Section 1 amends GS 58­36­30 to add a provision concerning setting of rates for nonfleet private passenger motor vehicle liability insurance. Allows an insurer to deviate from the rates if the insurer files the proposed deviation with the NC Rate Bureau and the Commissioner of Insurance and if it is based on sound actuarial principles. Allows the Commissioner to disapprove a deviation filing only if the Commissioner determines that the filing is excessive, inadequate, or unfairly discriminatory. Provides that deviations above the Bureau rate up to the applicable rates established for risks ceded to the Reinsurance Facility are presumed not to be excessive, inadequate, or unfairly discriminatory. Requires a written order with specified information if, after a hearing, the Commissioner disapproves a deviation filing. Allows an insurer to terminate a deviation only if the deviation has been in effect for a period of six months before the effective date of the termination and the insurer notifies the Commissioner of the termination no later than 15 days before the effective date of the termination. Makes conforming changes.

Section 2 amends GS 58­37­35 to require rate for clean risks on policies reinsured by the NC Motor Vehicle Reinsurance Facility that become effective on or after January 1, 2018, to be established on a schedule that provides that any difference between rates charged for clean risks reinsured in the Facility on policies becoming effective immediately before January 1, 2018, and the actuarially sound rate for all risks reinsured by the Facility must be eliminated over a two­year period. Further amends GS 58­37­ 35, effective January 1, 2020, to remove reference to the clean risk subclassification.

Section 3(a) amends GS 58­37­40(e) to direct that insurers that cede more than 75% of their direct written motor vehicle insurance premiums in NC to the Facility shall not receive a ceding expense allowance that exceeds 20% of the total NC motor vehicle insurance premiums written on ceded business.

Section 3 (b through d) amends GS 58­37­45 to limit cession to the Facility to no more than 95% of any company's direct written motor vehicle insurance premiums in the State, except as specifically approved by the commissioner, until January 1, 2019, at which point the limit is changed from 95% to 90%, until January 1, 2020, at which point the limit is changed from 90% to 85%.

Section 4 amends GS 58­36­5 to require insurers under new GS 58­36­7 (described below) electing to develop rates and forms under this Article, to subscribe to and become members of the Bureau.

Enacts new GS 58­36­7 (Membership election for certain motor vehicle insurers) directing insurance organizations writing insurance for nonfleet private passenger motor vehicles to develop rates and forms pursuant to either GS Chapter 58, Article 36, or Article 40. Directs the insurer to make its election by notifying the Commissioner.

Enacts new GS 58­36­8, making GS Chapter 58, Article 40, inapplicable to insurers insuring nonfleet private passenger motor vehicles who elect to develop their rates and forms under Article 36, and vice versa.

Amends GS 58­40­15 to make technical and conforming changes.

Except as described, effective January 1, 2018.