Study Residual Property Market Mechanisms.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 276

Short Title: Study Residual Property Market Mechanisms. (Public)
Sponsors: Senators Johnson, Hanig, and Brinson (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 13, 2025
*S276-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO STUDY POTE NTIAL IMPROVEMENTS T O THE STATE'S RESIDU AL 2
PROPERTY MARKET MECHANISMS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. It is the intent of this act to study potential improvements to the residual 5
property market mechanisms established in Articles 45 and 46 of Chapter 58 of the General 6
Statutes in response to the increased challenges presented by the significant insured losses caused 7
by natural disasters. 8
SECTION 2. The North Carolina Insurance Underwriting Association (NCIUA), as 9
established under G.S. 58-45-10, and the Joint Underwriting Association (Association) 10
established under G.S. 58-46-5 shall jointly study the feasibility of both of the following: 11
(1) NCIUA establishing an excess property coverage option for insureds. For 12
purposes of this subdivision, "excess property coverage" is defined as property 13
coverage in addition to the insured's primary policy that is des igned to cover 14
costs exceeding those covered by the insured's primary policy. 15
(2) The issuance of post -event catastrophe bonds as an option to provide for 16
covered losses caused by a named storm, as defined in G.S. 58-45-5, in excess 17
of NCIUA's or the Assoc iation's capacity to pay claims. For purposes of this 18
subdivision, "post-event catastrophe bonds" are defined as debt instruments, 19
issued in response to a named storm or other natural disaster, that transfer 20
liability or risk from a property insurance carrier to the State or other investors. 21
SECTION 3. No later than March 1, 2026, NCIUA and the Association shall report 22
the findings of this study, including any legislative recommendations, to the chairs of the House 23
of Representatives Insurance Committee and the Senate Commerce and Insurance Committee. 24
SECTION 4. This act is effective when it becomes law. 25