AGENDA: October 17, 2012 Mid Month Meeting

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1 AGENDA: October 17, 2012 Mid Month Meeting ITEM #2: Discussion/Consideration of Resolution No , a Resolution of the Town Council of the Town of Duck, North Carolina, in Opposition to the North Carolina Rate Bureau s Homeowners Insurance Rate Filing with the North Carolina Department of Insurance RECOMMENDED ACTION: Approve Resolution No SUMMARY OF INFORMATION: On October 1, 2012, the NC Rate Bureau submitted a Homeowners Insurance Rate Filing with the NC Department of Insurance (NCDOI) that would result in a 30% increase for homeowners Insurance in all 18 eastern NC counties that are in the NCIUA (Beach Plan) coverage area, including homeowners in the Town of Duck and Dare County if approved. If NCDOI agrees with this rate filing, the below filed rates will go into effect June 1, The Town of Duck has traditionally opposed such large rate increases, particularly without any significant justification from the insurance industry. Legislation passed earlier this year mandates that the Insurance Commissioner call a public comment period on any NC Rate Bureau property insurance rate filing within 30 days of the filing. The NC Department of Insurance has scheduled a public comment session on Wednesday, October 17th from 9:30 a.m. to 4 p.m. Written public comments can be submitted until Friday, October 19th. ATTACHMENTS: Resolution Rate Filing Press Release

Insurance RECOMMENDED ACTION: Approve Resolution No.

2 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF DUCK, NORTH CAROLINA, IN OPPOSITION TO THE NORTH CAROLINA RATE BUREAU S HOMEOWNERS INSURANCE RATE FILING WITH THE NORTH CAROLINA DEPARTMENT OF INSURANCE Resolution #12-12 WHEREAS, the Town of Duck, as well as Dare County and its other municipalities and the other counties, towns and cities in northeastern North Carolina, continues to experience the impacts from a slow national economic recovery; and WHEREAS, insurance coverage is required in order to purchase a home or business and is vital to the recovery of our home construction industry and our economy; and WHEREAS, any increase in the cost of insurance makes it more difficult for middle and low income families to purchase homes, start businesses and participate in and fuel our economic recovery; and WHEREAS, historically the Town of Duck and Dare County have been a low claims area and any insurance rate increases amount to a subsidy for other higher risk areas; and WHEREAS, the Town of Duck is located in Homeowners Territory #7, which includes the barrier islands of the Counties of Dare, Currituck, and Hyde; and WHEREAS, the North Carolina Rate Bureau has submitted a rate filing with the North Carolina Department of Insurance (NCDOI) to increase the current rate per $75,00 of homeowners insurance coverage from $1,379 to $1,793, an increase of $414, or 30%; and WHEREAS, all eighteen counties in the NCIUA (Beach Plan) coverage area would also be subjected to a 30% increase in homeowners insurance rates, which is the maximum approved rate increase amount from NCDOI that a company may charge for coverage unless a policyholder signs a "consent to rate" form allowing an insurance company to charge a higher rate; and WHEREAS; this 2012 rate filing differs from the last homeowners insurance rate filing of 2008 in that proposed rates are based on $75,000 of coverage instead of $150,000 of coverage and the rate filing also includes proposed rate increases of 30% statewide for renters coverage and a 30% increase in condo coverage for the majority of the state; and WHEREAS, there is little evidence to support the need for additional funding to insurance companies to cover claims or other costs associated with providing

impacts from a slow national economic recovery; and WHEREAS, insurance coverage is required in order to purchase a home or business and is vital to the recovery of our home construction industry and

3 homeowners insurance in Homeowners Territory #7 or the other coastal territories in North Carolina. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF DUCK, NORTH CAROLINA, THIS 17 th DAY OF October, 2012, that the Town Council does hereby oppose the rate increase requested by the insurance industry for its customers in the Town of Duck and Dare County and requests that the North Carolina Insurance Commission deny the insurance industry s request. Adopted this 17 Th Day of October, ATTEST: Mayor Town Clerk

Town Council does hereby oppose the rate increase requested by the insurance industry for its customers in the Town of Duck and Dare

HOMEOWNERS INSURANCE UPDATE. Tyler Newman Governmental Affairs Director Business Alliance for a Sound Economy (BASE)

HOMEOWNERS INSURANCE UPDATE. Tyler Newman Governmental Affairs Director Business Alliance for a Sound Economy (BASE) HOMEOWNERS INSURANCE UPDATE Tyler Newman Governmental Affairs Director Business Alliance for a Sound Economy (BASE) BASE Business Alliance for a Sound Economy BASE covers government affairs for the coastal