Page 2-MIRROR-HERALD-Tue8(lay, August 2, 1077 Declaration wasnh signed on 4th,..,, f { < ■' / w / Most people believe that the Declaration of Independence was signed onBlble cltlsen of North Carolina will avail themselvea of this opportunity to deliver the swift kicks which Senator Morgan’s posture demands... until his head Is adequately adjusted, or, he removes himself from the state that was "first In freedom.” HUGH D. DUDLEY 1000 Martlndale Dr. FayettevUle, N. C. automobile, homeowners and woricers cmnpensatlon Insurance does not "allow rate hikes to go Into effect before they cue cq>proved by your insurance com missioner . . ." It does, however, allow rate Increcmes or decreases which an contested by the Commissioner to be Implemented during Judicial review, on appeal by the Insurance companies or the Rating Bureau. This Is a subtle, but distinct difference which the Com missioner chooees to Ignore and one that will not penalize Insurance companies or Insurance consumers because of Inaction or delays by the Department of Insurance. The law requires the filing of rate changes with the Commissioner for his review and approval. This has not changed. However, under the new law, the Commlsslaner Is required to act upon these filings within a 90 day period ... something he has not chosen to do In the past. His unwillingness to act was one of the reasons used by the General Assembly and the courts In Justifying changes In the law. The Commissioner charges that territorial rating will mean higher rates for citizens In some areas. That Is true. Territorial rating also means that cltlzena In the rural areas and smaller metropolitan areas will no longer be subsidizing drivers In the areas with higher elements of risk . . . usually the larger metropolitan areas. It is a fact that the drivers In the Reinsurance Facility will pay separate rates imder the new law. However, this la not unfair as the Commissioner charges. It simply means that the drivers who are not In the Facility — which Is the majority of North Carolina drivers — will no longer be required to pay higher rates to subsidise those drivers who are not paying their fair share. The constant charges that the In surance Industry used "wall to wall” lobbyists to pass the new law In the (General Assembly are simply not true. In fact, the bill preferred by a majority of the Insurance companies was not passed. The insurance industry Is a complex system of different companies and agents writing Insurance In a multitude of ways. For the com missioner of Insurance cr anyone else to portray the Insurance business i as a single entity, out to do harm to the public. Is unfair and Irresponsible and It should be recognized as such. While the new law la not perfect, and Is not. In the opinion of most insurance companies, the test law which could have been passed for the citizens of North Carolina... It la an Improvement and a compromise which should be given a fair chance to work. The In surance industry Is already at work. Implementing the law so that service to North Carolina policyholders will be uninterrupted. It would certainly be In the test In terests cf the people If the Com missioner would lay aside his political rhetoric and join In the effort to make the new law work tor the Insurance ccxisumers In North Carolina. MICHAEL L. HERMAN Manager, Raleigh office North Carolina Insurance News Service Debunking untruths fkmSSWm e*SL*MS*TKINI SaSIWiv TOMMiiNTran, WMIM-lSSHW SASV STS WAIT ItSTIS Ckves NILL MvwWiws atna) MSMssses iienTNCAiei.iNA piattAueciATiOM Th* Mlrrar-NcriM S kv e«A«f«t IWIMMits Okmsaiv, I. 0. Dr—nr >B, KHws MwiIMt, N. C., MM. SmImm am MMrlAl ANklA art ItCSIM At NA I—w VlAWWAAt A«A. —AM ?M- TAM. lACAM ClAAS —AAA|A —M AA KIASI AAA—IAW. N. C. Iktf W AA— M AAAIA. lAiAcrtsI*— rAWA: MJI Many kiMAta. IA.W — AwaMiAi M.M yaartr —twA- maaa. M AS) mrnmm umana riAa Aar iMm m—ma To the editor. An Item on the new Insurance law appeared In your newspaper and several others. In fairness to your readers, I would appreciate you printing a response. The recent “Item” cn the new In surance law appears to be an editorial written by the Department of In surance, but whatever Its origin It put forth some untruths which need to be refuted. The new Insurance law does not ,change the procedure for appeals of decisions by the Conunlssloner of In surance, including his orders rejecting rate Increases. Under the new law. If the companies or bureaus wish to continue to collect Increases after a rejection order, they must appeal the Com- mlsokmer’s order to court. That’s the same procedure as now. Ttue, they can continue to > collect It. However, If the companies or bureaus can not prove the appropriateness of the rata Increass, th^ must refund the portion of the Increase they can not Justify. The ap peals procedure Is the same as now. The oompanlas and bureaus must take the Oommlsslonsr to court, not the other way around as he has led people to believe. Ths only dlfterenos la that If they prove ths need for Increases, they gat to keep the money Involved. The refund protects ths policyholders U the oompanlea and bureaus can’t prove the need for ths rate Increase. Rate reductions also oan bo put Into effect Immediately by the companies and bureaus. This will prsvsnt the Com missioner of Insurance from blocking rate reductions, first by Inaction and than Improper action, as he did an ex tended coverage (prlmarl’v against windstorm damage) reduction which would have saved the poUeyholdsrs tlT mlUlcn over a 4-year period. You never hear the Department of Insurance mention that blocked reduction, but you may want to ask the Court of Appeals and the Supreme Court for their decisions on this case. The "Item” as It iq>peared In some pcq>erssald: "Insurance companies will be allowed to charge proportionately higher rates than now allowed on drivers In urban areas such as Charlotte, Greensboro, Raleigh, Durham, Winston-Salem and other major cities on the theory that the risk of accidents la greater In more congested areas.” The new law will not allow the use of theories, only facts. The statistics tor every rate and every classification must Justify the rate being charged. If territorial rating la used, that may mean non-urban rates will be lower than urban rates, but that will be only fair If the statlstlca Indicate a lower rate. Another untruth In the Item men tioned that "the automobile Insurance Industry . .. were preparing to seek an Immediate rate Increase of 16 percent before the new law goes Into effect.” That’s nonsense and even the Com missioner recognises It as mmaense. Under the existing law he can block any request, no matter how Justified. How was the Industry going to get an In crease by him If he didn’t want It to get by him! The fact Is that the Imlustry mads no request, but merely filed statistics with him as the new law requires It to do. A copy of the new law ■ will tear out the statements made above. If you want a copy you can obtain It from the Legislative Ser^’lees Office of the General Assembly In Raleigh. LAMAR GUNTER, Manager N. C. Insurance News Service A COOL THOUGHT Wouldn’t It be grand If we could can A frozen January day Seasoned vrith snowflakes for sununer cakei Topped with an Icy spray. Seal spears of Icicles that hang from the eavei Frozen beads from the clothes line wire, Add a tnjte of sentiment we derive From snow cream by the fire. Preserve the satisfaction of looking upon The panorama of winters deUsht With mounds of snow growing higher While snowflakes dance all night. Wouldn’t It be grsuid If we could can A frozen January day To partake of the feast In sultry July When a heat wave curts the bouquet. VIVIAN STEWART BILTCUFFE How^s this for variety? "Grand Week of Golf,” the North Carolina Apple Festival, the oldest continuous horse show In America, the National Open Crlbbage Tournament. How’s tiiat for vartetyT The above Is Just a sample of the many activities In North Carolina for the traveler during the month of August. The Grand Week of Golf will be at Plnehurst August 22-28, with the Inaugural $280,000 Colgate Hall of Fame G