Bill Summary for H 834 (2011-2012)

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Summary date: 

Apr 8 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 834 (Public) Filed Wednesday, April 6, 2011
TO REDUCE THE EXCESSIVE NUMBER OF NORTH CAROLINA DRIVERS INSURED BY THE NORTH CAROLINA REINSURANCE FACILITY BY PROVIDING FOR FILE AND USE RATE DEVIATIONS FOR AUTOMOBILE LIABILITY INSURANCE AND BY PROVIDING A FIVE-YEAR PHASEOUT OF THE "CLEAN RISK" SUBCLASSIFICATION WITHIN THE REINSURANCE FACILITY.
Intro. by Rhyne.

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Bill summary

Identical to S 477, filed 3/30/11.

Amends GS 58-36-30 (deviations) and GS 58-37-35 (the facility; functions; administration) as the title indicates. Adds new subsection (e) to GS 58-36-30 providing that the provisions of the proposed subsection only apply to setting rates for nonfleet private passenger motor vehicle liability insurance. Provides process for an insurer to deviate from the rate set by the North Carolina Rate Bureau. Provides that the Commissioner of Insurance may disapprove a request for a rate deviation only if the commissioner determines that the filing is excessive, inadequate, or unfairly discriminatory. Provides process to be followed if, after a hearing, the commissioner disapproves a deviation filing.
Amends GS 58-37-35 to provide that the phaseout of the "clean risk" subclassification within the reinsurance facility is to take place over a five-year period ending on December 31, 2017. Makes conforming changes to GS 58-37-35 effective January 1, 2018.
Except as otherwise indicated, effective January 1, 2012.