State should stand firm in insurance crisis

By Edward Silver

Much has been written about the rising insurance rates for businesses and condo owners along the coast, but let's not forget that the individual homeowner has also been subject to the same unwarranted increases or cancellations in homeowners insurance.

At the recent forums regarding this issue, it is apparent that the S.C. Department of Insurance is nothing more than a politically appointed group that has little clout regarding the premiums we pay. As a speaker at a Myrtle Beach forum, I suggested that this vitally important position become an elected post as it is North Carolina, wherehomeowners' insurance rates are considerably less than what we pay in South Carolina

I also challenged our local elected officials - S.C. Sens. Dick Elliott, D-North Myrtle Beach, and Luke Rankin, R-Myrtle Beach, and S.C. Rep. Tracy Edge, R-North Myrtle Beach, and others, including The Sun News, to do their own research.

As a former N.C. resident, I wrote to Gov. Mark Sanford a year ago with my concerns on rising costs. Knowing that [S.C. Director of Insurance Eleanor] Kitzman was new in her position, I suggested that she meet with N.C. Director of Insurance Jim Long, who has been in his position for more than 20 years, about how he manages to keep the insurance companies in line and keep homeowner and auto rates affordable.

In return I received a letter from Kitzman's office stating that the S.C. Department of Insurance is doing its best to lower costs, including a list of insurance agents where I should get quotes.

It seems their best is not good enough, as rates continue to rise and many on fixed incomes who retired and moved here for a little bit of "the good life" will be forced to sell their homes and relocate to other areas.

With regard to The Sun News editorial Sept. 8 ("Insurance politicized) suggesting that the coastal wind pool boundary be expanded to the Intracoastal Waterway, this [would have little impact] on rising rates, as many areas affected are west of the waterway.

As to the Sept. 8 letter by Bob Johnson, "Let the state insure S.C. autos, homes," wanting the state to take over insuring homes and autos, do we really want government, especially the S.C. Department of Insurance, with its dismal record so far, taking over this function? The S.C. Department of Insurance should begin by regulating the insurance companies, not the insurance companies regulating the insurance department.

As to Kay Derrig's Sept. 8 letter, "Insurance folks display cavalier attitude," if the state takes over, can't you just imagine dealing with them if you had a claim?

All insurance companies love to write auto policies, which carry high profit margins. How many letters do you get wanting to insure your residence? There are great rewards in writing auto policies, a lot of risk involving homeowner policies.

In North Carolina, under Commissioner Long, you must take the risk to get the rewards. Write [policies] everywhere or you don't write at all.

In South Carolina, insurance company cherry-picking to get high profit margins is allowed, as is either denying coverage or raising rates as much as 700 percent for homeowners, apparently with Kitzman's blessing.

Sanford's Democratic challenger, Tommy Moore, regards this crisis [as working] to his political advantage and could use this to take votes away from Sanford in heavily Republican Horry County, and rightfully so if he has a plan and not just the normal political rhetoric.

I, for one, a lifelong Republican, will support the candidate who provides the fix for this situation and hope others will do so also.

The writer lives in North Myrtle Beach.