A Conversation With Mike Causey, Candidate For North Carolina Insurance Commissioner (Part I)

 

 

George Simpson Sat down with Mike Causey and discussed a number of topics on the upcoming election

 

I finally turned to Mr. Causey’s campaign platform.  What issues are central to his campaign?

"Well, I’m running on bringing about a healthy insurance climate in North Carolina and a system that is fair and equitable across the board.  I hear a lot of concerns.  Some people say, “Well, should we get rid of the Rate Bureau or keep the Rate Bureau?”  You know as well as I do, the insurance industry is divided also.  There are some companies that like it the way it is, there are some that would like to do away with it, or at least make changes.  I know I received a phone call from someone with State Farm not long ago, and they said, “What’s your position on the Rate Bureau?”  I said well, you know, I’m not a big fan of the Rate Bureau I’ll tell you, but I’m old enough to remember why the Rate Bureau came into existence.  We had something called assigned risk.  That was a terrible thing. So much public outcry came about over assigned risk.  That’s why the legislature came up with the solution, which was the Rate Bureau.  So State Farm had tried to get legislation a couple of years ago to do away with the Rate Bureau.  That backfired.  So, now from what I hear there’s some companies that are saying, “Well, maybe we can have companies opt out if they wanted to opt out.”  I don’t know the answer, but I just know we do need to make some changes."

Click Link for Full Interview
A Conversation With Mike Causey, Candidate For North Carolina Insurance Commissioner (Part I)

Insuring a great state: a three part series on liability coverage in N.C.

Though rarely comprising a campaign soundbite, insurance regulations impact residents’ wallets every month.
Three sectors of statewide public policy could undergo major insurance reforms this year. In a three part series I’ll address challenges facing auto insurance, the Beach Plan and healthcare coverage in North Carolina.
Today I’ll explain how a hidden fee on auto insurance premiums and price mandates by state government are raising costs for most drivers.


Strict auto insurance regulations unique to N.C.

Competing bills in the General Assembly address North Carolina’s unique overregulation of automobile insurance. We are the only state to wield price setting authority over the cost of premiums. That control places a fee on 85% of policy holders to subsidize artificial rates for ‘clean risk’ drivers, usually teenagers and city dwellers.
​

State Senator Bob Rucho (R-Mecklenburg) is one member advancing reform via S.B. 490. He says the fee, which cost drivers $900 million over the last five years, lacks transparency because it isn’t noted on financial statements. The revenue gain pays claims when clean risk drivers cause property damage or personal injury, covering for their low premiums.

That means insurance companies can’t raise appropriate revenue from higher risk drivers, rather they receive tax-and-spend assistance to cover their claims. Sen. Rucho argues eliminating the regulation won’t just cut that fee for drivers, it allows providers to earn market-driven revenue margins and offer lower premiums overall.

​Taxing insurance premiums statewide to benefit a small set of drivers fits the mold of socialist redistribution. Charging at-risk policy holders more isn’t discriminatory, it’s the business practice of actuaries and insurance companies nationwide.

​Department of Insurance Commissioner Wayne Goodwin, a former Democratic state representative, says providers could already offer lower rates if that was their intention. In his opinion, reform threatens our distinction as the cheapest state in the southeast to purchase auto insurance. We have the 8th lowest average premiums nationwide.

​There are two flaws in Commissioner Goodwin’s defense of his formidable authority. If providers are forced to price premiums below market assumptions and the government’s fee is reserved for paying claims, insurance companies can’t raise the revenue necessary to lower rates.

​Further, his argument that our average premiums are low compared to other states isn’t convincing when regulators set the price ceiling. These are common spins from interventionist governments.

Our average costs are relatively low because high-risk drivers pay more in other states instead of receiving price
protection from government fees. Most individuals in North Carolina will pay less when the fee is eliminated and insurance companies can offer lower premiums backed by free market revenues.


Bottom line

-​Most drivers would see lower costs with elimination of the government fee and return to a free market insurance exchange.

-There is heavy competition among auto insurance providers. They can’t raise rates unreasonbly without consequences from customers, so that’s an empty threat from bureaucrats clinging to control.

-Our distinction as the only state government using this practice warrants its reconsideration.

Thanks for reading.

http://www.thomgoolsby.com/2012/02/insuring-a-great-state-a-three-part-series-on-liability-coverage-in-n-c/

Mike Causey to Attend Cabarrus County GOP

The Cabarrus County Republican Party will hold its 2012 Annual Precinct Meetings Saturday, February 25, at J.N. Fries Middle School in Concord. Registration will begin at 9:00 and the Meeting will commence at 10:00AM sharp.

All Republicans registered to vote by January 31, 2012 who live in Cabarrus County are welcomed to attend.
Come and meet your candidates seeking office in November, learn more about your precinct and the county party structure and find out about the groundwork that is being laid and already has been laid for the 2012 elections. We will also be conducting a Precinct Training session where we will learn about ways to ensure we get more conservatives elected in our county, state and federal governments.

This year, all Precinct Meetings will happen ON A SEPARATE DATE than the Annual Republican County Convention. The Annual County Convention is tentatively scheduled for March 10 and will also be held at J.N. Fries Middle School.

Anyone wishing to be a voting delegate at the County Convention, their District Convention, the State Convention or anyone wishing to be considered as a delegate to the Republican National Convention in Florida MUST FIRST ATTEND the Annual Precinct Meetings on February 25th.

Contact Cabarrus County GOP Chairman John Lewis at chairman@cabarrusgop.org for more information.

Please Come out and Support!

Causey trounces primary opponent in Mecklenburg Straw Poll

by Kristie Bass  

February 16, 2012 

CHARLOTTE, NC. — Republican candidate Mike Causey, running for Commissioner of Insurance, says he didn't even know about any straw polls at the Mecklenburg County GOP Precinct meetings before he got there Thursday night.

To say Causey was the heavy favorite at the important Mecklenburg event would be an understatement. And he did not disappoint his supporters, trouncing his straw poll opponent by winning the poll with a 66 percent to 34 percent margin.  Causey's unofficial, but announced primary opponent, insurance agent James McCall of Mooresville was there to meet and greet the Mecklenburg delegates.

For Causey, the victory was especially sweet considering that McCall  was born and raised in Mecklenburg County and arrived early to campaign for the straw poll. Causey is a native and resident of Guilford County.

The straw poll, organized and sponsored by Mecklenburg County Repiublican Party, included races for President, Lt. Governor, Council-of-State, congressional and local elected offices.

Rick Santorum won the vote for U.S. President with nearly 42 percent; Vernon Robinson won the vote for U.S. Congress - District 8 with 31 percent and Jim Pendergraph won the U.S. Congress - District 9 straw poll with nearly 40 percent of the vote.

To see the total results from the Mecklenburg Straw Poll, visit this website:

http://www.meckgop.com/2012/02/2012-meckgop-precinct-meeting-straw-poll-results/

-kb

Lincoln-Reagan Day Dinner 2012

Mike Causey will be attending the Lincoln-Reagan Day Dinner. Please Come out and support. For more information please go to http://www.meckgop.com/

The MeckGOP Cordially Invites You to Attend

The 2012

Lincoln-Reagan Day Dinner

@

The NASCAR Hall of Fame

400 Martin Luther King Boulevard

Charlotte, NC 28202

Saturday, February 25, 2012

6:30p-9:30p

Sponsor Registration begins at 5:30p {Sponsor Reception 6p-7p}

Dinner Registration begins at 6:30pm {Dinner Program begins at 7p}

The MeckGOP Welcomes

Congresswoman Marsha Blackburn

Tennessee’s 7^th Congressional District

Along with

Congresswoman Sue Myrick

North Carolina’s 9^th Congressional District

Representative Thom Tillis

Speaker of the NC House

Former Mayor Pat McCrory

2012 Candidate for Governor of North Carolina

&

 TJ Ritchie

Of the Ace&TJ Show on station 96.1 &

 TJ’s Courageous Conservatism,  www.acetj.com

RSVP by February 22, 2012 by calling 704-334-9127 or email contact@meckgop.com

Pay Online www.tinyurl.com/MeckGOPTickets

Paid for by the Mecklenburg Republican Party

1515 Mockingbird Lane, Suite 111 * Charlotte, NC 28209

NC insurance customers irked by policy linking

  BY DAVID RANII, dranii@newsobserver.com

Gary Puffpaff was irritated when he got a letter from Allstate Insurance informing him his homeowners' policy wouldn't be renewed because he had his auto insurance with another company.
Not only did Puffpaff question whether the insurer's action was legal - which, it turns out, it is - but he also was upset because Allstate canceled his auto policies a half-dozen years ago after he filed three large claims.
"Every time I see their commercial I laugh about what they say, because I don't believe a word ... about (how) they take care of you and all that," said Puffpaff, 61, a repair technician who lives in Charlotte. "They only want your money."

This year, two of the most popular underwriters of homeowners insurance policies in North Carolina - Allstate and N.C. Farm Bureau - have adopted underwriting guidelines that link homeowners policies with auto policies across the state.

Both companies cite economics as the reason for their stance.
In the case of Allstate, if you don't have an auto insurance policy from us, they're telling customers, your homeowners policy won't be renewed.

The Farm Bureau's guidelines are slightly different, winnowing out those who don't have a Farm Bureau auto policy and who also have filed a claim on their homeowners policies within the past five years.
Similarly, new Farm Bureau customers who want to buy a homeowners policy also will have to buy auto insurance.

Like many insurers, it also offers a discount for bundled policies.
The Farm Bureau also will "reconsider" renewing a homeowners policy if a customer wants to purchase an auto policy after being notified of the company's new guidelines, said Steve Carroll, executive vice president and general manager at Raleigh-based Farm Bureau.

That's not an option with Allstate, said spokesman Tracy Owens.
Allstate's underwriting guidelines, which took effect at the beginning of the year, affect 46,000 homeowners policyholders; Farm Bureau's guidelines, which take effect Jan. 1, will affect 28,000 homeowners policyholders, according to the companies. Policyholders are being notified about the new guidelines 60 to 90 days in advance of their policy renewal date.

Farm Bureau ranks third, with a 13.9 percent share, in the state's homeowners insurance market, and Allstate ranks fourth with an 8.7 percent share, according to the state Insurance Department.

A legal practice

The department searched its database of consumer complaints at The News & Observer's request and found it received 33 complaints about the policy linkage this year.

"The public should be protected from these kinds of strong-arm techniques," wrote Samuel Crowell Jr. of Lexington.

"Can they do this just because we don't have our car insurance with them?" wrote Victoria Shafer of Mooresville. "How is this fair?"

Fairness is a judgment call, but linking policies is considered legal in North Carolina.
Bob Mack, deputy commissioner of the Insurance Department's property and casualty division, said state law doesn't regulate underwriting guidelines - which spell out under what circumstances an insurer will sell you a policy - "provided it's not discriminatory."

Insurers have adopted similar underwriting guidelines in North Carolina in the past.

"It goes in cycles," Mack said.

The policy linkage required by Farm Bureau and Allstate in North Carolina is one-way only.
Both companies are willing to provide your auto insurance even if you don't have a homeowners policy with them.

That makes sense because auto insurance is viewed by the industry as an attractive business and homeowners insurance isn't, Mack said.

"It's a business decision that we're doing this," said the Farm Bureau's Carroll.
"No insurance company likes to discontinue coverage."
'Lucky to break even'

When it comes to homeowners insurance, "even in a good year ... we're lucky to break even," Carroll said. This year, he said, hasn't been a good year, with Hurricane Irene, the deadly tornadoes that tore through the state and a flurry of other storms.

"Weather patterns just seem to be more violent than they were 20 years ago," he said.
Raising insurance premiums isn't an option now. The state regulates homeowners insurance and imposes a cap on premiums.

Allstate spokesman John Heid said of the company's underwriting guidelines: "Obviously, the decision was carefully considered. It's the right decision that will help us remain financially strong for the customers and the communities we serve."

 

Ranii: 919-829-4877

 

NC insurance customers irked by policy linking 

Excitement palpable at GOP gathering; 'Obama is a big motivator'

There was no enthusiasm gap among Republicans in Charlotte on Thursday night. More than 300 Mecklenburg County party activists turned out for precinct meetings that signaled the start of an election year that for many Republicans holds as much promise as opportunity.

"I've never seen this many people at a precinct meeting," said Linda Daves, a former county and state party chairwoman. "This feels more like a convention."

More than two dozen candidates, some still to announce, mingled with activists organized into more than 100 precincts in the basement of uptown's First Baptist Church. Though normally low-key affairs, the meeting had all the trappings of a political rally.

In Raleigh, nearly 2,000 Republicans turned out for a similar event, where gubernatorial candidate and former Charlotte Mayor Pat McCrory spoke.

"We've accomplished half of our goal even before the campaign even starts," McCrory said. "Beverly Perdue will not be the next governor of North Carolina."

The kickoffs came in a year when some polls suggest the GOP suffers from an "enthusiasm gap." Turnout in last month's Florida primary, for example, was down 14 percent from 2008. As four Republicans continue to battle for the presidential nomination, President Barack Obama's approval rating has slowly risen, according to three new surveys.

In North Carolina, though, Republicans have reason to be optimistic. McCrory led in the polls even before Perdue announced she won't run for re-election, leaving Democrats scrambling for a candidate. On Thursday, U.S. Rep. Brad Miller of Raleigh announced he wouldn't run.
And after winning the General Assembly in 2010, Republicans are mobilizing to keep it, armed with new district lines they drew.

"I'd say that things are looking pretty good for Republicans this year," said Tom Jensen, director of Public Policy Polling, a Democratic firm. "They're favored in the governor's race no matter who" Democrats nominate.

"Voters are split right down the middle in terms of who they want to control the legislature," he added. "But (Republicans) have such a structural advantage because of redistricting."
No place is the enthusiasm more evident than in the 9th Congressional District.
Thursday night's event drew nine men vying for the seat long held by retiring U.S. Rep. Sue Myrick. A 10th candidate, on duty in Afghanistan, was represented by his wife. Moving around a crowded floor, the candidates were literally bumping into one another.

"Saying hello to folks is something I'm second to none about," said 9th District candidate Andy Dulin, a Charlotte City Council member. He turned to greet a voter only to find that rival Dan Barry of Union County already had grabbed the man's hand.

The race is so much in flux that only eight of the 10 candidates were listed on a straw poll ballot, even though the two others - former state Sen. Robert Pittenger and newcomer Ken Leonczyk - worked the crowd.
In the presidential straw poll, former Pennsylvania Sen. Rick Santorum won 42 percent. Former Massachusetts Gov. Mitt Romney finished two votes ahead of U.S. Rep. Ron Paul of Texas. Both had 23 percent. Former House Speaker Newt Gingrich trailed with 12 percent.

Though Republicans are divided over their nominee, they say they'll unite on one candidate.
"Barack Obama is a big motivator for Republicans to come out and participate in the process," said Daves, the former party chairwoman.

 She said holding the Democratic National Convention in Charlotte will only motivate Republicans more.
Obama carried North Carolina by 14,000 votes in 2008, the first Democrat to win the state since 1976. He doesn't want to lose it.

"On any given day across the city and across the state, our volunteers are making phone calls, registering voters and bringing new supporters into our already strong organization," said Cameron French, a spokesman for Obama for America. Michael Bitzer, a political scientist at Catawba College, said Republicans are well aware of that.

"(Republicans) are not going to make the same mistake they did in 2008, and that was basically take North Carolina for granted," he said.

Rob Christensen from the (Raleigh) News & Observer contributed.

Morrill: 704-358-5059

Excitement palpable at GOP gathering; 'Obama is a big motivator' 

Read more here: http://www.charlotteobserver.com/2012/02/17/3019895/excitement-palpable-at-gop-gathering.html#storylink=cpy

MeckGOP Precinct Meeting Tonight

Mike Causey Will be attending The MeckGOP Precinct Meeting Tonight! Please Come out and Support!

http://www.gocausey.com

 

Mike Causey files for Insurance Commissioner of North Carolina

(Raleigh, NC) Mike Causey, small business owner, farmer, retired insurance executive and Army veteran today filed his official campaign documents with the State Board of Elections in Raleigh.

"I am running for insurance commissioner because people are hurting from high insurance costs and lack of response from the Department of Insurance. We must create a free market insurance system and get people some relief from high insurance premiums," Causey said.

"People are frustrated and fed up with the insurance problems in this state; I will address this issue by creating a healthy insurance climate for insurers, attract more insurers as well as make a more 'user-friendly' and accessible insurance department" he said.

The current commissioner has failed to protect the people of eastern North Carolina. He "promised big but failed to deliver," according to one resident. He says on his blog: "Accessibility, approachability, consumer protection, and transparency are hallmarks of both my administration as state Commissioner of Insurance but also of good government in general." If this is the case, why are so many residents "disappointed" at the failures of this administration.

"I will make sure that the people of North Carolina are well-served by the Department of Insurance; Plain-talk policies will replace the complicated language that we now have in North Carolina insurance policies; I will cut the red tape and streamline this frustrating bureaucracy," he concluded.

For more than ten years, Causey worked as a registered lobbyist with the NC General Assembly, working on consumer insurance issues, consumer health freedom issues, collision repair and auto glass issues.

Currently, Mike Causey serves on the Guilford County Agricultural Board, the Guilford County Environmental Review Board and the Public Officers and Employee Liability Insurance Commission under the Risk Management Division of the NC Department of Insurance.

Mike Causey, 61, is a native of Southeast Guilford County, where he was raised on the family farm. Causey attended Guilford County Public Schools, earned a B.S. in Business Administration from High Point University, where he attended graduate school in the MBA program. He also earned his A.A.S. in Civil Engineering Technology from Wake Technical Community College and studied Environmental Engineering at UNC-Charlotte. He earned his insurance executive management certificate at Purdue University in 1981 and studied insurance through the American College's CLU and ChFC program. He served in Okinawa during the VietNam era with the US Army.

In his local community, Causey is past president and member of the Alamance Community Lions Club, where he was 'Lion of the Year' in 2009. He is a past member of the Hornets Nest Kiwanis Club in Charlotte and a past member of the Charlotte Association of Life underwriters. Causey still lives on the family farm with his wife of 38 years, Hiase. They have one grown daughter and are members of Westover Church in Greensboro.

Mike Causey