Eastern North Carolina Supporting Wayne Goodwin

With endorsements from newspapers in Elizabeth City, Greenville and Wilmington -- and with his not approving two insurance rates hikes that would have disproportionately affected the coast -- it would appear that Eastern North Carolina will lean toward re-electing Wayne Goodwin as the state's Insurance Commissioner.

Goodwin Message Reaches TV Audiences Statewide During Six-Week Run

This week incumbent North Carolina Insurance Commissioner Wayne Goodwin's third TV ad entered the rotation as the two-week countdown to Election Day began. In total, Goodwin's ads will have run over a six week period.

His first ad is a direct conversation by the candidate, looking straight into the camera to discuss the highlights of his term in office.

Goodwin's second ad features Buncombe County's Van Duncan, the popular Sheriff there. The sheriff, speaking on his behalf and for other law enforcement officers, heralds the state insurance commissioner's highly successful fraud-fighting efforts.

The third ad again includes Goodwin. This time the viewer is peeking in on a kitchen conversation between the state official and a coastal/eastern North Carolina resident. Insurance Commissioner Goodwin pledges to always fight for eastern North Carolina, just as valiantly and intensely as he did immediately after Hurricane Irene struck in 2011.

Meanwhile, the Council of State member has had ongoing short spots on NCSPIN, on social media, and on statewide radio.

To date, it appears that Goodwin's Republican challenger, Mike Causey, has gone on radio and purchased a small buy on NCSPIN but no broadcast or cable TV advertising that could be found.

Regardless of whomever the winner is on Election Night, it is fair to say that the candidates will have spent the largest sum of money ever spent on TV in a North Carolina insurance commissioner race. And it is also very fair - and accurate - to say that Wayne Goodwin is the only candidate for state Insurance Commissioner with a proven record of fighting for consumers.

Insurance Commissioner Goodwin Pleased With Property Ratemaking Reforms

Says There is Still More Work to Do for Consumers & the Marketplace

The North Carolina General Assembly, with the support and strong encouragement of Insurance Commissioner Wayne Goodwin, recently enacted a package of property rate-making reforms.

"I'm pleased that the various stakeholders had input into the final product," said Goodwin. "Like with lawmaking in general, the results were in large part a series of compromises. Codifying my own personal practice of requiring public comment periods and granting me additional flexibility to negotiate or decide homeowners' rate cases were particular high marks of the new law."

A previous discussion about Goodwin's interest in reforms appeared on this blog several months ago.

The new law, introduced by GOP Senator Harry Brown after receiving a report from a select legislative study committee, will please persons in each of North Carolina's geographical regions, including the eastern/coastal area.

"I believe these measures contribute to my focus on targeted reforms and more fairness and setting adequate rates," added Commissioner Goodwin. "I'm doing what I can to strike the appropriate balance as we try to respond to the 'hard market' of the homeowners' insurance line of business. Taming that crisis is a goal of my administration."

Goodwin reminds us what this is ultimately about: Money and fairness. Consumers want to pay as little as they can for the promise that their claims will be paid; insurance agents want the ability to serve their customers with the best-priced, most-available products; and, of course, insurance companies want to make a reasonable profit so they will continue to do business and compete more in North Carolina.

Consumers and the industry benefit from the changes.

The new law is effective immediately in some parts and later this year in others. Learn more about this law and other related topics by visiting the website of the North Carolina Department of Insurance, www.ncdoi.com.

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NC Insurance Commissioner Goodwin, Dept of Insurance Receive National Praise for Coastal Insurance Approach

Recognized as One of Top 3 States to "Get Heads Out of the Sand" and Best Prepared for "the Big One," the next major hurricane hit

Following up on recognition from business, industry, consumer, and political leaders across the United States and especially in the Southeast over the last year, NC Insurance Commissioner Wayne Goodwin and his team of experts received yet another dose of praise this week for their hard on coastal insurance reforms.

In particular, John Lobart penned:

The trade and mainstream press will soon be filled with articles commenting on the five-year anniversary of Hurricane Katrina—the largest insurance event in history and certainly one of the deadliest. Rather than look at the accumulated statistics, I thought it would be interesting to ask the question, “Have the Atlantic and Gulf Coast state insurance markets prepared for the next big hurricane?”

Looking back over the past five years, Mississippi, North Carolina, and South Carolina get my vote as states that are clearly better prepared to handle the Big One then they were five years ago. ...

North Carolina pulled its head out of the sand and tackled beach plan reform in 2009. Then newly elected Insurance Commissioner Wayne Goodwin made it clear that it would not be business as usual as it had been under long-time Commissioner Jim Long. Commissioner Goodwin and his staff worked diligently on a beach plan funding compromise guaranteed to make everyone unhappy—and that’s a good thing. The 2009 reform effort included reducing available limits in the Beach Plan (to throw out the wealthiest homes), providing for a huge (but consistently predictable) nonrecoupable assessment upon insurers to fund Beach Plan shortfalls, and providing for surcharges on policyholders statewide if needed to fund the most devastating losses. This last provision was certainly a hard one to sell (especially for an elected Commissioner). But for a state where coastal tourism benefits the entire state, it’s fair. The North Carolina reform law also puts pressure on the Beach Plan board to maintain adequate reinsurance, arguably the number one factor in bringing confidence to the private market as a well-funded residual market significantly reduces the likelihood of post-loss assessments.

Lobart is a legislative and regulatory affairs lawyer whose firm, Lobert Legislative & Regulatory Consulting, provides public policy advice.

"Ultimately," said Commissioner of Insurance Wayne Goodwin, "we have better protected consumers on the coast and beach of the State while preventing a massively unstable insurance market in North Carolina. Doing nothing was not an option, but doing something was not going to be pain-free. We are better prepared, and have enacted mitigation credits, a fairer system that protects the whole state, and a set of reforms that were long overdue."

Through Goodwin's leadership, insurance rates in North Carolina on homeowners' insurance - as well as automobile and workers comp - have remained some of the very best in the nation, especially in the South.

Further, Goodwin has also made a strong policy of greater transparency and public participation in the process of insurance regulation in the Tar Heel state.

Leadership, competence, consumer protection, transparency, public participation, and fair ratemaking are pillars in the Goodwin administration.

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Photo: courtesy NOAA.

Capitol Press Corps, John Locke Foundation Make June an Interesting Month for Insurance Commissioner Wayne Goodwin

June has been quite the month.

Personally, I may have transcended to a new level in state politics: For the first time I was the subject of one of the annual press skits performed by the North Carolina Capitol Press Corps ... and was the beneficiary of positive press and analysis by both the Heartland Institute and John Hood of the John Locke Foundation, a somewhat rare feat for a Democrat.

In the skit, one Capitol press reporter portrayed me as a wrestler tangling with fellow political grappler Marc Basnight played by another journalist, with yet a third member of the Fourth Estate serving as the ringside announcer. The premise is that the State of North Carolina is in desperate need of money for the budget hole, and decided that a "main event" between the Dare County Senator and me, as a result of a recent coastal insurance brouhaha, would raise ample funds to help the State's budget.

As for the unexpected praise from both Heartland and Hood's Carolina Journal, it, too, was a result of my focus during the first 18 months of my term on reforming the State's "Beach Plan" coastal insurance problem. John Hood, creatively entitling his column "Good Win for Insurance Reform", cites Eli Lehrer of Heartland who, in turn, writes:

"North Carolina has showed marked improvement over the three years we've calculated this report card. ... [T]here have been real changes thanks, in large part, to insurance commissioner Wayne Goodwin.

North Carolina's state legislature, with the leadership of newly elected Insurance Commissioner Wayne Goodwin, enacted major reforms to the state's troubled wind-damage insurance pool. ... its fiscal risks to the state and its insurance industry have been significantly lessened."

And that tops what I learned in May: that a New York Times bestseller references me by name for work I'd done in the legislature.

What would have truly made June a triple-threat? Appearing in a newspaper editorial cartoon! (Or having Ric Flair play me in a sequel to the wrestling skit.)

Commissioner Wayne Goodwin Orders Increased Mitigation Credits for Homeowners Insurance along the Coast

Commissioner Orders Insurance Companies to Pay Much Larger, Pro-Consumer Credits for Carolina Homeowners.

Insurance Commissioner Wayne Goodwin today announced that he has ordered a schedule of mitigation credits for qualifying homeowners insurance policies in North Carolina’s beach and coastal territories. The credits will be effective May 1, 2011 and apply to policies written in the voluntary market and the Beach Plan within the 18 coastal counties. The credits stem from a N.C. Rate Bureau filing required by the 2009 enactment of H.B. 1305 which sought to reform coastal property insurance.

“I’m proud that the Department’s review of the initial filing resulted in larger credits for coastal homeowners than those originally requested,” said Commissioner Goodwin. “Every dollar is important in today’s economic climate, and we wanted to make sure that homeowners will see discounts for the upgrades they have in place to protect their homes.” Homeowners with questions about whether or not their homes qualify for credits should contact their insurance agent and/or company, Goodwin added.

The approved mitigation credits will provide premium discounts for wind and hail coverages on homes with qualifying construction features that help mitigate damage and insurance losses. Different credit levels are available depending on a home’s mitigation qualifications. (Some details are found at the Insurance Journal and the Wilmington Star-News linked here.)

According to the filing language, the largest credits available are for homes that are built in compliance with the Institute for Business and Home Safety (IBHS) Fortified New category. IBHS has three additional levels for which a home can be certified for mitigation credits: gold, silver and bronze. Within each of these three levels, credits will depend upon certain roofing standards. In addition to IBHS standards, there will be credits for homes built or retrofitted with certain mitigation features including engineered window shutters, a hip roof or a combination of both.

The charts linked here and also on the Department's website show sample wind and hail premium credits (in dollars) for qualifying mitigation efforts taken on a home valued at $150,000. The first chart shows what the NCRB filed, the second chart shows what the Department of Insurance ordered, and the third chart shows the percentage increase from the initial credits filed to the final credits ordered.

The N.C. Rate Bureau will be establishing standards for certifying homes in accordance with the mitigation credit schedule over the next several months and communicating with insurance carriers and agents, who will relay the process to their policyholders. To determine what credit level for which a home might qualify, consumers should contact their insurance company and/or agent or review the IBHS website.

"This is yet another example of your Department of Insurance working for you, the homeowner," said Goodwin. "Though no written objections were received by the Department to the initial public filing made by the Rate Bureau, it was important to me as our Insurance Commissioner that the maximum justifiable credits be granted - thus, I ordered a larger credit. This is in line with how I've ordered refunds and rate cuts in other lines of insurance purchased by North Carolinians."

The Insurance Commissioner also stated that it was important to approve the best credits possible now and not allow delays because that would have caused homeowners to go without the credits for another hurricane season.

When The Empire Strikes Back, What Does an Insurance Commissioner Committed to Public Transparency Do? Exactly What Commissioner Goodwin Did.

Skullduggery was afoot on Monday by one powerful state Senator that would have raised insurance rates on every North Carolina family, driver, and small business. (Yes, on automobiles, homes, workers compensation, businesses, etc., etc.)

Just in case you had not heard about it, Monday was indeed quite the day. In a move reminiscent of a 2007 ploy documented here and here at Wayne's World, it was "back to the future" with an "under cover of darkness" attempt to strip the Insurance Commissioner's authority to (a) control and cap insurance rates, (b) hold public hearings, and (c) otherwise hold accountable the insurance industry and protect consumers.

So what did Insurance Commissioner Wayne Goodwin do in response? He went public to shine light on the shenanigans, conducting an emergency press conference immediately before the Senate committee was going to rubber-stamp the hidden provision. A bevy of TV, radio, newspaper and blogosphere journalists turned out as he revealed what was afoot.

Check out the news coverage first here at the Raleigh News & Observer's "Under the Dome" blog. One excerpt from that news story, appropriately titled "Goodwin Slams Senator's Attempt to Strip Insurance Commissioner of Authority (to Protect Consumers From Rate Hikes)":

"Using phrases like 'shocking' and 'irresponsible government,' Goodwin said that if passed, the bill would surely cause insurance rates for homes, vehicles and workers compensation to rise throughout the state. ... 'Working people do not need this piled on them,' he said."

Here is a link to another media source, NewsChannel 14, but scan ahead to the 1-minute mark in the accompanying video to hear about the relevant issue. WRAL-TV also had a blurb on the matter, found here at this link. Further coverage appeared in a subsequent Raleigh article.

Admittedly, the all-time best coverage of the matter was by a friend of "Wayne's World", Laura Leslie, uber-reporter for WUNC public radio. Her excellent analysis of "The Mystery Measure" is here. She's the best!

But, not to be outdone, Mark Binker of the Greensboro News & Record added a similarly well-done focus on the incident here within his "What Are They Drinking?" edition. And, courtesy of the News & Record, listen in on the audiotape made at the Senator's press interview about the subject.

Meanwhile, other newspapers and pundits across the State, including in the Beaufort Observer, Civitas Review, WataugaWatch, and BlueNC (both ends of the ideological spectrum, by the way), panned the attempted coup.

"Senators unintentionally sought both insurance deregulation and higher insurance rates for all North Carolinians in one fell swoop, without public input or consultation with the Department of Insurance responsible for protecting consumers," said Insurance Commissioner Wayne Goodwin at the end of the day. "What were these Senators thinking?"

Fortunately due to Insurance Commissioner Goodwin's keen eye and resolute call to arms, Senators removed the "special provision" by late afternoon.

But Goodwin says the public needs to watch this situation with an eagle eye, particularly the Senators' proposal to replace the Insurance Commissioner's authority with that of a seven-member panel. (Only after it was stricken out did the proponent of the measure said he had intended to only strip some of the Insurance Commissioner's authority and instead put the panel in place for 20 coastal counties. Regardless, that Senator tried his maneuver surreptitiously, under the veil of darkness and outside the scope of public input, debate, and review. That's offensive and wrong.)

"They've tried it once before and then tried it again today. To protect consumers from outrageous insurance rates and an unstable market led by unaccountable, unelected, uninformed special interests that certain Senators want deciding your insurance rates, we must watch every move certain lawmakers make and beat back any future attempts."

Many observers said that they had never seen North Carolina's Insurance Commissioner so incensed over an issue. And they agreed with his reason because it goes to the very heart of protecting consumers.

Coverage in the Richmond County Daily Journal continued that drumbeat here and again with the editorial "Let Goodwin Do His Job." Along the same lines were editorials from the Raleigh News & Observer (here) and the Greenville Reflector (here), the latter asserting that the Senator wanted to undermine the democratic process and will of the State's voters.

In the New Bern Sun Journal and elsewhere, Barry Smith of Freedom Newspapers castigated Senate budget writers and said that "Insurance Commissioner Wayne Goodwin was on the ball this week" while Senator Basnight and those who let the mystery provision slip into the budget were not on the ball. He added:

"The cost of insurance, including the Beach Plan, and coastal development are all legitimate issues to be discussed in the halls of the General Assembly....These issues should be decided out in the open, however, not by sticking a provision into the state budget. It’s quite ironic that the now-dropped budget provision would have called for more transparency, considering the apparent lack of knowledge that budget writers had about the provision’s origins."

Entitled "Insurance Chief Thwarts Attack," the Fayetteville Observer said:

"Demerit: For the stealthy attempt to strip N.C. Insurance Commissioner Wayne Goodwin of his rate-setting authority. A measure that would turn that responsibility over to a board that would be more responsive to political pressure was slipped into the Senate version of the state budget and was discovered by chance. Goodwin went ballistic, as well he should have - and so should the state's consumers, whose interests Goodwin serves well.

After a chorus of denials, Senate leader Marc Basnight acknowledged that the measure came from his office, but he insisted it was only a proposal that was inadvertently placed in the budget.

Since coastal property owners have been smacked by sharply increased homeowners insurance rates, the measure was clearly retaliation against Goodwin. Consumers need to keep an eye on this one, lest it suddenly and mysteriously rise from the dead."

Commissioner Goodwin said it best, as quoted by the Associated Press:

"I'm the state fire marshal, too. I'm used to hearing three alarms and four alarms. I'm ringing the alarm, ladies and gentlemen."

Goodwin Meets With 300+ Eastern NC Leaders, State Safety Experts and Law Enforcement Officers

During an action-packed series of meetings and speeches over two days last week, state Insurance Commissioner Wayne Goodwin met with 300-plus eastern North Carolina leaders, state safety experts and law enforcement officers. Carteret and Craven counties served as the host locations.

In Atlantic Beach he first delivered remarks to the Safe Kids North Carolina statewide annual meeting. (Goodwin serves as chairman of the association.) He and Safe Kids NC officers presented awards for outstanding leadership by county chapters and coalition members. Here at this link are some photographs from the conference.The next day, the Insurance Commissioner addressed sheriffs' deputies, highway patrolmen, police officers, firefighters, and volunteers at the North Carolina Child Passenger Safety Conference. With the theme of "Making a Difference in a Child's Life," the group covered a wide variety of conference topics and reviewed current related laws. Sponsoring this year's conference were the Office of State Fire Marshal, the NC Department of Insurance, the Governor's Highway Safety Program, UNC Highway Safety Research Center, and others.

Insurance Commissioner Goodwin then followed up with a New Bern luncheon with business and community leaders. Young insurance professionals and independent agents welcomed him, and learned from the regulator first-hand the consumer protections he and NCDOI are providing eastern North Carolina and the rest of the State. They were also reminded how the Tar Heel state benefits tremendously from some of the lowest automobile insurance rates and homeowners' insurance rates (whether coast, piedmont, or mountains) compared to most similar states.

Those in attendance further heralded the good government initiatives of Commissioner Goodwin, stressing his and NCDOI's accessibility and their unwavering commitment to public participation, transparency, and prompt constituent service.

"It's always a pleasure to travel across beautiful eastern North Carolina, and to join together with partners dedicated to public safety and consumer protection," said Insurance Commissioner Goodwin.

Goodwin Appoints New Members to FAIR, Beach Plan Boards: First African-American Female, First Native American and Lumbee Join Board

Insurance Commissioner Wayne Goodwin announced his appointment of five new members to the N.C. Joint Underwriting Association and the N.C. Insurance Underwriting Association, better known as the FAIR and Beach plans, respectively.

"I’m proud to announce the new appointees to the FAIR and Beach plan boards, and to bring a new level of diversity and expertise to each board,” said Commissioner Goodwin. “I’m confident that both the new and the existing board members will serve the citizens of North Carolina well and provide new perspective.”

Goodwin was especially pleased to accomplish several firsts with these appointments: Melanie Cook of Wilmington, Executive Director of Coastal Carolina Tomorrow, is the first African-American; Lumbee Tribal Chairman Jimmy Goins of Red Springs is the first Native American. Joining them are members who are also the most geographically diverse in many years. These are Goodwin’s first appointees since election last year.

The other new appointees of the Commissioner are: UNC Law School Professor Donald Hornstein, and insurance agents Rod Evans, Richard Heckle, and Murray White, III.

Learn more about all five appointees here at this link.

The Commissioner of Insurance is responsible for naming seven public members for each 14-member board; the insurance industry names the remaining seven members on each board. Of the seven appointees by the Commissioner, State law requires that four of them be insurance agents.

The FAIR and Beach Plans provide property insurance to North Carolinians who are not able to purchase it through traditional insurance markets. The FAIR Plan provides coverage in the coastal areas and the western 82 counties, and the Beach Plan covers 18 coastal counties and barrier islands. The members of one board are alternates with the other board. The General Assembly, as was the case with many states back then, created these board 40 years ago.

During the recent legislative session the General Assembly re-named the Beach Plan and enacted wide-ranging reforms in House Bill 1305. Instead of "the Beach Plan," the organization or program is now to be known as the “Coastal Property Insurance Pool.”

The new Board members took their positions immediately after last week's annual meeting.

Welcome to Visitors Who Attended Yesterday's NC 20 Meeting in New Bern!

Welcome to everyone who attended yesterday's meeting of NC 20 at the New Bern convention center!

Many of you were directed to this site by one of the attendees of that meeting. Once you have a chance to peruse this personal blog, you will very soon note that it is in great part about political matters affecting the Eighth Congressional District of North Carolina. As many of you know, I live in Richmond County, which is the heart of a district that stretches from Charlotte to Fayetteville.

This same gentleman who attended the New Bern meeting and directed you to this site met with me personally, along with his colleagues on the Kure Beach town council, approximately two weeks ago in my Raleigh office. I spent almost an hour listening to his concerns and directly answering ALL of his questions despite his frequent interruptions. I believe this gentleman is attempting to play partisan politics with your insurance rates, which is highly inappropriate and contrary to the best interests of the people of North Carolina.

Meanwhile, please note that I personally directed my Assistant Commissioner of Insurance to attend the entire New Bern meeting yesterday because your opinions and issues matter greatly to me. (I couldn't attend because of a previously-scheduled meeting with representatives from Coastal Carolina Tomorrow, based in Wilmington, about potential solutions to the coastal insurance dilemma.) He is in charge of the Eastern Regional Office for the Department of Insurance. All issues that concern eastern North Carolina concern him, me, and the Department.

My focus is finding the most affordable, most fair insurance rates possible, protecting consumers, and appropriately ensuring a well-regulated, solvent, competitive market. These were promises I made during the campaign and will continue to be goals I strive for. Working together, we all will find a solution during these trying economic times.

I encourage you to contact me with your thoughts and concerns as we work cooperatively toward solutions. My office number at the Department of Insurance is (919) 733-3058 and my email address is wgoodwin@ncdoi.net.

Thank you for visiting my Wayne's World blog.