A three-judge panel upheld the North Carolina Department of Insurance commissioner's decision to reject a 2014 homeowner's insurance rate increase sought by the insurance industry.
North Carolina Court of Appeals Judges Douglas McCullough, Richard Dietz and John Tyson filed a decision Aug. 2 affirming the NCDOI decision.
In January 2014, the N.C. Rate Bureau requested a 25.6 percent increase in homeowner's insurance rates across the state.
In December 2014, state Insurance Commissioner Wayne Goodwin ruled that the Bureau's proposed rate increase was unsubstantiated by presented facts and ordered that no increase be awarded.
Goodwin determined the Bureau failed to meet its burden of proof regarding its filed rate increases and instead ordered rates that resulted in no changes to the overall statewide average rate level.
"This represents a victory for all consumers in North Carolina," Goodwin said in a news release. "I rejected the insurance industry's proposed rate increase because I felt it was unjust and I am very pleased that the Court agreed with my ruling. This action will save homeowners hundreds of millions of dollars in insurance premiums."
The Bureau filed notice of appeal from Goodwin's order Jan. 16, 2015.
In the court of appeal's conclusion, McCullough wrote, "Upon a full review of the Commissioner's order, we hold the order reflects a careful, thoughtful, and thorough consideration of the evidence.
"The evidence in the record supports the Commissioner's critical findings and ultimate conclusions. This Court will not second-guess the Commissioner's determinations as to the credibility of the witnesses or the weight to be given their testimony. Therefore, the order of the Commissioner is affirmed."
The Rate Bureau, which is not part of the Department of Insurance and represents all companies writing homeowners' insurance in the state, requested a statewide average rate increase of 25.3 percent, varying by territory.
The requested rate changes ranged from -2.7 percent to 35 percent. In the request, the Rate Bureau justified the increased premiums because of actual and projected losses based on computer models.
A public hearing in Raleigh on the request began in October and lasted through November 2015.
Goodwin's ruling came after two weeks of hearings and found no factors to justify the increase the industry had requested,
While the state insurance commissioner announced zero overall change, Brunswick County homeowners' rates decreased in 2015.
In the beach areas of Brunswick, Carteret, New Hanover, Onslow and Pender counties, homeowners insurance rates decreased by an average of 5.6 percent.
Homeowners in the eastern coastal regions of those counties, for which the rate bureau also requested a 35-percent increase, decreased by an average of 12 percent.
In the western coastal areas of those counties, the Rate Bureau proposed a 1.9 percent decrease, and got an 18 percent decrease in the rates, which gave homeowners in the western region of Brunswick County the most substantial decreases.
The homeowners insurance rates took effect June 1, 2015, and resulted in a 0.3 average decrease for the whole state.
But renters' insurance rates increased by 11.2 percent while condo insurance rates increased by 8.1 percent.
In March 2013, Goodwin signed a settlement agreement with homeowners' insurers allowing an overall statewide average rate increase of 7 percent beginning July 1, 2013. The insurance companies requested an overall statewide average rate increase of 17.7 percent Oct. 1, 2012. The difference between the requested and settled rates amounted to $237 million.
The insurance industry, represented by the Rate Bureau, says the 2013 rate increases were inadequate. The 2014 proposal was a follow-up rate case seeking adjustment.
The court's decision ended a two-and-a half-year appeal process.
Brian Slattery is a staff writer for the Beacon. Reach him at 754-6890 or bslattery@brunswickbeacon.com.
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