Insurance Commissioner Mike Causey announced a settlement with Builders Mutual Insurance Co. and its subsidiary Builders Premier Insurance Co. after a market conduct examination revealed a series of violations. As reported by the North Carolina Department of Insurance, the companies have agreed to a $39,000 civil penalty and have already refunded a small sum to policyholders due to a rating error.
The examination, covering the period from July 2021 to December 2022 and concluding in May of the prior year, found that 34% of reviewed policies lacked the requisite proof of North Carolina residency or eligible risk status. With the agreement reached, according to the North Carolina Department of Insurance, Builders Mutual has agreed to draft a corrective action plan.
The examination also highlighted issues with claims handling, as it discovered delays in four out of 50 randomly selected claims when Builders pursued subrogation claims. Two out of 19 customers, when their policies were not renewed, they were also denied precise reasons for the non-renewal.
"I want to thank the members of the Department’s Market Regulation Division for their diligent work in reviewing insurers’ records," said Commissioner Causey in the announcement by the North Carolina Department of Insurance. The fine imposed on Builders Mutual and Builders Premier is set to benefit the public schools, distributed under provisions of the N.C. Constitution. Builders Mutual's agreement to the imposed penalties and their pledge for improvement seems to be a step towards ensuring compliance with insurance laws and regulations in the state.
