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Wilmington population estimated to top 100,000
WILMINGTON — Wilmington is still growing. Just not as quickly as – gulp – Davenport, Iowa, or Waco, Texas, according to the census estimates for last year. Even San Francisco, which is renowned for its high cost of living and lack of housing, had a better growth rate between mid-2007 and mid-2008 than the Port City’s 0.8 percent – or 748 residents. Goodwin: Beach Plan needs fix
RALEIGH — The state’s insurance commissioner said Tuesday that failing to fix the state-created insurance plan for coastal homeowners could lead insurers to dump their North Carolina customers and create a problem of reduced competition and higher prices.00 “We must do what we can to protect consumers from an insurance availability crisis,” Insurance Commissioner Wayne Goodwin said. Coastal coverage fix sought amid wider storm fears
RALEIGH — The shock of profoundly higher insurance premiums is hitting thousands of coastal homeowners. Gary and Janice Gilbert were expecting bad news when insurer USAA told them the policy for their home just north of Wilmington would jump about 20 percent if the Gilberts wanted to renew it in July. The state insurance commissioner had approved rate increases of up to 30 percent in New Hanover County, so it could have been worse. Brunswick’s rookie legislator survives contentious debates
WILMINGTON — Eventful barely describes the first week Frank Iler had as a rookie member of the N.C. House. The Oak Island Republican was thrown right into some of the most contentious debates the legislative session has seen so far. But Iler proved to be a quick learner and a capable replacement for Bonner Stiller, who stepped down on June 15 to spend more time with his family. “It was an amazing week,” Iler said. St. James beats Oak Island to the punch in annexation battle
WILMINGTON — The battle for property along the new Oak Island bridge corridor has begun. In one corner is Oak Island, the biggest beach town in Brunswick County. In the other is St. James, a gated community with strictly limited access. But in the fight to grab property, who came first to the plate is what counts under North Carolina rules. Eight properties and counting are caught in the middle of what is now a legal battle between the towns. Under revised Beach Plan, hurricane costs could affect entire state
RALEIGH — Legislators started grappling Thursday with how to beef up the state-created but underfunded insurance program for coastal property, and immediately confronted the possibility that all of the state’s insured property owners could pay more after a catastrophic hurricane season. Legislation aimed at fixing the Beach Plan was introduced in the House Insurance Committee, which will take it up again next week. More headlines » |
North Carolina's Beach Plan: Who pays for Coastal Property Insurance?
North Carolina’s little-known Beach Plan imposes an enormous fiscal liability on the state. Intended largely to provide windstorm insurance for coastal residents unable to find coverage elsewhere, the Plan has grown to become one of the nation’s largest entities of its type.
By its own accounting, the plan does not have the capacity to survive a once-in-six-years storm without imposing significant taxes (called assessments) on North Carolina residents and businesses. One study from an independent actuarial firm shows that North Carolina could face liabilities of up to $6.2 billion from the plan — a figure that’s almost certainly low. In recent years, the Beach Plan has grown at a rate of roughly $1 billion a month, growth that shows no sign of stopping.
The Beach Plan’s growth stems from deliberate public policy decisions rather than North Carolina’s physical environment. By nearly all accounts, neighboring Virginia faces a greater economic risk from hurricanes than does North Carolina, but that state’s equivalent plan imposes essentially no burden on the state or its taxpayers.
The risk of special taxes — assessments — from the plan could result in higher insurance costs for nearly all North Carolina residents, lead to a massive withdrawal of insurance companies from the North Carolina market, and cause fiscal turmoil throughout the state. One major company, Farmers, already has withdrawn from the North Carolina market because of the Beach Plan’s liabilities, and others may follow.
The Beach Plan needs change, and, fortunately for the state, Insurance Commissioner-elect Wayne Goodwin seems committed to reform. A credible plan for change would consist of effort —mostly undertaken by the commissioner and Beach Plan Board — to stop the Beach Plan’s growth and stabilize it. Following these stabilization efforts, the legislature, commissioner, and board would do best to consider comprehensive reforms that would return the Beach Plan to its intended place as a true market of last resort for people who cannot find insurance anywhere else.
Author: Eli Lehrer Does Onslow need a sales tax increase?
The Onslow County commissioners are asking voters to approve a sales-tax increase on November 4. This report identifies almost $36.7 million in revenue and savings the county could use to meet its needs — more than nine times the amount that the proposed tax increase would produce.
Authors: Dr. Michael Sanera, Terry Stoops, and Joseph Coletti |
