Rate Decrease For Online NC Commercial Auto Program

//Rate Decrease For Online NC Commercial Auto Program

Rate Decrease For Online NC Commercial Auto Program

As you are likely aware, rates through the NC Reinsurance Facility (NCRF) have been increasing over the past several years. At JSA, we are deeply invested in your success and it was important for us to find a way to help you continue writing business. That is why we are pleased to announce, effective May 3rd, 2019, the rates for the excess layer we offer through our Online Commercial Auto Program have decreased!

Q: What are the recent rate changes in the NCRF?

A: On April 1st, 2019, a rate increase went into effect which resulted in a close to 100% increase for units with a radius over 200 miles, most other classes are seeing increases in the 7-20% range

Q: What exactly is the excess layer with the JSA Online Commercial Auto Program?

A: If a risk is only eligible for cession to the NCRF at a $750,000 limit, an excess layer of $250,000 can be offered if the risk meets a few broad underwriting guidelines. If offered, the excess layer is administered “behind the scenes” and the quote you are able to present shows a limit of $1,000,000. As of May 3rd, 2019, the pricing of this excess layer has decreased.

Q: Is this NCRF rate increase in addition to the NCRF’s implementation of commercial auto recoupment on October 1, 2018?

A: Yes, the NCRF April 1st increase is in addition to the recoupment charge.

Q: Will my pricing go up despite the decrease on the excess layer?

A: Yes, in all likelihood. The April 1, 2019 rate increase and the implementation of recoupment will result in an increase in pricing if comparing it to the same risk at this time last year. We hope the decrease of the excess layer will put our product in a better position in the marketplace.

JSA genuinely does care about your ability to retain and write new business, and we are working every day to help you achieve your goals. If you have any questions at all, please do not hesitate to contact me at any time.

As always, thank you for your business!

-Tommy Hefner

Transportation Manager

NOTE: If you would like to read the official NCRF circulars
on the April 2019 Rate Increase, please read:

RF-18-14  11/29/18 Revision of Commercial Auto Insurance Rates and Rules – Effective April 1, 2019

RF-18-15  12/6/18 ADDITIONAL RESERVATION Commercial Auto insurance Rates and Rules – Effective April 1, 2019

2019-05-05T14:59:53+00:00 May 7th, 2019|0 Comments