North Carolina Gov. Beverly Perdue signed legislation to mandate that insurance companies doing business in the state submit annual audits prepared by independent certified public accountants.

The law, H.B. 1314, codified current administrative practice, according to the state Department of Insurance. It is based on a National Association of Insurance Commissioners' model law.

"It's just another extra layer of protection and another set of eyes looking at insurers' financials," department spokeswoman Kristin Milam said.

It will also require insurers to register their independent auditors with the insurance department. The reports, plus data about insurers' operations and internal financial controls, will also be submitted. Companies with less than $1 million in direct written premiums in North Carolina and/or fewer than 1,000 policyholders in the state are exempt.

Insurance Commissioner Wayne Goodwin and the North Carolina Rate Bureau recently reached an agreement to roll back private automobile insurance rates to just under 2006 levels. The settlement does away with a 9.4% rate increase last year and denies the NCRB's request for a 1.4% rate increase in 2009. Plus, rates are decreased an additional 0.5% and the NCRB, an independent organization that represents all auto insurers doing business in the state, cannot file changes to auto rates until 2011. Goodwin said the settlement will save North Carolina policyholders $545 million (BestWire, July 16, 2009).


In 2008, the top five writers of homeowners multiperil insurance in North Carolina, according to A.M. Best Co. state/line product information based on direct premiums written, were: State Farm Group, with an 18.9% market share; Nationwide Group, with 15.7%; North Carolina FB Insurance Group, with 13.0%; Allstate Insurance Group, with 9.9%; and Travelers Group, with 5.3%.

In 2008, the top five writers of private-passenger automobile insurance in North Carolina, according to A.M. Best Co. state/line product information based on direct premiums written, were: Nationwide Group, with a 20.8% market share; State Farm Group, with 13.6%; Allstate Insurance Group, with 10.9%; North Carolina FB Insurance Group, with 9.1%; and GMAC Insurance Group, with 7.8%.