Wayne Goodwin, Insurance Commissioner, North Carolina, has strongly opposed the 3 legislative proposals stating that it would impact the overall insurance rates for the motorists.
As per the changes that were proposed, in the Senate Bill 477 & 490 and House Bill 834 the Insurance Commissioner will cease to have any regulatory authority with regard to auto insurance rates.
Goodwin stated that these proposals were pushed by those out-of-state insurance firms who wanted to increase their profits out of the motorists in North Carolina. He also stressed on the fact that the car insurance rates would see a hike if these proposals came into being. This was a ploy by the insurance companies to get a legal sanction to increase the insurance rates even if the motorists have a good driving record, he stated.
If these bills were passed the insurance companies could also increase the rates without obtaining an approval from the Department of Insurance. Now the department would be handicapped as it would no longer have the authority to issue orders to the insurance company to give refunds to policyholders in case the drivers were overcharged.
According to a press release on Wednesday, the IFNC has touted the Senate Bill 477, stating that the drivers would be gradually removed from the high-risk pool and would be allowed to choose the company with whom they wish to be insured.
This would in turn help lower the costs as the North Carolina motorists are paying for this high-risk pool, stated the association that represents the insurers that do casualty and property business in the state.
The association also claimed that the Senate Bill 477 was yet another attempt by the State to bring about necessary changes in a system that was flawed and a system that had cost the residents of North Carolina a lot of money each year.
Goodwin also goes on to state that these bills are a result of corporate greed and they are in no way meant to protect the motorists. He also mentioned that he along with his staff had studied the situation in detail and understood how the current system worked. He also feels that presently the auto insurance is accessible as well as affordable in North Carolina and that was evident as the state had the lowest auto insurance rates in the Southern region and was the 8th lowest in the nation. Goodwin ended by stating that keeping the auto insurance rates low was his priority.
