Printer Friendly

LONG REJECTS HOMEOWNERS INSURANCE RATE HIKE; SAYS INSURERS' REQUEST APPEARS EXCESSIVE

 RALEIGH, N.C., July 16 /PRNewswire/ -- Insurance Commissioner Jim Long today called for public hearings on the first homeowners insurance rate filing in over fourteen years. The insurance industry is seeking a 12.7 percent rate increase for homeowners insurance and an 8.8 percent in dwelling fire and extended coverage rates. The hearing notice says that the filing lacks adequate documentation, shows a "noticeable pattern of bias in the selection and use of data ... and appears to produce rates which are excessive."
 Said Deputy Commissioner Charles Swindell: "The filing provides very little information on the hurricane computer model that the industry says can more accurately assess windstorm risk. Also, given the fact that industry has had many years to collect actual loss data, it's dismaying to find that the filing is throughout based heavily on computer simulation."
 Swindell said that if approved as written, the filing would raise rates paid by the state's consumers for homeowners and dwelling fire coverages by approximately $65 million dollars. He said that while the statewide average rate increase is relatively modest, the territorial differences contained in the filing would cause a number of areas to see much steeper increases.
 "We are concerned," said Swindell, "About the effect the rates proposed in this filing would have on homeowners, especially those living along the coast, many of whom would see rate increases of nearly 50 percent. While we all want the industry to remain solvent and ready to pay claims should a large hurricane hit, it would appear that this could be accomplished at rates much lower than those proposed in this filing."
 The hearing is scheduled for Monday, Aug. 16, at 10 a.m. in the third-floor hearing room of the Dobbs Building, 430 North Salisbury Street, downtown Raleigh. Organizations or individuals wishing to be heard should call the department's Public Information Office at (919)733-5238 to schedule a time.
 -0- 7/16/93
 /CONTACT: Paul Mahoney, N.C. Department of Insurance, 919-733-5238/


CO: North Carolina Department of Insurance ST: North Carolina IN: INS SU:

CM-SB -- CH005 -- 2660 07/16/93 16:56 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 16, 1993
Words:350
Previous Article:TGX CORPORATION ENGAGES INVESTMENT FIRM TO PROVIDE ADVISORY SERVICES
Next Article:TOBACCO FARMERS COMBAT MISINFORMATION, ACCORDING TO OHIO FARM BUREAU
Topics:


Related Articles
HOMEOWNER INSURANCE RATE ORDER DELAYED UNTIL DECEMBER
Battening down the hatches: coastal-state homeowners are facing a crisis in finding homeowners insurance. And in cases where they can find it, they...
Duel in the sun.
Florida lawmakers shift thinking, pass bills to face cat risk.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters