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When one considers an insurance company can not just wake up one morning and decide to increase rates.

It's a pretty drawn our process.

The insurance companies, through the N C Rate Bureau, provide loss data for a presecribed period of time.

The Rate Bureau digests that data and on behalf of the Companies files for a rate increase with the Department of Insurance.

Hearings are held by the Department at which anyone is allowed to sit in and hear the data being presented. They can even comment and provide their input before the Department rules on the rate increase request.

The Department can grant the request; deny it; or come up with some modified increase.

The Insurance Companies can accept the ruling or challenge it in court.

I may have missed something; but I do not believe the Commission challenged the increase. Thus it was granted.

So now, some folks want to challenge the increase. Go for it.

BUT, remember insurance is a business. If the insurance companies begin to feel they can not have a reasonable opportunity to make a profit, they withdraw from the state and stop writing insurance.

Look at one major carrier which recently stopped writing coverage east of the Intracoastal.

Look at the state of Florida. They took a similar posture in challenging insurance companies on adequate rates. Carriers stopped writing insurance; they withdrew from the state.

Now the leading provider of property insurance in Florida is a state run insurance company.

With our state's adept ability to manage finances, look at the delays in getting tax refunds out, is it wise to push in this direction and create a scenario where the state begins providing insurance coverage?

Think about that. You have your coverage with the state run company. Your house burns down or gets blown down in a hurricane. You file your claim report. The state adjuster confirms there may be a delay in getting your claim paid as the state has a cash flow problem.

You and your family continue sleeping in your car or on the ground in sleeping bags if the weather allows; using the garden hose for showers; and cook all your meals over charcoal. Oh, and no internet or cable while you wait.

Is that what you want?


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