11-1-09 NC State Mandated Auto Insurance Rate Changes

Posted by Benji Riggins on November 23, 2009 under Insurance News | Be the First to Comment

Most of our 11-1-09 program changes simply reflect the settlement of a private passenger auto rate dispute between the North Carolina Rate Bureau (NCRB) and the Insurance Commissioner (DOI). The settlement reduces the overall rate level for private passenger voluntary liability and physical damage rates and “clean risk” liability rates in the NCRF by about 10%. We have also made some minor adjustments to our rates to adjust for loss results for specific types of risks.

The NCRB/DOI settlement also requires member companies to refund to policyholders the portion of the premium it collects on each policy that exceeds the settled rates, plus interest.

New & Renewal policies with effective dates between January 1st, 2009 and October 31st, 2009 will be reviewed for any potential escrow refunds in 2010. In general, the settlement requires that escrow refunds for 6-month policies must be refunded between 5/1/2010 and 7/30/2010 and 12-month policies must be refunded between 11/1/2010 and 1/30/2011. Escrow refunds on 12-month policies that have expired prior to 4/30/2010 can be refunded along with the 6-month policies in the 5/1/2010-7/30/2010 window.

Our current plans are to refund escrow for 6-month policies and 12-month policies (that have expired by 4/30/2010) in mid-June. The remaining 12-month policy escrow refunds will be processed in late November or early December. Consent to Rate physical damage premiums and NCRF premiums for “non-clean risks” are not subject to refund.