LEGISLATIVE REPORT
House bill 1305 is the bill that makes significant changes
to the Beach Plan that provides insurance for the coastal areas of
1. Raise the maximum coverage limit for habitational (residential) property to $1,000,000 from the House’s proposed limit of $750,000.
2. Propose that the NC Rate Bureau give public notice in at least 2 newspapers (with statewide distribution) and the North Carolina Register within 10 business days after the Bureau Files for the increase. The notice shall state whether in the Insurance Commissioner may or may not schedule and conduct hearings with respect to the filings for the rate increases in the Beach Plan.
3. Keep the wind and hail surcharge at the current rate of 5% (as opposed to the House’s recommended rate of 10%) and keeping the full peril surcharge at the current rate of 15% (as opposed to the House’s recommended rate of 20%).
4. Proposing that the Rate Bureau file, no later than May 1, 2010, a schedule of credits for homeowners based on the presence of mitigation and construction features-for example hurricane shutters.
The next step for
the bill is to pass the full Senate, hopefully sometime this week before the
General Assembly adjourns foe the year.
UPDATE
Yesterday
afternoon (August 5), the Senate voted 42-5 in favor of HB 1305
with the following two amendments adopted:
1. An
amendment that dropped the per property coverage back down to $750,000 (the
amount the House approved) instead of the $1,000,000 the Senate Commerce
Committee and approved yesterday.
2. An amendment to freeze in place the surcharges at 5 and 15 percent for
wind and hail and full homeowners policies, respectively (the Beach Plan will
not be able to adjust them up). This amendment also removed the authority of
the Beach Plan to surcharge dwelling and commercial policies.
The
bill is on the House calendar today for concurrence.
Another
bill potentially affecting the coast is Senate Bill 1068 – Permitting of Wind
Energy Facilities.
The
North Carolina Association of REALTORS® Government Affairs team and the BCAR
governmental affairs department has been closely following the progress of SB
1068 and monitoring any potential impact it will have on our members and
property owners in the coastal and mountain regions of our state. As currently
written, the bill would establish a system of permitting for the placement of
wind energy facilities and would also make changes regarding windmills in the
Mountain Ridge Protection Act.
A
summary of the proposed legislation is attached and you may also view the
current version of the bill by clicking: http://www.ncleg.net/Sessions/2009/Bills/Senate/PDF/S1068v3.pdf
It is possible that the full General Assembly will not address this bill this year.