After months of speculation, NC homeowners’ insurance rate case heads to hearing

Nine months after companies writing homeowners' insurance proposed double-digit rate increases across North Carolina, the case remains unresolved.

After much speculation, it will now head to hearing on Monday, Oct. 7 — the first under state insurance commissioner Mike Causey's watch. In eight years as the commissioner, he's raised property insurance rates 16 times — all without a public hearing.

"It's happening," he told a crowd gathered at a candidates' forum at Caffe Luna in Raleigh last Tuesday night.

Causey, a Republican, is up for reelection Nov. 5, casting a greater spotlight on proceedings. His challenger, state Sen. Natasha Marcus, a Democrat, had predicted it would never go ahead.

On Friday afternoon, Causey's office confirmed the details.

The hearing will begin at 10 a.m. and be held in the second-floor hearing room at the Department of Insurance's office in Highwood Towers at 3200 Beechleaf Court in northeast Raleigh.

In January, the N.C. Rate Bureau, which represents companies that write insurance policies, asked for a statewide 42.2% average increase . It's asking for steeper increases along the coast.

On Feb. 6, Causey rejected the request , calling it "excessive and discriminatory."

North Carolina is one of very few states where a Rate Bureau still exists. In almost every other state, each carrier files its own homeowners' rates independently. But here, the Rate Bureau, created in 1977 by the General Assembly, has the responsibility to file and negotiate rates on behalf of the entire industry.

Under state law, if the commissioner rejects a proposed increase, he's required to send the proposal to a public hearing. Amy Funderburk, the department's general counsel, will be the hearing officer.

It's expected to last several weeks, Causey's office said.

State law gives the commissioner 45 days to issue an order once the hearing concludes.

The hearing is open to the public. Attendees will be seated on a first-come, first-served basis.

Transcripts of each day's hearing are expected to be posted online the following day.