North Carolina went from bad to worse in R Street's annual rankings of state insurance regulation.

Coming in at No. 49 last year in the R Street Institute's Insurance Regulation Report Card, the Tar Heel state dropped to No. 50 and received an "F" grade for the second year in a row.

One negative trend in North Carolina is the growth of residual markets, both in Home and Auto. (A residual market acts as a coverage source of last resort for those who have been rejected by voluntary market insurers.) Lawmakers in Texas also passed legislation that would allow their residual property insurance markets to grow, which contributed to the state's decresed ranking from No. 28 in 2014 to No. 47 this year.

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