Not long ago, we told you about major legislation that would help protect property insurance consumers and bring more transparency to the ratemaking process.
Now, Senator Michael Lee (R-New Hanover) and several other senators have filed legislation that would fully close a legal loophole that forces homeowners to pay higher premiums or risk cancellation of their policy.
Insurance companies have been using this loophole to send “consent to rate” letters that demand higher premiums from consumers. The North Carolina Homeowners Alliance has previously told consumers about this loophole and provided information on what to do when they get a letter.
The current law lets insurers bypass Insurance Commissioner Wayne Goodwin’s authority to deny a rate increase. In 2013, premiums rose by an average of 7 percent. In 2014, insurers requested an average increase of 25 percent, which the Commissioner denied.
You can tell legislators that you support insurance reform by signing our petition.