http://www.newsobserver.com/2010/05/19/489315/insurance-rate-tizzy-fizzles.html

Quote :

" RALEIGH -- Hiding among the thousands of items in the state Senate's budget proposal was a little hand grenade that would have politically eviscerated the state's chief insurance regulator. Insurance Commissioner Wayne Goodwin, a low-key former legislator elected to a job that sounds as if it should come with a pocket protector, freaked. Goodwin called reporters to a hastily organized news conference to decry the provision, which would have completely stripped his authority to set insurance rates in North Carolina. The measure seemed to just appear in the budget: At first, no one claimed to know anything about it. Using phrases like "shocking" and "irresponsible government," Goodwin said that if passed, the bill would surely cause insurance rates to rise throughout the state. "Working people do not need this piled on them," he said. Shortly after his news conference, the item was removed from the Senate's $19 billion budget plan, which is being debated this week. As the details of the budget proposal became clearer Tuesday, various interest groups spun themselves into varying degrees of tizzy. But it was Goodwin who spent Tuesday at the highest level of alert. Later in the day, Senate leader Marc Basnight, a Manteo Democrat, said the item came from his office, although he said he did not intend for it to show up in the budget. Basnight said that homeowners' insurance rates are too high for coastal counties and that he intends to strip Goodwin's role in setting coastal insurance rates. Basnight said he intends to push this session a bill that would create a new rate bureau to set rates for the coast. "I believe we have to create some fairness, and that's not occurring," Basnight said. According to figures provided by Basnight's office, rates on the coast are more than 3.5 times those in Wake County. Basnight said previous hurricanes have demonstrated that inland parts of the state are at just as much risk from hurricanes. Goodwin said Basnight's proposal would drive insurers from the state. Meanwhile, the industry says they're both wrong. Jennifer Cohen, executive director of the Insurance Federation of North Carolina, said the state is the only one in which regulators set rates. In all other states, insurers set their rates subject to regulation - the system the industry favors. But if the industry had to choose, Cohen said Goodwin has helped make the insurance industry competitive for consumers. "

Basnight trying to find another way to make the rest of NC subsidize his restaurant in Manteo (which was questionably burned to the ground by arson).

5/19/2010 5:13:47 PM

Goodwin's law?

5/19/2010 6:54:53 PM

Quote :

"Basnight trying to find another way to make the rest of NC subsidize his restaurant in Manteo"

While true, one could also argue the opposite also.

Perhaps the coast, although a liability, is subsidizing Goodwin's mansion in Ashe county. Hell, perhaps we the rest of the state is subsidizing Wake county so that every NC legislature's home-away from home residence in Raleigh has artificially cheap rates.

I find it troubling that one man ultimately creates the rates instead of letting the market weigh-in. I think the insurance industry should be regulated but free to compete with their rates. If we are worried about some sort-of hurricane catastrophe sinking the boat every 10 years their could be some sort of "high-risk" surcharge much like how I get a surcharge if I get caught speeding in my auto.

5/19/2010 7:53:28 PM

Quote :

"Basnight said previous hurricanes have demonstrated that inland parts of the state are at just as much risk from hurricanes."

No.

Quote :

"Meanwhile, the industry says they're both wrong."

Ding.Ding.Ding. It seems this Goodwin should have his responsibilities and pay cut in half.

5/19/2010 10:44:23 PM

Of course homeowner's insurance is more expensive on the coast. That's what happens when you live on a coastline prone to hurricanes.

5/20/2010 1:00:21 AM

At first I thought "Oh, discussion on beach nourishment, maybe even quasi-intelligent(?)"

Then i clicked on the thread. Silly me.

5/20/2010 9:24:42 AM

^ I thought the same.

However...

Quote :

"In all other states, insurers set their rates subject to regulation"

That sounds like a damn good idea, in my opinion.

5/20/2010 10:10:05 AM

Quote :

"Quote : "Basnight said previous hurricanes have demonstrated that inland parts of the state are at just as much risk from hurricanes." No. "

how do you figure? The most costly hurricanes that have hit NC were Hugo, Fran, and Floyd. One demolished Charlotte, One demolished Raleigh, and one flooded everything except for the coastal counties. Coastal counties at least build for the possibility of a hurricane. Inland construction is what doesn't hold up when a hurricane rolls through.

5/20/2010 11:11:19 AM

^surely the hurricanes hitting inland cities with significantly higher populations had nothing to do with the increased damage cost

[Edited on May 20, 2010 at 1:02 PM. Reason : k]

5/20/2010 1:01:24 PM

^^ yours is the type of logic that politicians thrive upon.

5/20/2010 1:20:01 PM

Quote :

"Coastal counties at least build for the possibility of a hurricane. Inland construction is what doesn't hold up when a hurricane rolls through."

BS. Half of NC is on one or another flood plane.

5/20/2010 4:13:24 PM

Quote :

"Coastal counties at least build for the possibility of a hurricane."

not really...if they really cared they wouldn't allow homes to be built within a certain distance from the ocean...ever been to Ocean Isle and seen the vacant homes that are just waiting to fall into the ocean from wave erosion?

if they really wanted to build for the possibility of a hurricane, they could construct huge permanent sea walls...but of course that affects the natural movement of sand down the coastline, affects wildlife, etc, so its a no go...temporary structures are all thats allowed in most places on our coast

but as long as people want to live by the ocean and can afford it, they will do it, and as long as the earth keeps turning, hurricanes will happen, and beachfront properties will diminish and houses will get basically knocked into the ocean

or you can pay out your asshole for beach renourishment in which you dredge sand from 100' or so out off the coast and bring it to the beach...thats fairly environmentally friendly, but costly, and its by no means a long term solution

5/20/2010 4:29:49 PM

Quote :

"At first I thought "Oh, discussion on beach nourishment, maybe even quasi-intelligent(?)" Then i clicked on the thread. Silly me. "

Oh, someone who doesn't pay homeowner's insurance and is from the ex-governor's play town of Southport.

Silly me, of course he wants his parents' homeowners insurance to be subsidized by policyholders from the rest of the state.

5/20/2010 5:24:02 PM

What a logical conclusion you have drawn sir. I stand in awe of your research into both the OP and my personal life.

5/23/2010 2:30:50 AM