Judge Issues Stay on Beach Plan
COASTAL HOMEOWNERS INSURANCE UPDATE
UPDATE: JUDGE ISSUES STAY ON BEACH PLAN SURCHARGES/DEDUCTIBLES
While we have been pursuing General Assembly action on this issue, there are also legal actions occurring concurrently. As you may know, Dare County is spearheading an effort of Coastal Counties which have filed suit on these increases (Dare County v. NC Department of Insurance, 09 CVS 1980). On Friday, Judge Pittman issued a stay finding that the Commissioner did not act according to law, in that he did not create a record supporting his findings nor did he use proper procedure, including convening a hearing, as the General Statutes contemplate. The Court issued the stay making no findings with respect to the substance of the Commissioner’s decision, finding only that the Commissioner used unlawful procedure. The result is that the Commissioner, if he wishes to, can revisit the issue using proper procedure to create a record for the action. If the Commissioner properly creates a record for his decision, appeal of the decision would be to the NC Court of Appeals.
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