How Does Insurance Affect North Carolinians?

The insurance industry is comprised of two segments: property/casualty and life/health.  Property/casualty insurers cover damages to a policyholders' property, as well as any legal liability for damages caused to a third party or their property.  Homeowners insurance, auto insurance, and business owner policies are common examples of property and casualty insurance.  Life/health insurance includes products such as life insurance, health insurance, and annuities. 

According to the National Association of Insurance Commissioners (Insurance Department Resources Report, 2003), there are 7,685 domestic insurance companies nationwide.  Of these companies, 582 are licensed to write property and casualty coverage in North Carolina, with 94 being domiciled in this state.  By law, insurers must be licensed in order to offer approved policies to state residents.  A company that had its primary license issued in this state is considered to be "domiciled" in North Carolina. 

Based on the amount of premium written, insurance companies from both segments in North Carolina paid approximately $436,554,911 in state taxes for the fiscal year ending in 2005.  This sum does not include payments made for licenses, fees, income taxes, property taxes, sales and use taxes, unemployment compensation taxes, and franchise taxes.