| February 20, 2014
Insurance Department orders hearingInsurance
Commissioner Wayne Goodwin has ordered that a hearing be held in the
matter of the insurance companies’ request to raise homeowners’
insurance rates, stating that the proposed rates appear to the
Department of Insurance to be excessive and unfairly discriminatory.
on homeowners’ rate hike request
insurance companies, represented by the North Carolina Rate Bureau,
requested an overall statewide average increase of 25.3 percent for
homeowners insurance rates, varying by geographic territory, on Jan. 3,
The hearing is scheduled to begin on Aug. 6, at 10 a.m. at
430 N. Salisbury St. in Raleigh. The hearing is open to the public.
However, there will be no opportunity for members of the public to
speak at the hearing. DOI accepted comment from the public in January.
from the N.C. Rate Bureau, on behalf of the insurance companies, and
experts from NCDOI, representing the interests of the public, will
present their cases for or against rate changes. Goodwin is to serve as
the hearing officer and determine what, if any, rate adjustments are
Read the full of notice of hearing here: http://www.ncdoi.com/Media/Documents/2014%20Homeowners%20Insurance%20Hearing%20Notice.pdf
an initial review of the Jan. 3 filing and more than 10,000 comments
submitted by the public, NCDOI experts believe the requested rate
increases are not justified. Among NCDOI’s concerns are:
filing uses hypothetical data, rather than actual data, when
calculating costs including those for the net costs of reinsurance and
trended modeled hurricane loss costs.
- The filing lacks necessary data, documentation and explanations to meet statutory burden of proof for rate increases.
- Old data is used in the filing when more when more recent data should be available and included in the analysis.
- The filing is available for public review on the department’s website. To view the entire filing, go to http://pserff.ncdoi.net/pc.html and enter the Serff Tracking Number NCRI-129361028.