Home owner insurance rate hearing will be in August

Feb 24, 2014

RALEIGH— Insurance Commissioner Wayne Goodwin has ordered that a hearing be held in the matter of the insurance companies’ request to raise homeowners insurance rates, stating that the proposed rates appear to the Department of Insurance to be excessive and unfairly discriminatory. The insurance companies, represented by the North Carolina Rate Bureau, requested an overall statewide average increase of 25.3 percent for homeowners insurance rates, varying by geographic territory, on Jan. 3, 2014.

Read the full of notice of hearing here: http://www.ncdoi.com/Media/Documents/2014%20Homeowners%20Insurance%20Hearing%20Notice.pdf

 

The hearing is scheduled to begin on Aug. 6, 2014, at 10 a.m. at 430 N. Salisbury St. in Raleigh. The hearing is open to the public; however, there will be no opportunity for members of the public to speak at the hearing.* Experts from the N.C. Rate Bureau, on behalf of the insurance companies, and experts from NCDOI, representing the interests of the public, will present their cases for or against rate changes. Goodwin is to serve as the hearing officer and determine what, if any, rate adjustments are warranted.

After an initial review of the filing and more than 10,000 comments submitted by the public, NCDOI experts believe the requested rate increases are not justified. Among NCDOI’s concerns are:

  • The filing uses hypothetical data, rather than actual data, when calculating costs including those for the net costs of reinsurance and trended modeled hurricane loss costs.

·         The filing lacks necessary data, documentation and explanations to meet statutory burden of proof for rate increases.

·         Old data is used in the filing when more when more recent data should be available and included in the analysis.

The filing is available for public review on the Department’s website. To view the entire filing, go to http://pserff.ncdoi.net/pc.html and enter the Serff Tracking Number NCRI-129361028.

·         *A public comment period on the rate filing was held from Jan.3 through Jan. 31 to engage the public in the ratemaking process. During that period, the Department of Insurance received more than 10,000 emailed or mailed comments, and approximately 25 people made comments in-person during a public comment session held on Jan. 24.

Comments (1)
Posted by: Scott Lilly | Feb 25, 2014 09:54

Anyone in at least Hazelwood should critically examine any requirement to carry flood insurance on a home that carries a mortgage.  The worst flood since 1916 (September 2004) did not flood the area FEMA says is the 100-year floodplain.  On my property, FEMA says there is a 1% chance that in any year flood waters will be more than TWO FEET deep.  My house is 91 years old and has no history of flooding and it did not flood not even an inch in 2004.

 

Here's the gimmick: local officials don't have the authority to adjust the FEMA flood maps.  FEMA officials says local authorities have to petition to get flood maps evaluated.  A homeowner could in theory commission a multimillion dollar engineering study that FEMA might accept.  So in my opinion, this flood insurance scam is to get as many people paying into the system as possible -- even if under false premises.

 



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