A hearing date for the proposed 18.7% dwelling insurance rate increase has been set for Jan. 18, 2022 by North Carolina Insurance Commissioner Mike Causey, a statement from the North Carolina Department of Insurance said.
The proposed rate increase was filed last year by the North Carolina Rate Bureau, which is not part of NCDOI. It represents all companies writing property insurance in the state.
“We are not in agreement with the Rate Bureau’s proposed increase filed in December,” Causey said. “I want to make sure that the process is transparent and that consumers’ interests are protected while making sure our insurance companies remain healthy so they can pay claims.”
The notice of hearing said that some of the data included in NCRB’s Dec. 14, 2020, filing contained a lack of documentation, explanation, and justification of both the data used as well as the procedures and methodologies used, NCDOI said.
The hearing is set for 10 a.m. Jan. 18, 2022, in the second-floor hearing room in the Albemarle Building, 325 N. Salisbury St., Raleigh.
The hearing will take place unless NCDOI and NCRB are able to negotiate a settlement before that date. State law gives the insurance commissioner 45 days to issue an order once the hearing concludes. Once the order is issued, NCRB has the right to appeal the decision before the North Carolina Court of Appeals. An appeals court order could then be appealed to the North Carolina Supreme Court.
The NCRB and NCDOI can settle the proposed rate increase at any time during the process.
Dwelling insurance policies are not homeowners’ 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 filing covers insurance for fire and extended coverage at varying rates around the state. Under the NCRB proposal, the increases would be felt statewide with most consumers seeing a double-digit increase.
The last NCRB dwelling rate increase filing was in 2019 that resulted in a settlement of 4%, which took effect July 1, 2020.
Source: North Carolina Department of Insurance
Topics Trends Pricing Trends North Carolina
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