The North Carolina Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau on its proposal for an 18.9 percent dwelling insurance rate increase and instead reached a settlement that will increase rates by an average of 4.8 percent — nearly 14 percent lower than what NCRB proposed — according to a statement from NCDOI.
“This settlement means consumers will save approximately $41 million a year compared to what they would have paid had the Rate Bureau’s request been approved,” said Insurance Commissioner Mike Causey. “The agreement also keeps insurance companies on firm financial footing, which is good for North Carolina’s economy.”
Dwelling insurance policies are not homeowner’s insurance policies. Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties, and other properties that are not occupied full-time by the property owner.
The NCRB is is made up of insurance industry representatives. It filed for the proposed 18.9 percent rate increase Feb. 7. A public comment period was held from Feb. 7 to March 23, culminating in a public comment forum held at the N.C. Department of Insurance on March 23.
On March 12, Causey issued a notice of hearing on the filing and set a hearing date for Aug. 20. The settlement means that the Aug. 20 hearing will no longer be necessary.
The new rates will take effect Feb. 1, 2019.
Source: North Carolina Department of Insurance
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