The proposed Property Insurance Fairness Act filed in early March passed through the initial steps of the legislative process. The bill will essentially allow insurers to avoid over-burdening homeowners in the event of catastrophic, “once-in-a-century”-type weather by issuing bonds. It has advanced to the full House of Representatives, where it's waiting for consideration.
This proposal is meant to decrease the rate of re-insurance coverage needed by insurance agencies. According to news releases, legislators hope this will not only make doing business in North Carolina less pricey for insurers, but will result in lower homeowners insurance premiums for residents.
Additionally, it will require insurance agents to take extra, but much-needed steps for customers. Agents will have to alert customers when “consent to rate” policy rates are raised. They will also have to further open the lines of communication and offer more information to consumers in general, as well as make more data on property insurance publicly accessible.
For the full bill, click here.