UPDATE: Insurance commissioner denies homeowners rate increase By IRENE NOLAN

North Carolina Insurance Commissioner Wayne Goodwin has denied a request by the insurance industry to raise homeowners’ insurance rates by as much as 30 percent along the coast, including in Dare and Hyde counties.

Instead, Goodwin 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 be “excessive and unfairly discriminatory.”

The hearing, which is open to the public, is scheduled to begin on June 3, 2013, at 10 a.m. at 430 N. Salisbury St. in Raleigh. 

Goodwin will serve as the hearing officer and listen to experts from the Department of Insurance and the Rate Bureau, which represents the insurance industry, to decide what rate changes, if any, are warranted.

On Oct. 1, the insurance companies requested an overall statewide average increase of 17.7 percent for homeowners’ insurance rates. However, the requested increased varied greatly across the state — from as low as 1.2 percent in Greensboro to 30 percent in the coastal counties.

Opposition to the request was immediate and loud from the coastal counties.

A public comment period on the rate filing was held from Oct.3-19 to engage the public in the ratemaking process. The Department of Insurance received approximately 8,800 e-mailed or mailed comments, and approximately 35 people made comments in person during a public comment session held on Oct. 17. 

Dare and other coastal counties passed resolutions opposing the rate increase, and the Outer Banks Chamber of Commerce wrote a letter to protest.  Dare County manager Bobby Outten was one of the people who made comments at the public session.

“The Department of Insurance’s role is to represent the interests of the public,” said a news release today by the department. “After an initial review of the filing and comments submitted by the public, department experts believe the requested rate increases are not justified based on the data submitted.”

According to the release, the following concerns, among others, may be raised at the hearing:

The Rate Bureau 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-128708881.

The department’s response and the notice of the hearing can be found at http://www.ncdoi.com/media/documents/NoticeOfHearingInTheFilingForRevisedHomeownersInsuranceRates.pdf 

During Goodwin’s administration, there have been no approved homeowners, insurance rate increases. The last homeowners’ insurance rate filing occurred in 2008 when the insurance companies requested a 19.5 percent statewide average increase. A settlement agreement allowed for a 4.05 percent statewide average increase to go into effect in May 2009.

The Rate Bureau can appeal Goodwin’s through the court system, and companies can raise rates while awaiting an appeals decision. The difference in the ordered rate and the implemented rate must be held in escrow. If the Rate Bureau loses its appeal, the escrowed money must be refunded to policyholders who paid too much.