Signed by Governor Bev Perdue

Vote Smart's Synopsis:

Vote to pass a bill that would rename and reform the North Carolina Beach Plan, an insurance pool for coastal property owners in the state.

Highlights:

-Exempts the North Carolina Insurance Underwriting Association from state and federal taxes to the extent permitted by law (Sec. 1). -Renames the "Beach Plan" as the "Coastal Property Insurance Pool" and defines it as a market of last resort for insuring coastal properties (Sec. 1). -Sets the maximum value of property that may be insured under the provisions of this bill as follows: $750,000 on habitational property; $3 million on any unit of commercial property, up to a maximum of $6 million for multiple units; and, for the contents of habitational property, 40 percent of the building value (Sec. 1). -Requires the North Carolina Insurance Underwriting Association to offer a deductible of one percent of insured property value for damage incurred during named storms, including hurricanes, tropical depressions or tropical storms (Sec. 1). -Enables the North Carolina Insurance Underwriting Association to collect capital from its member insurers up to $1 billion if it incurs deficits from catastrophes that it cannot finance in any other way, and requires it to clearly indicate to policyholders that this charge may be imposed (Sec. 1). -Requires the North Carolina Rate Bureau to publish a schedule of insurance rates appropriately adjusted for property values no later than May 1, 2010 (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that would rename and reform the North Carolina Beach Plan, an insurance pool for coastal property owners in the state.

Highlights:

-Renames the North Carolina Beach Plan as the "Coastal Property Insurance Pool" (Sec. 1). -Provides that, in the event of a catastrophic event in which insurance companies which are members of the North Carolina Insurance Underwriting association are asked to pay more than $1 billion in costs, these companies may add a policy surcharge to the insurance plans of all policy holders not exceeding 10 percent of their annual policy premium (Sec. 1). -Allocates surpluses from the Beach Plan to pay for losses, reinsurance and other operating expenses, whereas previously surpluses were distributed to participating insurance companies based on market share (Sec.1). -Reduces the coverage limit per home from $1.5 million to $750,000 (Sec. 1).

Full Bill Text