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North Carolina Legislators Wrangle Over Budget Bill Provisions to Increase Consumer Insurance Costs

North Carolina House and Senate conferees are considering provisions in the state’s budget bill, Senate Bill 202, which would increase insurance costs for consumers and companies, including:

  • Increasing the premium tax from 1.9 percent to 2.25 percent
  • Removing the premium tax offset for guaranty fund payments
  • Increasing the regulatory fee for insurers from 5.5 percent to 6 percent
  • Creating a tax on repair, maintenance, and installation services that would include auto collision repair and property restoration, increasing claims costs by up to 4.75 percent

Many NAMIC members doing business in North Carolina already have activated grassroots networks and made contact with legislators on this bill, and we thank you for your efforts. If you have not yet engaged in these activities, we encourage you to do so ASAP.

Please contact Budget Conference Committee members to ask that they remove these proposals from SB 202. It would be helpful to provide figures detailing how the percentages translate to dollars and cents for consumers and companies. Relevant budget conferees include:

Direct questions to NAMIC State Affairs Manager Liz Reynolds.