Chairman William Wainwright (D-Craven) calls the meeting back to order and announces that there will be a vote taken today, either at 12:45 before session at 1:00 or if they really want to talk, they can come back 15 minutes after session and vote at 5:59 pm. Of note: the General Assembly week ends when they are finished with their business on Thursdays – the parking lot empties right after session adjourns on Thursdays.
The Owens amendment is still on the table – 1 percent deductible. At some point, hopefully the fund will eventually have enough money to pay claims and by fully funded. That, of course would depend on if a catastrophic storm hits the coast. Right now the deductible is for any storm, this amendment would make the Beach Plan applicable to only named storms. With this amendment, risk will be higher for insurance companies and therefore rates will go up. Dept of insurance rep says it will have an impact on those insured thru the Beach Plan, shouldn’t have an impact on rates in the western part of the state. Owens amendment is adopted by a voice vote.
Rep Danny McComas (R-New Hanover), amendment eliminates the mandate to have flood insurance – some areas further inland don’t need it. Holliman says if the property is in a flood plane, they should have flood insurance. Leubke argues that the amendment is unnecessary but Wainwright says the amendment is needed for clarification. Rep Jennifer Weiss (D-Wake) says to leave it up to insurance companies to determine. Rep David Lewis (R-Harnett) asks if the Beach plan covers floods? No. It’s under federal flood insurance and shoulld not be required since the Beach plan deals with wind and other damage, not flood. Insurance Dept rep. is not opposed to the amendment although they encourage the purchase of flood insurance. McComas says if you don’t have a mortgage and if you don’t live in a flood plan, you should not be required to buy it. Vote on amendment is 16-7.
Rep Dewey Hill (D-Columbus) amendment would bring the limit of Beach plan coverage for houses of up to $750,000 value back up to $1.5 million. Owens says these people had mortgages and had to re-finance and claims this will put alot of people into foreclosure. Holliman says if you own a $1.5 million beach house, you can get insurance on the private market. The beach plan is an insurer of last resort. Amendment fails 6-18.
Rep Van Braxton, (D-Lenoir), amendment would require a state audit to ensure the money stays where it is supposed to. Holliman questions if the beach plan, since it is not a state agency, should be a state audit or under an independent audit through the Dept of Insurance. Braxton amendment would require annual audit, rather than the oversight provision in the bill. Perfecting amendment would move the audit under dept of Insurance. Amendment passes by a voice vote.
Members express concerns about what impact this will have on non-coastal property owners.
The committee breaks for session without taking a vote.
