The recently introduced Property Insurance Fairness Act at the North Carolina General Assembly includes major consumer protections for homeowners. The legislation, co-sponsored by a bi-partisan group of legislators, increases the transparency of insurance rate setting. The legislation also better protects our state against the consequences of natural disasters. The North Carolina Homeowners Alliance strongly supports the bill.
The Property Insurance Fairness Act has several provisions that are great for consumers:
- Direct consumer protection – This reform legislation will make it harder for insurance companies to pressure consumers into rates that are above the regulated maximum.
- Transparency in rates – For years, insurance companies have held the upper hand on rate setting. The Property Insurance Fairness Act will expand insurance companies’ disclosure requirements. The bill will also give the Insurance Commissioner the power to lower rates, not just hold them steady or increase them.
- Disaster preparedness – Catastrophic modeling is an important factor in setting insurance rates. This reform would clarify how this modeling is used in rate setting. In addition, this legislation would expand the state’s capability to respond to a catastrophic insurance loss.
This important bill is not the only positive step for consumers. House Bill 151, introduced earlier in the session, would also increase transparency.
Even one of these reforms would be great for consumers. The Homeowners Alliance applauds the bill sponsors for taking the bold step of protecting consumers through major reform. You can join the effort, and we will keep you up to date on these reforms.