charged.
Mike I don’t understand how you can say Farm Bureau isn’t using the CTR letters. I have had Homeowners and Auto Ins with Farm Bureau for at least 40 years, I received the CTR letter just this week. I am very upset with Farm Bureau and will look elsewhere for coverage. I feel this is most unfair to all their policyholders. Not sure who is responsible for this action but something needs to be changed. But yes Mike FARM BUREAU IS USING THE “CONSENT TO RATE” FORM.
Mike, Please let me know where you are an agent? I currently have state farm and they sent me an email today saying that they were sending out a letter soon. It looks like I will be in the market for a new homeowners agent.
EVERY insurance company will issue a CTR letter if you fall into that specific category of insured where the company increases your premium to a rate above what is allowed. Whether it be from a prior claim, credit or insurance score, county you live in, or even if you don’t have an auto policy with the company. Where State Farm differs is that they are doing it to EVERYBODY that has a homeowners policy in NC. Even if its a dollar more, you are giving State Farm permission to increase your rate above the standard without notifying you again in the future. Id contact a local independent agent, not a captive agent, and let them shop the companies they have to find the best rate for you.
I just received a CTR letter in Greensboro. I’ve had my policy for 16 years with no claims and always paid on time. Any good referrals to try? Thanks in advance.
We are an independent agency in the Greensboro area. We would be happy to look at your home and auto to see if get you out of CTR. You can call us at 336-852-7703 and ask for Tyler.
10 plus years with Liberty Mutual. Received a letter dated April 25, 2016 stating sign and return the enclosed “consent to rate”. That letter arrived on the 27th. The following Monday, April 2nd received a “updated policy” that I didn’t understand – It looked like my auto coverage (3 vehicles) had been compromised. I phoned the local agent but the call rolled over to the call center. The call center informed me that my coverage had been “stripped” with the exception of liability because I failed to return the consent to rate form. The form had been in my possession for four days. What a bunch of Baloney. I am filing a complaint with the NC Dept of Insurance. While they spoke very negatively of this situation; the Dept of Insurance says there’s nothing illegal about it. I guess ethics don’t count.
I live in Wake Forest, NC. Just received a CTR letter. Would be interested in a referral to a company. currently with Liberty Mutual. No claims have been filed.
While our system is far from perfect, eliminating the use of Consent to Rate would be a disaster. Consent to Rate is the only reason why many carriers are still in NC. Several carriers would likely leave the state. There would be a huge capacity issue. Our market would instantly be as bad if not worse than Florida. I understand their concern for looking out for homeowners. The good intentions will backfire unless accompanied by major rate reform.
Consent to Rate allows the Commissioner to look good by disapproving necessary rate increases. He knows there is a relief valve to keep the market from crumbling.
State Farm is apparently sending a CTR form to every customer when your HO policy is approaching renewal . My agent said they had started in August 2014 and the triangle is the last part of the state they getting around to . He said they show $1 above Rate Bureau max so they satisfy letter of law to require signing the form; and that they are requiring all customers in the state to sign it . So, all State Farm customers in NC will be outside the regulated rates of the Dept. of Insurance .
Incidentally, he gave me same B.S. as others here about how I am his perfect customer with longevity, no claims, and good credit score and that this will only help me in future … then told me that the rate limit + $1 on the letter won’t be my bill because he lower my house value and increase my deductible and my bill will go “way down” . In short he’s happy to sell me less insurance for the same money . So, why did they need the CTR ? He says it is so they will be free to charge me less than all those people who he needs to charge more – that it frees SF to “micro-adjust” our policy to fit exactly the liability where we live which he portrayed as creating savings to us .
He contradicted himself numerous times, leading me to believe the whole thing is a scheme cooked up above his level .
Consent to rate is the only reason North Carolina still has a homeowners market. Time and again the insurance commissioner has declined or minimized rate increases filed by the rate bureau. It’s a popularity contest for him. However, most major carriers have had to resort to CTR to remain in the market. The rate bureau is a relic. Let the market determine what is an approproiate rate…in other words open commpetition, not government fiat.
Any idea where I can find one of those “more customer-friendly insurers” mentioned in the article? Is there any data on which insurers use CTR less frequently than others?
State Farm is apparently subjecting all it’s NC customers to their To Jim:
CTR form . They are simply side-stepping the NC Dept. of Ins. regs. by requiring customers to sign or go elsewhere for coverage . They say they are “in compliance” with the consent to rate statute . But, as I understand it, consent to rate was meant to allow for the rare, odd situation – not to remove every customer in the state from the regulatory protection of the Dept. of Insurance .
In light of this, State Farm is not the answer to your question .
USAA is sending out CTR letters, too. Amica is not, but their discounts require that they provide both HO and auto, and I found that their auto rates weren’t great.
I just received my policy renewal. My premium is going up 78% this year, with no claims since I bought the house three years ago. I requested quotes from 2 other companies who used the same data and they quoted around the same so basically there is no competition. I live in Johnston county with a Raleigh address. My premium went from 898 to 1596. The only ways I can save money is increase my deductible and bundle my car with home owners. I did not get a consent to rate letter with my renewal. I hope all of our legislators get a HUGE rate increase.
My insurance rates from a BIG NAME insurer went up 32% in three years. Then I got a CTR for a rate of $1 over the legal limit, but of course if I signed I would agree to a 250% rate increase.
It was the most insulting and annoying business letter I ever received.
I called around to independent insurers. I got all new auto and home insurance for 42 percent LESS than BIG NAME.
Those letters are an insult and in my view a corruption of the law.
The law should be enforced by the government rather than enabling the insurance lobby to skirt the law.
Just received my do-or-die CRF from our mega-insurer. 23% increase. Three generations of our family have had our coverage with them…but clearly that’s not a factor. Nor is a complete absence of any claim (home or auto) in 17 years.
When I complained to my agent, she tells me that this type of practice will “benefit long-term customers like you”. Really? 23% increase is a benefit?
One question I hope to ask my agent: these firms spend a lot of time & money attracting new business…a much harder task with these higher rates. Do you think such rates are waived to new customers in the first 2-3 years? If so, (and they are) then the letter/increase I received is still at the discretion of the insurer. In other words, despite my excellent claim history, credit rating, long-term relationship, etc. they still are choosing to stick it to me (vs. them having no alternative, as suggested by some here).
Final note: it took me three phone calls in 2 days to secure BETTER coverage at literally HALF the new rate! GO SHOP!!!
I would love to know what company you decided to go with. I just received mt CRF and am now starting to shop around.
I also received the “Consent to Rate Form” from State Farm. My family and I are new to NC but I am truly appalled at the lack of a functioning Insurance Comm. who won’t allow a “reasonable” rate increase based solely on actual claims and by a worthless legislature and Governor that allows a law to stay on the books that allows insurance companies to charge, at their whim, up to 250% above the North Carolina Rate Bureau. I also think it is fear mongering that these insurance companies without these obscene rate increases will leave the state.
The Insurance Commissioner, the Legislature and the Governor are not doing their job and should be ashamed of their lack of integrity and duty and responsibility to the public that they are supposed to represent (& that pays their salary and insurance!).
I will not sign the Consent letter and will find an insurance company (never State Farm again) to deal with that is not using this tactict.
I don’t know how the people of North Carolina can be proud of (or elect) a Governor, Legislature and Insurance Commissioner who behave like this.
OK, so the scumbags at SafeCo approved me before I closed on my new house, then sent me a letter a month later saying I hadn’t sent them a Consent to Rate form–like it was something I’d forgotten but which in reality they had never sent–and that my policy would be cancelled on May 10th. They’d “carefully considered it,” they said. So I called up the company in a panic, asking if I could just send it right away, not knowing what they were even talking about. They are all, “yeah sure, we’ll email it right away.” So I signed it (again, not knowing what the deal was), scanned it, and sent it back. Then today, WELL before May 10th, I get a check from them refunding my payment, which directly contradicts not only what their threatening letter said, but what their agent told me on the phone.
I SO want to sue them. What can I do? Our scumbag insurance commissioner I am sure will be no help. Apart from finding a new carrier, which frankly I really want to do since I would hate to see how they treat me if I ever have to file a claim, what can I do?
I am an agent for Farm Bureau. We are not using the CTR letters. I would be happy to help.
Please email me your contact info, I am with State farm and from what I am reading I will be leaving them soon.
Farm Bureau: Perhaps not using CTR “Letters,” but YES, using CTR SURCHARGES!! My HO policy shows $992 premium plus $668 Consent to Rate Surcharge (that is nearly 67.5% additional charge)…and no, I don’t remember getting a letter about it, it is just THERE on my renewal policy declaration. Do independent agents get to decide whether or not to use it??? Good for you, MIKE, if that is the case & you chose not to do so…maybe you can replace my agent. Somehow I doubt FB allows agents that flexibility on what customers are charged.
Mike I don’t understand how you can say Farm Bureau isn’t using the CTR letters. I have had Homeowners and Auto Ins with Farm Bureau for at least 40 years, I received the CTR letter just this week. I am very upset with Farm Bureau and will look elsewhere for coverage. I feel this is most unfair to all their policyholders. Not sure who is responsible for this action but something needs to be changed. But yes Mike FARM BUREAU IS USING THE “CONSENT TO RATE” FORM.
North Carolina Farm Bureau is not doing CTR. Helping you is what I do best.
I just spoke to a Farm Bureau agent in Greensboro and he told me straight up that Farm Bureau IS doing CTR letters. Why you trying to lie, bro?
Mike, Please let me know where you are an agent? I currently have state farm and they sent me an email today saying that they were sending out a letter soon. It looks like I will be in the market for a new homeowners agent.
EVERY insurance company will issue a CTR letter if you fall into that specific category of insured where the company increases your premium to a rate above what is allowed. Whether it be from a prior claim, credit or insurance score, county you live in, or even if you don’t have an auto policy with the company. Where State Farm differs is that they are doing it to EVERYBODY that has a homeowners policy in NC. Even if its a dollar more, you are giving State Farm permission to increase your rate above the standard without notifying you again in the future. Id contact a local independent agent, not a captive agent, and let them shop the companies they have to find the best rate for you.
I just received a CTR letter in Greensboro. I’ve had my policy for 16 years with no claims and always paid on time. Any good referrals to try? Thanks in advance.
We are an independent agency in the Greensboro area. We would be happy to look at your home and auto to see if get you out of CTR. You can call us at 336-852-7703 and ask for Tyler.
10 plus years with Liberty Mutual. Received a letter dated April 25, 2016 stating sign and return the enclosed “consent to rate”. That letter arrived on the 27th. The following Monday, April 2nd received a “updated policy” that I didn’t understand – It looked like my auto coverage (3 vehicles) had been compromised. I phoned the local agent but the call rolled over to the call center. The call center informed me that my coverage had been “stripped” with the exception of liability because I failed to return the consent to rate form. The form had been in my possession for four days. What a bunch of Baloney. I am filing a complaint with the NC Dept of Insurance. While they spoke very negatively of this situation; the Dept of Insurance says there’s nothing illegal about it. I guess ethics don’t count.
Hello,
Did you get any help from the NC DOI? Was this issue resolved? I am in a similar situation and would like to hear your experience. Thank you.
I live in Wake Forest, NC. Just received a CTR letter. Would be interested in a referral to a company. currently with Liberty Mutual. No claims have been filed.
I would like to get a few 100 of my friends that homes are paid for and enter into a home owners savings plan. Let’s cut the insurance company’s out,