North Carolina Insurance

The state car insurers trying to increase their prices by an average of 13 per cent, the industry’s largest proposed increase in more than a decade.

The regulators are likely to object to the request, as they have done in recent years.

Demand for higher prices, we Friday afternoon, it is pushed by the rising costs of health care and auto repairs and a slowdown of declining accident rate, said Ray Evans, general manager CN rate Bureau. The Bureau represents 144 self-assurance that their business in the state.

The rate request is the largest since the Bureau has sought an increase of 13.8 per cent in 1994.

“Whenever we see, [a request for] dramatic jump that we have any questions. We are sceptical,” said spokeswoman Chrissy Pearson Insurance Department. “Based on our experience, we can only rarely, if ever, given the need for such a dramatic leap from one year to another.”

The requested increase amounts to an average of about $ 83 per vehicle, “said Pearson. The Department of Insurance estimates that this would be an insurance office annual revenue of $ 510 million.

The branch the last increase in 2006.

Officials of the State Department of Insurance, the application was filed. The new rates should be finally by the Commissioner Jim Long, or if the insurer to decide on its decision, an appeal by the courts.

The result of the long judicial process is generally a rate different from what industry.

During 2006, for example, the insurer request an increase of 7.4 percent. After negotiations with the Division of Insurance, the insurer agreed to a decline of 2.9 percent. The insurance division assumes that the difference between the growth of industry and end state rates represent a savings account for consumers of $ 349 million.

The industry should not always try to increase, if it is a game application was filed. In 2003, asked him a decline of 10 per cent. But the pages on a decline of 15 percent of rents.

The maximum rate of submission address rising prices that insurers, costs can North Carolina pilot. The requested increase for motorcyclists is less than 1 per cent.

Thank you for the competition, many drivers charge insurers less than the maximum rate. In addition, the price to assess the Office of the hike, an increase of the average. The increase would distinguish in different parts of the country and with different types of reports.

Lange must be a decision on the request within 50 days - unless the Office and assess the Insurance Department staff to negotiate and reach an agreement before then. If long rejected the request for sentence, he would implement a hearing.

The earliest that the new rates are likely to go into force on October 1.

The last time the two parties to negotiate a settlement was founded in 2002.

The rate filing reflects Bureau projections of what future insurance costs are calculated on the basis of 2006 claims.

Evans said that medical costs and fix the prices of cars were up 3 to 5 per cent per annum. In addition, the costs of the activity of insurance companies has been increasing by 4 per cent per annum.

Decline in the number of accidents gap, inflationary pressures in recent years, but this decline has reached bottom, “said Evans.

Property claims are rejected an average of 2.7 per cent in the last three years, but only 0.9 per cent during the last 18 months, said Michael R. Strickland Henderson Moore and youth, the rate of General Counsel Office.

Evans said the state has reaped all the benefits of security initiatives in recent years, for example, the click-it-or-Ticket seat belt campaign DUI checkpoints and finished his education admissions requirements of new drivers.