Representatives of the North Carolina Department of Insurance (NCDOI) have requested a hearing to determine whether a filing to hike auto insurance rates in the state is justifiable.
The North Carolina Rate Bureau, an independent organization that represents auto insurance companies in the state, filed for a 13.8% rate increase on February 01.
NCDOI said in a statement, as reported by media outlet abc, that “a rate increase is not justified based on the data submitted.”
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
A hearing on the matter is set for September 11 at the Department of Insurance.
“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,”
abc quoted NCDOI as saying.
“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.”
Related stories:
Two state insurance associations join forces
Hollard acquires Progressive portfolio
.jpg)
