Increase Insurance Rate Transparency.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 979

Short Title: Increase Insurance Rate Transparency. (Public)
Sponsors: Senator Murdock (Primary Sponsor).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S979-v-1*
A BILL TO BE ENTITLED 1
AN ACT MODIFYING THE CONSENT AND NOTIFIC ATION REQUIREMENTS F OR 2
INSURANCE RATE DEVIA TIONS, PROHIBITING T HE USE OF CREDIT SCO RING 3
TO RATE NONCOMMERCIA L PRIVATE PASSENGER MOTOR VEHICLE AND 4
RESIDENTIAL PROPERTY INSURANCE, DIRECTIN G THE DEPARTMENT OF 5
INSURANCE TO STUDY T HE GRADUAL REDUCTION OF CONSENT TO RATE 6
DEVIATIONS BY INSURERS, DIRECTING THE DEPARTMENT OF INSURANCE TO 7
CONDUCT A PUBLIC AWA RENESS CAMPAIGN ON C ONSENT TO RATE 8
DEVIATIONS, AND APPR OPRIATING FUNDS TO T HE DEPARTMENT OF 9
INSURANCE. 10
The General Assembly of North Carolina enacts: 11
SECTION 1. G.S. 58-36-30 reads as rewritten: 12
"§ 58-36-30. Deviations. 13
… 14
(b1) This subsection applies only to insurance against loss to residential property with not 15
more than four housing units. A rate in excess of that promulgated by the Bureau may be charged 16
by an insurer on any specific risk if the higher rate is charged in acco rdance with rules adopted 17
by the Commissioner. An insurer shall give notice to the insured that the rates used to calculate 18
the premium for the policy are greater than those rates that are applicable in the State of North 19
Carolina. by including the following language in the policy on page one of the declarations page 20
or on a separate page before the declarations page, in at least 14 point type or in a font size larger 21
than the remainder of the document whichever is larger, bolded, and all capitalized: 22
23
NOTICE: IN ACCORDANCE WITH G.S. 58-36-30(b1), THE PREMIUM BASED UPON 24
THE APPROVED RATES IN NORTH CAROLINA FOR RESIDENTIAL PROPERTY 25
INSURANCE COVERAGE APPLIED FOR WOULD BE $____. OUR PREMIUM FOR THIS 26
COVERAGE IS $____. 27
28
The disclosure statement noted above in this subsection shall be included on any renewal of 29
or endorsement to the policy when the rates charged exceed the approved manual rate. The 30
insurer shall retain consent to rate information for each insured and make this information 31
available to the Commiss ioner, upon request of the Commissioner. Commissioner and with the 32
knowledge and consent of the insured. 33
At least 60 days prior to charging a higher rate an insurer shall notify the insured: (i) that the 34
rates used to calculate the premium for the policy will be greater than those rates that are 35
applicable in the State of North Carolina , (ii) what the premium based upon approved rates in 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 979-First Edition
North Carolina for residentia l property would be, (iii) what the insurer 's premium for this 1
coverage will be, (iv) of the specific justification for charging the greater rate , and ( v) of any 2
actions the insured could take to mitigate the insurer's justification for charging a higher rate. The 3
notice and consent required by this subsection may be in electronic form and deli vered by 4
electronic means. 5
Any data obtained by the Commissioner under this subsection is proprietary and confidential 6
and is not a public record under G.S. 132-1 or G.S. 58-2-100. 7
(b2) Notwithstanding subsection (b1) of this section, the Commissioner shal l collect 8
annually from all insurers and publish on the Department's website no later than July 1 the 9
following data aggregated across all insurers for each geographical rate-making territory: 10
(1) The percentage of policies for which a consent to rate has been obtained.The 11
number of policies in effect, or other exposures insured. For the purposes of 12
this subsection, "policies in effect" shall mean the number of policies written 13
in the reporting year, and "other exposures," if any, shall mean any coverage 14
extended other than policies written, and shall be described in the report in 15
sufficient detail to identify the coverage provided. 16
(2) The average difference between the approved premium and the consented 17
premium.The number of applications for coverage. 18
(3) The number of applications for which coverage was not provided, classified 19
according to applications withdrawn, applications denied, and applications 20
still in process. 21
(4) The number of policies not renewed, classified according to nonrenewals 22
initiated by the insurer, and nonrenewals initiated by the policyholder, with 23
subclassifications to include the following reasons for nonrenewal: 24
a. For nonrenewals initiated by the insurer : (i) lack of payment, (ii) 25
misrepresentation, (iii) property features, (iv) climate risk, (v) 26
reduction in service area, or (vi) other. 27
b. For nonrenewals initiated by the policyholder: (i) cost, (ii) untimely 28
settlement of claims, (iii) unsatisfactory customer service, (iv) 29
identification of more suitable insurance options, (v) v acating 30
property, or (vi) other. 31
(5) The number of policies canceled or terminated. 32
(6) The number of claims filed. 33
(7) The number of claims approved, classified according to in whole, in part, and 34
number of days lapsed from claim filed to approval. 35
(8) The number of claims denied, classified according to in whole, in part, and 36
number of days lapsed from claim filed to denial. 37
(9) The dollar amounts of the losses incurred. 38
(10) The dollar amounts of the losses paid. 39
(11) The dollar amounts of the premium charged for coverage. 40
(12) Applicable rates for each form of property insurance and rating classification, 41
including rates by tier in multitier programs, and differentiating between 42
policies with varying types of benefits, including , but not limited to , 43
guaranteed replacement cost, standard or limited replacement cost, market 44
value or actual cash value, and differentiating among policies issued for 45
single-family homes, multifamily homes, condominium or cooperative units, 46
and business properties or farms. 47
(13) The deductible, classified as a percentage of the insured property's value. 48
(14) For covered insurance companies distributing through direct solicitation, the 49
number of direct mail or telephone solicitations. 50
(15) The number of agents appointed by the covered insurance company. 51
General Assembly Of North Carolina Session 2025
Senate Bill 979-First Edition Page 3
(16) The street addresses of all offices issuing or servicing policies. 1
(17) Languages spoken, other than English, with sufficient fluency to conduct 2
business in that language by personnel within each office. 3
(18) Whether the covered insurance company issues policies in a language other 4
than English and, if so, identifying the languages in which policies are issued 5
and the number of policies issued in each language. 6
(19) For each of the categories of information described in subdivisions (1) through 7
(13) of this sub section, further classifications and aggregated data according 8
to race, national origin, ethnicity, household income level, and gender of the 9
insureds or applicants according to categories and subcategories as defined by 10
the federal Office of Management and Budget 's Statistical Policy Directive 11
No. 15 for race and ethnicity data, as well as classifications and aggregated 12
data by race, national origin, ethnicity, and income level characteristics of the 13
census tract in which the insured risk is located including whether the insured 14
risk is located in a disadvantaged community . Where an insurer applies any 15
other classification which affects the premium rate at which the policy is 16
issued, such as credit score or credit -based insurance score, the insurer shall 17
provide totals by race, national origin, ethnicity, household income level, and 18
gender for each such classification and applicable premium rate based on the 19
modifying classification . Notwithstanding any other provi sions of this 20
subsection, data collected pursuant to subdivision (13) of this subsection will 21
not be reported as aggregated data but as individual record data as described 22
in subdivision (23) of this subsection. 23
(20) The information upon which an insurer, rate service organization, or group of 24
insurers filed with the Commissioner in support of the rates as required to be 25
filed with the Commissioner. An insurer or group of insurers which are 26
members or subscribers of a rate service organization which makes or files 27
rates on its behalf shall be responsible for filing of the information as part of 28
the report required by this subdivision. 29
(21) The total dollar amount of financing to fossil fuel businesses, including 30
investments and underwriting in terms of total g ross premiums in dollars, 31
disaggregated by company and project in a format determined by the 32
Commissioner. 33
(22) The total dollar amount of financing for new fossil fuel projects, including 34
investments and underwriting in terms of total gross premiums in do llars, 35
disaggregated by company and project in a format determined by the 36
Commissioner. 37
(23) In addition to aggregate data required to be reported under this subsection, 38
each insurer shall file with the Commissioner, and make available to the 39
public, the i ndividual record data collected pursuant to subdivisions (1) 40
through (13) of this subsection , as well as data related to modifying 41
classifications if relevant as described in subdivision (17) of this subsection , 42
from which the report summaries were tabulated. Such data shall be provided 43
in an online electronic database format prescribed by the Commissioner, and 44
the Commissioner shall make such database files available directly to the 45
public. The Commissioner shall require that all information which would 46
personally identify any individual applicant or policyholder be deleted. The 47
categories of data to be made available for each individual record shall include 48
all of the same categories of information collected pursuant to subdivisions 49
(1) through (13) of thi s subsection, as well as data related to modifying 50
classifications if relevant as described in subdivision (17) of this subsection , 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 979-First Edition
contained in the aggregate report and shall be presented in accordance with 1
standardized classification codes to be established by the Commissioner. 2
The Commissioner shall designate the format and manner to collect the data to be published. 3
Any nonaggregated data obtained by the Commissioner, including data identifying individual 4
insurers or insureds, under this subsection is proprietary and confidential and is not a public 5
record under G.S. 132-1 or G.S. 58-2-100. This subsection applies only to insurance against loss 6
to residential real property with not more than four housing units. 7
…." 8
SECTION 2. G.S. 58-36-90 reads as rewritten: 9
"§ 58 -36-90. Prohibitions on using Using credit scoring to rate noncommercial private 10
passenger motor vehicle and residential property insurance; 11
exceptions.insurance prohibited. 12
(a) Definitions. – As used in this section: 13
(1) "Adverse action" has the same meaning as in section 1681a(k) of the federal 14
Fair Credit Reporting Act and includes a denial or cancellation of, an increase 15
in any charge for, or a reduction or other adverse or unfavorable change in the 16
terms of coverage or amount of any insur ance, existing or applied for, in 17
connection with the underwriting of insurance. 18
(2) "Credit report" means any written, oral, or other communication of any 19
information by a consumer reporting agency that bears on a consumer's credit 20
worthiness, credit standing, or credit capacity. Credit report does not include 21
accident or traffic violation records as maintained by the North Carolina 22
Division of Motor Vehicles or any other law enforcement agency, a property 23
loss report or claims history that does not include information that bears on a 24
consumer's credit worthiness, credit standing, or credit capacity, or any report 25
containing information solely as to transactions or experiences between the 26
consumer and the person making the report. 27
(3) "Credit score" means a score that is derived by utilizing data from an 28
individual's credit report in an algorithm, computer program, model, or other 29
process that reduces the data to a number or rating. 30
(4) "Noncommercial private passenger motor vehicle" means a "private passenger 31
motor vehicle," as defined by G.S. 58-40-10, that is neither insured under a 32
commercial policy nor used for commercial purposes. 33
(5) "Private passenger motor vehicle" has the same meaning as set forth in 34
G.S. 58-40-10. 35
(6) "Residential property" means r eal property with not more than four housing 36
units located in this State, the contents thereof and valuable interest therein, 37
and insurance coverage written in connection with the sale of that property. It 38
also includes mobile homes, modular homes, townhomes, condominiums, and 39
insurance on contents of apartments and rental property used for residential 40
purposes. 41
(b) Prohibitions; Exceptions. – In the rating and underwriting of noncommercial private 42
passenger motor vehicle and residential property insurance coverage, insurers shall not use credit 43
scoring as the sole a basis for terminating an existing policy or any coverage in an existing policy 44
or subjecting a policy to consent to rate as specified in G.S. 58-36-30(b) without consideration 45
of any other risk factors, but insurers G.S. 58-36-30. Insurers may use credit scoring as the sole 46
basis for discounting rates. For purposes of this subsection only, "existing policy" means a policy 47
that has been in effect for more than 60 days. 48
(c) Notification. – If a credit report is used in conjunction with other criteria to take an 49
adverse action, the insurer shall provide the applicant or policyholder with written notice of the 50
General Assembly Of North Carolina Session 2025
Senate Bill 979-First Edition Page 5
action taken, in a form approved by the Commissioner. The notification shall include, in easily 1
understandable language: 2
(1) The specific reason for the adverse action and, if the adverse action was based 3
upon a credit score, a description of the factors that were the primary influence 4
on the score. 5
(2) The name, address, and toll -free telephone number of the credit bureau that 6
provided the insurer with the credit-based information. 7
(3) The fact that the consumer has the right to obtain a free copy of the consumer's 8
credit report from the appropriate credit bureau. 9
(4) The fact that the consumer has the right to challenge information contained in 10
the consumer's credit report. 11
(d) Disputed Credit Report Information. – If it is determined through the dispute 12
resolution process set forth in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681i(a)(5), that 13
the credit information of a current insured was incorrect or incomplete and if the insurer receives 14
notice of such determination from either the consumer reporting agency or from the insured, the 15
insurer shall re-underwrite or re-rate the consumer within 30 days of receiving the notice. After 16
re-underwriting or re -rating the insured, the insurer shall make any adjustments necessary, 17
consistent with its underwriting guidelines. If an insurer determines the insured has overpaid 18
premium, the insurer shall refund to the insured the amount of overpayment calculated back to 19
the shorter of either the last 12 months of coverage or the actual policy period. 20
(e) Indemnification. – An insurer shall indemnify, defend, and hold insurance producers 21
harmless from and against all liability, fees, and costs arising out of or re lating to the actions, 22
errors, or omissions of an insurance producer who obtains or uses credit information or credit 23
scores for an insurer, provided the insurance producer follows the instructions or procedures 24
established by the insurer and complies with any applicable law or regulation. Nothing in this 25
subsection shall be construed to provide a consumer or other insured with a cause of action that 26
does not exist in the absence of this subsection. 27
(f) Filing. – Insurers that use credit scores to underwrit e and rate risks shall file their 28
scoring models, or other scoring processes, with the Department. A filing that includes credit 29
scoring may include loss experience justifying the applicable surcharge or credit. A filer may 30
request that its credit score data be considered a trade secret and may designate parts of its filings 31
accordingly." 32
SECTION 3. The Department of Insurance shall adopt rules to implement Sections 33
1 and 2 of this act. 34
SECTION 4.(a) The Department of Insurance (DOI) shall study the feasibility of 35
and methodology for gradually reducing the number of rate deviations authorized by 36
G.S. 58-36-30. The study shall develop a plan for reducing the percentage of households 37
consenting to rates in excess of that promulgated by the North Carolina Rate Bureau pursuant to 38
G.S. 58-36-30 to twenty percent (20%) of the statement insurance market or lower. The plan 39
shall (i) implement the reduction in usage of deviations pursuant to G.S. 58-36-30 by n o later 40
than January 1, 2040, and (ii) include strategies for preserving access to insurance while gradually 41
reducing the usage of deviations pursuant to G.S. 58-36-30. 42
SECTION 4.(b) Beginning January 1, 2027, DOI shall conduct a public awareness 43
campaign on the usage of rate deviations pursuant to G.S. 58-36-30 by insurers. The campaign 44
shall include education and recommendations relating to risk reduction and home resilience for 45
insureds. 46
SECTION 4.(c) No later than October 1, 2027, DOI shall report spe cific proposals 47
for implementing the plan developed pursuant to subsection (a) of this section to the chairs of the 48
Joint Legislative Oversight Committee on General Government. 49
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SECTION 5. There is appropriated from the General Fund to the Department of 1
Insurance the sum of fifty thousand dollars ($50,000) in nonrecurring funds for the 2026 -2027 2
fiscal year to conduct the study and public awareness campaign required by this act. 3
SECTION 6. Sections 1 and 2 of this act become effective October 1, 2027, and 4
apply to policies issued, amended, or renewed on or after that date. Section 5 of this act becomes 5
effective July 1, 2026. The remainder of this act is effective when it becomes law. 6