Posted by Benji Riggins on January 28, 2010 under Insurance News | 
Republican leaders in the North Carolina General Assembly say they want to protect North Carolinians from the Democratic-sponsored health care plan being debated in Washington.
So, they’ve come up with a plan to insulate state residents.
They want to exempt North Carolinians from a requirement that everyone carry health insurance.
“Republicans will not stand idly by and watch as citizens’ rights to make their own health care decisions are taken from them by the federal government,” Republican Senate leader Phil Berger said of national health care reform.
Republicans here are following the same game plan as those in other states, where similar efforts are underway. Arizona legislators have already agreed to put a ballot initiative before state voters to allow the state to “opt out” of a federal health care plan.
State House Speaker Joe Hackney, a Democrat, denounced the Republican talk as a political stunt. He apparently believes that thing called the U.S. Constitution might present a significant hurdle.
But why be so rash, so quick to condemn an idea that could hold all kinds of promise?
In fact, why not expand upon the proposal? Perhaps Republicans and Democrats could finally come together over a single purpose, the passing of an Omnibus Federal Exemption Act. Just imagine how many ways North Carolina could tell the federal government to go take a flying leap off a cliff.
The easy one here, of course, is an exemption from federal taxes. Legislators could call this one the Incumbency Protection Amendment. Who wouldn’t vote another term for the entire legislature after having your federal tax debt wiped clean? No more would North Carolina have to worry about sending more money to Washington than it gets back. The provision naturally would include an exemption from Internal Revenue Service audits.
Out in the business world, exemptions from federal labor laws would be popular. Eighty-hour work weeks with no overtime, paying men and women unequal pay, and eliminating the minimum wage could be the bold, new frontier of establishing North Carolina as the most business-friendly state in the country.
State lawmakers could exempt political donors from federal campaign giving limits. Oh, never mind. The Supreme Court is already handling that exemption.
In North Carolina, No Child Left Behind could become Kiss My Behind. All schools would be granted an exemption to the federal school accountability law. Current and future federal education secretaries would be banned from entering the state.
Finally, one way of creating a truly omnibus bill would be to exempt all North Carolinians from prosecution for violations of any federal law. This provision would be especially popular among certain former political officeholders and a few of their close friends.
Of course, this approach might create a few unforeseen problems. After all, the last time North Carolina told the feds to go jump in a lake, some fellow named Sherman burned and pillaged his way across the state.
Scott Mooneyham writes about North Carolina government and politics for the Capitol Press Association.
Posted by Benji Riggins on January 26, 2010 under Insurance News |
When it comes to government-created insurance, the state health plan isn’t the only entity facing trouble.
An attempt to fix an ailing coastal insurance plan made steps through the North Carolina House of Representatives this week as HB 1305: “Beach Plan Changes” passed the insurance committee Tuesday and moved on to finance.
“Over the last six months, my office, legislators, business owners and homeowners across the state have been working furiously to find an acceptable compromise so that we could avoid a statewide insurance crisis,” said North Carolina Commissioner of Insurance Wayne Goodwin. “It is vital that North Carolina pass meaningful legislation this session before the next hurricane or series of hurricanes hits.”
The North Carolina Insurance Underwriting Association (Beach Plan) was created by the General Assembly 40 years ago to provide supplementary wind and hail coverage for property owners on the barrier islands, who were often refused such coverage from standard insurance companies due to high-risk storm exposure.
The plan has since expanded to offer homeowner’s and wind/hail insurance for residential and business properties in 18 coastal counties,
The plan was created and is regulated by the state, but it is not a state entity. It’s an association of independent companies acting as one.
Currently, all property and casualty insurance companies that do business in North Carolina write and fund the plan — and share any losses or profits. According to Goodwin, the plan was designed as a last resort, offering coverage at a higher-than-standard rate to those who would otherwise not have it. But Beach Plan rates became lower than those of the voluntary market — and it has become the insurer of first resort on the N.C. coast.
In 2007, the plan provided the Department of Insurance with an actuarial report assessing that their rates were 76 percent inadequate. Officials say the plan is seriously unprepared to pay for the potential losses of a major storm.
If HB 1305 passes, those insured under the plan will pay higher premiums – and maximum coverage will be reduced from $1.5 million to $750,000.
But home owners across the state will be affected if a major storm costs the plan more than it has in the bank. The legislation enables member companies to tack up to 10 percent onto their customer’s bills in the form of a “catastrophic assessment recoupment” — but only if damages get up to around $2.4 billion.
A pivotal part of the bill relates to the tipping point at which private insurance companies can start passing the burden along, which has currently been set to $1 billion. The insurance industry originally wanted the threshold to be $100 million.
Department of Insurance spokesperson Kristin Milam explained the concept with a hypothetical scenario:
“If we had a major storm tomorrow, like a Hazel-type storm, the Beach Plan would use two-thirds of its $800 million surplus to pay claims; they would have to hold some back in case we get other storms throughout the year,” said Milam. “If the plan paid the first $600 million, then the member companies would have to chip in the next $600 million to get to the $1.2 billion reinsurance attachment point. If it goes beyond $1.2 billion in reinsurance, (the plan) would have to assess the member companies again.”
And the member companies would then assess their members with what has been called a 10 percent “surcharge.” But Goodwin said that’s not correct. A surcharge comes after the fact. A catastrophic assessment recoupment is a proactive measure.
“Other states have been reactive, and that has led to extraordinary insurance rate increases in those states,” Goodwin said. “By being proactive, North Carolina will provide consumers and the industry with certainty and have a much more stable and competitive insurance market.”
Officials say that if insurance companies don’t know how much they will be liable for and if they will be adequately compensated, they’re liable to pull their business out of North Carolina — like State Farm recently did in Florida.
“Florida presented a unique set of circumstances,” said State Farm Spokesman Russ Dubisky. “Right now, State Farm is committed to our business in North Carolina. State Farm sees HB 1305 as an incremental step in the right direction. Eventually, we hope to see the Beach Plan become independently solvent by building its reserves, purchasing adequate reinsurance, and truly acting as the market of last resort.”
That’s another important piece of the legislation. Let’s say there are no major storms this year, and the Beach Plan makes a profit. Under HB 1305, member companies will no longer get to take their share of that profit. It will go straight into the Beach Plan surplus and build over time.
“The more money that the beach Plan has in the bank, the larger the storm or series of storms it can handle without turning to its member companies, and subsequently, policyholders,” said Goodwin in a speech to the Insurance Committee on June 25.
“And, as you all know, no one piece of legislation is perfect and this bill certainly is not perfect. But legislation, particularly involving complex subjects, is often about compromise.”
by Olivia Webb
Tags: home insurance, home insurance nc, home insurance north carolina, house insurance, house insurance nc, house insurance north carolina, insurance, insurance agency, insurance agent, insurance nc, insurance north carolina, nc beach plan
Posted by Benji Riggins on January 19, 2010 under Insurance News |
A North Carolina appeals court is weighing whether to freeze or even reverse homeowners’ insurance premiums that soared by up to almost 30 percent along the coast while sliding by a third in counties farthest from the shore.
A three-judge Court of Appeals panel heard arguments last week in a lawsuit by coastal communities trying to overturn a deal struck in late 2008 between former Insurance Commissioner Jim Long and the North Carolina Rate Bureau, which represents insurers.
The municipalities argued Long approved the increases before coastal residents knew insurers had requested them and set rates at unreasonably high levels.
Attorneys for the state agency and the Rate Bureau told the judges state law makes the insurance commissioner responsible for representing consumers, and rate settlements can’t be appealed to the court by anyone else.
“Suppose the commissioner gets it wrong?” Judge Linda Stephens wondered.
“I don’t know of anywhere else where an order can be issued and there’s no right to appeal that,” Judge Martha Geer said.
A court ruling could come later this year.
Long’s decision meant that homeowners policies that were written or renewed beginning May 1 for coastal properties from Sunset Beach to Morehead City could jump 29.8 percent. Policy premiums for homes on the Outer Banks counties of Currituck, Dare, Hyde and Pamilco were allowed to rise by 22 percent, a big jump but a bargain compared to the doubling of rates that insurance companies originally sought.
The deal also allowed homeowners in 32 western counties to cut their premiums, in two counties by up to 6 percent.
The rate changes included policies written by both private insurance companies and the Beach Plan, the state’s property insurance provider for coastal properties.
The General Assembly last summer was forced to shore up the overextended Beach Plan by capping potential costs to insurers and putting every property owner in the state on the hook from a disastrous hurricane season. Some insurers had threatened to quit doing business in the state to limit their exposure to Beach Plan losses unless the program was bolstered, current Insurance Commissioner Wayne Goodwin warned last summer.
Despite the rate increases and Beach Plan reforms, State Farm decided to quit the homeowners insurance business on North Carolina’s barrier islands, spokesman Russ Dubisky said. The company is dropping about 1,600 policies that come up for renewal beginning May 1, he said.
State Farm believes its risks on the exposed islands is too great, and will also retrench in other coastal states, Dubisky said.
“We are looking to manage our exposure in other catastrophe prone areas as well as North Carolina,” Dubisky said.
By Emery P. Dalesio
January 19, 2010
Posted by Benji Riggins on January 12, 2010 under Safety |
New crash tests from the Insurance Institute for Highway Safety are raising questions about the safety of child booster seats.
After the tests, only 25 percent of the booster seats got a “good” or “best” rating from the Insurance Institute. Eleven booster seats are not recommended because the belts don’t provide a good fit.
Officials said children 4-8 years old in booster seats are 45 percent less likely to suffer serious injuries in accidents.
However, even kids in booster seats who aren’t properly belted in are at risk. Seat belts that cross the stomach can cause abdominal injuries. Plus, belts that cross the neck or are too low on the chest can cause spine and head injuries.
Twenty five states have laws requiring a booster until the age of eight. Three states — Florida, Arizona and South Dakota — don’t require booster seats at all.
Crash tests show seat belts alone do not protect a child, which is why safety experts say even booster seats that don’t get the top safety recommendation can still protect kids.
Officials said age is not the most important factor. It’s actually based more on the child’s height and how well they fit into adult seat belts.
Tags: auto insurance, auto insurance nc, auto insurance North Carolina, auto safety, booster seat, car insurance, car insurance nc, car insurance north carolina, car safety, child safety seat, driving safety, insurance agency, insurance agent
Posted by Benji Riggins on January 4, 2010 under Interesting Info |
HANDBOOK 2010
Health :
1. Drink plenty of water.
2. Eat breakfast like a king, lunch like a prince and dinner like a beggar.
3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants..
4. Live with the 3 E’s — Energy, Enthusiasm and Empathy
5. Make time to pray.
6. Play more games
7. Read more books than you did in 2009 .
8. Sit in silence for at least 10 minutes each day
9. Sleep for 7 hours.
10. Take a 10-30 minutes walk daily. And while you walk, smile.
Personality :
11. Don’t compare your life to others. You have no idea what their journey is all about.
12. Don’t have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
13. Don’t over do. Keep your limits.
14. Don’t take yourself so seriously. No one else does.
15. Don’t waste your precious energy on gossip.
16. Dream more while you are awake
17. Envy is a waste of time. You already have all you need..
18. Forget issues of the past. Don’t remind your partner with His/her mistakes of the past. That will ruin your present happiness.
19. Life is too short to waste time hating anyone. Don’t hate others.
20. Make peace with your past so it won’t spoil the present.
21. No one is in charge of your happiness except you.
22. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
23. Smile and laugh more.
24. You don’t have to win every argument. Agree to disagree….
Society :
25. Call your family often.
26. Each day give something good to others.
27. Forgive everyone for everything..
28. Spend time w/ people over the age of 70 & under the age of 6.
29. Try to make at least three people smile each day.
30. What other people think of you is none of your business.
31. Your job won’t take care of you when you are sick. Your friends will. Stay in touch.
Life :
32. Do the right thing!
33. Get rid of anything that isn’t useful, beautiful or joyful.
34. Our Higher Power heals everything.
35. However good or bad a situation is, it will change..
36. No matter how you feel, get up, dress up and show up.
37. The best is yet to come..
38. When you awake alive in the morning, thank your Higher Power for it.
39. Your Inner most is always happy. So, be happy.
Last but not the least :
40. Please Forward this to everyone you care about, I just did..
