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  • Summary date: May 22 2012 - View Summary

    Identical to S 836, filed 5/21/12.

    Amends GS 58-36-10(3) to direct the NC Rate Bureau (Bureau) to present data from more than one catastrophe model when presenting modeled losses with a property insurance rate filing. Effective December 1, 2012, enacts new GS 58-36-42, directing the Bureau to develop an optional policy providing residential property insurance without coverage for windstorm or hail; makes conforming changes. Rewrites GS 58-36-20 (concerning disapproval of filings, hearings, and review of filings) to provide that a filing made by the Bureau, with specified exceptions, is not effective until approved by the Commissioner of Insurance (Commissioner) or 50 days after a proper filing when no hearing is called. Directs the Commissioner to give written notice of a hearing to the Bureau and set a hearing date within 30 days from the date the notice is mailed. Sets out a hearing process for filings that use a catastrophe model in the calculation and where the Commissioner calls for a hearing. Specifies that all property insurance rate filings are open to the public except when necessary to keep testimony confidential. Makes organizational changes and clarifies that the Commissioner, when disapproving a filing, may specify the appropriate rate level to be used by the Bureau. Enacts new subsection (d2) to GS 58-36-15, requiring supporting data, as detailed, to be included in any property insurance rate filing that (1) uses a catastrophe model, (2) uses costs of reinsurance in the rate calculations, or (3) uses both a catastrophe model and costs of reinsurance. Effective July 1, 2012, unless otherwise provided.
    Directs the Bureau and the Department of Insurance to study current geographic territories for rating purposes, as indicated, and to submit a final report to the 2013 General Assembly.