Part I (Property Insurance Clarity).

Amends GS 58­36­15 to direct the NC Rate Bureau (Bureau) to submit certain information with respect to homeowners insurance rate filings regarding losses, premiums and expenses, and types of homeowner insurance policies to the Department of Insurance (Department). Directs companies to submit to the Department and Bureau catastrophic wind and hail information in response to a call by the Department for losses caused by a specific hurricane. Directs that the above described information is to be posted to the Department's website, as specified. Effective when the bill becomes law, and applies to homeowner insurance rate filings on or after July 1, 2017.

Part II (Bonding Authority).

Amends GS Chapter 58 to enact a new Article 45A (Recovery Finance Authority). Provides legislative findings establishing reasons for the Recovery Finance Authority, including the likelihood that one or more hurricanes or catastrophic events could surpass the financial abilities of the NC Insurance Underwriting Association (Association). Provides 10 definitions for use in this Article, including assessment, bonds, and catastrophe recovery charge.

Creates the North Carolina Recovery Finance Authority (Authority), constituted as a public agency, located in the Department, with specified powers related to the financing of deficits of the Association due to catastrophic events. Provides for a nine­ member board with two members each appointed by the Speaker of the House and the Senate President Pro Tempore, two members appointed by the Governor, two members appointed by the Association, and one is the Commissioner of Insurance, with the Chair of the Authority to be appointed by the Board. Provides for staggered terms of the initial members and the members thereafter. Provides further requirements for the Authority regarding removal of board members, conflicts of interest and ethics, and compensation. Requires the Authority to create bylaws concerning organizational and administrative matters of the board.

Specifies 20 powers of the Authority, including to invest the proceeds of bonds of the Authority that are pending disbursement or other idle funds and to apply for, accept, and administer loans and grants of money or real or personal property from the United States or any federal agency, the state, or other public or private sources.

Exempts property owned by the Authority from taxation.

Authorizes the issuance of bonds by the Authority as if the Authority were a municipality, with all the powers and protections afforded to municipalities under the State and Local Government Revenue Bond Act. Specifies investment vehicles authorized for use, through contract, by the Authority, including interest rate swap agreements and contracts to exchange cash flows. Specifies provisions for and limitations of entering into such investment contracts. Provides certain obligations of the Authority if the Association requests the issuance of bonds. Requires assignment and payment agreements between the Authority and the Association for each bond issuance, which may include specified terms regarding assignment of obligations to pay claims. Provides provisions for and limitations on issued bonds, including that the bonds are not secured by the full faith and credit of the state, that bonds are considered securities in which varied individuals and institutions can invest, and that they are exempt from all state, county, and municipal taxation or assessment.

Amends GS 58­45­5 to amend the definition of catastrophe recovery charge and to define Recovery Finance Authority or Authority.

Amends GS 58­45­47 concerning deficit events, providing that when the Association expects to incur losses and loss expenses exceeding available surplus or other sources, taking into consideration account sources committed with respect to losses and expenses expected from prior events (previously, did not include clarifying language regarding losses and expenses from prior events), the Association is authorized to issue a nonrecoupable assessment on its members. When it is expected that losses incurred will exceed sources of funding, including permissible member assessments, the Association must also immediately give notice to the Authority that a deficit event has incurred.  Provides that upon such notice the Association must provide evidence in regards to its estimates of total losses and expenses expected to be incurred within the calendar year and funding amounts available to it. Such evidence and material is required to be available to the Commissioner for review. Provides that upon certification of the deficit event, the Association can determine the appropriate means of financing the deficit, which can include financing from the Authority. Provides and amends permissible actions if it is determined that losses and expenses incurred have risen to the level necessary for the imposition of a statewide catastrophe recovery charge. Adds new language concerning the Catastrophe Recovery Charge providing that the charge will be a uniform percentage of written premiums as prescribed by the Commissioner, not to exceed an aggregate amount of 10% of the annual policy premium on any one policy of insurance, imposed on policyholders from the Association and the FAIR Plan. Provides for periodic revision of the Catastrophe Recovery Charge as well as provisions concerning the cessation, repayment, and limitations of the Catastrophe Recovery Charge. Makes various technical, organizational, and conforming changes.

Amends GS 120­123 to provide that no member of the General Assembly can serve on the Authority.

Amends GS 159­81 to provide that the financing of deficits by the Authority can be considered a revenue bond project for the purposes pursuant to the section, and to redefine  municipality .

Amends GS 159­83 concerning powers associated with revenue bonds, providing that the Authority has the power to contract for the charging of catastrophe recovery charges, including covenanting to make such charges as necessary for the payment of revenue bonds as well as having the power to pledge and assign its rights to the making, revising, receiving, and enforcing such charges for its revenue bonds.

Amends GS 159­89, making conforming changes concerning special covenants of issuers of revenue bonds, providing that the Insurance Underwriting Association can enter into agreements to assign obligations to pay claims of amounts in excess of its losses and expenses that exceed available funding to the Authority as well as act as its agent in the recovery of such imposed charges.

Amends GS 159­90(a)(1) concerning the maturity dates of bonds, providing that maturity dates for bonds issued by the Authority will be related to the structuring of the repayment of proceeds rather than the facilities paid for, with an overall limit of 40 years.

Amends GS 159­93, updating the agreement of the state to not limit or alter the rights vested in the state or any municipality, at the time of issuance of bonds or notes, to include the collection of catastrophe recovery charges.

Amends GS 159­95 concerning the approval of state agencies for certain revenue bond projects, providing that bonds issued by the Authority do not require the approval of the Department of Insurance except to the extent catastrophe recovery charges require action pursuant to GS 58­45­47.

Amends GS 159­96 concerning geographical limitations for enterprises financed by revenue bonds, providing that no such geographical or territorial limitation exists on the use of proceeds of bonds issued by the Authority other than for payment of a deficit related to a catastrophic event affecting property covered under insurance policies issued by the NC Insurance Underwriting Association.

Part III (Authority to Lower Rates).

Amends GS 58­36­20, establishing that in the event the Commissioner finds that the proposed rates are excessive, the Commissioner will issue an order disapproving the filing and will specify the appropriate rate level that may be used (was, will specify the overall rates that may be used by the members of the Bureau instead of the rates proposed by the Bureau filing).

Part IV (Remove Certain Obsolete References to the Coastal Property Insurance Pool).

Amends GS 58­45­5(2c), making technical deletions and clarifying changes.

Part V (Coastal Insurance Pool Flexibility).

Amends GS 58­45­5 to define mitigation programs, and amends GS 58­45­15 to authorize the Association to adopt and fund mitigation programs for persons insured by the Association. Authorizes the use of Association revenue to fund mitigation programs in GS 58­45­25.

Part VI (Home Elevation Insurance Requirements).

Enacts new GS Chapter 66, Article 47 (Home Elevation Business). Requires entities engaging in home elevation to meet certain specified insurance requirements, including comprehensive general liability insurance, all­risk cargo insurance, and workers' compensation insurance. Effective January 1, 2018.

Part VII (Insurance Adjuster disclosure).

Amends GS 58­33­30 to impose a duty of disclosure of the adjuster's principal upon insurance adjusters licensed under that Article.

Contains a severability clause.

Except as otherwise provided, effective July 1, 2017.