THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, May 13, 1995 TAG: 9505130254
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY BETTY MITCHELL GRAY, STAFF WRITER
DATELINE: RALEIGH LENGTH: Medium: 69 lines
Legislation that could bring added insurance coverage and new natural gas service to northeastern North Carolina were among dozens of bills approved by the state House or Senate this week.
The insurance legislation, approved by the Senate, would expand insurance coverage available to Outer Banks property owners through the so-called ``Beach Plan.''
Under a separate bill approved by the House, companies would be required to bring natural gas to all areas they service.
The House last week also approved a package of bills designed to make divorce faster and more fair. The Senate approved a bill to swing most of the appointive powers of the lieutenant governor to the president pro tempore and also approved a bill designed to reduce frivolous citizen suits under the Coastal Area Management Act.
The natural gas bill, known as ``Use It or Lose It,'' when coupled with legislation also approved by the House to award natural gas franchises for all areas of the state, will expedite the process of bringing natural gas to areas not now served, according to Rep. W.C. ``Bill'' Owens Jr., a Pasquotank County Democrat and the bill's primary sponsor.
``Natural gas is something we don't have in North Carolina,'' Owens said in House floor debate this week. ``It's something the state needs to be involved in.''
McDowell County Democrat Robert C. Hunter agreed.
``We need these gestures,'' Hunter said. ``We need this infrastructure.''
Owens' bill, which now moves to the Senate, would require gas companies that have franchises in an area of the state to provide natural gas to ``all areas'' of that franchise territory by July 1, 1998 - or lose their monopolies in those areas.
Under the bill, companies awarded future franchises would have three years to supply natural gas throughout the newly awarded area - or lose those monopolies.
The Beach Plan insurance bill, sponsored by Sens. R.C. Soles Jr., a Columbus County Democrat, and Patrick J. Ballentine, a New Hanover County Republican, requires the Beach Plan to offer Outer Banks businesses and homeowners coverage for loss of business income, additional living expenses and loss of rental income.
The bill stipulates that within 30 days of approval by the legislature, the North Carolina Insurance Underwriting Association, which oversees the Beach Plan, must file rules, practices and procedures for offering the new coverage with the state insurance commissioner.
The Beach Plan now insures about $3.2 billion in property. It was established in North Carolina to provide an adequate market for essential property insurance, such as coverage for homes and businesses, for coastal areas of the state.
Insurance that pays business owners for their loss of income and reimburses homeowners for loss of rent in the case of emergencies is available from most insurance companies that offer property and casualty insurance in North Carolina.
But many of these companies refuse to cover property on the Outer Banks and in other coastal areas because of the high risk of loss from hurricanes and other storms.
The legislation would help close that gap, which has left about $125 million in rents uninsured coastwide.
The insurance bill now moves to the House for debate.
KEYWORDS: THE BEACH PLAN OUTER BANKS PROPOSED BILL by CNB