Bill Summary for S 836 (2011-2012)
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| 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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Bill summary
Senate amendment makes the following changes to 2nd edition. Amends proposed GS 58-36-10(7), which adds a standard related to the cost of reinsurance to protect against catastrophic exposure within the state, to delete provisions that identify types of relevant information that may be considered in determining the provision to reflect the cost of reinsurance. Additionally deletes provision permitting the use of catastrophe models, and modeled or hypothetical reinsurance programs in determining the provision to reflect the cost of reinsurance. Deletes provision which authorized the Commissioner of Insurance to adopt rules providing information to be included in support of the provision to reflect the cost of reinsurance. Provides that rates may (was, shall) include a provision reflecting costs of reinsurance to protect against catastrophic exposure.