Bill Summary for S 836 (2011-2012)
|View NCGA Bill Details||2011-2012 Session|
TO IMPROVE THE RATE-MAKING PROCESS AND THE AFFORDABILITY OF PROPERTY INSURANCE FOR LOW-INCOME HOMEOWNERS BY REQUIRING THAT MORE THAN ONE CATASTROPHE MODEL BE USED TO ESTIMATE POTENTIAL LOSSES FOR PURPOSES OF A RATE FILING; AND BY REQUIRING THAT THE RATE BUREAU CREATE A RATING PLAN FOR A PROPERTY INSURANCE POLICY THAT EXCLUDES COVERAGE FOR THE PERILS OF WINDSTORM AND HAIL; AND BY REQUIRING THE DEPARTMENT OF INSURANCE TO ACCEPT PUBLIC COMMENT ON ALL PROPERTY INSURANCE RATE FILINGS; AND BY PROVIDING FOR A PREHEARING CONFERENCE FOR THE COMMISSIONER OF INSURANCE TO SCRUTINIZE CATASTROPHE MODELING WHEN SUCH MODELING IS THE BASIS FOR ANY FACTOR IN A RATE FILING FOR WHICH THE COMMISSIONER HAS ISSUED A NOTICE OF HEARING; AND BY PROVIDING THE COMMISSIONER WITH THE POWER TO SPECIFY THE APPROPRIATE RATE LEVEL OR LEVELS UPON A FINDING THAT A RATE FILING DOES NOT COMPLY WITH APPLICABLE LAW; AND BY REQUIRING THAT, WHEN THE COST OF REINSURANCE IS INCLUDED AS A FACTOR IN A PROPOSED RATE, CERTAIN SUPPORTING INFORMATION BE PROVIDED AND THAT THE FILING INCLUDE ONLY THE REINSURANCE COST SPECIFIC TO PROPERTY INSURANCE LOSSES IN NORTH CAROLINA; AND BY REQUIRING THAT THE RATE BUREAU AND THE DEPARTMENT OF INSURANCE STUDY THE FAIRNESS AND EFFICACY OF THE CURRENT PROPERTY INSURANCE GEOGRAPHIC RATE TERRITORIES, AS RECOMMENDED BY THE LEGISLATIVE RESEARCH COMMISSION COMMITTEE ON PROPERTY INSURANCE RATE MAKING.Intro. by Brown.
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Senate committee substitute makes the following changes to 1st edition.
Adds a section amending GS 58-36-15(b) to add that all property insurance rate filings are open to the public unless necessary to maintain the confidentiality of testimony. Requires the Department of Insurance to receive public comments on the filing at least 30 days before the Department issues a notice of hearing. Adds a section amending GS 58-36-20(a), which concerns disapproval of filings, to require the Commissioner of Insurance to specify the overall rates that the Bureau may use, after the Commissioner finds the proposed rates in the filing excessive. Requires the Commissioner to make findings of fact on the evidence in the filing and at the hearing. Adds a section, amending GS 58-36-10, to add a standard related to the cost of reinsurance to protect against catastrophic exposure to the rate-making method. Deletes provisions amending GS 58-36-10(3) (concerning modeled losses), GS 58-36-20 (modified the hearing process), and the addition of subsection (d2) to GS 58-36-15 (required supporting data for certain filings). Makes conforming changes to the bill title.