The North Carolina House this afternoon concurred with Senate amendments to HB 1305 to reform the “Beach Plan.” The bill now moves to Gov. Bev Perdue, who is expected to sign it.
Elected officials have realized how out of kilter the current Beach Plan is and have taken steps to begin to rectify the situation. 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. A Senate amendment maintains the current Beach Plan rate differential over the Beach Plan rate.
While the rate differential at the current level will make it more difficult to quickly return the Beach Plan to the market of last resort, we have said all along that HB 1305 is not the end of this process. However, today marks the beginning of many more incremental steps toward strengthening and diversifying not only the coastal insurance market in North Carolina, but also the entire market in the state.
Direct questions to NAMIC State Affairs Manager Liz Reynolds.