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North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolMITIGATIONCREATING RESILIENT COMMUNITIESWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolHURRICANE ARTHURHurricane Arthur struck the Outer Banks of North Carolinaas a CAT 2 Hurricane in July 2014Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolHURRICANE FLORENCE100,000 Claims and Losses Exceeding 1.7 BillionWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolPHOTO BOX Within 60 Days90% of Claims SettledWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolTOP 10 HURRICANESHURRICANEAMOUNT OF LOSSCATEGORYKatrina, 2005 160.2 BillionCAT 3Harvey, 2017 128.2 BillionCAT 4Maria, 2017 91.8 BillionCAT 4Sandy, 2012 70.7 BillionCAT 3Irma, 2017 51.0 BillionCAT 4Andrew, 1992 48.2 BillionCAT 4Ike, 2008 34.5 BillionCAT 2Ivan, 2004 27.2 BillionCAT 3Michael, 2018 25.0 BillionCAT 4Florence, 2018 24.0 BillionCAT 1Source: NOAAWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolNATURAL wHailWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolINSURANCE INSTITUTE FOR BUSINESS & HOME SAFETY(IBHS)Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolTHE NATIONAL ASSOCIATION OFMUTUAL INSURANCE COMPANIES (NAMIC)Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolIMPACT OF RESILIENT CONSTRUCTION Less Community Damage Reduced Costs of EmergencyManagement and Disaster RecoveryResources Maintaining Tourism and Tax Base Lower Insurance Losses Increased Availability of Insurance Improved Affordability of InsuranceWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolIMPACT OF RESILIENT CONSTRUCTION Minimizing Disruption to theHomeowner’s Lives Increased Protection for What Cannot beReplaced by Insurance DollarsWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolMITIGATION CREDITSWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolNCIUA RESULTS - DECEMBER 2016PHOTO BOXWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolNCIUA CERTIFIED IBHS FORTIFIED ROOFSDECEMBER 2016Cape HatterasMoreheadTopsailWilmingtonWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolHOW DO WE INCENTIVIZE CONSUMERS?Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolDESIRING A FORTIFIED HOMEHow can we get consumers to desire a Fortified Home or Roofas much as they desire Granite or Quartz Countertops?Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolCHANGING OUR APPROACHWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolBUILDING INFRASTURCTUREWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolMULTIPLE IBHSEVALUATOR/CONTRACTOR/ROOFING TRAININGWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolFIRST PILOT PROGRAM: ENHANCEMENT ENDORSEMENTWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolNCIUA ENHANCEMENT ENDORSEMENTTerritories 110 & 120 represents the OuterBanks and Barrier Islands of North CarolinaApproved by NCDOI on December 28, 2016Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolEXTERIOR ROOF Existing Roof Removed to theDecking Sealed Roof Deck Nail Spacing Ring Shank Nails Roof Mounted VentsWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolFIRST PILOT PROGRAM IBHS CUSTOMER“Just wanted to say thanks again for your quickresponse and coordination on the roof damageand upgrade. You and your team handled everyaspect with true professionalism and made thewhole process totally stress free.”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolPILOT PROGRAM RESULTSWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolNCIUA CERTIFIED IBHS FORTIFIED ROOFSAPRIL 2019300274Number of Fortified RoofsWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolLESSONS LEARNED During Florence, some policyholders did nottake the FORTIFIED Roof upgrade, becausethey did not want to wait for the evaluator androofer to coordinate installation During Florence, some roofers discouragedpolicyholders from accepting the FORTIFIEDRoof upgrade as they desired to complete asmany roofs as possible. The FORTIFIED Roofwould have required more time to complete.Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool2019 - CONTINUING TO INNOVATEWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool2019Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolFIRST HOME TO RECEIVE GRANT APPROVALEmerald Isle1,900 Square Feet; Built 1984; 193,000 ValueWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolCOMMENTS REGARDING THE “GRANT” PROGRAM. “The one thing I wasn’t worried about was theroof! This was an awesome program!” “We are happy as we can be that we got the roofon before the hurricane.” “Everything was great from what our son told us.I'm very pleased with the whole operation andhow quickly I got refunded. I would be glad to bea recommendation for others, just call me!” “Everything is fine: my peace of mind was out ofthe world with my new roof”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolNCIUA CERTIFIED FORTIFIED IBHS ROOFS1,2001,056Number of -17Dec-18Apr-19Endorsement and Consumer FundedPresentExpected Incl.Approved GrantsGrantWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolHOW DID FORTIFIED ROOFS PERFORMWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolMEDIAN LOSSCOUNTIES WITH MOST FLORENCE CLAIMS 35,000 32,596 30,964 29,996 30,000Median Loss Paid 25,000 20,000 15,932 14,508 15,000 9,197 10,000 5,000 0 2,264 0 0BrunswickCarteretNCIUA IBHS Certified Fortified Roof 0New HanoverOnslowPenderOther NCIUA Properties Within 1 Mile RadiusWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool Of all NCIUA properties (400 ) with FORTIFIED Roofs in place whenHurricane Dorian struck North Carolina, only 7 losses reported roofdamage. Of those, 3 reported minor interior water damage and only 1suffered significant water intrusion.Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolCOMMENTSREGARDING NCIUA FORTIFIED ROOFS AFTER HURRICANE DORIANWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool “My roof was excellent. The yard had lots of shinglesin it, but they weren't mine! Thanks for the grant.” “I had incredible piece of mind! The winds anddebris from trees didn't sound as strong with thenew roof; no shingles were found when raking thistime!”. “The one thing I wasn't worried about was the roof!This was an awesome program!” “The roof stayed intact and did its job. I'm verypleased.”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool.PLEASE OFFER AGAIN “This was a good grant program, even though othersthought it was a scam. Please offer it again so the nonbelievers can take advantage of it!” “I have said good things about the roof to the neighbors.We were very skeptical at first of the grant being too goodto be true. I had a very positive experience in every way.I'm grateful. They don't understand it's not the wind butwater leaks that cause so much damage from storms.”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolOTHER MITIGATION PROGRAMSWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolCALIFORNIA EARTHQUAKE AUTHORITYCEA is a not-for-profit residential earthquake insurerWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolWHEN NORTHRIDGE EARTHQUAKE STRUCK IN 1994 Caused 20 billion in residentialdamage Destroyed or severely damagedthousands of single-family homes Left about 22,000 people homelessWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolCalifornia is home to two-thirds ofour nation’s earthquake riskMost Californians live within30 miles of an active faultLowest RiskHighest RiskWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolGrants of 3,000Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolMITIGATIONA GROWING PROGRAM2014:9 homes2017: 2,182 homes2015:528 homes2018: 3,349 homes2016: 1,639 homes2019: FEMA funding 23M10,000 homes retrofitted since 2014 launchWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolSTRENGTHEN ALABAMA HOMESWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolThe Strengthen Alabama Homes program providesgrants, up to 10,000 per application, to Alabamaresidences for mitigating their home against winddamage by achieving the FORTIFIED standarddeveloped by the Insurance Institute for Businessand Home Safety.Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolSOUTH CAROLINA SAFE HOMESWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolThe South Carolina Safe Home program,administered by the South CarolinaDepartment of Insurance, solely fundedthrough the General Assembly and provides 5,000 matching and non-matching grantfunds to help coastal property ownersretrofit their homes to make them moreresistant to hurricane and high-winddamage.Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolOUR JOURNEY CONTINUES: WHAT’S NEXTWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool2020 10 Million – NCIUA Grant (Strengthen Your Roof)Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolPROGRAM EXPANSION: 2020 CHALLENGE GRANTCan NCIUA Secure Matching Funding?NCIUA Board has authorizedan additional 10 million dollarsto expand program if NCIUAcan obtain matching fundingfrom Federal, State, Local orPrivate Sources.Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool2020 Complete at least 2,600 grants Applied for four additional FEMA GrantsWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool2020Current amount of funding available for 2020: 10,000,000FORTIFIED jobs projected to be completed with current 2020 funding: 1,000Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance Pool2020 1.1 Million of Funding from General Assembly of South CarolinaWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolWORKING TOGETHER TO EXEMPT GRANTS FROM FEDERAL TAXWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolH.R. 5494: Catastrophe Loss Mitigation and Tax Parity ActRepresentative Mike Thompson introduced H.R. 5494 on December 19, 2019 which establishes taxexempt status for state-funded residential mitigation programs for earthquake, windstorm andwildfire.H.R. 5494Sponsor:Co-Sponsors:Rep. Mike Thompson (D, CA)CaliforniaAlabamaWisconsinRep. Moore (D)Rep. Aguilar (D)Rep. Panetta (D)Rep. Bradley (R)Rep. Bera (D)Rep. Sanchez (D)Rep. Rogers (R)Rep. Brownley (D)Rep. Speier (D)Rep. Sewell (D)Rep. Calvert (R)Rep. Swalwell (D)South CarolinaRep. Chu (D)Rep. Cook (R)Rep. Garamendi (D)Rep. Gomez (D)Rep. Rice (R)North CarolinaRep. Rouzer (R)Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolH.R. 5494: Catastrophe Loss Mitigation and Tax Parity ActNational Association of Insurance Commissioners“Whilepromoting mitigation planning is ashared state and federal goal, there isinconsistent tax treatment of state and federaldisaster mitigation grants This legislationwould fix the inconsistency and provide parityfor residential mitigation grants provided bystate public entities.”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolH.R. 5494: Catastrophe Loss Mitigation and Tax Parity ActChamber of Commerce of the United States of America“H.R. 5494 would empowerhomeowners to protect theirhomes against naturaldisasters by updating federaltax treatment of certain statebased grant programs.”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolH.R. 5494: Catastrophe Loss Mitigation and Tax Parity ActA Growing List of Supporters Alabama Association of REALTORS Alabama Center for Insurance Informationand Research Alabama Independent Insurance Agents Alabama Insurance Coalition American Family Insurance American Property Casualty InsuranceAssociation BuildStrong Coalition Earthquake Engineering Research Institute Enterprise Community Partners, Inc. Federal Alliance for Safe Homes Independent Insurance Agents and Brokers ofAmerica Independent Insurance Agents of NorthCarolina Independent Insurance Agents of Wisconsin Institute for Business and Home Safety International Code Council National Association of Mutual InsuranceCompanies National Council of Structural EngineersAssociations Property Insurance Plans Services Office R Street Institute Reinsurance Association of America Structural Engineers Association of California United Policyholders US Resiliency Council Wisconsin Insurance Alliance“This bipartisan, common-sense legislation ensures consistent federal tax treatment for grants received byhomeowners for mitigation work and encourages state-based mitigation and resiliency programs in directfurtherance of a federal responsibility.”Written consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolJOIN US ON THE JOURNEYWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, displaying or transmitting any material from this presentation. NCIUA NCOIL March 2020

North Carolina Joint Underwriting Association FAIR PlanNorth Carolina Insurance Underwriting Association Coastal Property Insurance PoolOPPORTUNITIES1) Assist with Securing State and FederalFunding2) Encourage more legislators to co-sponsorfederal legislation H.R. 5494 exemptinggrants from Federal Taxation3) Encourage other residual plans andprivate market insurers to educatepolicyholders and provide enhancementcoverage4) Engage with the Building CommunityWritten consent must be requested from and given by NCIUA/NCJUA prior to copying, reproducing, display

North Carolina Insurance Underwriting Association Coastal Property Insurance Pool HURRICANE AMOUNT OF LOSS CATEGORY Katrina, 2005 160.2 Billion CAT 3 Harvey, 2017 128.2 Billion CAT 4 Maria, 2017 91.8 Billion CAT 4 Sandy, 2012 70.7 Billion CAT 3 Irma, 2017 51.0 Billion CAT 4 Andrew,