A public hearing on a proposed 42.2% average increase in homeowners insurance continued until the insurance commissioner candidates – Republican incumbent Mike Causey and Democratic challenger state Sen. Natasha Marcus – traded political jabs. It hadn’t started yet on Monday.
Mr. Causey and Mr. Marcus held a press conference ahead of Monday’s hearing at the Department of Health in Raleigh. The process of determining insurance rates can be a long one, and homeowners likely won’t know what their new premiums will be until early next year.
State Sen. Natasha Marcus. (Photo: Greg Childress)
In the Insurance Department parking lot, Marcus aggressively ramped up his attack on Causey’s rate-raising record, painting the two-term commissioner and first Republican to hold the office as an “insurance industry insider” who has forgotten about it. We have doubled our past efforts to increase He was “chosen by the people as their representative.”
“Instead of standing up for consumers and being transparent about rate hike decisions, he (Cochy) met privately with insurance companies and approved 16 consecutive rate hikes behind closed doors,” Marcus said. said. “He essentially told all of us to simply trust that he gave us a good deal. He didn’t even entitle us to look at the data. I don’t think I have the right to know his reasons for allowing insurance premiums to skyrocket.”
Mr Causey countered that he needed to ensure that whatever fees were requested were appropriate. That means rates are high enough for insurance companies to remain solvent and pay claims, he said.
“If the company is not solvent and the insurance can’t pay, it doesn’t do anyone any good,” Causey said. “State law allows the Secretary to negotiate settlements, and over the past several years he has successfully negotiated settlements that are very favorable to consumers.”
Marcus also accused Causey of neglecting his duties as insurance commissioner by allowing Department of Insurance General Counsel Amy Funderburk to serve as a hearing officer on Monday.
“This is an outrageous neglect of one of the most important duties of the job,” Marcus said. “He is the elected Secretary of Health and this is the job he was elected to do and is paid to do. Why isn’t he doing his job?”
Asked about the decision to allow Funderburk to be heard at a news conference, Causey said Marcus’ claims were just part of a “stupid season in politics.”
He said his predecessors, Jim Long and Wayne Goodwin, both Democrats, also used the department’s general counsel to preside over such hearings.
Mr Causey said the final decision on whether to raise rates would be his. “I have always made those decisions and will continue to make them,” he said.
Commissioner Mike Causey. (Photo: Greg Childress)
Governor Causey rejected the request for an average 42.2% increase, saying it was unfair to some residents. Coastal North Carolina could see an increase of more than 90%, while some mountainous regions could see an increase of as little as 4%.
Causey said the damage caused by Hurricane Helen in western North Carolina could influence rate hikes.
“It’s very possible, but it will take time (to know),” Causey said. “We’re seeing the effects of Hurricane Florence right now, but that was back in 2018, so we’ll have to wait and see how it settles down.”
Meanwhile, Marcus said that by rescheduling the rate hike hearing closer to the Nov. 5 general election, Causey could avoid making a decision on the rate increase until homeowners vote.
He noted that Mr. Causey has 45 days after the hearing ends to decide on a new interest rate.
“So by delaying the start of the hearing until October 7th, knowing that the hearing would last several weeks, the president knows he doesn’t have to make a decision on the rate hike request until after the election,” Marcus said. There is,” he said. “Voters will not have the opportunity to assess how he did his job and hold him accountable.”
Mr. Causey pushed back against Mr. Marcus’ claim that he would unilaterally approve rate hikes. He said he received more than 25,000 comments on the proposed increase.
“People said pretty much the same thing: Inflation is killing us, we can barely afford to go to the grocery store, fuel prices are sky high and council taxes are going up,” Causey said. Ta.
The request for an average rate increase of 42% was made by the North Carolina Rate Bureau, which represents companies that write insurance policies. The rate agency cited rising operating costs due to climate change, which causes more powerful hurricanes and more severe flooding, as the reason for requesting such large rate increases.
On Monday, Mickey Spivey, general counsel for the rate department, pointed out that North Carolina hasn’t seen any significant rate increases in recent years. Spivey said the request for a 42.2% rate hike was necessary to cover rising business costs.
“It’s a big number, but it’s what we need,” Spivery said. “We here in North Carolina are not alone. Homeowner’s insurance premiums are rising across the country and are likely to continue rising.”
