(Raleigh, NC – Insurance News 360) – North Carolina Insurance Commissioner Mike Causey announced on June 27 that  legal dispute with between the state’s  Department of insurance and the North Carolina Rate Bureau has ended. The dispute centered on a proposal for an 18.9 percent dwelling insurance rate increase. Commissioner Causey has negotiated an almost 14 percent lower rate for an overall statewide average increase of 4.8 percent.

“This settlement means consumers will save approximately $41 million a year compared to what they would have paid had the Rate Bureau’s request been approved,” said Commissioner Causey “The agreement also keeps insurance companies on firm financial footing, which is good for North Carolina’s economy,” the Commissioner added.

Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties, and other properties that are not occupied full-time by the property owner.

Made up of insurance industry representatives, the NCRB is not a state agency. It filed for the proposed 18.9 percent rate increase Feb. 7. On March 12, Commissioner Causey issued a notice of hearing on the filing and set a hearing date for Aug. 20. The settlement means that the Aug. 20 hearing will no longer be necessary.

The new rates will take effect Feb. 1, 2019.

Source: North Carolina Department of Insurance.