Bill > S276

This bill directs the North Carolina Insurance Underwriting Association (NCIUA) and the Joint Underwriting Association to conduct a comprehensive study exploring two potential improvements to the state's property insurance market mechanisms in response to increasing challenges from natural disasters. Specifically, the associations will investigate the feasibility of creating an excess property coverage option, which would provide additional insurance coverage beyond a primary policy to help insureds manage higher-cost losses, and exploring post-event catastrophe bonds, which are specialized debt instruments that could transfer insurance risk to investors or the state in the event of a named storm. The study aims to develop innovative financial strategies to help manage substantial insurance losses from natural disasters. The associations are required to complete the study and submit their findings, including any legislative recommendations, to the House of Representatives Insurance Committee and the Senate Commerce and Insurance Committee by March 1, 2026. The bill becomes effective immediately upon becoming law, signaling the state's proactive approach to addressing potential gaps in property insurance coverage for catastrophic events.

https://www.ncleg.gov/BillLookUp/2025/S276