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BREAKING NEWS: New NC Commercial Auto Loss Recoupment To Remain Through Sept 2020

//BREAKING NEWS: New NC Commercial Auto Loss Recoupment To Remain Through Sept 2020

BREAKING NEWS: New NC Commercial Auto Loss Recoupment To Remain Through Sept 2020

The NC Reinsurance Facility (NCRF) reduced the surcharge for all new and renewal commercial auto and garage dealer policies last year. According to a circular letter released by the NCRF, the recoupment that was implemented Oct. 1, 2018, was confirmed to remain the same through September of 2020.

FAQs:

Q: Is there a change from last year?

A: No. Premiums for auto liability coverages will continue to be increased by the 7.86% recoupment surcharge.

Q: If the recoupment surcharge is 7.07%, why are the policies stated at 7.86%?

A: Because the Facility states agents should receive 10% commission on the recoupment charge and JSA passes on 100% of that to the agents.

Q: To which NC policies does this apply?

  • Commercial Auto Policies
  • Garage Dealer Policies written on admitted paper

Q: What is exempt from the Commercial Auto Loss recoupment?

  • Personal Auto Policies
  • Physical Damage Premium or Policies
  • Cargo Policy Premium or Policies
  • Garagekeeper’s Legal Liability Coverage Premium
  • Garage Service Risks written on non-admitted paper

Q: Where is this reflected on my policy?

A: The surcharge is included in premium charges shown for bodily injury and property damage. It is not a separate line item.

Q: Where can I read more about this?

A: You can read the NCRF circular letter RF-19-6 HERE

2019-06-27T10:12:38+00:00 June 20th, 2019|0 Comments