North Carolina has a rather unique setup for auto insurance, allowing insurers to place high-risk drivers into the state Reinsurance Facility, a non-profit, state-created pool.
That system came under new scrutiny last week, with some state lawmakers questioning if it subsidizes insurers and lets carriers avoid programs that reward good driving, a model that could potentially lower premiums.
The Mountaineer news site, WRAL TV and other Carolina news outlets reported that the House Select Committee on Oversight and Reform grilled facility officials at a hearing last week. One legislator, Rep. George Cleveland, R-Onslow, said his policy was dumped into the high-risk simply because he turned 80, and several insurers told him that was common practice.
A recent report to the legislature noted that South Carolina had a similar system in place until 20 years ago. After it ended the program, insurers found they had an incentive to incentivize drivers to drive more carefully, the TV news outlet noted.
A bill has not been introduced for the North Carolina General Assembly session that begins in April. But lawmakers on the committee said new legislation could soon be on the way.
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