AN ACT TO INCREASE THE FAIRNESS AND EQUITY OF PROPERTY INSURANCE RATE MAKING IN NORTH CAROLINA BY REQUIRING THAT CERTAIN PROPERTY INSURANCE DATA BE MADE AVAILABLE TO THE PUBLIC; BY PROVIDING THE NORTH CAROLINA INSURANCE UNDERWRITING ASSOCIATION THE AUTHORITY TO HAVE ISSUED TAX-EXEMPT BONDS TO COVER LOSS-RELATED LIABILITIES; BY REFORMING CONSENT TO RATE PRACTICES; BY REQUIRING THAT CATASTROPHE MODELING USED FOR PROPERTY RATE-MAKING PURPOSES MORE ACCURATELY REFLECT POTENTIAL IMPACTS IN NORTH CAROLINA; AND BY CREATING THE JOINT LEGISLATIVE STUDY COMMITTEE ON PROPERTY INSURANCE RATE MAKING.
House committee substitute makes the following changes to the 2nd edition:
Amends proposed GS 58-36-15(d2), making technical, organizational, and clarifying changes. Provides that the submission of catastrophic wind and hail information must be submitted by companies to the Department of Insurance (Department) and the NC Rate Bureau (Bureau) pursuant to a data call by the Department for losses caused by a specific catastrophic hurricane event. (previously, required the Bureau to submit catastrophic wind and hail information to the Department). Makes conforming changes.
Deletes all of the provisions of proposed GS 58-45A-55 now providing that the interest on bonds that are issued by the Recovery Finance Authority pursuant to GS Chapter 58, Article 45A are exempt from taxation under the specified provisions.
Amends GS 58-45-47 concerning the limitations of the actual levying of any catastrophe recovery charge, providing that amounts pledged pursuant to catastrophe recovery charges under specified financing agreements cannot result in actual levying of a catastrophe recovery charge until after the NC Insurance Underwriting Association (Association) has incurred a deficit and until after the requirements of GS 58-45-47 have been met (previously required the Association to have incurred a deficit and the Commissioner of Insurance to approve implementation of the Association's catastrophe recovery charge).
Amends proposed GS 58-36-30(b1) making a technical change.
Amends the proposed language in GS 58-36-10(3) concerning the method of rate making and the factors considered, to provide that if the Bureau presents any modeled hurricane losses based on a commercial hurricane simulation computer model with a property insurance rate filing then it must present data from more than one such model. Requires models to consider the NC Building codes for residential construction (previously, if the Bureau presents any modeled losses with a property insurance rate filing, then it must also present data from more than one catastrophe model. Also required the models to be based on maximum load designs as contained in the NC State Building Codes).
Makes clarifying changes to provisions concerning the Joint Legislative Study Committee on Property Insurance Rate Making (Committee) and amends the membership of the committee to provide that the Speaker of the House and the President Pro Tempore of the Senate are also to appoint three public members each to the Committee, as specified, in addition to the five members that are to be appointed from each chamber.
Makes clarifying changes to the effective date provisions.
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