Higher car insurance rates?
Submitted by James Protzman on Thu, 01/17/2008 - 4:05pm
Just when you thought there weren't enough battles for us to fight, the wildfire of insurance company greed is spreading again in North Carolina. With the flames being fanned by NC Senator Tony Rand, North Carolina's automobile insurers are eager to let the market do its magic. This is going to be a long, hard fight, and before it goes nuclear, make sure you know who's on which side. It's actually pretty simple. The leadership in the North Carolina Senate is generally on the side of insurance companies making more profits, and Insurance Commissioner Jim Long is generally on the side of we the people.
The story was covered this week in several reports. WRAL-TV did a decent job laying out the major issues:
A General Assembly committee met for the first time to consider changing the way the state sets car insurance rates. The panel also wants to make sure dangerous drivers are paying their fair share for coverage.
"Is the regulatory system we have in place the best system that we can have?" asked Senate Majority Leader Tony Rand, D-Cumberland, co-chairman of the Joint Study Committee on Automobile Insurance Modernization. Rand assembled the committee in response to two bills he filed last year to change how automobile insurance rates are determined and disclosed. Insurance Commissioner Jim Long, a committee member, and consumer advocates opposed the changes. The committee will make recommendations in time for the General Assembly session in May.
One of Rand's bills would have stripped the commissioner of his ability to set automobile insurance rates. Instead of having the insurance industry appeal Long's rulings, the commissioners would have made him appeal the rates set by companies in court.
"Now, the insurance commissioner is judge and jury. And that's a concern," Rand said Wednesday.
That's a "concern" only if you're looking for rules that protect insurance companies as they seek to increase rates without any oversight beyond the magical "invisible hand of the free markets." And while I don't have time today to track down political contributions to Mr. Rand, I won't be surprised to learn that he's raking in the cash from insurance companies all around the nation who want to see the NC market opened for higher profits.
From there, the story gets a little complicated as it focuses on high-risk drivers. The system currently in place for managing the high-risk sector apparently needs a bit of adjustment. Long appears to agree, but added:
North Carolina's average premium of about $600 is ranked in the top 10 of states with the lowest insurance rates. The system is "the envy of many drivers in other states," he said. "Many, many companies are writing auto insurance in North Carolina and more are coming in every year."
So get this straight. There's no shortage of companies wanting to do business here. What's the problem? Why would Rand want to up-end the whole system?
I don't know the details, but it looks to me like there's some personal stuff going on here. Rand has probably told Big Insurance he'll make things right for them and Jim Long is standing in the way. Why else would Rand say something like this about a system that has given North Carolina drivers the 6th lowest rates in the nation:
"Where's the commissioner been the last 10 years on this? It's only when we got into it and asked questions that all this came up."
Finally, News 14 covered the story, featuring a quote from my friend Rob Thompson at NC PIRG.
“When consumers are forced to buy a product, that product has to be regulated by an independent third party,” said policy advocate, Rob Thompson.
The idea that an independent third party would be the North Carolina Senate scares the heck out of me. Please contact your House Representative and State Senator and tell them there are plenty of things they can be fixing without getting off track with something that ain't broke.
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I used to hear how high insurance rates are in NC
Mine are very low. I imagine that complaint is coming from people who have a lot of points. I thought this issue was dead. I was wrong.
Auto insurance rates
Thanks for highlighting this issue on BlueNC. If industry proposals become a reality, we can all bet on our rates shooting through the roof - insurers will be able to file increases however often they like and those increases will take effect immediately. Even if the the Commissioner can knock back those rates on appeal, consumers won't necessarily get a refund. If anyone out there has any questions or thoughts on this, feel free to contact me - rob@ncpirg.org. Cheers.
Thanks for coming by
and thanks for the work you do, Rob.
I can't imagine how Rand (or anyone else, for that matter) would think it was a good idea for the fox to be in charge of how much it costs to get into the hen house. How ridiculous.
And as for rates - I've lived in 4 states as an adult. NC is not high. I think the rates we pay are fair.
Be the change you wish to see in the world. --Gandhi
Rob
Does NC PIRG have an action campaign in mind for mobilizing citizens on this issue? It would be great if legislators were deluged with letters and calls a few times before they return to Raleigh . . . and then again once they arrive.
It will also be good to get statewide candidates on the record on this issue.
Do you have easy access to anything Hagan, Dalton, Smith, et al., have said about the proposed change?
Oooh.....good idea A.
I wonder if there's time to get a question about this into the LG debates in Asheville and Fayetteville! I'm going to go see. :)
Be the change you wish to see in the world. --Gandhi
Auto Insurance Action
I don't have anything currently set up on the site, but I plan on getting comments into legislators before session. Good idea.
I haven't heard any of the LG candidates say anything about this, but it would be a great question for debate.
If one were to ask a question, this is what I would say: "Do you favor the current auto insurance system in which the commissioner sets maximum rates or do you support industry-proposed changes that would allow individual companies to raise rates as high and as often as they would like?"
Heh
Sounds like you should be in the "push polling" business.
Good one.
Guess who is moderating the LG debate in Fayetteville?
Three guesses, and the first 2 don't count.
Me! (I suppose, "It is I" is the proper way to say or write it. But I digress.)
Coincidentally in light of the above discussion, the College Dems asked me to moderate the Fayetteville debate. They asked me by virtue of my serving as Chairman of the 8th Congressional District Democratic Executive Committee.
For the reasons others have stated above and as the Assistant Commissioner of Insurance for Jim Long, I believe the proposed question is a fair and excellent question that the people of this State need an answer to from candidates for Lt. Governor. After all, a Lt. Governor has the potential to cast a tie-breaking vote on this and any other subject vital to North Carolinians. I suggest that the question be forwarded to Douglas Massengill and other officers of the College Federation, and also Jerry Meek and Caroline Valand at NCDP, for immediate consideration.
Meanwhile, I encourage everyone reading this post who has a concern about the possible direction of the issue of automobile insurance (and how the Insurance Commissioner's dual role is to protect consumers from gouging and to ensure a viable, accessible insurance market) to go back to my posting here at BlueNC in Spring 2007. Also go to my "Wayne's World" blog, same time period. My posts provided some details of what the original Senate Bill 901 would have done had it passed last year. Remember, nothing ever truly dies in the legislature: Some issues - some good, many bad - can find themselves resurrected if there is enough juice, money, and power behind them. Just as it was a long time ago, in a galaxy far, far away, we're now seeing The Empire Strike Back as a sequel to our having prevented SB 901's passage in 2007.
I again commend the College Dems for leading the way on the LG debates.
Dalton
Wayne, it'd be interesting to hear what Dalton has to say about this insurance nonsense. Unless you're on the right side, it's a tough issue to talk your way out of.
Let's discuss this at the debate
Friends, after reading this and other recent posts, I believe I am as excited to answer your questions as you to ask them. The depth and breadth of issues being explored here confirms my hunch that the NCFCD’s lieutenant gubernatorial debates will be serious, thoughtful and revealing.
I proposed these debates because I believe a fair and open exchange of ideas is critical to the democratic process. If we are ever going to loosen lobbyists’ white-knuckled grip on Raleigh, we must demand campaigns in which candidates can’t hide behind consultants, cameras and corporate sponsors. The Democratic presidential nomination contest is one of the most exciting and dynamic races we’ve seen in years, and I don’t think it’s a coincidence that the candidates participated in dozens of debates. Voters are tired of focus-grouped platforms and personal attacks: It’s time for candidates to address the real issues facing our state.
I hope those of you in western North Carolina will join me in Asheville tomorrow for the first of six debates scheduled statewide. I want to thank my fellow candidates for agreeing to participate, and hope Walter Dalton and Hampton Dellinger will soon join myself and Dan Besse in committing to the full slate of debates organized by the College Dems. I also want to thank the College Dems for their hard work and dedication: I believe their leadership bodes well for the future of our party.
As for the question of SB 901, I share your concerns: I firmly believe government’s job is to protect its citizens, not companies’ profit margins. As lieutenant governor, I will always put North Carolinans’ interests first. That’s been my aim as a candidate, and it will be my highest priority in Raleigh.
I look forward to seeing many of you at UNCA tomorrow at 2 p.m.
With best wishes, I am sincerely,
Pat Smathers
www.patsmathers2008.com
Thanks for stopping in, Pat!
I'll see you next week in Fayetteville. I'm so glad you and Dan are committed to doing all of the debates. If Hampton and Walter can't be bothered with all of the debates, I'm not sure that North Carolinians should be bothered to vote for them. It's really not too much to ask to let people hear your points of view, where you agree, where you disagree.
I am loving this race.
Be the change you wish to see in the world. --Gandhi
With the attention they give BlueNC...
I wouldn't be surprised if all four of them chimed in on this very thread to address the issue. While BlueNC has given me some headaches in the presidential primary department, it's a virtual gold mine when it comes to the LG candidates. Such a great means of not only promoting dialogue, but getting to the bottom of many an issue.
Headaches
I've managed to avoid most of the presidential headaches, but it has required being purposefully disengaged.
Tony for Emperor of Chariot insurance in North Carolina?
"Now, the insurance commissioner is judge and jury. And that's a concern," Rand said Wednesday.
So Tony wants to set the rates and be the new insurance commissoner......This guy is worst than George Bush on being the Emperor of North Carolina since Jim Black....
Thanks for the informative posts!
I started my list in my memory bank, (my head) and in one column the title is 'corporatist', and my other column is 'peoples rep'. Tony Rand is now at the head of that 'corporatist' list for state legislators. And Jim Long is in the other column. It makes things so much easier for me to keep track of who's on my side.