A report on the North Carolina Beach Fund, the state's property insurer of last resort, says a worst-case storm season could create a more than $6 billion deficit if the plan remains underfunded.

The report from the consulting firm Milliman, sponsored by the Property Casualty Insurers Association of America, said that taking into account the fund's current surplus and reinsurance coverage, in the case of a storm season with a 1-in-10-year loss scenario, the fund would run a deficit of $343 million on losses of $879 million. In a worst-case scenario, a 1-in-250-year storm season, the fund would suffer a deficit of $6.2 billion.

The plan currently insures almost $70 billion worth of coastal property, PCI said, based on Milliman's report. The plan currently has capacity to pay $1.5 billion worth of claims only after approximately $600 million in assessments to property insurers.

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