Insurance industry groups continue to argue that North Carolina's state-run insurer of last resort would be unable to absorb the losses from a major storm, with the most recent argument coming from the National Association of Mutual Insurance Companies.
In a letter to members of a Joint legislative committee studying the issue, NAMIC Southeast state affairs manager Liz Reynolds said the immense growth of the North Carolina Insurance Underwriting Association and its lacking of actuarially sound premiums would place the burden of a major storm on private insurers, some of whom could be overwhelmed as a result of the ensuing assessments.
More commonly known as the "Beach Plan," the association was established in 1969 to provide coverage for coastal homeowners who could obtain it from the private market. However, Ms. Reynolds argued that the Beach plan has veered off course from its stated mission, requiring lawmakers to enact significant reforms.
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