Representative Paul Tine Introduces Homeowner's Insurance Rate Reform Bill | Eastern North Carolina Now

News Release:

    Raleigh, NC     Representative Paul Tine along with Representatives Hamilton (D - New Hanover), Iler (R - Brunswick), and Dockham (R - Davidson) submitted House Bill 519 Property Insurance Rate Making Reform this week.

    The purpose of the bill is to bring some clarity to the rate making process so that additional reforms can be made in the future.

    "We are not on the same page when it comes to how our rates are made on Homeowners Insurance in this state," said Rep. Tine. "The inland counties think they are paying for losses on the coast, the coastal counties feel they are paying more than their fair share, and we need to all have a better understanding of what is really going on."

    The bill would require the companies to submit historical data of previous losses as a basis of comparison. Any company wishing to use modeled data would have to present two models. "Computer models take into account a lot of data from weather patterns, to building codes, to the types of trees you have in the area to develop a likelihood of future loss," stated Rep. Tine. "It's very easy to come up with different conclusions based on the different models used. We need more than one model so that we can compare the conclusions."

    There is also a provision that would allow for the Commissioner of Insurance to require additional statistical analysis based on the historical information presented and the conclusions of the models.

    Additionally, the bill would require that every policyholder in the state would have both the wind and hail rate and the property rate shown on their bill. This information could then be easily and clearly compared between regions by policyholders and advocacy groups.

    More work is still expected on this bill in committee and when it reaches the floor. Several interested parties were consulted in the crafting of this bill to try and limit any unintended consequences. The Commissioner of Insurance and his department, the Coastal Caucus, NC 20, and the insurance companies themselves all provided input.

    "This bill is designed to give us a chance to pass it into law," said Representative Tine. "It would help the whole state to bring more sunshine to the rate making process and have more tools in the hands of the commissioner to fight for fair and equitable rates."

    This bill is bipartisan in the House and there is a companion bill by Senators Sanderson and Cook in the Senate. The bill has been referred to the Committee on Insurance in the House which is chaired by one of the primary sponsors of the bill, Representative Dockham.


Office of Representative Paul Tine

District 6- Beaufort, Dare Hyde, Washington Counties
(919) 733-5906

Contact: Paul Tine (252) 305-5133    paul.tine@ncleg.net