RATE-MAKING AMENDMENTS.-AB

View NCGA Bill Details2019-2020 Session
Senate Bill 133 (Public) Filed Tuesday, February 26, 2019
AN ACT TO AMEND THE INSURANCE RATE-MAKING LAWS, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE.
Intro. by Johnson, Burgin, Sawyer.

Status: Re-ref Com On Rules and Operations of the Senate (Senate action) (May 7 2019)

SOG comments (1):

Identical bill

Identical to H 221, filed 2/27/19.

S 133

Bill Summaries:

  • Summary date: May 2 2019 - More information

    Senate committee substitute to the 1st edition makes the following changes.

    Amends GS 58-36-65, Classifications and Safe Driver Incentive Plan (Plan) for nonfleet private passenger motor vehicle insurance by amending the definition of conviction as it is used in the statute to now mean a plea of guilty, a plea of no contest, or the determination of guilt by a jury or by a court, even if no sentence has been imposed, or if imposed, has been suspended, and it includes a forfeiture of bail or collateral deposited to secure appearance in court of the defendant, unless the forfeiture has been vacated and means an infraction. Makes clarifying changes to subsection (j). 

    Further amends subsection (k) of GS 58-36-65, by clarifying that the provisions allowing for the subclassification plan to provide for premium surcharges for insureds having less than eight years' driving experience as licensed drivers, applicable to insureds receiving a driver's license for the first time on or after October 1, 2019, are notwithstanding subsection (j).

    Makes clarifying changes to new subsection (k1) in GS 58-36-65.

    Adds the requirement that the Department of Insurance conduct public outreach on how the provisions of the act may impact insurance premiums for policyholders and experienced and inexperienced drivers. Requires the outreach to include information published on the Department's website and allows for coordination with members of the insurance industry and the North Carolina Rate Bureau. 


  • Summary date: Feb 26 2019 - More information

    Amends GS 58-36-10 concerning the method of insurance rate making. Requires that due consideration be given to investment income from capital and surplus by the NC Rate Bureau in making and using rates. 

    Makes organizational and clarifying changes to GS 58-36-43(a) regarding the authorization of optional program enhancements which do not alter coverage under the NC Rate Bureau's jurisdiction. Adds a new prohibition against a company conditioning any rating criteria upon the acceptance by the policyholder of any authorized optional automobile or homeowners' enhancements. Repeals GS 58-36-43(b), thereby eliminating the requirement for insurers to utilize certain statistical codes in reporting premiums and losses resulting from program enhancements filed under the statute. 

    Amends GS 58-36-65, Classifications and Safe Driver Incentive Plan (Plan) for nonfleet private passenger motor vehicle insurance. Amends subsection (j), requiring subclassification plan surcharges for convictions for which four or more points under the Plan are assigned to be applied to a policy for a period of five policy years (all other subclassification plan surcharges are to be applied to a policy for a period of three policy years, as currently provided in the statute). Excludes convictions for speeding violations. Effective October 1, 2020.

    Amends subsection (k) of GS 58-36-65, allowing for the subclassification plan to provide for premium surcharges for insureds having less than eight years' driving experience as licensed drivers, applicable to insureds receiving a drivers license for the first time on or after October 1, 2019 (currently permits premium surcharges for insureds having less than three years' driving experience as licensed drivers). Makes conforming changes.

    Enacts new subsection (k1) in GS 58-36-65, providing licensed drivers subject to premium surcharges pursuant to subsection (k) for a period of eight years eligibility for an inexperienced safe driver discount after three full years of driving if the driver has no at-fault accidents or conviction on their driving record. Provides further parameters for the inexperienced safe driver discount. Requires the discount be filed by the NC Rate Bureau for approval with the Commissioner of Insurance. Effective October 1, 2019.


Printer-friendly: Click to view