Tag Archive for: #mikecausey

TownTalk: NC Insurance Commissioner Mike Causey on Rates and More

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Anyone who owns a vacation home or rental property may know the difference between a homeowner’s insurance policy and a dwelling policy. They are two distinct types of coverage, and N.C. Insurance Commissioner Mike Causey has successfully negotiated an agreement that provides for a rate increase of 8 percent for dwelling policies.

The Rate Bureau had requested a 50.6 percent increase, but as the head of what Causey calls a consumer advocate agency, it’s his job to keep an eye on the bottom line to make sure that people who want and need insurance have access to the best information to make decisions about coverage.

“My job is to protect consumers…to make sure they’re getting a fair shake and (insurance) companies are financially solvent so that they can pay claims when needed,” he said on Thursday’s TownTalk.

Although the rates vary across the state – higher rates in counties along the coast and lower in some of the western counties, Vance County’s rate is just over half of that 8 percent level, Causey said – 4.8 or 4.9 percent.

The new rates take effect on Nov. 1.

Renters need to remember, however, that a dwelling policy is for the structure; renters still need to consider renters’ insurance to protect their personal property against, loss, theft or damage.

Causey explained that, as insurance commissioner, he is only able to offer two responses to a Rate Bureau for a rate request: yes or no.

So far, in his 8 years, his answer has always been “no,” which puts the request on a path that involves going to court. The dwelling policy rate request had been scheduled for later this month, but it was canceled when an agreement was reached in May.

“I’ve beem criticized for not going to court,” Causey said, but court cases are expensive and those costs get passed along to taxpayers. The way he sees it, “getting as close to 0 as you can get – that’s much better than going through that court process.”

So far, a request for a homeowner’s insurance rate increase is still on for October. During the required public comment period, Causey said he received more than 25,000 comments – not surprisingly – asking that rates not go up.

“I heard the message loud and clear,” Causey said.

With his consumer advocacy hat on, Causey reminds current policy holders to review their coverage regularly, shop around and choose financially sound companies that will be able to pay claims.

Make sure you ask your insurance agent about deductibles and make sure you ask for replacement value coverage.

“If you don’t have replacement value coverage, you’re not going to be happy with your claim,” he said. Having this type of coverage may cost a few dollars more in premiums, he said, but “it’s worth its weight in gold.”

Oh, and don’t fall for TV and internet ads. Choose local agents with local companies, he said.

Email him at mike.causey@ncdoi.gov, visit www.complaint.ncdoi.gov to file a complaint or phone the department 855.408.1212.

“We’re here to help and that’s the message I want to get out,” Causey said.

 

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NC Department of Insurance

Insurance Commissioner Mike Causey Visits Henderson For Chamber-Sponsored Event

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N.C. Department of Insurance Commissioner Mike Causey was in Henderson Tuesday and spoke to a room full of local insurance agents, business leaders and others from the community about what’s going on in the industry.

The event, sponsored by the Henderson-Vance Chamber of Commerce, was held in the Farm Bureau Room of Perry Memorial Library, which Causey noted was a fitting location for the program. Following his remarks, Causey entertained questions from the audience.

Causey is seeking a third term as the state’s insurance commissioner; he faces two Republican challengers in the Mar. 5 primary.

At the top of everybody’s minds is the proposed 40-plus percent rate hike presented recently to Causey by the N.C. Rate Bureau.

Causey told the group that state law requires just one word from the insurance commissioner with regard to a proposed rate hike: yes or no.

Causey said he’s always answered “no,” which means the proposal goes before the courts for a determination. The Rate Bureau has to submit a lot of paperwork that includes payout totals for claims and amounts paid for premiums.

The period for public comment continues through Feb. 2; so far, Causey said his department has gotten about 10,000 comments, the vast majority of which are against the rate hike.

He said he must wait until the comment period has closed before making a statement about the proposed rate hike. He said that likely would come sometime between Feb. 2 and Feb. 22; a court date most likely would come in October.

“In fairness to the insurance companies, they have paid out a lot in claims,” Causey explained, citing dozens of recent natural disasters from wildfires to hurricanes. “We all pay for it, no matter where you live.”

The insurance department oversees more than just homeowners’ insurance, Causey said. The Smart NC program,for example, helps consumers who have disputes with doctors, hospitals and medical bills. “It’s done a lot to help people,” he said.

The department’s fraud control group mainly focuses on white collar crime and there are sworn officers – federally funded – who investigate Social Security fraud.

“I talk about fraud so much because we’re paying for it,” Causey said. The “we” in this case is everyone who pays insurance of any kind. He said that about 20 cents of every dollar spent on insurance is used to combat fraud.

In the world of insurance, the rule of thumb is that 1 in 10 claims will be unfounded or fake. But when it comes to health care fraud, that number jumps to more than 4 in 10, he said.

Anyone who suspects fraud can report anonymously to the Department of Insurance. It takes less than a minute to file a complaint online, he said. The department fields about 6,000 calls a year.

If investigators determine that the fraud is a civil, rather than criminal, matter, the department sends out a warning letter that lets folks know that what they’ve done is wrong and they’ve been put on notice to stop.

Causey said more than 200 letters have been sent, and not one person has been a repeat offender.

“Sometimes it just takes getting their attention,” he said.

Another program available through DOI is the Lost Life Insurance Locator, which does exactly what the name implies – it helps locate life insurance policies. People who want to know if their deceased relatives have any life insurance policies that they don’t know about need only submit a bit of demographic information to find the answer.

“If it was written within the state, we’ll find it,” Causey said.

So far, the program has found more than $300 million in life insurance. Last year alone, the figure was $66 million.

Causey has in his possession a policy from 1908 that is signed by the very first person to hold the office of insurance commissioner in North Carolina. That man was James Young, an insurance agent from right here in Henderson. He served for 22 years, from 1899 to 1921.

Visit www.ncdoi.gov to find out more.

Check out Tuesday’s TownTalk at wizs.com to hear an interview with Commissioner Causey that was aired at 11 a.m.

TownTalk: NC Insurance Commissioner Discusses Rate Increases

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The proposal to raise homeowners’ insurance rates has been a hot topic of conversation lately for Insurance Commissioner Mike Causey, and he wants the people of North Carolina to understand one thing: He’s not the one asking for it.

In fact, Causey said on Tuesday’s TownTalk, he has said “no” to every request brought to him for consideration by the N.C. Rate Bureau, the group that is proposing the rate increase.

Causey is running for a third term as insurance commissioner and has two Republican challengers in the upcoming March primary elections.

Since the announcement was made a couple of weeks ago to raise rates by more than 40 percent, Causey said he and his office have gotten close to 10,000 comments. And, not surprisingly, he noted, those comments overwhelmingly are against a rate hike.

“Everybody’s basically saying the same thing,” he said in comments recorded on Monday for air on Tuesday’s program. Prices have gone up at the grocery store and the gas pump and folks can’t handle a bump in insurance rates.

The most recent rate hike came back in 2020 and after all was said and done, the original proposal of about 22 percent was negotiated down to about 8 percent, Causey said.

The General Assembly established the rate bureau in 1977 and Causey said it has created “a healthy and stable insurance market” for the state since its inception.

There was a public hearing held in Raleigh on Monday – it’s all part of the process in place when a rate hike is proposed. Causey said public comment will be open until Feb. 2.

With thousands of comments already received, Causey said he expects that number to get even  larger.

“It’s a big turnout because it’s such a big request,” he said.

Causey said he wants to bring more insurance companies to North Carolina to create more competition among carriers and to allow customers to shop around for the best rates. What he doesn’t want, however, is for” insurance companies charging us extra to pay their executives more.”

Visit www.ncdoi.gov and click on the link to send your comments about the proposal rate hike.

The Department of Insurance handles all sorts of issues, not just insurance rate hikes. Sharing relevant information to educate the public about insurance issues also is a part of what his department does, too.

“It’s important that people have a local insurance agent,” he said, to make sure you have the right kind of coverage for you or your business.

Those commercials for online agencies may sound tempting, but Causey said nothing can replace that local agent you can phone or visit to get your questions answered.

With a background as an insurance agent himself, Causey said his best tip is to make sure you have replacement value coverage.

“If you don’t have replacement value coverage, you get cash value,” he said. So that expensive furniture that set you back a few thousand dollars a few years ago has now depreciated, so if you submit a claim to replace it, without replacement value coverage, you’re only going to get that depreciated value.

“Replacement value coverage will pay for a brand-new item, regardless of the cost (of the lost item),” Causey said.

Email Causey at mike.causey@ncdoi.gov.

 

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NC Drivers May Soon Face Stricter Restrictions on Cell Phone Use

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State lawmakers are working on getting a bill passed that would ban NC drivers from talking on their cell phones while operating a motor vehicle.

HB 144 proposes fines for first offenses of talking on the phone while driving. Subsequent convictions would result in fines and insurance points.

Exceptions would allow drivers to talk on cell phones while parked. Drivers 18 and older would also be able to use a mounted cell phone if the call could be placed and ended with a single button.

Drivers who experience emergency situations and emergency responders are exempt under the proposed bill.

The bill needs the approval of the House, Senate and NC governor to officially become law.

According to a car accident lawyer Daytona beach, North Carolina currently bans texting while driving for all drivers and talking while driving for those younger than 18 and all school bus drivers.

In last week’s Town Talk interview with North Carolina Insurance Commissioner and State Fire Marshal Mike Causey, the topic of HB 144 was briefly discussed.

“Distracted driving is the leading cause of deadly accidents today,” said Causey. “Texting and talking while driving have killed so many people needlessly.”

Causey believes the bill, which has been brought up several times in past years, will pass this go around thanks to “broad bipartisan support.”

“The time is now right with the number of deadly accidents and the pressure it’s putting on raising auto insurance rates. It’s a common sense safety move that would also help hold down insurance rates.”

Causey, Insurance Comm./State Fire Marshal, Talks Recent Vance County Visit

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North Carolina Insurance Commissioner and State Fire Marshal Mike Causey was on Tuesday’s edition of WIZS’ Town Talk program to discuss his recent visit to various volunteer fire departments in Vance County.

Causey, who visited the Watkins, Bearpond, Epsom and Hicksboro volunteer fire departments on February 28, said it was a pleasure to make his first official visit to Vance County since taking office in January of 2017.

During his day-long visit, Causey presented grant checks for needed improvements, congratulated departments on their improved insurance ratings and discussed efforts to modernize the insurance industry with Joel T. Cheatham Insurance and Jeffrey Ayscue Allstate Agency representatives.

According to a press release from the NC Department of Insurance, Causey presented ceremonial grant checks in the following amounts: Watkins Community Volunteer Fire Department ($29,752); Epsom Fire Department ($11,572); Hicksboro Volunteer Fire Department ($29,765) and Bearpond Volunteer Fire Department ($5,893).

Causey reported that all NC fire department inspections are up-to-date, a feat that he said was accomplished by increasing the number of department inspectors from five to eight.

Prior to his taking office, some fire departments had not been inspected for 25+ years, according to Causey. “You want a department to be inspected, ideally, every five years. Since hiring more inspectors in 2017, we don’t have a single fire department that is backlogged.”

Two of the fire departments on Causey’s Vance County tour – Bearpond and Epsom – recently received improved fire ratings following inspections. Achieving a better rating can result in lowered insurance rates for businesses and homeowners in that fire district.

“Bearpond and Epsom have some real fine buildings; the people are first-class, dedicated firefighters,” said Causey. “It’s easy to see they’ve done the things they needed to do, including mutual aid agreements, to bring their fire rating up.”

When questioned on the national and state-wide trend of decreasing volunteerism, Causey replied, “It’s becoming harder to recruit and retain volunteer firefighters, that’s why you are seeing some departments going to a paid/volunteer combination. We are doing as much as we can at the state level to help the counties and volunteer departments.”

Causey’s trip followed a recent 4-3 vote by the Vance County Board of Commissioners to move ahead with a fire restructuring plan that includes funding paid part-time positions in the County’s volunteer fire departments.

“Volunteer firefighters are the backbone of fire departments across this nation. Across the state, 70% of firefighters are strictly volunteer,” Causey explained.

Junior firefighter programs aimed at getting the younger generation interested in firefighting is the best way to ensure the future of the business, according to Causey. “More and more high schools across the state are offering cadet programs for junior firefighters. Firefighters also go into elementary schools to get children interested.”

In the long run, Causey said the success of a fire department all comes down to the people involved. “You can have the best equipment, the most modern, up-to-date technology, but if you don’t have dedicated, committed people, it’s not going to work. I met good, dedicated people in Vance County.”