NC Insurance Commissioner's advice: 'Don't sign it'

NC Insurance Commissioner's advice: 'Don't sign it'

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by BILL McGINTY / NBC Charlotte

Bio | Email | Follow: @billwcnc

WCNC.com

Posted on October 25, 2012 at 8:21 PM

CHARLOTTE, N.C. -- Did you recently get a letter from your homeowners insurance company asking you to sign a consent form that would allow them to raise your insurance rate beyond what the state mandates? An NBC Charlotte viewer from Statesville contacted the I-Team because he got this very letter.

The letter says “action required, sign and return enclosed consent to rate form.”

If you sign this, you are giving your insurance company the right, and your consent, to set the rate they deem is appropriate. Here's the disturbing part -- if you don’t sign it, the letter says, “your policy will not be renewed.”

The I-Team took this letter to North Carolina Insurance Commissioner Wayne Goodwin Thursday. He said he's upset this is happening and his advice to homeowners is not to sign it.

“Yes, it’s lawful. But you need to know that you don’t have to sign this. If they drop you, they must give you sufficient notice and if they don’t they have to keep you at the agreed rate for another cycle,” said Goodwin.

If you don't want to sign it, don’t. But quickly shop around for a better company as you could be dropped. Goodwin said he is urging the State Legislature to address this issue very soon.

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