auto Insurance bill

Auto insurance bill amendments in NC isn’t out of the woods yet

auto Insurance billThere is still opposition being faced by a controversial bill that would change the state regulation system.

An auto insurance bill in North Carolina is still facing opposition, as the controversial effort attempts to change the way that the rates in the state are regulated, despite the fact that the bill has been modified in acknowledgement of the objections that have been identified by its opponents.

The opponents were not won over by the amendments that were made to this bill, which include the commissioner.

Among those who remain opposed to the auto insurance system reform bill, is the North Carolina commissioner, Wayne Goodwyn. This was revealed in a legislative committee meeting. The original design of the bill would have permitted companies to choose not to take part in the current system, where the N.C Rate Bureau – an agency created by the state – submits rate change requests on behalf of all vehicle insurers.

This would allow auto insurance companies to set their own rates, within certain limitations.

The bill would allow auto insurance companies that have opted out of the current system to be able to establish their own rates, provided that the average increase that they make is no greater than 12 percent per year. The newly amended version of the bill considerably decreased that limit, meaning that insurers would be able to increase their rates by no more than an average 7 percent per year, should they opt out of the current system.

According to Rep. Tom Murry (Morrisville-R), “There was nothing magical about 12 percent.” He is one of the primary sponsors of HB 265. When discussing the auto insurance bill after a House Insurance Committee meeting, “I’m trying to build a consensus.”

The Insurance Committee chair, Rep. Jerry Dockam (Davidson County-R), said that the members of the committee would be voting on the auto insurance bill following the meeting next Tuesday, after they hear from groups who will be providing testimony on both sides of this issue.

Under the amendments that have been made to the bill, the state Commissioner would also be given the ability to challenge an auto insurance rate increase within 60 days of having been set by an insurer, before it becomes effective.

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