Insurance Commissioner Goodwin: Allstate to Refund $680,000 to Certain Drivers

More than 1,800 North Carolina automobile drivers insured by Allstate will receive refunds totalling $680,000, announced state Insurance Commissioner Wayne Goodwin.

"My expert staff at the Department of Insurance received a complaint from an insured driver and, after digging into the problem very diligently, determined that she was due a refund. Then we pursued our investigation even further and discovered that Allstate had made the same mistake elsewhere. As a result, more than three-quarters of a million dollars will be distributed back to 1,803 drivers in rebates averaging $378 each. Having a state-based insurance regulator and a top-notch investigative team are the cause of this big win for consumers," said Commissioner of Insurance Goodwin.

For further details, go here, here, here, and here.

During the first half of Goodwin's first term, North Carolina consumers have saved more than $645 million due to insurance cuts and refunds.

To contact the Department about your insurance policy questions or any other matter, then call toll-free 800-546-5664 or 919-733-3058 in the Raleigh area.

NC Drivers Start Receiving $50 Million in Insurance Refunds Today!

Commissioner Goodwin orders approximately one million policyholders to receive checks totaling $50 million

Insurance Commissioner Wayne Goodwin wants to remind North Carolinians that starting this week, approximately one million policyholders will begin receiving refund checks from their auto insurance companies totaling more than $50 million. The refund distribution is a result of the 2009 auto rate settlement with the N.C. Rate Bureau (NCRB) that Commissioner Goodwin signed last July.

"These refund checks represent instances where North Carolina drivers were paying too much for their auto insurance, and I'm glad that these extra premium dollars plus interest will go back into their wallets," said Commissioner Goodwin. "The refund distribution will occur in two different waves, the first starting this week and the second starting on Nov. 1."

Refund checks will be mailed to eligible policyholders. According to the settlement language, companies writing only six-month policies and companies writing both six-month and 12-month policies that expire prior to May 1, 2010, should send out refunds May 1 - July 31, 2010. All other refunds should be sent Nov. 1, 2010 to Jan. 31, 2011.

Under the settlement, the NCRB may not file changes to auto rates until 2011, which means that the maximum allowable auto rates are locked in until Oct. 1, 2011 at the earliest.

"In addition to $50 million in refunds, the 2009 auto rate settlement saves North Carolina policyholders an estimated $545 million and is a good example of the on-going consumer protection efforts of this office," added Commissioner Goodwin.

For more information, go to www.ncdoi.com or this link. Previous reference to the details are found, in part, at this additional link here.

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.

Goodwin Orders 9.6 % Cuts in Workers Comp Insurance Rates, Implements Public Comment Period

Insurance Commissioner Wayne Goodwin today announced that he has settled the workers compensation rate filings from the North Carolina Rate Bureau, the organization that represents the state's workers compensation insurance companies. The settlement ordered a 9.6 percent decrease to the voluntary market loss costs and no change (zero percent) to the assigned risk markets. The changes are effective April 1, 2010.

"I'm also proud that we were able to implement a public comment period for this filing, and I look forward to continuing this practice for future rate filings that the Department handles," said Commissioner Goodwin.

According to the Raleigh News & Observer, Insurance Commissioner Wayne Goodwin's order "is expected to generate more than $119 million in annual savings for the state's employers."

The 9.6 percent decrease, which takes effect in April, follows a 4.4 percent decline this year.The full filings and settlements are available for public review on the Department's Web site. Visit by clicking on this link and search for Serff Tracking numbers NCPC-126289369 and NCPC-126289290.

Goodwin's news complements his earlier feat this year of a significant automobile insurance rate cut that involved a rollback of and freezing of the rates - which saved drivers $450 million - and additional refunds of $50 million.

"I am very pleased with the work of my excellent expert staff, who join me in our ongoing efforts to protect consumers - families and small business owners, in particular - during these challenging economic times," said Goodwin.

Insurance Commissioner Wayne Goodwin Rolls Back Auto Insurance Rates, Freezes Them, and Orders Refunds

Goodwin Signs Settlement That Decreases Auto Rates and Freezes Them Until At Least 2011: Approximately One Million Policyholders to Receive Refund Checks Together Totaling more than $50 Million.

July 15, 2009

RALEIGH — Insurance Commissioner Wayne Goodwin today signed a settlement with the North Carolina Rate Bureau that will roll back private passenger auto insurance rates to just under 2006 levels; the changes will go into effect on Nov. 1, and are retroactive to Jan. 1.

The North Carolina Rate Bureau (NCRB) is an independent organization that represents all auto insurance companies in the state.

The settlement does away with the NCRB’s implemented 9.4 percent 2008 rate increase and denies their 2009 request for an additional 1.4 percent rate increase and includes an additional .5% decrease. Under the settlement, the NCRB may not file changes to auto rates until 2011, which means that the maximum allowable auto rates are locked in until Oct. 1, 2011 at the earliest. This saves North Carolina policyholders an estimated $545 million over this time period.

“I’m thrilled that North Carolina drivers will see a decrease in their auto insurance rates,” said Commissioner Goodwin. “Drivers will not only see lower rates, but many will also receive refund checks beginning in mid-2010 that may together total more than $50 million. In this economy, every dollar counts, and I am committed to protecting consumers through fair ratemaking.”

The refunds stem from a dispute between the Department and the NCRB over rates ordered in 2008. During the appeals process, the NCRB implemented an interim 9.4 percent rate increase that went into effect on Jan.1 of this year. In cases where insurance companies charged policyholders more than the rates determined by this settlement, insurance companies are required by statute to refund the difference between the rates charged and the settled rates, with interest.

“With this rate rollback, the effect is that I will have capped rates for the five year period spanning from 2006 through 2011,” added Insurance Commissioner Goodwin.

The Department of Insurance has consistently issued small or no rate increases, and in many cases has ordered rate decreases. Combined, this has potentially saved drivers more that $5 billion over the last 25 years.

To learn more about this terrific news for consumers, a sample of TV video and newspaper coverage is here, here, here, here, and here. The Department's official press release is here.