The North Carolina Department of Insurance has ended its legal dispute with the North Carolina Rate Bureau on its proposed 18.7% dwelling insurance rate increase, averting a potentially costly administrative battle with insurance companies, NCDOI said in a statement.
The dwelling insurance settlement will result in an overall statewide increase of 7.6% – no more than a $25 increase in premium on the base rate, according to the department.
The hearing scheduled for Jan. 18, 2022 has been canceled.
“I am happy to announce that North Carolina consumers will save nearly $33 million a year in premium payments compared to what the Rate Bureau had requested,” Insurance Commissioner Mike Causey said. “I am also glad the Department of Insurance has avoided a lengthy administrative legal battle which could have cost consumers time and money.”
On Dec. 14, 2020, NCRB, which represents companies writing property insurance in North Carolina and is not a part of the N.C. Department of Insurance, proposed a 18.7% statewide overall increase in dwelling insurance rates. After studying the data, a settlement was negotiated for an overall statewide increase of 7.6%.
Dwelling insurance policies are not homeowners’ policies. Dwelling policies are for 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 increase will take effect on new and renewed policies beginning Nov. 1.
Mobile Home Insurance
Causey has set Jan. 18, 2022, as the hearing date for the NCRB’s proposed overall statewide average of 24.9% increase for MH-F (Fire) policies and an overall statewide average of 11.3% increase for MH-C (Casualty) policies.
“We are not in agreement with the Rate Bureau’s proposed increases filed December 14, 2020. The next step, according to statute, is to set a hearing date,” said Causey. “It is now necessary to hold a hearing to reach a resolution that will make the most financial sense for our residents and insurance companies.”
The hearing will begin at 10 a.m. in the Second Floor Hearing Room in the Albemarle Building, 325 N. Salisbury St., Raleigh, N.C.
The hearing will be held 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 N.C. Court of Appeals. A Court of Appeals order could then be appealed to the N.C. Supreme Court.
Source: North Carolina Department of Insurance
Topics Trends Pricing Trends North Carolina
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