PROPERTY INSURANCE RATE-MAKING REFORM.

View NCGA Bill Details2013-2014 Session
House Bill 519 (Public) Filed Tuesday, April 2, 2013
A BILL TO BE ENTITLED AN ACT TO INCREASE THE FAIRNESS AND EQUITY OF THE PROPERTY INSURANCE RATE-MAKING PROCESS BY PROVIDING FOR GREATER TRANSPARENCY REGARDING THE ROLE OF CATASTROPHE MODELING IN PROPERTY INSURANCE RATE FILINGS; AND BY PROVIDING THAT MODELED LOSSES IN A PROPERTY RATE FILING BE PROPERLY ALLOCABLE TO NORTH CAROLINA; AND BY REQUIRING THE RATE BUREAU TO DESIGNATE IN A FILING THAT PORTION OF THE RATE IN EACH TERRITORY ALLOCABLE TO WIND AND HAIL.
Intro. by Tine, Dockham, Hamilton, Iler.

Status: Ref To Com On Insurance (Senate Action) (May 15 2013)

SOG comments (1):

Long title change.

House committee substitute changes the long title. The original long title was:

A BILL TO BE ENTITLED AN ACT TO INCREASE THE FAIRNESS AND EQUITY OF THE PROPERTY INSURANCE RATE-MAKING PROCESS BY PROVIDING FOR GREATER TRANSPARENCY REGARDING THE ROLE OF CATASTROPHE MODELING IN PROPERTY INSURANCE RATE FILINGS; AND BY PROVIDING THAT COSTS OF REINSURANCE INCLUDED IN A PROPERTY RATE FILING BE PROPERLY ALLOCABLE TO NORTH CAROLINA; AND BY ESTABLISHING A TWO-TIERED RATE THAT PROVIDES FOR A STATEWIDE RATE AND AN ADDITIONAL CATASTROPHE RATE BASED ON ACTUAL HISTORICAL LOSSES AS WELL AS CATASTROPHE MODELING

Bill History:

H 519

Bill Summaries:

  • Summary date: May 14 2013 - More information

    House committee substitute makes the following changes to the 1st edition.

    Changes the long title.

    Amends GS 58-36-10 changing "shall" to "may," providing that it is permissive, but not required, to give consideration to the experience of property insurance business during the most recent five-year period for which that experience is available in the case of property insurance rates under this Article.

    Amends GS 58-36-15(d2), providing that trade secret information provided under this subsection is considered confidential and is required to be handled in accordance with GS 66-152 and GS 132-1.2.

    Amends GS 58-36-15(d3), deleting the provisions of the previous edition and establishing that the Rate Bureau is required in all residential property insurance rate filings to set out, according to the territories in North Carolina, (1) the portion of the rate based on all risks, with the exception of wind and hail and (2) the portion of the rate based on the consideration of risks and the costs of reinsurance for wind and hail. If the rates are approved by the Insurance Commissioner they will be posted by territory, on its website, including the distinctions of the rates as described above.

    Specifies that the act applies to filings by the Rate Bureau on or after July 1, 2013.


  • Summary date: Apr 2 2013 - More information

    Identical to S 690, filed 4/2/13.

    Amends GS 58-36-10 changing "may" to "shall," requiring consideration to be given to the experience of property insurance business during the most recent five-year period for which that experience is available in the case of property insurance rates under this Article.

    Amends GS 58-36-10 to add the requirement that if the Rate Bureau presents any modeled hurricane losses with a property insurance rate filing, the Bureau must present data from more than one such model.

    Amends GS 58-36-15, adding subsections (d2) and (d3). Subsection (d2) requires a minimum amount of supporting data to be included in any property insurance rate filing where a catastrophe model is used. Subsection (d3) requires the Rate Bureau, no later than January 1, 2015, to transition to a two-tier system for property insurance rate filings for policies issued or renewed after that date. A policy holder's total rate for property insurance will then be the sum of the two rate tiers meeting all of the enumerated requirements in (d3)(1-2).

    Effective July 1, 2013.


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