NC Department of Insurance denies 13.8 percent auto rate hike

RALEIGH, NC (WWAY) –The North Carolina Department of Insurance has denied a 13.8 percent auto rate increase.

On February 1, the North Carolina Rate Bureau, an independent organization representing all auto insurance companies doing business in the state, requested the increase.

According to a news release, Commissioner Mike Causey and Department experts reviewed the request and determined that a rate increase is not justified based on the data submitted.

When the Department of Insurance makes this determination, the next step in the process is to take the issue to a hearing where a hearing officer will listen to testimony from experts on both sides of the issue and decide what rate change, if any, is warranted.

The hearing will be September 11 at 10:00 a.m. at the Department of Insurance in Raleigh.

If the Rate Bureau wishes to appeal that decision, it can do so through the court system, and companies can raise rates while awaiting a decision from the courts. The difference in the ordered rate and the implemented rate must be held in escrow. If the Bureau loses its appeal, the escrowed money must be refunded to policyholders who paid too much.

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