Searing: Goodwin Supports Consumer Advocates

Adam Searing of the NC Justice Center had this to say on the Progressive Pulse, a NC Policy Watch blog, yesterday:

The nation’s state insurance commissioners, meeting together today in Orlando, rejected attempts to weaken at the state level the federal health reform requirement that health insurers spend 80- 85% of the premium dollars they collect on actually providing medical care. Good for them and good for NC’s Insurance Commissioner Wayne Goodwin for supporting consumer advocates like the NC Justice Center and beating back industry efforts to weaken these standards.

Commissioner Goodwin Leads National Discussion of Readability Standards for Insurance Policies

NAIC public hearing explores the issue of the use of consumer-friendly, "plain language" in insurance policies

Insurance Commissioner Wayne Goodwin announced his participation in the national discussion surrounding the need for insurance policies - particularly health insurance policies - to use plain, more consumer-friendly language.

The National Association of Insurance Commissioners (NAIC) held a public hearing in mid-March made up of three panels of insurance regulators, NAIC consumer representatives and insurance industry representatives which provided testimony and presentations at the hearing. In his role as the chair of the Consumer Connections Working Group, Commissioner Goodwin led the public hearing and discussion in Denver.

"Today's hearing provides an important starting point for discussion on the issue of insurance contract readability standards," said Commissioner Goodwin. "The current economic downturn makes it increasingly important that consumers are able to understand their insurance policies so they are not at a financial disadvantage and can make well-informed decisions about their insurance needs."

The readability hearing focused on the following issues:

To which lines of insurance should readability standards apply?

Should an entire insurance policy be required to be scored?

Should defined terms in a policy be included in the scoring process?

Should the readability standard score continue to be the current Flesch Reading Ease Score (a number from 0 to 100) or should it be changed to another measure (such as the Flesch-Kincaid Grade Level)?

What other logistical questions are states likely to encounter if they move forward to revise their standards?

In addition to chairing the NAIC Consumer Connections Working Group, Commissioner Goodwin serves on the Consumer Participation Board of Trustees as one of only five state insurance regulators represented.

Goodwin's participation in these groups is another example of his Good Government Initiative, which strives to increase transparency, access and customer service in state government. Other Good Government Initiative projects of Goodwin's include the Department's online suggestion box, added Web presence through social media sites and a mobile Web site, as well as a general increase in consumer outreach and public availability.

Insurance Commissioner Goodwin: NC Has the Lowest Auto Rates in the South

"We're the Largest State in the Whole Country with the Lowest Insurance Rates," He Says

Insurance Commissioner Wayne Goodwin today announced that North Carolina drivers pay an average of $591.11 each year for auto insurance, the 8th lowest in the country and the lowest in the South according to a report from the National Association of Insurance Commissioners (NAIC).

"I'm pleased that North Carolina remains one of the most affordable states in the country for auto insurance and definitely the best value in the southeast," said Commissioner Goodwin. "This ranking comes just a few months after I signed a settlement that rolls back auto insurance rates to 2006 levels, freezes them until at least 2011, and gives approximately $50 million back to many North Carolina drivers in the form of refund checks."

It's important to note that North Carolina is the most populous state among the 10 states with the lowest auto rates. The top 10 states with the lowest auto insurance rates are:

1. North Dakota
2. Iowa
3. South Dakota
4. Nebraska
5. Idaho
6. Kansas
7. Wisconsin
8. North Carolina
9. Maine
10.Indiana

Contributing to North Carolina's low auto insurance rates is the state's unique ratemaking process; North Carolina is one of the only states to negotiate standardized, across-the-board rates for all companies, depending on territory. The rate set by the Insurance Commissioner is the cap, and companies writing traditional policies can only deviate from this rate by offering discounts. As a result, most drivers enjoy some sort of discount.

Commissioner Goodwin added, "this good news for North Carolina families and businesses is especially welcome in these challenging economic times."

The NAIC report compares the costs of personal automobile insurance in all 50 states and the District of Columbia, based on 2007 data. North Carolina's neighboring states rank as follows: Tennessee:14th; Virginia: 17th; South Carolina: 30th; Georgia: 31st.

"There should be no question about it: Considering this news and my announcements about recovering $20 Million for consumers in 2009 and saving NC drivers $545 Million over the next two years, North Carolina's Commissioner of Insurance and its Department of Insurance fight strongly everyday to protect consumers with fair ratemaking," added Goodwin.