NU Online News Service, Sept. 23, 1:09 p.m. EDT
The National Association of Mutual Insurance Companies today honored two state lawmakers for legislation reforming operations of the North Carolina Beach Plan property insurance pool.
Named "State Legislators of the Year" today, during NAMIC's annual convention being held in Atlanta, were Rep. Hugh Holliman, D-Lexington, and Sen. Tony Rand, D-Cumberland.
NAMIC said the two had played "crucial roles" in securing passage of a Beach Plan overhaul measure that restored the state-run facility to its original role as an insurer of last resort.
Under the measure signed into law by Democratic Gov. Beverly Perdue, coastal homeowners covered by the Beach Plan now can obtain only $750,000 in coverage per dwelling, half of the $1.5 million previously available. This will leave an estimated 3,000 homeowners who will have to seek coverage from private insurers for homes requiring more than $750,000 in coverage.
Last year an industry-sponsored report found that the Beach Plan in the event of a major storm could face possibly $7 billion in claims but would have only $1.5 billion on hand to pay them.
Rep Holliman, the House Democratic majority leader, and Sen. Rand, the Senate Democratic majority leader, last year co-chaired the Joint Select Study Committee on the Potential Impact of Major Hurricanes on the North Carolina Insurance Industry.
NAMIC noted that the recommendations presented by the committee were used as the basis for HB 1305, legislation that will, "among other things, return the Beach Plan to its original role as a true market of last resort and create a long-term, reasonable approach for paying for catastrophic losses."
Chuck Chamness, NAMIC's president and chief executive officer, in announcing the award winners said, "Representative Holliman and Senator Rand are both outstanding legislators firmly committed to efficient and competitive insurance markets. Both played crucial roles in the passage of this much-needed legislation that will help ensure the affordability and availability of property insurance in North Carolina."
Mr. Holliman chairs the House Financial Institutions Committee and is vice chairman of the Finance Committee. He also serves on the Insurance Committee. Mr. Rand has served more than 11 terms in the state Senate and chairs the Rules Committee as well as being vice chairman of the Commerce Committee.
"While the insurance industry also benefitted from working closely together in a more open and collaborative relationship with Insurance Commissioner Wayne Goodwin and his staff, the successful passage of HB 1305 is due in no small part to the leadership and vigilance of Rep. Holliman and Sen. Rand. We thank them for their understanding of the issue and their diligence in shepherding this bill through the Legislature," Mr. Chamness said.
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