House OKs debt option for extensive NC Beach Plan claims



Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

RALEIGH, N.C. (AP) — Tax-free bonds could be issued in North Carolina to help pay for catastrophic insurance claims caused by hurricanes in a bill given initial approval by the state House.

The legislation unanimously favored Tuesday creates a public authority that could issue debt for what's known as the Beach Plan. The plan offers insurance in coastal counties where companies find it too risky to write policies.

North Carolina taxpayers aren't on the hook for this debt, but it would be repaid by assessments on policyholders statewide that were authorized years ago to help pay for extensive losses. Bonds wouldn't be considered until after about $4 billion in reserves, insurance company funds and reinsurance proceeds are exhausted.

A final House vote could come Wednesday before the bill moves to the Senate.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast