NU Online News Service, Aug. 24, 2:36 p.m. EDT

Hurricane Irene winds have picked up enough to reach “major hurricane” status this morning, as the predicted storm track continues to move east.

According to the National Hurricane Center (NHC), Hurricane Irene is now a Category 3 storm, with winds of 115 mph.

Irene is scheduled to batter the Bahamas today, dumping 6-12 inches of rain. The storm could reach Category 4 status after passing these islands.

From there forecasters admit difficulty in charting Irene's path. The hurricane's predicted track since it formed has slowly shifted farther east each day, according to the NHC.

No longer is Florida in Irene's direct path in terms of landfall. Instead, Irene is expected to strike North Carolina's Outer Banks with 100-130 mph winds sometime Saturday as a weak Category 4 or strong Category 3 hurricane, says AccuWeather.com.

“Winds of these intense speeds can flatten trees and cause significant damage to homes and buildings,” reports Kristina Pydynowski, AccuWeather senior meteorologist.

Again, if Irene continues to move east, the wind impact on the Outer Banks will be much less, but a flooding storm surge will not be avoided, AccuWeather adds.

After somewhat weakening, Hurricane Irene's current predicted track has it heading for Long Island, N.Y., Connecticut, Rhode Island and Massachusetts late Sunday into early Monday, according to the five-day forecast from the NHC.

Residual Market Exposure Trends If Hurricane Irene continues along the current projected path, it will affect numerous residual property insurance markets from South Carolina to New England.

According to a July report from the Insurance Information Institute, total exposure to loss in the U.S. residual market has increased 81 percent from 2005 to 2010 ($419.5 billion to $757.9 billion).

While Florida's residual market accounts for a vast majority ($421.9 billion) of the total exposure to loss and about 1.5 million residential and commercial policies, Massachusetts has the next largest number of policies, with 215,570.

North Carolina's beach and windstorm plans have seen total exposure to loss increase 60 percent—from $43.3 billion in 2005 to $69.3 billion as of March 31. However, as with other beach and windstorm plans, rate inadequacy has increased as demand has surged, according to the report.

This year the plans accessed the capital markets for reinsurance and are now covered by a combined $506.8 million catastrophe bond.

Legislation in 2009 capped assessments on insurers at $1 billion and allows insurers to charge a 10 percent surcharge on every property policy in the state after a major storm if the plan hits the $1 billion threshold.

In 2008 a study by Milliman for the Property Casualty Insurers Association of America found the North Carolina Beach Plan was in significant trouble if a severe storm hit. The plan's ability to pay claims relied heavily on assessments. Even a small storm (1-in-50-year storm) would leave the plan with a $1.4 billion deficit.

According to AIR Worldwide, North Carolina ranks 11^th in insured coastal exposure with $132.8 billion as of 2007. Florida ranks first with nearly $2.5 trillion. New York is second with nearly $2.4 trillion.

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Hurricane Irene Reaches &lsquo;Major&rsquo; Status; Could Hit Outer Banks, N.C.

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Hurricane Irene Reaches ‘Major’ Status; Could Hit Outer Banks, N.C.