Ahead of a scheduled public hearing on homeowner’s rates next month, North Carolina Insurance Commissioner Mike Causey has released a new video explaining how insurance rates are set in North Carolina, a process which is outlined by state law.
A transcript of the video’s message can be found here:
‘Hello, I’m Mike Causey, your North Carolina Insurance Commissioner.
I want to tell you briefly about how insurance rates are set in this state.
In North Carolina, the Insurance Commissioner does not set insurance rates.
North Carolina is a rate bureau state.
The North Carolina rate bureau represents insurance companies writing property insurance in the state and is not a part of the Department of Insurance.
The rate bureau was created by the North Carolina General Assembly in 1977 and that process hasn’t changed since that time.
Once the Rate Bureau files a request for an increase, the Commissioner has 50 days to say "yes" or "no" to the request.
During those 50 days, we have a public comment period.
I took those comments into account when I rejected the insurance companies’ request earlier this year.
As your Commissioner, I take my consumer protection role seriously.
That’s why I've said "no" every time the Rate Bureau has asked for an increase, and I’ll continue to fight for lower rates for all North Carolinians.
I'm Insurance Commissioner Mike Causey, thank you and God Bless.’