GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 229*

 
 
Short Title:	LRC Study Insurance Availability Beach Areas.	()	
Sponsors:	Representatives Redwine, Dedmon, Hurley, Nye, Smith;  Preston and Hill.	
Referred to:	Rules, Calendar, and Operations of the House.	
February 26, 2001

	A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE LEGISLATIVE RESEARCH COMMISsION TO CONTINUE TO STUDY ISSUES RELATED TO INSURANCE AVAILABILITY IN BEACH AND COASTAL AREAS; to request the legislative RESEARCH commission, in establishing the study committee, to reconstitute the same membership as that appointed for the study committee in the 2000 interim; AND TO APPROPRIATE FUNDS AS RECOMMENDED BY THE LEGISLATIVE RESEARCH COMMISSION.

The General Assembly of North Carolina enacts:
SECTION 1.    The Legislative Research Commission may study the provisions of Articles 45 and 46 of Chapter 58 of the General Statutes, other relevant portions of the General Statutes, and the plans and operations of the North Carolina Insurance Underwriting Association ("Beach Plan") and the North Carolina Joint Underwriting Association ("FAIR Plan"). If the Commission undertakes the study, it may consider all issues related to the availability of insurance coverage, including wind coverage, in the beach and coastal areas of the State.  The Commission may study the problems associated with the lack of availability of coverage in the beach and coastal areas, including:
(1)	The unwillingness of insurance carriers to write their proportionate share of coverage in those areas of the State.
(2)	The inadequacy and inefficiency of the operations of the FAIR and Beach Plans.
(3)	The restrictiveness of the coverage provided by the FAIR and Beach Plans.
The Commission may also consider: 
(1)	All possible options to encourage insurance carriers to write more insurance policies in the beach and coastal areas.
(2)	Whether the Beach Plan and possibly the FAIR Plan should be administered through a reinsurance facility concept such as the North Carolina Motor Vehicle Reinsurance Facility.
(3)	Whether the temporary rate cap on wind‑only policies written in the coastal area should be removed.
(4)	The option of directing members of the FAIR and Beach Plans to provide coverage, where otherwise eligible except for geographic location, with the option to cede the entire exposure or portions thereof to the Plans.
(5)	The benefits of allowing annual credit to insurance carriers based on insurance exposure written as opposed to insurance premium written, as specified in G.S. 58‑45‑25.
(6)	Possible revisions of the participation formula of the Beach Plan.
If this study is undertaken, the Commission shall report to the 2002 Session of the 2001 General Assembly on its findings and may make any legislative recommendations it considers appropriate.
SECTION 2.  If the Legislative Research Commission undertakes the study authorized by Section 1 of this act, the membership and chairmanship of the study committee may be the same as that of the former Insurance Availability in Beach and Coastal Areas Committee during the 1999‑2000 interim as authorized by Section 2.1 of S.L. 2000‑138.
SECTION 3.  There is appropriated from the General Fund to the General Assembly the sum of fifteen thousand dollars ($15,000) for the 2001‑2002 fiscal year to implement this act.
SECTION 4.  This act becomes effective July 1, 2001.