The Associated Press recently reported on efforts by the General Assembly to re-evaluate regulations involving car insurance permiums in the state. Among the sources cited in the article is Dr. David Marlett, Walker College professor and chair Finance, Banking and Insurance department.

The article describes the North Carolina Reinsurance Facility, which is a "pool for drivers that insurers aren't willing to insure at the rates worked out through the Rate Bureau." Legislators are looking at ways to decrease the number of drivers in that pool, while also keeping overall rates low. It's a delicate balancing act.

Marlett suggested lawmakers could consider granting flexible rates to encourage insurers to take on more bad risks currently in the pool. The change would lower the facility size, and the surcharge for everyone could fall.

That, however, doesn't resolve the huge number of clean risks in the pool. Some argue allowing insurers to charge higher rates for clean risk could raise the percentage of drivers who avoid insurance altogether.

There are good things about North Carolina's market, Marlett said. It's competitive, average premiums are low and auto insurers make profits. But the size of the facility should raise flags, Marlett said.

"We have the largest one in the nation by far, and that's the sign of an unhealthy market," he said.

A $50,000 gift from Reznick Group in Charlotte will support research activities of faculty in the Department of Accounting within Walker College of Business at Appalachian State University.

The gift, to be paid in five annual installments, will support faculty research by providing funds to purchase materials that support their work, give them the flexibility to focus on research during summer months when they otherwise might be engaged in teaching courses, and provide funds to attend and present their research at professional meetings, according to Dr. Tim Forsyth, chairman of the Department of Accounting in Appalachian’s Walker College of Business.

FORSYTH

“Awards such as this are real morale boosters for our faculty,” Forsyth said.

The first award will be presented to Assistant Professor Pennie Bagley during Beta Alpha Psi honor fraternity’s spring banquet. Bagley’s research interests include auditing research, focusing on accountability, behavioral issues and audit education.

“This award will allow me to focus on research and become established in my academic career,” Bagley said. “I hope my future research activities will benefit the accounting profession.” Bagley joined the faculty at Appalachian in 2010. She was a certified public accountant with Reznick Group before pursuing her Ph.D. from the University of Georgia.

“Reznick Group is proud to financially support the research activities of Assistant Professor Bagley and other professors who will succeed her in their endeavors,” said Office Managing Principal Josh Northcutt, with the Charlotte office. “Appalachian State has always provided an excellent accounting education for their students and we are honored to be part of this long and storied tradition.”

“Reznick Group has provided scholarship support to our students and hired our graduates for many years,” Forsyth said. “This gift represents their long-term commitment to our program that will enhance our ability to attract and retain high quality faculty, such as Dr. Bagley. We are fortunate to have the support of such an outstanding public accounting firm. The gift is even more special because Reznick Group cited the quality of our students as the basis for establishing this award.”

Appalachian’s Department of Accounting offers the Bachelor of Science in business administration degree and the Master of Science (M.S.) degree in accounting. The department enrolls more than 400 students in its undergraduate and graduate degree programs. Graduates of the program consistently exceed the national average on the CPA exam.

Reznick Group is a top 20 national public accounting firm providing accounting, tax and business advisory services to clients nationwide. The firm’s industry experience includes affordable housing, financial services, renewable energy, non-profits, professional services, commercial real estate and technology.

Officials in Rowan County are working to develop a 10-year master plan for the area. To aid in its development, they have hired a Walker College professor to advise them. Dr. Dana Clark, director of the Hospitality and Tourism Management program, is one of a team of "renown experts with vast experience in the North Carolina travel and hospitality arena" who will work on the project, according to a press release.

Work on the project began September 1, 2011, and will continue through February 2012. Research conducted by Clark, including analysis of existing research, attitudinal assets, trends and the vision and expectations of local constituents and visitors, will provide a foundation of data for qualitative evaluation by The Management Office through stakeholder interviews, visitor intercepts, discussions, focus group sessions and funding analysis.

The overall project is a collaboration between the Rowan County Tourism Development Authority and the Salisbury Tourism and Cultural Development Commission.

In 2009 North Carolina passed new rules regarding compensation for storm damage along the state coast. Sometime Friday night or early Saturday those rules may come into practice on a large scale for the first time. That's when Hurricane Irene is scheduled to make landfall on the East Coast.

As of Thursday afternoon, the Outer Banks appear to be a possible target of what might be a category 3 storm. If that occurs, it's almost certain some major damage will be reported. Under the new state law, insurance company liability is capped at $1 billion, but policy holders across the state could bear some of the financial repair burden due to a 10 percent surcharge on their insurance packages.

Will that new funding structure prove workable? Could the surcharge option take effect? The Winston-Salem Journal today talked to a Walker College professor seeking an answer.

"It hasn't been an issue because we've had a mild storm season since the legislative changes were made. Now with Irene out there, this will probably start getting some attention," said David Marlett, chairman of Appalachian State University's Department of Finance, Banking and Insurance.

The chances all property owners would be assessed a surcharge on their insurance policies is remote. It would take a storm among the top 10 costliest in U.S. history hitting in the state's 18-county coastal zone before the owners of homes and businesses elsewhere would have to pay.

"It's very unlikely," Marlett said. "There's a 1 percent chance it could be bigger than what they planned for, and that's when they go to the rest of the state and ask them to contribute."

The WSJ article also includes an online poll asking, "Do you have an emergency preparedness kit?" As of late Thursday afternoon, 72% of 86 respondents said "No, I've never had one."

Marlett was also interviewed this week by Marketplace Morning, a business program on many NPR stations.  The report was broadcast Thursday.