§ 58-45-45. Rates, rating plans, rating rules, and forms applicable.
§ 58‑45‑45. Rates, rating plans, rating rules, and forms applicable.
(a) Rates shall not beexcessive, inadequate, or unfairly discriminatory. Except as provided insubsections (a1), (a2), and (b) of this section, rates, rating plans, ratingrules, and forms applicable to the insurance written by the Association shallbe in accordance with the most recent manual rates or adjusted loss costs andforms that are legally in effect in the State. Except as provided in subsection(c) of this section, no special surcharge, other than those presently ineffect, may be applied to the property insurance rates of properties located inthe beach and coastal areas.
(a1) The Association'srates shall be the North Carolina Rate Bureau Manual Rates plus a surcharge offive percent (5%) of the applicable North Carolina Rate Bureau Manual Rate forwind and hail coverage and a surcharge of fifteen percent (15%) of theapplicable North Carolina Rate Bureau Manual Rate for homeowners' insuranceincluding wind and hail coverage. It is the intent of the General Assembly thatthese surcharges ensure that the Coastal Property Insurance Pool is the marketof last resort over and above the manual rate.
(a2) (See Editor'snote) The Association shall offer a deductible for named storm wind andhail losses of one percent (1%) of the insured value of the property for allpolicies and may offer any other deductible options provided by the NorthCarolina Rate Bureau, so long as the deductible is not lower than one percent(1%) of the insured value of the property applicable to named storm wind andhail losses.
(b) The rates, ratingplans, and rating rules for the separate policies of windstorm and hailinsurance described in G.S. 58‑45‑35(b) shall be filed by theAssociation with the Commissioner for the Commissioner's approval, disapproval,or modification. The provisions of Articles 40 and 41 of this Chapter shallgovern the filings. Policy deductible plans, consistent with G.S. 58‑45‑1(b),may be filed by the Association with the Commissioner for the Commissioner'sapproval, disapproval, or modification.
(c) Repealed by SessionLaws 2009‑472, s. 1.
(d) When theAssociation files rates, classification plans, rating plans, rating systems, orsurcharges, the procedures of G.S. 58‑40‑25 through G.S. 58‑40‑45shall apply, and the appeal procedures of G.S. 58‑2‑80 and G.S. 58‑2‑85shall apply to filings under this section, except as otherwise provided.
(e) The Associationshall file no later than May 1, 2010, a schedule of credits for policyholders basedon the presence of mitigation and construction features and on the condition ofbuildings that it insures. The Association shall develop rules applicable tothe operation of the schedule and the mitigation program with approval by theCommissioner. The schedule shall not be unfairly discriminatory and shall bereviewed by the Association annually, with the results included as part of theAssociation's annual report to the Commissioner.
(f) The Associationshall file not later than May 1, 2010, with the Commissioner an installmentplan for premium payments and shall accept other methods of payment that arethe same as those filed by the North Carolina Rate Bureau. The Associationshall collect an installment fee if premiums are paid other than on an annualbasis.
(g) The Associationshall consider the purchase of reinsurance each calendar year in order tomaintain the ability to pay losses and expenses from a named storm orcombination of named storms. (1967, c. 1111, s. 1; 1969, c. 249; 1979, c. 601, s.4; 1987 (Reg. Sess., 1988), c. 975, s. 24; 1991 (Reg. Sess., 1992), c. 784, s.2; 1997‑498, ss. 7, 8; 1999‑114, s. 7.1; 2003‑158, s. 3; 2009‑472,s. 1.)