North Carolina has a rather unique setup for auto insurance, allowing insurers to place high-risk drivers into the state Reinsurance Facility, a non-profit, state-created pool.
That system came under new scrutiny last week, with some state lawmakers questioning if it subsidizes insurers and lets carriers avoid programs that reward good driving, a model that could potentially lower premiums.
The Mountaineer news site, WRAL TV and other Carolina news outlets that the House grilled facility officials at a hearing last week. One legislator, Rep. George Cleveland, R-Onslow, said his policy was dumped into the high-risk simply because he turned 80, and several insurers told him that was common practice.
A recent report to the legislature noted that South Carolina had a similar system in place until 20 years ago. After it ended the program, insurers found they had an incentive to incentivize drivers to drive more carefully, the TV news outlet .
A bill has not been introduced for the North Carolina General Assembly session that begins in April. But lawmakers on the committee said new legislation could soon be on the way.
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