House approves bill for bonds to help pay catastrophic insurance - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

House approves bill for bonds to help pay catastrophic insurance claims

A bill passed by the state House would create an Authority with the ability to float bonds to help pay for insurance claims from a catastrophic event A bill passed by the state House would create an Authority with the ability to float bonds to help pay for insurance claims from a catastrophic event
RALEIGH, NC (WECT) - Representative Chris Millis (R-Pender) is one of the primary sponsors of the Property Insurance Fairness bill, which passed the state House on Wednesday and is headed for the Senate. 

The bill is designed to help the state pay for damages, should a major catastrophic event, or several events like hurricanes, hit in a short period of time and substantially impact the state's insurance industry. 

HB 182 allows the creation of the NC Recovery Finance Authority, which would be given the ability to finance public bonds to pay off claims that exceed the amount kept in reserve by the state and insurance companies. That total is now around $3.7 billion, according to Millis. The bonds would not be used until those funds are exhausted.

Millis said issuing bonds would also help replenish the pool of reserve funding in short order, without assessed policy-holders having to shoulder that immediate burden. Repaying the bonds can then be done over a longer period of time, making it easier for customers to afford. 

In introducing this bill to fellow members of the state House, Millis said this model has been used successfully by other states that are exposed to potential events like hurricanes. He added that having the safety net of the bonds would hopefully encourage more insurance companies to write policies in North Carolina, which could lower costs.

To read the text of HB 182 click here: http://bit.ly/1Pkbr1C

Copyright 2015 WECT. All rights reserved

  • PoliticsMore>>

  • Wilmington City Council opposes idea to move local elections

    Wilmington City Council opposes idea to move local elections

    Friday, March 24 2017 3:35 PM EDT2017-03-24 19:35:44 GMT
    Proposed legislation at the NCGA would move municipal elections to even numbered years. (Source: WECT)Proposed legislation at the NCGA would move municipal elections to even numbered years. (Source: WECT)

    Among other reasons, council members say the election move would not save any money. 

    More >>

    Among other reasons, council members say the election move would not save any money. 

    More >>
  • White House, in gamble, demands make-or-break health vote

    White House, in gamble, demands make-or-break health vote

    Thursday, March 23 2017 11:17 PM EDT2017-03-24 03:17:57 GMT
    Thursday, March 23 2017 11:17 PM EDT2017-03-24 03:17:57 GMT

    A late-night meeting of moderate-leaning members Wednesday broke up without resolution or a deal as most lawmakers left out of side exits and avoided talking to reporters.

    More >>

    A late-night meeting of moderate-leaning members Wednesday broke up without resolution or a deal as most lawmakers left out of side exits and avoided talking to reporters.

    More >>
  • Democrat Ford accuses Cooper of 'moving the goal post' on HB2 repeal

    Democrat Ford accuses Cooper of 'moving the goal post' on HB2 repeal

    Wednesday, March 22 2017 4:14 PM EDT2017-03-22 20:14:00 GMT
    (Source: Office of the Governor)(Source: Office of the Governor)

    Democrat State Senator Joel Ford (Mecklenburg) accused Democrat Governor Roy Cooper of “moving the goal post” on a deal to repeal House Bill 2.

    More >>

    Democrat State Senator Joel Ford (Mecklenburg) accused Democrat Governor Roy Cooper of “moving the goal post” on a deal to repeal House Bill 2.

    More >>
Powered by Frankly