Bill Summaries: S836 (2011-2012 Session)

Tracking:
  • Summary date: Jul 17 2012 - View summary

    AN ACT TO IMPROVE THE RATE-MAKING PROCESS BY REQUIRING THE DEPARTMENT OF INSURANCE TO ACCEPT PUBLIC COMMENT ON ALL PROPERTY INSURANCE RATE FILINGS, BY PROVIDING THE COMMISSIONER WITH THE POWER TO SPECIFY THE APPROPRIATE RATE LEVEL OR LEVELS BETWEEN THE CURRENT RATE AND THE FILED RATE UPON A FINDING THAT A RATE FILING DOES NOT COMPLY WITH APPLICABLE LAW, BY PROVIDING THAT THE COST OF REINSURANCE BE INCLUDED AS A FACTOR IN RATE MAKING AND REQUIRING CERTAIN SUPPORTING INFORMATION ON REINSURANCE COSTS IN A FILING, BY REQUIRING THAT THE RATE BUREAU CREATE A RATING PLAN FOR A PROPERTY INSURANCE POLICY THAT EXCLUDES COVERAGE FOR THE PERILS OF WINDSTORM AND HAIL, AND BY REQUIRING THAT THE RATE BUREAU AND THE DEPARMENT OF INSURANCE STUDY THE FAIRNESS AND EFFICACY OF THE CURRENT PROPERTY INSURANCE GEOGRAPHIC RATE TERRITORIES, AS RECOMMENDED BY THE LEGISLATIVE RESEARCH COMMISSION'S COMMITTEE ON PROPERTY INSURANCE RATE MAKING. Summarized in Daily Bulletin 5/21/12, 6/6/12, and 6/11/12. Enacted July 12, 2012. Sections 4 and 5 are effective December 1, 2012. Sections 6 and 7 are effective July 12, 2012. The remainder is effective July 1, 2012.


  • Summary date: Jun 11 2012 - View summary

    Senate amendment makes the following changes to 2nd edition. Amends proposed GS 58-36-10(7), which adds a standard related to the cost of reinsurance to protect against catastrophic exposure within the state, to delete provisions that identify types of relevant information that may be considered in determining the provision to reflect the cost of reinsurance. Additionally deletes provision permitting the use of catastrophe models, and modeled or hypothetical reinsurance programs in determining the provision to reflect the cost of reinsurance. Deletes provision which authorized the Commissioner of Insurance to adopt rules providing information to be included in support of the provision to reflect the cost of reinsurance. Provides that rates may (was, shall) include a provision reflecting costs of reinsurance to protect against catastrophic exposure.


  • Summary date: Jun 6 2012 - View summary

    Senate committee substitute makes the following changes to 1st edition.
    Adds a section amending GS 58-36-15(b) to add that all property insurance rate filings are open to the public unless necessary to maintain the confidentiality of testimony. Requires the Department of Insurance to receive public comments on the filing at least 30 days before the Department issues a notice of hearing. Adds a section amending GS 58-36-20(a), which concerns disapproval of filings, to require the Commissioner of Insurance to specify the overall rates that the Bureau may use, after the Commissioner finds the proposed rates in the filing excessive. Requires the Commissioner to make findings of fact on the evidence in the filing and at the hearing. Adds a section, amending GS 58-36-10, to add a standard related to the cost of reinsurance to protect against catastrophic exposure to the rate-making method. Deletes provisions amending GS 58-36-10(3) (concerning modeled losses), GS 58-36-20 (modified the hearing process), and the addition of subsection (d2) to GS 58-36-15 (required supporting data for certain filings). Makes conforming changes to the bill title.


  • Summary date: May 21 2012 - View summary

    Amends GS 58-36-10(3) to direct the NC Rate Bureau (Bureau) to present data from more than one catastrophe model when presenting modeled losses with a property insurance rate filing. Effective December 1, 2012, enacts new GS 58-36-42, directing the Bureau to develop an optional policy providing residential property insurance without coverage for windstorm or hail; makes conforming changes. Rewrites GS 58-36-20 (concerning disapproval of filings, hearings, and review of filings) to provide that a filing made by the Bureau, with specified exceptions, is not effective until approved by the Commissioner of Insurance (Commissioner) or 50 days after a proper filing when no hearing is called. Directs the Commissioner to give written notice of a hearing to the Bureau and set a hearing date within 30 days from the date the notice is mailed. Sets out a hearing process for filings that use a catastrophe model in the calculation and where the Commissioner calls for a hearing. Specifies that all property insurance rate filings are open to the public except when necessary to keep testimony confidential. Makes organizational changes and clarifies that the Commissioner, when disapproving a filing, may specify the appropriate rate level to be used by the Bureau. Enacts new subsection (d2) to GS 58-36-15, requiring supporting data, as detailed, to be included in any property insurance rate filing that (1) uses a catastrophe model, (2) uses costs of reinsurance in the rate calculations, or (3) uses both a catastrophe model and costs of reinsurance. Effective July 1, 2012, unless otherwise provided.
    Directs the Bureau and the Department of Insurance to study current geographic territories for rating purposes, as indicated, and to submit a final report to the 2013 General Assembly.