Grassroots and Agent Power by FYI Express

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AutoInsuranceAgentsNC.com

STREET WISE Alliance of Insurance Agents of NC

Grassroots and Agent Power In this edition GRASSROOTS AND AGENT POWER.. 1 NC DOI COMMISSIONER GOODWIN . 3 GMAC LETTER TO LEGISLATORS ... 4 IIANC AUTO INSURANCE MODERNIZATION TALKING POINTS AND GMAC INSURANCE RESPONSES ..................................................... 6 SAMPLE E-MAIL FROM AGENCY TO LEGISLATORS ................................ 8 PIA OF NC POSITION LETTER ......... 9 2011 SB 490 VS. 2013 SB 154 ... 10 2013 SB 154 SUMMARY .............. 11 FACT VS. FICTION ......................... 12 GOOD POINTS ABOUT NC AUTO INSURANCE M ARKET .................... 14 SB 154 PROVISIONS .................... 15 CURRENTLY INSURED PLAN RATE COMPARISON ............................... 16 NOT CURRENTLY INSURED PLAN RATE COMPARISON ...................... 17 INSURANCE OVERHAUL EFFORT REVIVED ARTICLE ........................ 18

GRASSROOTS - AIANC members are the most valuable political asset in the association. No single act contributes more to shaping the outcome of issues than personal contacts with your elected lawmakers. Let AIANC know if you have contacts and are willing to use them to support AIANC legislative priorities or stop legislation that could harm your business. Become a part of AIANC’s grassroots network. Contact information will be kept strictly confidential. To participate, simply send an e-mail to Jeff Butler, AIANC Governmental Affairs Chair, and include your name, agency name & phone number. AIANC will call you to explain the program and discuss your involvement. Jeff’s e-mail address is jeff@ableautoinsurance.com.

AIANC’s Grassroots Power

Page 1

Not sure how to influence your lawmakers? To help AIANC members be effective in this role, AIANC has prepared the following DOs and DON’Ts: 20 DO’s and 10 DON’Ts for Effective Legislative Contacts Professional insurance agents and agency employees are valued by lawmakers as small business owners, employers, and people who work closely with large numbers of consumers.

DO . . . 1. Be brief. Remember that time is precious. All letters, phone calls, office visits, etc. to your lawmaker should be "short and sweet." Get to the point soon and focus on your issue. 2. Give bill numbers. Include the correct bill number(s) in all communications about specific legislation. 3. Explain the impact. Explain in simple, straightforward terms the logic supporting your position. The most effective logic often involves jobs, costs, and how many people the legislation will affect. Be sure to explain any impact on consumers. Continued on page 2

March, 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AutoInsuranceAgentsNC.com

Do’s & Don’t’s

position. If they are undecided, ask what information or demonstration of public support you can supply to help them decide.

Continued from page 1 4. Respect staff members. Remember the lawmaker’s staff is just as important to you as the lawmaker. Staffs often are the ones who prepare the issue summary, including a vote recommendation, for the lawmaker.

17. Support AIANC and your local candidates. AIANC supports lawmakers who support you. Full participation in the political arena gives professional insurance agents credibility and access when presenting their views.

5. Think "quantity." Take advantage of "strength in numbers." This is true for letters, faxes, e-mail, phone calls, office visits, financial support, etc. Many issues are decided on the volume of communications received.

18. Use the news media. Letters to the editor, guest editorials, etc. help create public support for your positions. Lawmakers are constantly looking to see what "the people want" on issues.

6. Know your issue. Remember that the more responsibility and involvement you show, the more you can expect vigorous commitment and support from your lawmaker.

19. Say thank-you. Write a thank-you note to the lawmaker and staff no matter what the outcome (remember item # 13) of your issue. 20. Call on AIANC for help. AIANC maintains current position papers and summaries of key legislation and its status. Contact AIANC whenever you plan to see your lawmakers. We’ll provide what you need to make your discussion productive.

7. Locate yourself. Include your name, address and phone number (home and office) on all communication. This allows your lawmaker and staff to contact you for follow-up and it also reminds them that you are a constituent.

DON'T . . .

8. Follow up with letters, calls, etc. To be effective, figure on making an ongoing time commitment to work on an issue you care about. By devoting just 30 minutes at a time, once a month, you can be an extremely effective advocate.

1. Don’t confuse the issues. Two or three issues are about as much as you should cover in one letter, call or visit. Stick to the priorities.

9. Show strength. Remind your lawmaker how many people (read "votes") in your organization and/or community share your position.

2. Don’t use form letters. Form letters aren’t taken seriously and interpreted as the action of a single person. Use agency letterhead and put the issue in your own words.

10. Always have a "position paper." This should clearly state your position and logic. Leave the position paper behind when you make office visits. (Other effective leave-behind items could include buttons, hats, bumper stickers, T-shirts, agency give-away items, etc. to make your visit more memorable.)

3. Don’t sell yourself short. Never underestimate the weight given to your letters and phone calls. Receiving just five to 10 individualized contacts from the district on any issue will put a legislator on "red alert" that something big is happening.

11. Reinforce your identity. Include your lawmaker on your agency’s mailing list for agency newsletters, consumer brochures, etc. to build identity.

4. Don’t use insurance jargon. You’re not speaking to a fellow insurance professional. Lawmakers may have little or no knowledge of your issue and its jargon. Say "auto insurance," not "compulsory liability."

12. Be patient. Sometimes neither you nor the lawmaker will know the final outcome for months.

5. Don’t drop the ball. Never contact a lawmaker, then drop the issue. Persistence pays off (just like in insurance sales).

13. Be a good winner and a good loser. Your adversary on one issue might be your ally on the next. 14. Bring it home. Invite your lawmaker and staff to your office or other appropriate location that will put a human face on the issue you’re discussing.

6. Don’t downplay your identity. You should not say you’re contacting your lawmaker because your association told you to do so. Lawmakers respond to people (voters), not organizations.

15. Be realistic. Understand that you and your lawmaker sometimes will have to compromise. Assess what you can realistically achieve at one time; plan to work on the rest next year.

7. Don’t be crass. Never make campaign contributions in the legislator’s office or at the same time you ask for legislative/regulatory support. Make a separate appointment.

16. Ask lawmakers to state their position. If it agrees with yours, ask what you can do to strengthen that support. If it differs, ask what would change their AIANC’s Grassroots Power

Page 2

Continued on page 3 March, 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AutoInsuranceAgentsNC.com

8. Don’t be a stranger. Take advantage of all opportunities to visit with your lawmaker at home. Watch your newspaper; an informal talk in your home town means as much or more than a "state visit" to the Capitol. 9. Don’t lie. Anything less than full honesty will erode your credibility and affect your whole relationship with your lawmaker. No single issue is worth that. If there are tough aspects or strong opposition to the position you’re advocating, acknowledge this early and work on strategy with your lawmaker.

The AIANC board and its agent members oppose the proposed legislation that IIANC is supporting. North Carolina currently has the 7th lowest liability insurance rates in the United States. We see no benefits in the proposed legislation for our consumers or agents. We believe that the proposed legislation (if passed) will radically change and potentially disrupt the auto insurance marketplace in NC.

10. Don’t discount your influence. Never forget that you and your lawmaker need each other.

Richard Winkler President AIANC

More Information at www.AutoInsuranceAgentsNC.com

http://www.newsobserver.com/2013/03/08/2735971/goo dwin-the-best-insurance-for.html This editorial supports Commissioner Wayne Goodwin and warns consumers. See link above Richard Winkler President Anchor Insurance Agencies P:1-800-856-1012 Ext. 216 F:1-252-756-1240 email: anchorinsurance@earthlink.net www.anchor-insurance.com

Have all your employees and agents go to the http://www.lowratesnc.com/ set up a login and send an email to their representative to vote NO for SB184. The website will help them to setup their contact information and then hit the tab "to take action”. The system based upon their zip code will generate an email and forward to their respective representatives to vote no to SB154.

NC DOI Commissioner Goodwin

AIANC’s Grassroots Power

Page 3

March, 2013

March 6, 2013 The Honorable Senator XXXX XXXXXX NC Senate XXXX, XXXX Raleigh, NC 27601-2808 Dear Senator XXXXX: GMAC Insurance’s North Carolina domestic property and casualty companies are based in Winston-Salem, where we have been serving the people of North Carolina with exceptional insurance products for over 50 years. With over 700 employees working at our downtown office and another 100 located throughout North Carolina, we work hard to provide highly competitive rates and excellent service to our policyholders. We are the largest writer of auto insurance in North Carolina through Independent Agents and the 6th largest writer of auto insurance in North Carolina. We are represented by almost 1,400 Independent Agencies that are located in every city and county in North Carolina. Almost 500,000 North Carolina drivers count on us for their auto insurance needs. We know that the 2013 legislative session is off to a very, fast start. We also know that 2013 will be a very controversial year as two major auto insurer groups disagree about what is in the best interest of North Carolina consumers. It is very important to remember that no North Carolina domestic insurance companies support this so-called “modernization”. We think it is critical for you to know that although auto insurance is different here than in most every other state, it is not broken. Our system today offers many unique advantages to North Carolina drivers that are not available in any other state. Our current system produces the 7th lowest auto insurance rates in the country. In fact, auto insurance rates in North Carolina today are lower than they were in 2006. The North Carolina Rate Bureau, which these out-of-state companies criticize, has not asked for a rate increase on auto insurance since 2009. The auto insurance market in North Carolina is highly competitive, very stable and consistently provides among the lowest auto insurance rates in the country to North Carolina drivers. Most importantly, don’t be fooled by these out-of state insurance companies. Insurance companies are allowed to charge as low a rate in North Carolina as they want today. Lowering rates is easy now. Raising them is hard. These out-of-state companies want to make it as easy to raise auto insurance rates in North Carolina as it is in other states.

Help us keep rates low in North Carolina. We believe SB 154 “Auto Insurance Regulatory Modernization” and its corresponding bill in the House, backed by State Farm, Allstate, Geico, Progressive and several other out-of-state insurers, will result in significantly higher auto insurance rates in January 2015 as there is NO CAP on those rates. From then on, insurance companies will be able to raise their overall rates up to +12% per year with very little the elected Commissioner, who is stripped of his power in this legislation, can do to stop them. Rates for some drivers could increase less than +12% a year, but rates for many others could increase much more than +12% per year. In particular, we believe young drivers, older drivers and over 1,000,000 North Carolina drivers with no accidents or tickets could see their auto insurance rates skyrocket. We oppose SB 154 and hope that you will remember our employees; their families and drivers statewide are counting on you to just say “NO”. Help us make sure North Carolina drivers get the coverage they deserve. Today, all auto insurance companies use the same auto policy. If this legislation passes, auto insurance companies can use their own policy forms and we believe this will bring the “cut-rate” insurance policies that Allstate complains about in its national advertising to North Carolina. When that happens, a lot of North Carolina drivers will find out after a claim that it is not covered, like it is now. The growing coalition that opposes SB 154 and the higher rates it will bring for North Carolina drivers currently includes: *AAA Insurance Alliance of Insurance Agents of North Carolina AmTrust Financial Services AARP *Discovery Insurance Company *GMAC Insurance Greenville Casualty Nationwide Insurance *North Carolina Farm Bureau Insurance Professional Insurance Agents of North Carolina Southern General Insurance * NC Domestic Insurance Companies. Should you have any questions on automobile insurance or any issues that affect the property and casualty industry, our company, or our employees, please do not hesitate to contact me. Sincerely yours,

Byron Storms President GMAC Insurance

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AutoInsuranceAgentsNC.com

IIANC Auto Insurance Modernization Talking Points and GMAC Insurance Responses

IIANC: The current North Carolina Private Passenger insurance rate making system has been in use since the 1970's with only minor changes or improvements.

IIANC: The SDIP program has for years overcharged high risk drivers and undercharged certain low risk drivers. NC has over a million policies in its residual insurance pool (more than 20% of the statewide market). All other drivers subsidize the losses in the NC Reinsurance Facility. This subsidy results in a per policy charge to the other drivers of approximately 2.5% of premium for the coming year. The inflexibility and actuarial unsoundness of the NC PPA Insurance rating system has resulted in the development of the largest residual risk auto insurance facility in the country - larger than all the other forty-nine states combined.

GMAC Insurance: True. The overall NC rate making system has not changed that much. However, how individual insurers determine their rates is much different and significantly more sophisticated than it was just a few years ago. Most rate making systems in other states have not changed materially in years either. The proposed changes IIANC supports in the NC Legislature are NOT incremental, they are an "overhaul", and they will radically change auto insurance in NC on January 1, 2015. They are very similar to the 2011 bill that was commonly referred to as the "State Farm bill”. IIANC opposed that bill.

GMAC Insurance: We Disagree. High risk drivers are NOT overcharged in NC. Insurers use deviations to reduce or increase the SDIP surcharges to appropriately rate risks in NC. While it is true that the SDIP plan undercharges certain “statutorily low risk” drivers known as “clean risks”, the resulting recoupment surcharge that applies to liability coverages effective 4/1/2013 amounts to about $1 per month per car. If the changes IIANC is CURRENTLY supporting passes, we believe auto insurance rates for NC "clean risks”, especially rates for young and older drivers will skyrocket much higher and much faster than these changes expect.

North Carolina

IIANC: The Safe Driver Insurance Point system '(SDIP) has been in use since the 1970’s and distributes premium based on classifications that are not actuarially sound – resulting in overcharges and undercharges.

IIANC: The inflexibility of the NC PPA Insurance Rating system stifles innovation in pricing and policy benefits.

GMAC Insurance: true. However, the Safe Driver Incentive Plan (SDIP) was designed to reward drivers with clean driving records and to penalize those with accidents and convictions (particularly certain convictions). We support incremental SDIP changes instead of the radical changes that IIANC and others support. The proposed SDIP changes will only affect future accidents and future convictions so drivers with those “waived” accidents and “waived” convictions today will not see their rates increase.

AIANC’s Grassroots Power

GMAC Insurance: True. However, successful NC insurers nationally are very creative, innovative and sophisticated with their pricing and underwriting. While the NC PPA Insurance rating system does reduce innovation in policy benefits, it also PREVENTS REDUCTIONS in policy coverages like the "cut-rate" auto insurer policies that Allstate runs national ads against. The proposed changes IIANC supports will create a situation where rates can no longer be compared "apples to apples" as NC consumers and agents will have to compare coverages and rates to determine the real value offered from each insurer.

Page 6

March, 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AutoInsuranceAgentsNC.com

IIANC Auto Insurance Modernization Talking Points and GMAC Insurance Responses IIANC: Virtually all of the enhancements advertised on national television for auto insurance are not available to consumers in NC. GMAC Insurance: We disagree. Companies supporting the proposed changes similar to the "State Farm bill" last year do offer some innovative enhancements in other states, BUT many of them are offered in NC. The incremental modernization reforms that we support will allow more innovation in policy coverages without allowing "restrictive" policies in NC. For example, we believe the INCREMENTAL REFORMS we support will allow Progressive's "Pet coverage", Progressive's "Loan/Lease Pay Off coverage", Hartford's "RecoverCare", to name a few AND many more in NC to be filed directly with the Commissioner instead of having to go through the NC Rate Bureau. MOST of the enhancements or discounts advertised nationally such as "$50 E-SIGN Discount for signing your documents when you buy on-line", "First Accident Forgiveness", "Lifetime Car Repair Guarantee", "New Car Replacement", "Safe/Good Driver or Good Student Discounts", "Advance or Early Quote Discount", "New Car Discount", "Low Mileage Discount", etc. ARE AVAILABLE in NC today. Many successful, creative companies have developed creative methods to introduce innovative products and discounts in North Carolina. From our perspective, most companies that complain to their agents that they cannot offer something in NC, often use this as an excuse as most have never tried to offer it in NC.

Nationally IIANC: Most other states allow insurers to use more modern systems that utilize up-to-date computer technology to make PPA rates. GMAC Insurance: True. However, today ALL major Insurers in NC utilize up-to-date computer technology to make PPA rates.

IIANC: Most other states allow insurers to use rating systems that use as many as thirty (30) criteria to price the risks. Such systems result in far more accurate and equitable distribution of insurance premiums based on individual risk characteristics. GMAC Insurance: True. However, today ALL major insurers in NC use very sophisticated rating and underwriting criteria to underwrite and price individual risks. Insurer pricing and underwriting systems in NC can accurately and equitably price develop premiums based on individual risk characteristics, except for risks whose rates are capped in NC by statute.

IIANC: In most other states, the residual insurance pools have become so small as to virtually disappear. For most states, the policies in the residual insurance pools makes up less than 1% of the auto insurance market. The four or five states surrounding NC put only a few thousand policies in the residual market combined. GMAC Insurance: True. However, large nonstandard markets do exist in surrounding states and throughout the country. According to Conning 2008 report: The Nonstandard Auto Insurance iMarket Evolutionary Challenges, "nonstandard auto accounts,for an estimated 20% of the private passenger automobile insurance market". Double the MAXIMUM rates in the NC without any other changes and very few risks would remain in the NCRF. The REAL reason the NCRF is so large is that PPA liability insurance rates in the voluntary market are too low.

AIANC’s Grassroots Power

Page 7

March, 2013

More â&#x20AC;&#x153;News, Satire & Opinions for Independent Agents from Independent Agentsâ&#x20AC;? at www.AutoInsuranceAgentsNC.com

Sample E-mail from Agency to Legislators

Help us keep rates low in North Carolina. We believe SB 154 "Auto Insurance Regulatory Modernization" and its corresponding bill in the House, backed by State Farm, Allstate, Geico, Progressive and several other outof-state insurers, will result in significantly higher auto insurance rates in January 2015 as there is NO CAP on those rates. From that point forward, insurance companies will be able to raise their overall rates up to +12% per year with very little the elected commissioner, who is stripped of his power in this legislation, can do to stop them. Rates for some drivers could increase less than +12% a year, but rates for many others could increase much more than +12% per year. In particular, we believe young drivers, older drivers and over 1,000,000 North Carolina drivers with no accidents or tickets could see their auto insurance rates skyrocket.

I sent the following Email to the Members of the Senate Insurance Committee listed below. I recommend that you send a similar email telling them to **Please Vote NO** SB154. Thanks, Richard Winkler President AIANC Tom Apodaca, R48 Wesley Meredith, R19 Norman Sanderson, R2 (919) 733-5745 (919) 733-5776(919) 733-5706 Tom.Apodaca@ncleg.net Wesley.Meredith@ncleg.net Norman.Sanderson@ncleg.net Austin M. Allran,R42 Jim Davis,R50 Joel D. M. Ford, D38 (919) 733-5876 (919) 733-5875 733-5955 Austin.Allran@ncleg.net Jim.Davis@ncleg.net Joel.Ford@ncleg.net Rick Gunn,R24 Ralph Hise, R47 Floyd McKissick, D20 (919) 733-1446 (919) 733-3460 733-3460 Rick.Gunn@ncleg.net Ralph.High@ncleg.net Floyd.McKissick@ncleg.net

Help us make sure North Carolina drivers continue to receive the coverage they deserve. Today, all auto insurance companies use the same auto policy. If this legislation passes, auto insurance companies can use their own policy forms and we believe this will bring the "cut-rate" insurance policies that Allstate complains about in its national advertising to North Carolina. When that happens, a lot of North Carolina drivers will find out after a claim that it is not covered, like it is now.

(919)

(919) Help us keep North Carolina a stable auto insurance market. South Carolina passed similar legislation and the results have been higher insurance rates, volatility in market place with insurance companies coming and leaving the market and insurance companies offering less insurance coverage.

Gene McLaurin, D25 Bob Rucho, R39 Michael P. Walters, D13 (919) 733-5953 (919) 733-5655 (919 733-5651 Gene.McLaurin@ncleg.net Bob.Rucho@ncleg.net Michael.Walter@ncleg.net

We oppose SB 154 and hope that you will remember our customers, employees; and their families are counting on you to just say "NO". Should you have any questions on automobile insurance or any issues that affect our customers, our insurance agencies, or our employees, please do not hesitate to contact me. Sincerely yours,

*************************email********************************* Anchor Insurance Agencies has 6 independent insurance agencies in Eastern North Carolina. We represent over 20,000 North Carolina drivers, 30 insurance companies and 23 employees and their families.

Richard Winkler President Anchor Insurance Agencies P: 1-800-856-1012 Ext. 216 F: 1-252-756-1240 email: anchorinsurance@earthlink.net www.anchor-insurance.com

We are opposed to the current SB 154- Auto Insurance Regulatory Modernization for the following reasons: Our current system produces the 7th lowest auto insurance rates in the country. In fact, auto insurance rates in North Carolina today are lower than they were in 2006. The North Carolina Rate Bureau, which these out-of-state companies criticize, has not asked for a rate increase on auto insurance since 2009. The auto insurance market in North Carolina is highly competitive, very stable and consistently provides among the lowest auto insurance rates in the country to North Carolina drivers. AIANCâ&#x20AC;&#x2122;s Grassroots Power

Page 8

March, 2013

2011 SB 490 Vs 2013 SB 154 Auto Regulatory Modernization *SB 490 was commonly known as the "State Farm bill" in 2011

SB 490 in 2011

SB 154 in 2013

1. No Choice: Nonfleet Private Passenger Auto Insurance and Motorcycle Insurance are removed from the jurisdiction of the NC Rate Bureau.

1. Choice for Nonfleet Private Passenger Auto Insurance and Motorcycle Insurance: Companies can choose to stay with the NC Rate Bureau or go with the new "Flex-Rating" option by January 1, 2015. However, this really is a trojan horse as no company that wants to survive will stay with the NC Rate Bureau. The costs alone would be prohibitive and the adverse competitive position would make this option unacceptable.

2. Private Passenger Motor Vehicles; number of non-fleet policies: "Notwithstanding the definition of "nonfleet" in G.S. 58-4010(2), an insurer may adopt rules, subject to the Commissioner's approval, that specify the circumstances under which more than four private passenger motor vehicles may be covered under a nonfleet private passenger motor vehicle policy that is subject to this Article."

2. No change from 2011. We like this change and do support it.

3. NC Rate Bureau has no jurisdiction over private passenger auto or motorcycle insurance. Companies file their own rates and policy forms.

3. Same concept: Companies file their own rates and policy forms.

4. "Flex-Rating": Effective 1/1/2014 all Private Passenger Auto and Motorcycle Insurers would be required to file their own rates and policy forms. Companies would be allowed to raise or lower their aggregrate overall statewide rate level by + or - 15% every 12 months without prior approval by the Commissioner. The Commissioner can find the filing is Inadequate or Unfairly Discriminatory and can detail why in an order as long as the effective date of the order is in the future. Any such order by the Commissioner shall only effect policies on and after it's effective date. Rates changes outside the "flex-band" are subject to the Commissioner's prior approval.

4. Same "Flex-Rate" concept as in the 2011 SB490 bill. However, the Flex-Rating option becomes effective on 1/1/2015 instead of 1/1/2014 and the cap is + or - 12% now. However, there is a MAJOR change. The Commissioner's power is significantly diminished from the 2011 bill. The new Flex-Rating option specifically defines "excessive and inadequate" explicitly in the statutes. The new Flex-rating section also includes a statement that "a filing â&#x20AC;Ś shall be DEEMED to comply with G.S. 5840-20 and APPROVED by the Commissioner upon filing, and shall be PRESUMED NOT to be excessive, inadequate, or unfairly discriminatory. Use and file for rates. If the Commissioner challenges the rates (can challenge only if he thinks they are "excessive, inadequate or unfailry discriminatory" and wins it only affects future rates not consumers

5. SB490 did not eliminate the prohibition of using age or sex for rating private passenger auto or motorcycle insurance.

5. Eliminates the prohibition of using age or sex for rating private passenger auto or motorcycle insurance effective January 1, 2015. We believe auto liability rates especially for young and older drivers will skyrocket. See Rate Comparisons for NC versus GA, SC and VA.

6. "Clean Risks" in the NC Reinsurance Facility: Beginning with policies effective on and after 10/1/2012, the rates for "clean risks" in the Facility shall provide for a 4-year transition to actuarially sound rates.

6. Same concept for "Clean Risks". However, changes begin on 10/1/2014 and there is a 5-year transition to actuarially sound rates.

7. Recoupment is required to be set out as a separate charge on any statement of applicable premium charges provided to the policyholder.

7. Not included in the current draft proposal.

8. Class Plan and Safe Driver Incentive Plan: The Facility would develop and file it's class plan and SDIP plan with the Commissioner. Current SDIP rules are included in what is required.

8. Not included in the current draft proposal.

2013 Senate Bill 154 Auto Regulatory Modernization * Very similar to the 2011 bill commonly known as the "State Farm bill"

1. Choice for Nonfleet Private Passenger Auto Insurance:

Companies can stay with the NCRB or go with the new "Flex Ra9ng" by January 1, 2015. The new Flex-rating option allows companies to file their own rates and forms directly with the Commissioner. However, this really is a trojan horse as no company that wants to survive will stay with the NC Rate Bureau. The costs alone would be prohibitive and the adverse competitive position would make this option unacceptable. 2. Eliminates the prohibition of using age or sex for rating private passenger auto or motorcycle insurance effective January 1, 2015. We believe auto liability rates especially for young and older drivers will skyrocket. See Rate Comparisons for NC versus GA, SC and VA. 3. Allows insurers to adopt rules, subject to the Commissioner's approval to allow more than 4 vehicles on a private passenger motor vehicle policy. We like this change and support it.

4. New Flex-Rating option specifically defines "excessive, inadequate and unfairly discriminatory". New Flex-rating section also includes a statement that "a filing … shall be deemed to comply with G.S. 58-40-20 and approved by the Commissioner upon filing, and shall be presumed not to be excessive, inadequate, or unfairly discriminatory. Use and file for rates. If the Commissioner challenges the rates (can challenge only if he thinks they are

"excessive, inadequate or unfailry discriminatory" and wins it only affects future rates not consumers already charged those filed rates. 5. New Flex-rating allows insurers to decrease or increase rates up to +or -12% when aggregrated for all policyholders and coverages at will during any 12-month period. What is the real world impact? There is no real cap on the rates to be effective 1/1/2015. Most do not understand that insurers will be able to increase rates significantly higher for a lot of

risks and s9ll be under the +12%. for example, insurers could raise rates on 1,000,000 "clean risk" drivers (about 16% of all NC drivers) by 50% and that would amount to far less than an overall +8% so they would have room for a lot more rate increases. In addi9on, insurers can s9ll ﬁle for more than +12% by ﬁling for prior approval.

6. "Clean risks" in the NCRF: Effective on 1/1/2014, rates for "clean risks" in the NCRF shall increase on a schedule that provides that the rates charged for them in the NCRF will increase to an actuarially sound over a 5 year period that ends on 12/31/2018. This

could create an upward spiraling eﬀect on "clean risk" rates as companies take the beSer "clean risks" out of the NCRF and the remaining ones require higher and higher rates to be actuarially sound. 7. On or before 10/1/2016, and again on or before 10/1/2018, the Executive Director and the Chair of the Board of Governors of the Reinsurance Facility shall report to the Joint Legislative Commission on Government Operations on the size and marketshare of the Reinsurance Facility, and present the Reinsurance Facility's analysis of the effect of this act in reducing the size of the Reinsurance Facility.

N.C. Auto Insurance: Fact vs. Fiction North Carolinians Enjoy Very Low Auto Insurance Rates Lowest in the Southeast 7th lowest in the nation Lowest among the 10 biggest states

North Carolina vs. Our Neighbors and Other States South Carolina passed similar “modernization” legislation in the late 1990s, and its citizens’ auto rates rose 25%. S.C.’s rates are now 23% higher than North Carolina’s. Of the nine states with “modernizing” flex-rating, only sparsely populated North Dakota has lower rates. The other eight are all higher: NY, NJ, RI, CT, AK, KY, TN, and SC. All four of North Carolina’s neighboring states have higher auto insurance rates: o Georgia: +$149.14 (+25%) o S. Carolina: +$137.84 (+23%) o Virginia: +$73.72 (+12%) o Tennessee: +$41.27 (+7%)

North Carolina Auto Insurance – Myths vs. Reality MYTH: Reality:

Good drivers subsidize bad drivers in North Carolina. Bad drivers pay a surcharge, which increases their rates.

MYTH: Reality:

North Carolina lacks auto insurance competition. More than 160 companies sell auto insurance in N.C., and none dominates.

MYTH: Reality:

The law must change so auto insurers can reduce rates. Insurers already can lower their customers’ rates on their own at any time.

MYTH: Reality:

“Modernization” will reduce auto insurance rates in North Carolina. Rates will rise immediately for at least 1 million North Carolinians, including many college students and military members. Initial rates for all drivers would be unlimited, followed by average increases up to 12% every year.

MYTH:

“Modernization” would be good for North Carolina’s consumers.  Dismantling North Carolina’s stable, highly competitive, low-cost system would raise rates for more than 1 million drivers, perhaps many more.  It would gut the authority of the elected N.C. Commissioner of Insurance to approve, reduce, or reject proposed auto insurance rates, an essential safeguard for a product the state requires consumers to buy.  It would prevent consumers from easily comparing prices on equivalent auto insurance policies, making it harder to shop for good coverage.  N.C. would wind up with more uninsured drivers, threatening everyone.

Reality:

What They’re Saying About “Modernization” Oyango Snell, Washington, D.C. lobbyist for insurers pushing “modernization”: “No company can promise that rates will go down with reform and modernization.” Asheville Citizen-Times editorial: “This push looks like a great deal for insurance companies. It looks to hold nothing but risk, and lots of it, for consumers.” Fayetteville Observer editorial: “Hang onto your wallet, they’re going to take another shot at ‘reforming’ our car-insurance system. Calling it reform would be funny if it wasn’t likely to be so expensive for car owners. For at least some of our lawmakers, it appears it’s more important to give insurance companies bigger profits than it is to keep our insurance rates low. … From a driver’s viewpoint, the North Carolina system is about as good as it gets, with low rates for good coverage.” Wilmington StarNews editorial: “It’s easy to see what’s in these bills for insurance companies, but there isn’t much in there for drivers. What the companies want is the right to raise rates, or to cherry-pick the cheapest risks while raising premiums, even on good drivers. … This is consumer-unfriendly legislation.” Rocky Mount Telegram editorial: “North Carolina’s insurance coverage is a good deal. It covers drivers in the 10th most populous state in the country at an affordable rate. … Of all the challenges facing the N.C. General Assembly, auto insurance system changes shouldn’t be one of them. Leave the system as it is.” Lee Morton, North Carolina Regional Vice President for Nationwide Insurance: “We appreciate the value of North Carolina’s tried-and-true system, which is fair to all drivers, protects consumers from unjustified rate hikes, and encourages everyone to buy insurance, to the public’s widespread benefit. We do not believe the people of North Carolina want higher auto insurance rates, less independent oversight, more uninsured drivers, or a more volatile insurance market.” Steve Carroll, Executive Vice President, N.C. Farm Bureau: “We should not change our system just because it is different. It provides stability and predictability and helps achieve the balance of attainability and affordability that is necessary for the protection of both insured's and the public. North Carolina’s system provides a highly competitive market as evidenced by the … strong advertising and marketing efforts of the industry.” North Carolina Commissioner of Insurance Wayne Goodwin: “These proposals are pushed by out-of-state insurance companies that want to make more money off North Carolina drivers. … Car insurance rates will go up if these proposals become a reality.”

Good Points About NC Auto Market Today 1

Current system produces the 7th lowest auto insurance rates in the country and NC is the 10th most populous state.

There is no crisis in auto insurance in NC. In fact, the NCRF and the current regulatory and statutory environment essentially guarantees there will never be a crisis in NC.

NC Auto Market is highly competitive and very stable. NC consumers have lots of companies to choose from in NC.

Companies are allowed to charge as low a rate as they want NOW. The Commissioner sets the MAXIMUM rates allowed.

NC consumers all receive the same policy and virtually all the same coverage options whether they are in the NCRF or in the voluntary market. This insures that the drivers are meeting minimal required coverages by law. Consistent standard NCRB policy forms allow customers and agents to be more knowledgeable about coverage and potential exclusions as opposed to unique policies written by each company. This insures that NC customers are comparing apples to apples when purchasing auto insurance.

NC ranks as one of the states with the lowest percentage of uninsured motorist drivers in the US.

NCRF is much more customer and agent friendly than Assigned Risk Plans in other states. In the Facility customers are required to receive the same customer service as they would in the voluntary market and the customer chooses their insurance company instead of being assigned to one. NC agents have binding authority in the Facility as they are licensed to represent the company their customer selects. Agents have relationships with their companies that insure their customers' interests are well served. Agent's companies who also furnish them and their customer access to toll-free customer and claim service.

IN NC, insurance companies must accept all customers who want to be insured by them for liability insurance. No eligible risks can be refused. NC drivers get to choose his or her company. Allowing insurance companies to charge more to whomever they consider a "bad driver" will allow companies to charge ANYONE more. The law already allows companies to charge the bad drivers more and better drivers less.

2013 Senate Bill 154 Auto Regulatory Modernization * Very similar 2011 SB 490 that was commonly known as the "State Farm bill"

1. Choice for Nonfleet Private Passenger Auto Insurance:

Is Auto Rate "Modernization" REALLY about LOWER RATES? 6 Month Policy, Minimum Limits Liability & UM Only - No Accidents or Convictions Average Rates = Average of Allstate, Geico, Progressive & State Farm Rates Installment Pay Plan Currently Insured Years Driving Experience/Age

3 Yrs/19

4 Yrs/20

5 Yrs/21

6 Yrs/22

7 Yrs/23

8 Yrs/24

34 Yrs/50

49 Yrs/65

54 Yrs/70

58 Yrs/74

64 Yrs/80

MAXIMUM rates allowed in NC Charlotte NC 28227 Fayetteville, NC 28314 Jacksonville, NC 28540 Raleigh, NC 27610

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

Average Rates: Atlanta, GA 30331 Columbia, SC 29209 Richmond, Virginia 23237

$ $ $

1,115 909 756

$ $ $

913 780 647

$ $ $

760 663 543

$ $ $

675 588 477

$ $ $

645 548 455

$ $ $

609 513 421

$ $ $

446 412 307

$ $ $

351 416 314

$ $ $

370 446 370

$ $ $

425 514 409

$ $ $

602 600 508

Charlotte MAXIMUM Rates LOWER Than Average Rates By: Atlanta, GA 30331 $ (858) $ (656) Columbia, SC 29209 $ (652) $ (523) Richmond, Virginia 23237 $ (499) $ (390)

$ $ $

(503) (406) (286)

$ $ $

(418) (331) (220)

$ $ $

(388) (291) (198)

$ $ $

(352) (256) (164)

$ $ $

(189) (155) (50)

$ $ $

(94) (159) (57)

$ $ $

(113) (189) (113)

$ $ $

(168) (257) (152)

$ $ $

(345) (343) (251)

Fayetteville MAXIMUM Rates LOWER Than Average Rates Atlanta, GA 30331 $ (849) $ Columbia, SC 29209 $ (643) $ Richmond, Virginia 23237 $ (490) $

(647) (514) (381)

$ $ $

(494) (397) (277)

$ $ $

(409) (322) (211)

$ $ $

(379) (282) (189)

$ $ $

(343) (247) (155)

$ $ $

(180) (146) (41)

$ $ $

(85) (150) (48)

$ $ $

(104) (180) (104)

$ $ $

(159) (248) (143)

$ $ $

(336) (334) (242)

Jacksonville MAXIMUM Rates LOWER Than Average Rates By: Atlanta, GA 30331 $ (886) $ (684) Columbia, SC 29209 $ (680) $ (551) Richmond, Virginia 23237 $ (527) $ (418)

$ $ $

(531) (434) (314)

$ $ $

(446) (359) (248)

$ $ $

(416) (319) (226)

$ $ $

(380) (284) (192)

$ $ $

(217) (183) (78)

$ $ $

(122) (187) (85)

$ $ $

(141) (217) (141)

$ $ $

(196) (285) (180)

$ $ $

(373) (371) (279)

Raleigh MAXIMUM rates LOWER Than Average Rates Atlanta, GA 30331 $ (886) Columbia, SC 29209 $ (680) Richmond, Virginia 23237 $ (527)

$ $ $

(531) (434) (314)

$ $ $

(446) (359) (248)

$ $ $

(416) (319) (226)

$ $ $

(380) (284) (192)

$ $ $

(217) (183) (78)

$ $ $

(122) (187) (85)

$ $ $

(141) (217) (141)

$ $ $

(196) (285) (180)

$ $ $

(373) (371) (279)

By:

By: $ $ $

(684) (551) (418)

Risk: 6 Month, Currently Insured, 'Liability & UM Only (30/60/25 in NC, 25/50/25 in other states), Single male, Single car - 2003 Honda Civic LX 4 Door Sedan - owned, Commutes less than 10 miles 5 days a week, No accidents or convictions, Rent, No credit score obtained. $3 per installment/5 installments = $15 Maximum in NC. Other States vary significantly. Number of Years Driving Experience = Actual Age Minus 16 Zip Codes in Each Town - Similar population, similar population density and similar recent home sale values according to www.city-data.com Charlotte 28227 - Population 43,694, Median Price of Homes Sold Q2 2011 $122,000; 1,126 people per square mile Fayetteville, NC 28314 - Population 50,927; Median Price of Homes Sold in Q2 2011 = $122,000; 2,198 people per square mile Jacksonville, NC 28540 - Population 40767; Median Price of Homes Sold in Q2 2011 = $152,000; 422 people per square mile Raleigh 27610 - Population 44,774; Median Price of Homes Sold Q2 2001 = $120,000; 1,007 people per square mile Atlanta, GA 30331 - Population 41,922; Median Price of Homes Sold in Q2 2011 $116,452; 1,081 people per square mile Columbia SC 29209 - Population 31,149; Median Price of Homes Sold in Q2 2011 $115,000; 902 people per square mile Richmond, VA 23237 - Population 24,553; Median Price of Homes Sold $137,500; 1,186 people per square mile

3 Yrs/19

4 Yrs/20

5 Yrs/21

6 Yrs/22

7 Yrs/23

8 Yrs/24

34 Yrs/50

49 Yrs/65

54 Yrs/70

58 Yrs/74

64 Yrs/80

MAXIMUM rates allowed in NC Charlotte NC 28227 Fayetteville, NC 28314 Jacksonville, NC 28540 Raleigh, NC 27610

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

$ $ $ $

257 266 229 229

Average Rates: Atlanta, GA 30331 Columbia, SC 29209 Richmond, Virginia 23237

$ $ $

1,360 1,279 1,738

$ $ $

1,116 1,051 1,590

$ $ $

953 879 1,222

$ $ $

854 784 1,150

$ $ $

817 741 1,111

$ $ $

764 675 988

$ $ $

607 561 531

$ $ $

513 584 850

$ $ $

543 617 829

$ $ $

591 693 829

$ $ $

733 805 1,111

Charlotte MAXIMUM Rates LOWER Than Average Rates By: Atlanta, GA 30331 $ (1,103) $ (859) Columbia, SC 29209 $ (1,022) $ (794) Richmond, Virginia 23237 $ (1,481) $ (1,333)

$ $ $

(696) (622) (965)

$ $ $

(597) (527) (893)

$ $ $

(560) (484) (854)

$ $ $

(507) (418) (731)

$ $ $

(350) (304) (274)

$ $ $

(256) (327) (593)

$ $ $

(286) (360) (572)

$ $ $

(334) (436) (572)

$ $ $

(476) (548) (854)

Fayetteville MAXIMUM Rates LOWER Than Average Rates By: Atlanta, GA 30331 $ (1,094) $ (850) Columbia, SC 29209 $ (1,013) $ (785) Richmond, Virginia 23237 $ (1,472) $ (1,324)

$ $ $

(687) (613) (956)

$ $ $

(588) (518) (884)

$ $ $

(551) (475) (845)

$ $ $

(498) (409) (722)

$ $ $

(341) (295) (265)

$ $ $

(247) (318) (584)

$ $ $

(277) (351) (563)

$ $ $

(325) (427) (563)

$ $ $

(467) (539) (845)

Jacksonville MAXIMUM Rates LOWER Than Average Rates By: Atlanta, GA 30331 $ (1,131) $ (887) Columbia, SC 29209 $ (1,050) $ (822) Richmond, Virginia 23237 $ (1,509) $ (1,361)

$ $ $

(724) (650) (993)

$ $ $

(625) (555) (921)

$ $ $

(588) (512) (882)

$ $ $

(535) (446) (759)

$ $ $

(378) (332) (302)

$ $ $

(284) (355) (621)

$ $ $

(314) (388) (600)

$ $ $

(362) (464) (600)

$ $ $

(504) (576) (882)

Raleigh MAXIMUM rates LOWER Than Average Rates Atlanta, GA 30331 $ (1,131) Columbia, SC 29209 $ (1,050) Richmond, Virginia 23237 $ (1,509)

$ $ $

(724) (650) (993)

$ $ $

(625) (555) (921)

$ $ $

(588) (512) (882)

$ $ $

(535) (446) (759)

$ $ $

(378) (332) (302)

$ $ $

(284) (355) (621)

$ $ $

(314) (388) (600)

$ $ $

(362) (464) (600)

$ $ $

(504) (576) (882)

By: $ (887) $ (822) $ (1,361)

Risk: 6 Month, Currently Insured, 'Liability & UM Only (30/60/25 in NC, 25/50/25 in other states), Single male, Single car - 2003 Honda Civic LX 4 Door Sedan - owned, Commutes less than 10 miles 5 days a week. No accidents or convictions, Rent, No credit score obtained. $3 per installment/5 installments = $15 Maximum in NC. Other States vary significantly. Number of Years Driving Experience = Actual Age Minus 16 Zip Codes in Each Town - Similar population, similar population density and similar recent home sale values according to www.city-data.com Charlotte 28227 - Population 43,694, Median Price of Homes Sold Q2 2011 $122,000; 1,126 people per square mile Fayetteville, NC 28314 - Population 50,927; Median Price of Homes Sold in Q2 2011 = $122,000; 2,198 people per square mile Jacksonville, NC 28540 - Population 40767; Median Price of Homes Sold in Q2 2011 = $152,000; 422 people per square mile Raleigh 27610 - Population 44,774; Median Price of Homes Sold Q2 2001 = $120,000; 1,007 people per square mile Atlanta, GA 30331 - Population 41,922; Median Price of Homes Sold in Q2 2011 $116,452; 1,081 people per square mile Columbia SC 29209 - Population 31,149; Median Price of Homes Sold in Q2 2011 $115,000; 902 people per square mile Richmond, VA 23237 - Population 24,553; Median Price of Homes Sold $137,500; 1,186 people per square mile

SHARE THIS SITE

Home

ALREADY A MEMBER? LOG IN. IF NOT, PLEASE JOIN US.

About

Get Involved

Find Your Legislators

Take Action Email your state legislators who will decide the outcome of this issue!

Tell A Friend Spread the word about this issue to get more North Carolinians involved.

Latest Developments

Tell Us Your Story

Become informed on Senate Bill 154 / House Bill 265. Learn More

Share your view as a consumer about protecting low auto rates.

What They're Saying

Newspaper Editorials

About

Take a look at what they're saying if North Carolina “modernizes” its current auto rate system.

Statewide newspaper editorials opposing the dismantling of North Carolina’s system of competitive, low-cost auto insurance. Read more »

Learn more about protecting low auto insurance rates for North Carolinians. Read More »

News

Drivers of this bill? Not N.C. drivers Posted: Mar. 05, 2013 by The Charlotte Observer There’s a lot to like about the unique way car insurance rates are set in North Carolina. The state has the lowest rates in the South, and the seventh-lowest in the nation. That could change quickly under a proposal the legislature is considering.Here’s how it works now: Car insurance companies have to agree to an industry-wide rate increase (or decrease) each year with the N.C. Rate Bureau. The publicly elected insurance commissioner reviews that request, decides whether it’s justified and can approve it or seek a lower hike. That approach has...

Apodaca has a better idea on auto insurance Posted: Mar. 10, 2013 by The Ashville Citizen Times Finally, someone has proposed changes to North Carolina’s auto insurance system that might actually benefit drivers and not just insurers. North Carolina has a model system for two reasons. First, proposed rate changes must be industrywide and can be challenged by the Department of Insurance. Insurers can charge less than the rate set by law but not more. Second, a reinsurance pool assures that all licensed drivers have access to insurance...

Latest Video As this issue is debated in the legislature and covered in the news, we will update you with timely videos.

Find an Event Protecting low auto insurance rates will keep you updated once an event is scheduled to influence the outcome of this issue.

Contact Us We are interested in hearing your thoughts about protecting low auto insurance rates for North Carolinians. If you would like to share a question or comment, please provide feedback. Read More »

White: Take a peek inside insurance bill Published: Mar. 10, 2013 by The Fayetteville Observer 'Laws are like sausages," Otto von Bismarck said. "It's better not to see them being made." Too many of us take the great German statesman's advice. I suspect he gave it to keep the public's eyes out of his own political machinations. It doesn't serve anyone but the politicians who are making the sausage. As ugly as the view can be, we need to be political junkies to some degree, because we need to know what our elected representatives are up to. Too often, they're up to no good...

Goodwin the best insurance for NC drivers Published: Mar. 8, 2013 by The News & Observer When Wayne Goodwin warns that legislators and some in the insurance industry may be up to something, it’s fairly safe to assume that...they may be up to something. So let’s hope all these pro-business Republicans in the General Assembly understand that if they © 2013 should PROTECTING AUTOMOBILE RATES act inLOW a way that has North Carolina consumers paying more for auto insurance, and facing

converted by Web2PDFConvert.com

March 21, 2013 RE: Legislature on Auto Modernization Bills SB 154 and SB 180 Dear Valued Agency Partners: By now you’re probably aware of the activity in Raleigh related to the “Modernization” of setting automobile insurance rates. But just in case you aren’t, there are a number of helpful resources found at the end of this memo. We believe of the two bills under consideration that SB 180 is the better choice. Before reviewing SB 180 let’s talk about the current state of affairs within North Carolina’s automobile insurance industry, and the oppositions proposal. The current process creates a number of advantages and disadvantages.

Advantages to Current Process: 1. Low Rates (According to the NAIC, North Carolina has the 7th lowest auto insurance rates in the nation.) 2. High Percentage of Insured Operators (Due to low rates most operators in the state are insured and North Carolina has one of the lowest percentages of uninsured motorist in the nation.) 3. Competitive Market Place (Currently there are 160 insurance carriers writing personal automobile insurance in North Carolina.) 4. Consumer Advocacy (Currently the Commissioner can either approve, or disapprove requested rate adjustments by the North Carolina Rate Bureau.) 5. Commissioner with a Healthy Perspective of Delicate Balance Between Consumer Advocate and Business Friendly

Disadvantage to Current Process: 1. Recoupment Fee 2. Too Lengthy of a Process to Get Policy Enhancements Approved 3. Pricing Inflexibility

Opposition’s Proposal: Senate Bill 154 and House Bill 265 First, let’s identify those members of the opposing group. The coalition known as Fair Rates NC is made up of the following insurance organizations: Allstate, Amica, Erie, Farmers, GEICO, Kemper, Progressive, State Auto, State Farm, USAA, IIANC, AIA, NAMIC and PCI. They want to dismantle the North Carolina Rate Bureau, eliminate the North Carolina Reinsurance Facility and implement a flex band rating model that will allow insurers to charge up to 12% more per year without the Commissioner of Insurance’s prior approval. These bills propose that companies may choose their system of regulation, opting to remain in the current system, or they may elect a use and file system with a 12% flex – band rating scheme. As long as rates do not increase more than 12% in aggregate for the entire year, the Commissioner of Insurance has the burden of proving that rates are excessive, inadequate or unfairly discriminatory. Along with these changes, they propose that the cap on the rates set for the North Carolina Reinsurance Facility are phased out over the next 5 years. Taking this approach will create a market similar to those that border North Carolina. In each of the surrounding states consumers pay higher premiums and have more uninsured operators.

What is Universal Insurance Company’s Position? Universal Insurance Company and every other North Carolina domiciled property and casualty insurance company strongly opposes elimination of the North Carolina Rate Bureau and Reinsurance Facility. We are in favor of reasonable changes to current system, and these are covered in Senator Apadoca’s proposal SB 180. This is a more reasonable approach to addressing the disadvantages of the current system. This allows for more innovation, and programs such as Progressive’s Pet Protection and Liberty Mutual’s Replacement Car Endorsement could be filed outside of the Rate Bureau. This would create a more efficient process for getting policy enhancements approved and into the market. The consumer could choose which enhancements they wanted without impacting the basic coverages found within the auto insurance policy. Bill 180 clearly addresses two of three disadvantages to the current auto rate making process. This less radical approach is supported by insurance companies, agency organizations and consumer groups. The companies supporting this approach are AmTrust Financial Services, Discovery Insurance Company, GMAC Insurance, Greenville Casualty, Nationwide, North Carolina Farm Bureau, Southern General Insurance, The Members Insurance Company and Universal Insurance Company. Both the Professional Insurance Agents organization and Alliance of Insurance Agents of North Carolina support this bill. Along with these insurance companies and agency organizations two of the largest consumer groups have come on board, and they are AAA Carolinas and AARP. For more information on this bill go to www.lowratesnc.com. It is a helpful resource with up to the minute information on legislature, articles, editorials, and facts about “modernization”. We believe that the current system offers many unique advantages to North Carolina operators, and that while it is unique it is not broken. Radically changing the system just because it is unique would not be prudent. If SB 154 is approved there will be radical changes for both the consumer and you, their trusted advisor. To make sure the more sensible bill, SB 180 is approved we need your help.

How can you help support SB 180? As a North Carolina business owner, your voice is important. So, contact your North Carolina legislators and ask them to vote “No” on SB 154 or HB 265, and “Yes” for SB 180. If you know any of your North Carolina legislators personally, call and write them. Your employees and customers can go to www.lowratesnc.com to learn more about this important issue. On this site they can enter their name and address to find their North Carolina legislators. There is a “Take Action” section that makes it easy for them to email their legislator and tell them to support SB 180. If you or your employees receive any feedback from your legislator, please let your Universal Insurance marketing manager know. Should you have any questions, please don’t hesitate to let your marketing manager know. Thank you for being part of the Universal Insurance family and for allowing us to help you grow your business. Sincerely, Jim McCafferty, CPCU President

Kim Smith Marketing Manager

Jeff Hinkle West Region

Joni Locklear Central Region

Anne Morin East Region