The North Carolina House concurred yesterday afternoon with Senate amendments to HB 1305 to reform the “Beach Plan.” The bill passed 92-19.
“Yesterday was good day for all insurance consumers in North Carolina. Elected officials have realized how out of kilter the current Beach Plan is and have taken steps to begin to rectify the situation," said Liz Reynolds, Southeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC). "It didn’t get this way overnight, and it will take time to get things on an even keel again. NAMIC will continue to be part of efforts to work together with other stakeholders on this issue of importance to all North Carolinians.”
On Wednesday, the Senate Commerce Committee moved to require the private market, as well as the Beach Plan, to file rating plans including mitigation discounts. “Insurers are very supportive of mitigation efforts for existing structures and stronger building codes for new construction,” Reynolds said. “But credits and discounts can only make sense when base rates are adequate and appropriate for the risk presented."
A Senate amendment maintains the current Beach Plan rate differential over the Beach Plan rate.
Reynolds conceded that keeping the rate differential at the current level “will make it more difficult to quickly return the Beach Plan to the market of last resort. But we’ve said all along that HB 1305 is not the end of this process; it marks the beginning of many more incremental steps toward strengthening and diversifying not only the coastal insurance market in North Carolina, but the entire market in the state. We strongly urge Governor Beverly Perdue to sign the bill.”
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Posted: Friday, August 07, 2009 12:00:00 AM. Modified: Wednesday, August 12, 2009 4:16:46 PM.
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