Dare County v. North Carolina Department of Insurance
207 N.C. App. 600
| N.C. Ct. App. | 2010Background
- Rate Bureau filed 2008 rate filings seeking statewide homeowners' insurance increases and territorial changes; consent order approved a 3.9% statewide increase and altered coastal territories.
- Consent order approved by the Commissioner effectively implemented changes and warned that rate increases would take effect on/after May 1, 2009.
- Petitioners (counties, towns, and private parties) sought judicial review of the consent order and related proceedings in Wake County Superior Court and two related appellate dockets.
- Lower court dismissed petitions for lack of subject-matter jurisdiction and standing; petitioners had not participated in the rate-filing proceedings as required to obtain review.
- The court analyzed the interplay of several statutes and the Administrative Procedure Act to determine whether petitioners could obtain judicial review of the consent order.
- Court consolidated the two appeals due to common facts and issues and ultimately affirmed the trial court's dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether petitioners have standing to obtain judicial review. | Petitioners argue aggrieved status entitles review. | Rate Bureau/Department contend petitioners did not participate in the filing, so no rights to review. | No jurisdiction; petitioners lacked standing. |
| Whether the consent order constitutes a final agency decision subject to Chapter 150B review. | Consent order is a final agency decision affecting petitioners as aggrieved parties. | Consent order was an agency decision only with respect to the Rate Bureau under 58-2-53. | Not an agency decision for petitioners; not subject to 150B-43 review. |
| Whether N.C. Gen.Stat. § 150B-43 provides a pathway for judicial review of the consent order. | Section 150B-43 authorizes review of final agency decisions after exhaustion of remedies. | Because the consent order is not an agency decision to petitioners, §150B-43 does not apply to them. | Inapplicable to petitioners; no final agency decision for them to review. |
| Effect of 58-2-53 on petitioners' ability to seek review. | 58-2-53 permits review by aggrieved persons in scope of the filing proceedings. | Consent order was with respect to the Rate Bureau only; petitioners did not intervene. | 58-2-53 excludes petitioners from review of the consent order. |
| Whether direct appellate review under §58-2-80 was available. | Consent order could be appealed directly since it concerns rates. | Direct appeal requires findings of excessive/inadequate/unfairly discriminatory rates; consent order lacked them. | Direct appeal not available; §58-2-80 not triggered. |
Key Cases Cited
- State ex rel. Comm'r of Ins. v. N.C. Rate Bureau, 160 N.C.App. 416 (2003) (agency framework for insurance rate proceedings)
- State ex rel. Comm'r of Ins. v. N.C. Rate Bureau, 358 N.C. 539 (2004) (affirmation of rate bureau framework)
- In re Employment Security Com., 234 N.C. 651 (1951) (principles of appealability from administrative decisions)
- In re Kapoor, 303 N.C. 102 (1981) (APA exhaustion and review framework)
- Department of Transp. v. Blue, 147 N.C.App. 596 (2001) (final agency decision prerequisites and review standards)
- McCrary, 112 N.C.App. 161 (1993) (integration of 58-2-75 with APA review standards)
- Huang v. N.C. State Univ., 107 N.C.App. 710 (1992) (exhaustion and availability of judicial review)