Amends GS 58-36-30 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.
Amends GS 58-37-35 to require rate for clean risks on policies reinsured by the NC Motor Vehicle Reinsurance Facility that become effective on or after January 1, 2016, 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, 2016, and the actuarially sound rate for all risks reinsured by the Facility must be eliminated over a two-year period. Effective January 1, 2016.
Effective January 1, 2018, amends GS 58-37-35 again to delete the requirement of establishing a separate subclassification for clean risks. Removes all references to clean risks.
Enacts new GS 58-36-43 to allow a member company writing private automobile insurance to incorporate optional enhancements to their automobile programs as an endorsement to an automobile policy if the insurer has filed the proposed enhancement with the Commissioner and if the proposed enhancement is approved by the Commissioner. Requires proposed premium charges to be included with the proposed program enhancements filed with the Commissioner. Requires the Commissioner to approve proposed premium charges if the Commissioner finds that they are based on sound actuarial principles. Provides that neither the acceptance, renewal of a policy, nor any underwriting rating criteria are to be conditioned by a company upon the acceptance by the policyholder of any optional automobile enhancements. Provides that any premiums, expenses, or losses associated with individual company automobile program enhancements are not to be submitted to its statistical organization for inclusion with the data required by the Rate Bureau for rate‑making purposes.
Effective July 1, 2015.
Bill Summaries: H498 DEPOPULATE REINSURANCE FACILITY/OPT. ENHTS.
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Bill H 498 (2015-2016)Summary date: Apr 2 2015 - View Summary