"If (fire districts) do become unrated that does dramatically affect homeowner insurance rates," Runger said.

Runger said Currituck Fire Chief Dusty Ruscoe has spoken with the state Fire Marshal's Office - a division of the Department of Insurance, and he as assured state officials the contract dispute will end soon.

If, however, the county cannot reach agreements with Lower Currituck, Carova Beach, Corolla and Crawford fire districts, the ratings eventually would be revoked, she said. Getting the departments rated again won't be easy, she added.

"If they become unrated, it could take six to nine months to get them back on track," Runger said.

Currituck spokeswoman Diane Sawyer said county officials don't believe the four departments will lose their favorable ISO ratings. She said Ruscoe is organizing a meeting with area fire chiefs which should lead to an agreement.

Last week, the Carova Beach VFD e-mailed County Manager Dan Scanlon, stating its officials won't sign the new contract. The contract, according to Carova Beach Fire Chief Bill Vann, "looks like a first big step in a complete takeover of the operation and ownership of the individual departments."

Vann and other fire officials say the new contract, which requires the departments to turn over their bookkeeping and auditing duties to the county, is the county's attempt to take over full control of the volunteer fire departments.

County officials say the contracts are nothing more than their attempt to improve accountability of public funds.