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Maintain or even lower auto insurance rates in North Carolina by reducing inefficiencies in the current rate review process.

The ratemaking process has become a political game between insurers and the Department of Insurance. This has added unnecessary, bureaucratic delays that keep consumers from getting the best coverage options at the best possible price in the timeliest manner. My policy on rates will always be that if the facts do not support the rate filed, then I will deny it.

I propose to deal with rating issues efficiently, never taking more than 12 months to settle rate matters - anything beyond that only adds operational and administrative costs that get passed on to consumers. And, no political grandstanding or ethically questionable efforts to use my rate-making responsibilities for purely self-serving political purposes.

In terms of our current auto rates, they are low but there is no reason not to try and make them even lower. We can then eliminate the hidden surcharge all drivers must pay currently to cover the inadequate rates paid by some in the state's higher risk driver insurance pool (NC Reinsurance Facility) - we currently have the 8th lowest rates in the nation - if you eliminated the surcharge, we would fall to 6th (see: Oct 18 story in N&O by David Ranii, DOI actuary Kevin Conley acknowledges that when you include recoupment, we fall from 6th to 8th).

Our higher risk driver insurance pool has been allowed to grow too big (it contains 25% of all NC drivers, when the national average for such pools in less than 2%) and it contains too many folks who are not higher risk drivers - if we don't work to make sure only higher risk drivers are in the pool and that they are paying the appropriate rates, NC consumer will continue to have to pay this hidden surcharge and that is simply not fair.

We must eliminate this unfair surcharge (to make sure good drivers are actually getting the best possible rate) by making sure the rate charged those drivers in the Reinsurance Facility covers the cost of accidents they cause. And, all drivers being placed in the Reinsurance Facility, where they pay higher risk rates, deserve to be told so by their insurer, so they can shop around for a better deal elsewhere; we should make it possible for any insurer who wants to, to be able to offer higher risk drivers a rate lower than the Reinsurance Facility rate.

Additionally, we need to reduce the cost to the rest of us from uninsured motorist by cracking down on those who cause accidents but have no insurance to pay for damages. I proposed that driving without coverage should cost you not only the license plate off your car, but your drivers license as well. And, we should explore making uninsured motorist coverage mandatory, as it is in many other states, to make sure victims of accidents caused by uninsured drivers have a way to pay for their car repairs and medical costs.