North Carolina legislators have approved reforms to an overextended hurricane insurance plan, capping potential costs to insurers while spreading the risk of a disaster to every property owner in the state.
The House voted 92-19 on Thursday to give the Beach Plan fix final approval. The state-created, privately run plan provides wind and homeowners insurance policies in 18 coastal counties.
The reforms put insured property owners statewide on the hook if a disaster forced the Beach Plan to pay out more than a $1 billion insurance industry cap.
The insurance commissioner said some companies threatened to leave the state if their now-unlimited risk wasn't capped.
(Copyright 2009 by The Associated Press. All Rights Reserved.)