The NC Reinsurance Facility (NCRF) has reduced the surcharge for all new and renewal commercial auto and garage dealer policies. Effective October 1, 2018, there will be a 7.07% surcharge, reduced from the previous 14.61% surcharge. This will be in place “indefinitely,” as opposed to the one year policy previously stated.
*UPDATED FAQs:
Q: Will my pricing go up?
A: Yes. Premiums for auto liability coverages will increase by 7.86%.
Q: If the recoupment surcharge is 7.07%, why are policies increasing by 7.86%?
A: Because the Facility states agents should receive 10% commission on the recoupment charge and JSA will pass on 100% of that.
Q: Does this apply to Garage Dealer Policies?
A: Yes, this recoupment surcharge does apply to garage dealer policies written on admitted paper. This surcharge does not apply to dealer’s physical damage coverage, garagekeeper’s coverage or garage service risks written on non-admitted policies.
Q: Does this apply to personal auto policies?
A: No, this recoupment surcharge just applies to commercial auto policies. This surcharge does not apply to other policies such as physical damage or cargo policies.
Q: Where will this charge be reflected on my policy?
A: It will not be a separate written item; instead the surcharge will be included in premium charges shown for bodily injury and property damage.
