Bill Text: NC S428 | 2015-2016 | Regular Session | Amended
Bill Title: Surcharge Transparency
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-30 - Re-ref Com On Insurance [S428 Detail]
Download: North_Carolina-2015-S428-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
S 1
SENATE BILL 428
Short Title: Surcharge Transparency. |
(Public) |
|
Sponsors: |
Senator Brock (Primary Sponsor). |
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Referred to: |
Rules and Operations of the Senate. |
|
March 26, 2015
A BILL TO BE ENTITLED
AN ACT to provide that north carolina auto insurance surcharges imposed to subsidize the losses of the North Carolina Motor vehicle reinsurance facility be clearly communicated to policyholders.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58‑37‑40(f) reads as rewritten:
"(f) The plan of operation shall provide that
every member shall, following payment of any pro rata assessment, begin
recoupment of that assessment by way of a surcharge on motor vehicle insurance
policies issued by the member or through the Facility until the assessment has
been recouped. Any surcharge under this subsection or under subsection (e) of
this section shall be a percentage of premium adopted by the Board of Governors
of the Facility; and the charges determined on the basis of the surcharge shall
be combined with and displayed as a part of the applicable premium charges. itemized
and displayed to the policyholder in substantially the same manner as the
applicable premium charge is displayed in communications with the policyholder.
Recoupment of losses sustained by the Facility since September 1, 1977,
with respect to nonfleet private passenger motor vehicles may be made only by
surcharging nonfleet private passenger motor vehicle insurance policies. If the
amount collected during the period of surcharge exceeds assessments paid by the
member to the Facility, the member shall pay over the excess to the Facility on
a date specified by the Board of Governors. If the amount collected during the
period of surcharge is less than the assessments paid by the member to the
Facility, the Facility shall pay the difference to the member. Except as
otherwise provided in this Article, the amount of recoupment shall not be
considered or treated as a rate or premium for any purpose. The Board of
Governors shall adopt and implement a plan for compensation of agents of
Facility members when recoupment surcharges are imposed; that compensation
shall not exceed the compensation or commission rate normally paid to the agent
for the issuance or renewal of the automobile liability policy issued through
the North Carolina Reinsurance Facility affected by the surcharge. However, the
surcharge shall include an amount necessary to recover the amount of the
assessment to member companies and the compensation paid by each member, under
this section, to agents."
SECTION 2. This act is effective when it becomes law, and applies to motor vehicle insurance policies issued or renewed on or after January 1, 2017.