Insurers try to make sure they're covered.

• Position: North Carolina's insurance industry

Two big names in North Carolina insurance suffered accidents during 1997. A bid by Durham-based Blue Cross and Blue Shield of North Carolina for legislation to allow it to become a for-profit company was thwarted by consumer groups. Integon Corp. in Winston-Salem racked up big losses early in the year and ended up selling out to General Motors Acceptance Corp.

Blue Cross stubbed its toe last summer. It asked lawmakers for the ability to switch from being a nonprofit by issuing stock, and it wanted to keep all the stock itself to sell as needed. Consumer advocates called that a rip-off. Blue Cross, they said, became the state's biggest health insurer because of generous state and federal tax breaks. So if it became a for-profit, the public should share in the payoff.

Lawmakers listened, ignored Blue Cross's urgent pleas and high-priced lobbyists and sent the matter to a study commission for further research.

It fared better in September, when, with a group of Blue Cross plans from across the Southeast, it won a contract with the U.S. Department of Defense to provide managed care to military personnel and their dependents. Blue Cross says the contract will bring in $1 billion over five years.

Integon didn't recuperate. It lost $34.8 million in the first quarter, following a $17.8 million loss for fourth quarter 1996. The company, which insures high-risk drivers, had grown too quickly, as had underwriting losses, debt and competition. Detroit-based GMAC stepped in to buy the company in October for $550 million. GMAC wants to increase its high-risk automotive insurance, so Integon's 1,300 workers in Winston-Salem will likely keep their jobs.

In the homeowners segment of the market, companies are still skittish about writing policies down east because of Hurricane Fran. But as of Jan. 1,1998, they have more incentive to do so. The North Carolina Beach Plan assesses all property-insurance carriers in the state if the 18 coastal counties are hit with excessive losses. Under a revised plan, the more policies a carrier writes in those counties, the less it will be assessed. Another change designed to encourage carriers is that they can exclude wind coverage in those areas. Property owners can buy that coverage from the beach plan instead.

Bill Stimac, who heads North Carolina claims for Ohio-based Nationwide Insurance Co., says it's too soon to tell whether incentives will work. The number of Nationwide homeowners policies in its market of...