Sen. Basnight Addresses NC20

NEW BERN – State Senate Pro Tem Marc Basnight addressed the issue of coastal insurance rates at a conference Thursday in New Bern.  Click here for the full story.

Basnight spoke at a meeting of NC 20, a group of representatives from 20 coastal counties that formed to fight increasing insurance rates. He told the group sticking together is the only way for coastal counties to be heard on issues like homeowner insurance rate hikes.

Last year, some coastal counties saw more than a 20-percent jump in rates.

“Mainly it was the insurance companies trying to keep themselves not only solvent but to make a great deal of money,” he said. “Do I have proof of that? Not in writing,”

NC 20 says it’s not fair that rates have jumped so much on the coast and gone down in other parts of the state. The group says data on storm damage claims does not support such a big increase on the coast.

“If the eastern part of the state is overburdened with insurance rates that are unfair whereas the rest of the state are having substantially less insurance rates, it’s hard to recruit industry,” State Rep. Alice Underhill said.

NC 20 members say they’d like to see more transparency in the rate setting process.

“There needs to be a little more parity, and that’s what we’re hoping to do by joining together,” NC 20 Board Member Donna Girardot said. “Perhaps we can have a little more influence on how the money is distributed in the future.”

Last year, dozens of counties and towns filed lawsuits challenging the way the rate hikes were determined.

“Should we win, what will happen is it will all go back to where it was, and they’ll be required to come in and do another rate making case,” Dare County Attorney Bobby Outten said.

One of the lawsuits is set to be heard in appeals court in April.

Source:  NEWS 14 Carolina